Manufacturing Fact Sheet 

Key Points

• The manufacturing industry is a vital part of the Australian economy. The latest data from the Australian Bureau of Statistics (ABS) shows that manufacturing industry employs over 972,100 Australians, and contributed $100.9 billion or 8.4 per cent to our GDP in 2009.
• Since 1999, the manufacturing sector has grown at an annual average rate of 0.7 per cent, whereas over the same period, the Australian economy has recorded an annual average growth rate of 3.1 per cent.
• Manufacturing exports were worth $81.5 billion in 2009; this represents 41.5 per cent of Australia’s total exports.
• However, economic conditions have affected manufacturing employment, which fell by around 21,400 persons through the year to May 2010 (down 2.2 per cent compared to May 2009).
• The national unemployment rate for July 2010 increased 0.2 per cent to 5.3 per cent (seasonally adjusted). The participation rate increased 0.2 percentage points to 65.5 per cent (seasonally adjusted).
• Key statistical information is also available on the Department's manufacturing data card.

Facts and Figures

Table 1: Industry Gross Value Added, Chain Volume Measures ($ million)

Note: Figures may not add due to rounding.
Source: ABS, Australian National Accounts: National Income, Expenditure and Product (Cat No 5206.0), Table 6.

Since 1999, the manufacturing sector grew by an annual average rate of 0.7 per cent. The growth rate was 3.1 per cent for the economy in general over the same period.  Over the same period, output in Textile, Clothing and Other Manufacturing contracted by an average rate of 4.5 per cent per annum.  This has been somewhat offset by annual average growth in IVA for the same period in Non-Metallic Mineral Products; Metal Products; and Machinery and Equipment.  This reflects, in part, the outputs from these sectors being used by the resources sector.

Table 2: Total Manufacturing Employment by State and Territory, original ('000s)

Note: Figures may not add due to rounding.
Source: ABS, Labour Force, Australia, Detailed, Quarterly, February 2010 (Cat No 6291.0.55.003)

Table 3: Total Manufacturing Employment by industry sub-divisions, original ('000s)

Note: Figures may not add due to rounding.
Source: ABS,  Labour Force, Australia, Detailed, Quarterly, February 2010 (Cat No 6291.0.55.003)

In the May 2010 quarter, manufacturing employed 972,100 Australians and accounted for 8.8 per cent of the total workforce, down from 9.2 per cent in the May 2009 quarter.  Employment in the manufacturing industry contracted by 21,400 persons (a decrease of 2.2 per cent) over the year from the May 2009 quarter to the May 2010 quarter.

Most of the job losses during the twelve months to May 2010 occurred in New South Wales (down by 13,800 jobs), Victoria (down 7,100), Western Australia (down 8,600), and Tasmania (down 1,400).  Job losses in Australian manufacturing continue to reflect the restructuring, downsizing, and in some cases closure of manufacturing businesses.

Over the year from May 2009 to May 2010 jurisdictions with growing manufacturing employment were Queensland with an increase of 4,900 jobs, South Australia with an increase of 2,600, the Northern Territory with an increase of 1,100 jobs and the Australian Capital Territory with an increase of 800 jobs.

Within manufacturing sub-divisions, most of the job losses in the 12 months to May 2010 occurred in: Manufacturing not further defined (down by 5,500 jobs), Fabricated Metal (down by 13,600 jobs), Polymer Product and Rubber Product (down 6,400 jobs) and Printing including the Reproduction of Recorded Media (down by 8,300 jobs), indicating that economic conditions are still contributing to job losses within these sub-divisions.

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

Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0, Table 32a)

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

Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0, Table 35a)

Manufacturing exports for 2009 were $81.5 billion (in original prices), and accounted for 41.5 per cent of all exports of goods. Manufacturing exports have fallen by 13.4 per cent since 2008. This is slightly above the 11.6 per cent fall in exports for all industries, but manufacturing’s share of all exports of goods has remained at a similar level to 2008. The major manufacturing exports were Primary Metal and Metal Products; Food Product; Machinery and Equipment and Basic Chemical and Chemical Product. 

Manufacturing imports for 2009 were $178.5 billion, a fall of 11.3 per cent from the $201.2 billion in 2008. Overall, Australia’s total imports fell by 11.2 per cent in 2009 to $200.6 billion. Manufacturing’s share of imports remained virtually unchanged at 89 per cent. Machinery and Equipment; Transport Equipment; Basic Chemical and Chemical Product; and Primary Metal and Metal Product were the major import items in 2009.

Table 6: Private New Capital Expenditure, Current Prices, Original ($ million)

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 2.8 per cent since 1999 to be around $12.2 billion in 2009.