KEY POINTS
- The manufacturing industry is a vital part of the Australian economy. The latest data from the Australian Bureau of Statistics shows that manufacturing industry value added reached a record high of $104.7 billion in real terms in 2007-08. This is equivalent to 10.1 per cent of GDP.
- Employment in the manufacturing industry has been relatively stable over the past 10 years at around 1.1 million persons. Around 89 per cent of manufacturing employment is full-time. In addition, average weekly earnings in manufacturing are $1,036, nearly 17 per cent higher than for all industries.
- Manufacturing exports are growing strongly; they have increased by an average annual rate of 5.2 per cent over the last ten years to reach a record $88.4 billion in 2007-08.
- Business expenditure on research and development by the manufacturing industry was at a record high of $3.9 billion in 2005-06. Within manufacturing, the machinery and equipment manufacturing sector is the largest R&D spender.
- Company profits before income tax was also at a record high of nearly $29.4 billion in current prices in 2007-08.
FACTS AND FIGURES
Table 1: Industry Gross Value Added, Chain Volume Measures ($Million)
|
|
1997-98 |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
Year on Year change |
Annual average growth since 1997-98 |
|
Food, beverage and tobacco |
17,291 |
19,054 |
19,023 |
19,195 |
19,055 |
19,228 |
19,159 |
-0.4% |
1.0% |
|
Textiles, clothing, footwear and leather |
5,892 |
4,252 |
3,927 |
3,195 |
2,979 |
2,932 |
2,805 |
-4.3% |
-7.2% |
|
Wood and paper products |
6,132 |
6,843 |
6,817 |
6,870 |
6,601 |
6,443 |
6,177 |
-4.1% |
0.1% |
|
Printing, publishing and recorded media |
9,013 |
10,370 |
10,684 |
10,419 |
10,221 |
10,463 |
10,771 |
2.9% |
1.8% |
|
Petroleum, coal, chemical |
13,455 |
15,397 |
14,717 |
14,717 |
14,117 |
13,935 |
14,234 |
2.1% |
0.6% |
|
Non-metallic mineral products |
3,135 |
4,175 |
4,317 |
4,529 |
5,048 |
5,156 |
5,385 |
4.4% |
5.6% |
|
Metal products |
16,783 |
18,256 |
18,290 |
17,770 |
17,591 |
19,437 |
21,695 |
11.6% |
2.6% |
|
Machinery and equipment |
15,823 |
17,829 |
18,750 |
18,851 |
19,692 |
19,644 |
20,192 |
2.8% |
2.5% |
|
Other manufacturing |
3,455 |
4,365 |
4,654 |
4,283 |
3,869 |
3,867 |
4,311 |
11.5% |
2.2% |
|
Manufacturing |
89,731 |
99,999 |
100,909 |
99,688 |
99,173 |
101,104 |
104,730 |
3.6% |
1.6% |
|
Gross Domestic Product |
735,995 |
878,305 |
913,666 |
939,692 |
967,454 |
999,687 |
1,037,027 |
3.7% |
3.5% |
|
Manufacturing's share of GDP |
12.2% |
11.4% |
11.0% |
10.6% |
10.3% |
10.1% |
10.1% |
|
|
Note: Figures may not add due to rounding.
Source: ABS, Australian National Accounts: National Income, Expenditure and Product (Cat No 5206.0)
Over the past ten years, the manufacturing sector has been growing by an annual average rate of 1.6 per cent – well down on the growth rate of 3.5 per cent for the economy in general over the same period. In the last ten years, output in textile, clothing, footwear and leather manufacturing contracted sharply by an average rate of 7.2 per cent per annum. However, this has been more than offset by growth in non-metallic mineral product manufacturing, metal product manufacturing, and machinery and equipment manufacturing, primarily driven by demand from the mining and construction industries.
Table 2: Change in Total Manufacturing Employment (000s) – by State and Territory
|
|
Aug-1998 |
Aug-2003 |
Aug-2007 |
Aug-2008 |
Year on Year change |
Annual average growth since 1997-98 |
|
New South Wales |
362.1 |
340.7 |
329.4 |
314.2 |
-4.6% |
-1.4% |
|
Victoria |
342.7 |
333.3 |
330.5 |
326.0 |
-1.4% |
-0.5% |
|
Queensland |
179.6 |
179.8 |
195.2 |
210.8 |
8.0% |
1.6% |
|
Western Australia |
93.1 |
93.8 |
95.6 |
103.1 |
7.8% |
1.0% |
|
South Australia |
96.3 |
100.0 |
92.4 |
94.8 |
2.6% |
-0.2% |
|
Tasmania |
23.5 |
20.9 |
23.3 |
21.7 |
-6.9% |
-0.8% |
|
Northern Territory |
3.1 |
2.8 |
3.1 |
4.7 |
51.6% |
4.2% |
|
Australian Capital Territory |
4.4 |
6.8 |
4.2 |
3.9 |
-7.1% |
-1.2% |
|
Total |
1,104.8 |
1,078.0 |
1,073.8 |
1,079.3 |
0.5% |
-0.2% |
Source: ABS, Labour Force, Australia, Detailed, Quarterly, August 2008 (Cat No 6291.0.55.003)
Table 3: Change in Total Manufacturing Employment (000s) –by Manufacturing Subdivision
|
|
Aug-1998 |
Aug-2003 |
Aug-2006 |
Aug-2007 |
Aug-2008 |
Year on Year change |
Annual average growth since 1997-98 |
|
Food, Beverage and Tobacco Manufacturing |
183.8 |
169.4 |
184.7 |
199.7 |
205.8 |
3.1% |
1.1% |
|
Textile, Clothing, Footwear and Leather Manufacturing |
92.7 |
72.4 |
51.2 |
53.3 |
39.2 |
-26.5% |
-8.3% |
|
Wood and Paper Product Manufacturing |
64.5 |
88.7 |
69.5 |
63.2 |
68.3 |
8.2% |
0.6% |
|
Printing, Publishing and Recorded Media |
107.7 |
110.2 |
114.3 |
105.8 |
98.4 |
-7.0% |
-0.9% |
|
Petroleum, Coal, Chemical and Associated Product Mfg |
100.5 |
97.4 |
85.7 |
92.7 |
98.4 |
6.2% |
-0.2% |
|
Non-Metallic Mineral Product Manufacturing |
53.8 |
43.5 |
40.4 |
41.6 |
44.8 |
7.8% |
-1.8% |
|
Metal Product Manufacturing |
185.9 |
165.3 |
173.9 |
153.2 |
164.1 |
7.1% |
-1.2% |
|
Machinery and Equipment Manufacturing |
217.7 |
227.6 |
224.7 |
234.0 |
237.6 |
1.5% |
0.9% |
|
Other Manufacturing |
98.1 |
76.3 |
67.6 |
53.2 |
64.5 |
21.1% |
-4.1% |
|
Manufacturing - nfd |
0.0 |
27.1 |
45.7 |
77.1 |