Last Updated on December 25, 2019 by Evan Retallack
While it has had its struggles in recent years, the Australian manufacturing industry remains a key part of the local economy.
At last estimate in 2013-14, the Australian government calculated that the sector made up at least 6.5 per cent of gross domestic product (GDP). Additionally, the manufacturing industry employs more than 929,000 people – around a twelfth of the total Australian workforce.
As such, it is pleasing to report that the manufacturing sector expanded 2.3 points to reach 52.5 points in November, cited in the Australian Industry Group/Australian Performance of Manufacturing Index. A figure above 50 points is the mark of an industry in growth, rather than contraction.
This result bookends five straight months of growth and highlights the potential of the many sub-sectors. In fact, five out of the eight manufacturing sub-sectors continued to expand in November. This included:
- Wood and paper products (67.2 points)
- Non-metallic mineral products (58 points)
- Petroleum, coal, chemical and rubber products (57.4 points)
- Food and beverages (52.4 points)
- Textiles, clothing, footwear, furniture and others (52 points)
Ai Group Chief Executive, Innes Willox, explained that there are many reasons behind this great result for the manufacturing industry.
"Improvements in sales, exports, production, new orders and employment underwrote another stronger manufacturing performance in November," he said.
"The more positive conditions are due to the more competitive level of the Australian dollar; the considerable cost savings and other efficiencies that manufacturers have introduced over recent years; and continuing strong demand from residential construction businesses."
With the manufacturing industry moving through a period of positive growth, businesses are urged to invest in this potential now. For example, this could come in the form of plastic pallets from Eco Pallets.
As well as having a working life that is 10 times better than wooden alternatives, plastic pallets are strong, hygienic and suitable to a wide range of manufacturing applications.
For more information about what products are available, contact the helpful team at Eco Pallets today.