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.