Manufacturing in Australia

Adults employed in the manufacturing industry as a percentage of the adult population in Australia divided geographically by statistical local area, as of the 2011 census

Income from sales of goods and services by manufacturers ($ millions) since 1985

Manufacturing in Australia peaked in the 1960s at 25% of the country's gross domestic product, and has since dropped below 10%.

History

Quarterly gross operating profits ($millions) in the manufacturing industry since 1994

Australia's export price index for manufactured goods since 1990.

Australia's import price index for manufactured goods since 1981.

The contribution of manufacturing to Australia's gross domestic product peaked in the 1960s at 25%, and had dropped to 13% by 2001–2^[1] and 10.5% by 2005–6.^[2] In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people.^[3]

In 2000–2001, $3.3 billion was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry.^[4] At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development.^[1]

In 2007, the breakdown of manufacturing by state, and the fraction of gross state product (GSP) which it contributed, were as follows:^[5]

Between 2001 and 2007, the approximate breakdown by industry changed as follows: ^[5]

Food processing

Quarterly sales by Australian manufacturing businesses of food products ($A millions) since 1985

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:^[6]

* Before the 2010 closure of the Port Lincoln Tuna cannery

Textile industry

Until trade liberalisation in the mid 1980s, Australia had a large textile industry. This decline continued through the first decade of the 21st century.^[5] Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10 percent on clothing, and 7.5–10% to 5% for footwear and other textiles.^[7] As of 2010, most textile manufacturing, even by Australian companies, is performed in Asia.

Total employment in Australian textile, clothing and footwear manufacturing (thousands of people) since 1984

Motor vehicles

As of 2008, four companies mass produced cars in Australia.^[8] Mitsubishi ceased production in March 2008, followed by Ford in 2016, and Holden and Toyota in 2017.^[9]

Holden bodyworks are manufactured at Elizabeth, South Australia and engines are produced at the Fishermens Bend plant in Port Melbourne, Victoria. In 2006, Holden's export revenue was just under A$1.3 billion.^[10] In March 2012, Holden was given a $270 million lifeline by the Australian government. In return, Holden planned to inject over $1 billion into car manufacturing in Australia. They estimated the new investment package would return around $4 billion to the Australian economy and see GM Holden continue making cars in Australia until at least 2022.^[11] However, Holden announced on 11 December 2013 that Holden cars would no longer be manufactured in Australia from the end of 2017.^[12]

Ford has two main factories, both in Victoria: located in the Geelong suburb of Norlane and the northern Melbourne suburb of Broadmeadows. Both plants were closed down in October 2016.

Until 2006, Toyota had factories in Port Melbourne and Altona, Victoria. Since then, all manufacturing has been at Altona. In 2008, Toyota exported 101,668 vehicles worth $1,900 million.^[13] In 2011 the figures were "59,949 units worth $1,004 million".^[14] On 10 February 2014 it was announced that by the end of 2017 Toyota would cease manufacturing vehicles and engines in Australia.^[15]

In March 2012, a new Australian auto maker, Tomcar, announced they are to build a new factory in Melbourne.^[8]

Chemical industry

Quarterly sales by Australian manufacturing businesses of basic chemicals and chemical products ($A millions) since 1985

Total employment in basic chemicals and chemical product manufacturing in Australia (thousands of people) since 1984

Australia has a chemical industry, including the manufacture of many petrochemicals.^[16]

Many mining companies, such as BHP and Comalco, perform initial processing of raw materials.^[17] Similarly, Australia's agriculture feeds into the chemical industry. Tasmania produces 40% of the world's raw narcotic materials;^[18] some of this is locally converted into codeine and other pharmaceuticals in Tasmania by Tasmanian Alkaloids, owned by Johnson and Johnson, while GlaxoSmithKline processes some of the resulting poppy straw in Victoria.

Companies with manufacturing facilities in Australia

A partial list of companies operating manufacturing facilities in Australia, with their most important products.

Companies that no longer manufacture in Australia

Companies that closed down, or moved manufacturing offshore.

Australian Owned:

• Pacific Brands Clothing
• South Pacific Tyres (Ansell/Goodyear) Tyres

International:

• Ford Australia
• Holden (General Motors) Cars, engines
• Sidchrome (Stanley) Tools
• Bridgestone Tyres
• Mitsubishi Motors Australia Cars
• Nissan Cars, engines
• Toyota Australia
• Electrolux Ovens, refrigerators
• Golden Circle (Heinz) Processed food

See also

• Australian Made
• Ausbuy
• Balance of payments of Australia
• Economy of Australia
• Jackson Committee, established in 1974 by the Whitlam government of Australia to advise on policies for Australia's manufacturing industry

References