Why Manufacturing Matters

Why Manufacturing Matters.

Australia’s manufacturing sector and its capabilities are diverse

Manufacturing is a vital capability for Australia. Manufacturing underpins economic growth and international trade, while creating numerous highly skilled, well paid jobs. Manufacturing plays a key role in regional development and innovation, is Australia’s most innovation-intensive industry. Australian manufacturing has some of the world’s highest standards for sustainability, product standards and consumer protections. Modern manufacturing capabilities are increasingly referred to as “sovereign capabilities”, underpinning complex value chains that are essential to the nation’s future prosperity.

of private R&D spend

1

is contributed annually to GDP

1

of Australia’s exports come from manufacturing

1

private sector research staff are employed.

Benefits of
Manufacturing

Manufacturing is contributing to the economic growth in Australia

The sector has traditionally played a key role in the Australian economy and was the largest contributor to GDP until the mid-2000s, when it was overtaken by the booming mining industry. Since then, the contribution of Australian manufacturing to real GDP has been growing; however, faster growth in other sectors of the economy means manufacturing now accounts for a smaller proportion of Australian GDP today (c.11% in 1990 vs c.6% in 2020).

$ 0 bn

contributed to the national economy

$ 0 bn

of manufacturing merchandise exported

Benefits of
Manufacturing

Australian manufacturing enables high standards of environmental and
consumer protection

The Australian manufacturing industry is an important employer, with an estimated c.890,000 workers as of February 2021, which has been broadly steady since 2015.4 Manufacturing supports 1.3 million jobs, directly and indirectly, accounting for more than 10% of Australia’s workforce.

0 % less

C02e per dollar of real GDP contributions

0 % p.a

emissions reduction of manufacturing since 1990

Benefits of
Manufacturing

Australian manufacturing provides a large number
of skilled, high-paying,
fulltime jobs

0

jobs are supported by the manufacturing industry

0 %

are employed on a full time basis

Benefits of
Manufacturing

Australian manufacturers invest in innovation, automation
and R&D

Successful Australian manufacturers are adopting and incorporating advanced technology and automation within their production processes. Australian manufacturers have a strong focus on applying technologies in our local context to achieve high levels of efficiency and productivity, alongside benefits of greater customisation and ‘servitisation’ of manufacturing. These applications are used by global equipment suppliers to showcase their capabilities for deployments in larger markets.