(Last Reviewed :  16/10/2008 )

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

58.2

-24.6%

N/A

Total Manufacturing

1,104.8

1,078.0

1,057.8

1,073.8

1,079.3

0.5%

-0.2%

Total- all industries

8,555.6

9,412.3

10,168.0

10,435.8

10,673.4

2.3%

2.2%

Manufacturing's share of Total

12.9%

11.5%

10.4%

10.3%

10.1%

 

 

 nfd – not further defined

 Employment in the manufacturing industry has been relatively stable at around 1.1 million persons over the past ten years.  Over the same period, employment for the economy as a whole has grown by an annual average 2.2 per cent.  This has led to manufacturing's share of total employment falling from 12.9 per cent in August 1998 to 10.1 per cent in August 2008.  Around 89 per cent of all manufacturing employment is full-time.

Within manufacturing, there have been large falls in employment in the textiles, clothing, footwear and leather sector over the past decade.  These have been offset by growth in employment in food, beverage and tobacco and machinery and equipment manufacturing.

 
Table 4: Manufacturing Exports, Current Prices, Original ($ Million)

 

1997-98

2002-03

2006-07

2007-08

Year on Year change

Annual average growth since 1997-98

Food, Beverage and Tobacco Manufacturing

12,206

15,721

17,666

17,286

-2.2%

3.5%

Textile, Clothing, Footwear and Leather Manufacturing

3,000

2,758

1,680

1,645

-2.1%

-5.8%

Wood and Paper Product Manufacturing

1,213

1,883

2,183

2,314

6.0%

6.7%

Printing, Publishing and Recorded Media

469

586

581

550

-5.3%

1.6%

Petroleum, Coal, Chemical and Associated Product Mfg

5,652

8,029

11,190

12,336

10.2%

8.1%

Non-Metallic Mineral Product Manufacturing

348

325

287

265

-7.7%

-2.7%

Metal Product Manufacturing

16,881

19,517

34,628

35,356

2.1%

7.7%

Machinery and Equipment Manufacturing

12,758

15,813

15,717

17,305

10.1%

3.1%

Other Manufacturing

780

1,176

1,450

1,378

-5.0%

5.9%

Total Manufacturing

53,307

65,808

85,382

88,435

3.6%

5.2%

Total Goods and Services

114,362

151,467

214,212

231,404

8.0%

7.3%

Manufacturing's share of Total

46.6%

43.4%

39.9%

38.2%

 

 

Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0)

Table 5: Manufacturing Imports, Current Prices, Original ($ Million) 

 

1997-98

2002-03

2006-07

2007-08

Year on Year change

Annual average growth since
1997-98

Food, Beverage and Tobacco Manufacturing

3,834

5,960

8,156

8,929

9.5%

8.8%

Textile, Clothing, Footwear and Leather Manufacturing

6,039

7,841

8,852

9,136

3.2%

4.2%

Wood and Paper Product Manufacturing

2,836

3,759

4,051

4,204

3.8%

4.0%

Printing, Publishing and Recorded Media

1,892

2,191

2,246

2,476

10.2%

2.7%

Petroleum, Coal, Chemical and Associated Product Mfg

13,803

21,247

32,638

38,850

19.0%

10.9%

Non-Metallic Mineral Product Manufacturing

1,158

1,631

1,816

1,924

5.9%

5.2%

Metal Product Manufacturing

7,303

9,925

16,791

19,155

14.1%

10.1%

Machinery and Equipment Manufacturing

46,103

66,284

83,981

90,191

7.4%

6.9%

Other Manufacturing

2,781

4,199

5,825

6,240

7.1%

8.4%

Total Manufacturing

85,749

123,037

164,356

181,105

10.2%

7.8%

Total Goods and Services

117,849

166,591

225,082

229,721

2.1%

6.9%

Manufacturing's share of Total

72.8%

73.9%

73.0%

78.8%

 

 

Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0)

Manufacturing exports were at a record high of $88.4 billion in 2007-08 (in current prices), and accounted for over 38 per cent of all exports of goods and services.  Manufacturing exports have grown by an annual average 5.2 per cent over the past ten years.  Major manufacturing exports were metal products and machinery and equipment (including motor vehicles and parts, Australia's largest manufacturing export product group).

Manufacturing imports were also at a record high of $181.1 billion in 2007-08, and accounted for 78.8 per cent of all imports of goods and services.  Around one-half of all manufacturing imports were machinery and equipment (including motor vehicles and parts, Australia's largest import product group).

Table 6: Private New Capital Expenditure, Current Prices, Seasonally Adjusted ($ 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

2,436

2,616

2,278

2,411

2,467

2,309

2,495

8.1%

0.2%

Textiles, clothing, footwear and leather

283

227

202

276

187

163

144

-11.7%

-6.5%

Wood and paper products

888

720

913

710

808

742

1,092

47.2%

2.1%

Printing, publishing and recorded media

792

562

543

574

878

590

609

3.2%

-2.6%

Petroleum, coal, chemical

1,595

1,608

2,086

2,445

2,470

1,965

2,413

22.8%

4.2%

Non-metallic mineral products

869

958

591

709

844

723

739

2.2%

-1.6%

Metal products

1,670

2,155

2,668

3,377

4,817

4,607

3,806

-17.4%

8.6%

Machinery and equipment

2,101

2,183

1,875

1,876

2,498

1,739

1,456

-16.3%

-3.6%

Other manufacturing

301

367

257

328

483

461

640

38.8%

7.8%

Manufacturing

10,980

11,367

11,418

12,690

15,461

13,267

13,397

1.0%

2.0%

Total - all industries

46,133

50,835

51,213

57,484

72,563

77,577

86,247

11.2%

6.5%

Manufacturing's share of Total

23.8%

22.4%

22.3%

22.1%

21.3%

17.1%

15.5%

 

 

 Source: ABS, Private New Capital Expenditure and Expected Expenditure, Australia (Cat No 5625.0)

Private new capital expenditure by the manufacturing industry has grown at an annual average rate of 2.0 per cent over the ten years to 2007-08 to $13.4 billion, despite easing since the historical high in 2005-06 (in current prices).  However, this is less than one-third the growth rate for private new capital expenditure by all industries over the same period.

The only manufacturing sectors to grow at faster rates than for all industries over the past decade have been metal products manufacturing and other manufacturing.  The downstream flow-on effect of the minerals boom assisted in increasing investment these sectors.