Despite the doom and gloom stories about Australian manufacturing, there is still plenty of local manufacturing taking place in many sectors. While it is true that the manufacturing sector in Australia has been gradually shrinking (the number of manufacturers in Australia has fallen from 96,000 10 years ago to just under 84,000 last year), Professor Peter Gahan from the University of Melbourne says that manufacturing remains an important contributor to Australia’s GDP.
“All in all, the evidence overwhelmingly suggests the Australian manufacturing sector has, even in a period of decline, continued to represent a core source of economic prosperity for Australia – and should continue to do so. In short, it has outperformed many other sectors in terms of its contribution to Australia’s sustained economic performance and its capacity to generate quality jobs. It still produces around 6.5 per cent of Australia’s GDP.”
A 2016 CSIRO report into Advanced Manufacturing in Australia stated that “Australian manufacturing can and must be a thriving component of Australia’s economy through the application of advanced manufacturing technologies, systems, and processes. The sector will focus on pre-production (design, R&D) and post-production (after-sales services) value-adding, sustainable manufacturing, and low volume, high margin customised manufacturing”.
The CSIRO also concluded that opportunities will also emerge for businesses that embrace the circular economy concept, taking responsibility for whole-of-life impacts. Businesses can achieve step-change improvements to resource efficiency through waste reduction, recycling, remanufacturing and reuse. From energy-efficient products to products designed with recycling, recovery and collaborative consumption in mind.