Manufacturing in Australia is declining.
Manufacturing real gross value added (GVA) was $24.3 billion in the December quarter 2016, a decrease of 1.9 per cent from the December quarter of 2015. Measured annually, real GVA of the manufacturing industry fell by 2.7 per cent from $100.3 billion in 2014-15 to $97.6 billion in 2015-16. This is the lowest annual level of real GVA since 1999-2000. (Publication: ABS, Australian national accounts: national income, expenditure and product, Cat no. 5206.0. - May 2017).
Manufacturing in Australia is dominated by four industries.
Four industries represents 78.6% of the Gross Value added and all of them declined over the same period (FY15 vs FY16), with the largest falls recorded in Metal Products (- 5.8 per cent), Machinery and Equipment (- 3.4 per cent) and Petroleum, Coal, Chemical and Rubber Products (- 2.9 per cent). (Publication: ABS, Australian national accounts: national income, expenditure and product, Cat no. 5206.0. - May 2017).
Manufacturing labour productivity in Australia is high.
Labour productivity in the manufacturing industry has been trending upwards over several years. Over the past 16 years it has grown at an annual average rate of 1.6 per cent, which is slightly higher than the corresponding rate for all industries of 1.5 per cent. (Publication: ABS, Australian system of national accounts, Cat no. 5204.0. - May 2017).
Manufacturing in Australia is declining across all sectors of the industry but there is a real opportunity for Australia to build globally competitive high-value manufacturing.