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 985,000 Australians, and contributed $103.4 billion or 8.7 per cent to our GDP in 2008-09.
- From 1998-99 to 2008-09, the manufacturing sector grew by an annual average rate of 0.9 per cent, whereas over the same period, the Australian economy has recorded an annual average growth rate of 3.2 per cent.
- Manufacturing exports were worth $81.4 billion in 2009; this represents 41.5 per cent of Australia’s total exports.
- However, the global financial crisis has affected manufacturing employment, which has fallen by around 29,300 persons through the year to November 2009 (down 2.9 per cent compared to November 2008).
- The national unemployment rate for January 2010 decreased 0.2 per cent to 5.3 per cent from its December level of 5.5 per cent while the participation rate remained unchanged at 65.3 per cent.
Facts and Figures
Table 1: Industry Gross Value Added, Chain Volume Measures ($ million)
|
Industry |
1998-99 |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
Year on Year |
Annual average growth since 1999 -09 |
|
Food, beverage and tobacco |
19,608 |
20,882 |
21,086 |
20,895 |
21,103 |
21,077 |
20,434 |
-3.1% |
0.4% |
|
TCF and leather |
7,642 |
6,948 |
6,055 |
5,553 |
5,501 |
5,761 |
5,160 |
-10.4% |
-3.9% |
|
Wood and paper products |
6,696 |
7,492 |
7,548 |
7,283 |
7,079 |
6,804 |
6,289 |
-7.6% |
-0.6% |
|
Printing, publishing and recorded media |
3,493 |
4,733 |
4,439 |
4,246 |
4,290 |
4,399 |
3,630 |
-17.5% |
0.4% |
|
Petroleum, coal, chemical |
17,719 |
19,369 |
19,388 |
18,760 |
18,415 |
18,879 |
16,989 |
-10.0% |
-0.4% |
|
Non-metallic mineral products |
3,367 |
4,338 |
4,526 |
5,059 |
5,174 |
5,407 |
5,375 |
-0.6% |
4.8% |
|
Metal products |
20,889 |
22,240 |
21,661 |
21,691 |
23,839 |
26,533 |
25,678 |
-3.2% |
2.1% |
|
Machinery and equipment |
16,499 |
19,677 |
19,667 |
20,424 |
20,403 |
21,084 |
19,875 |
-5.7% |
1.9% |
|
Total Manufacturing |
94,906 |
105,196 |
103,998 |
103,722 |
105,660 |
109,944 |
103,431 |
-5.9% |
0.9% |
|
Total Industry Value Added |
875,919 |
1,035,750 |
1,065,166 |
1,097,866 |
1,139,256 |
1,181,750 |
1,194,695 |
1.1% |
3.2% |
|
Manufacturing share of GDP |
10.8%
|
10.2%
|
9.8%
|
9.4%
|
9.3%
|
9.3%
|
8.7% |
-6.9% |
-2.2% |
Note: Figures may not add due to rounding.
Source: ABS, Australian National Accounts: National Income, Expenditure and Product (Cat No 5206.0), Table 33.
From 1998-99 to 2008-09, the manufacturing sector grew by an annual average rate of 0.9 per cent – well down on the growth rate of 3.2 per cent for the economy in general over the same period. Over the same period, output in textile, clothing, footwear and leather manufacturing contracted sharply by an average rate of 3.9 per cent per annum. However, this has been offset by growth in non-metallic mineral products manufacturing; metal products manufacturing; 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)
|
|
Nov - 2000 |
Nov - 2005 |
Nov - 2006 |
Nov - 2007 |
Nov - 2008 |
Aug -2009 |
Nov -2009 |
Change from last quarter |
Change from Nov 2008 to Nov 2009 |
Percentage of 12 month change |
Annual average growth since 1999-09 |
|
New South Wales |
322.3 |
316.9 |
295.3 |
318.8 |
297.8 |
306.3 |
302.1 |
-4.2 |
4.3 |
1.4% |
0.8% |
|
Victoria |
356.7 |
328.1 |
310.2 |
322.2 |
306.4 |
306.9 |
294.9 |
-11.9 |
-11.5 |
-3.8% |
-1.1% |
|
Queensland |
172.8 |
179.3 |
188.6 |
185.4 |
190.6 |
193.2 |
183.0 |
-10.1 |
-7.6 |
-4.0% |
1.1% |
|
Western Australia |
88.3 |
91.7 |
93.5 |
92.7 |
96.1 |
82.4 |
82.5 |
0.1 |
-13.6 |
-14.1% |
-1.1% |
|
South Australia |
88.0 |
94.1 |
94.7 |
94.8 |
96.7 |
98.0 |
96.3 |
-1.6 |
-0.3 |
-0.4% |
0.7% |
|
Tasmania |
22.9 |
23.0 |
20.7 |
24.9 |
18.1 |
19.5 |
18.1 |
-1.3 |
0.0 |
0.1% |
-2.8% |
|
Northern Territory |
4.2 |
2.5 |
2.7 |
4.2 |
4.0 |
4.6 |
5.4 |
0.8 |
1.4 |
34.3% |
3.2% |
|
Australian Capital Territory |
4.7 |
4.8 |
4.9 |
2.0 |
4.8 |
3.5 |
2.9 |
-0.6 |
-2.0 |
-40.5% |
-5.7% |
|
Total manufacturing |
1,059.9 |
1,040.4 |
1,010.5 |
1,045.0 |
1,014.7 |
1,014.3 |
985.4 |
-28.9 |
-29.3 |
-2.9% |
-0.5% |
|
Total Australia |
9,010.8 |
10,064.4 |
10,330.7 |
10,621.7 |
10,778.2 |
10,706.5 |
10,848.8 |
142.3 |
70.6 |
0.7% |
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing share |
11.8% |
10.3% |
9.8% |
9.8% |
9.4% |
9.5% |
9.1% |
0.0 |
0.0 |
-3.5% |
-2.5% |
Source: ABS, Labour Force, Australia, Detailed, Quarterly, November 2009 (Cat No 6291.0.55.003)
Table 3: Total Manufacturing Employment by industry sub-divisions, original ('000s)
|
|
Nov - 2000 |
Nov - 2005 |
Nov - 2006 |
Nov - 2007 |
Nov - 2008 |
Aug - 2009 |
Nov - 2009 |
Change from last quarter |
Change from Aug 2008 to Aug 2009 |
Percentage of 12 month change |
Annual average growth since 1999-09 |
|
Manufacturing, nfd ; |
24.2 |
64.3 |
58.0 |
70.1 |
70.5 |
91.2 |
79.7 |
-11.5 |
9.2 |
13.0% |
52.4% |
|
Food Product |
180.7 |
178.5 |
186.9 |
204.6 |
207.3 |
196.0 |
203.4 |
7.4 |
-3.9 |
-1.9% |
1.3% |
|
Beverage and Tobacco Product |
24.8 |
26.6 |
22.9 |
22.0 |
34.4 |
28.3 |
28.4 |
0.1 |
-6.0 |
-17.3%
|
5.3% |
|
Textile, Leather, Clothing and Footwear |
87.2 |
59.9 |
46.8 |
53.0 |
42.4 |
49.6 |
42.5 |
-7.1 |
0.1 |
0.3% |
-7.1 |
|
Wood Product |
42.9 |
54.2 |
48.0 |
47.3 |
47.8 |
41.5 |
45.7 |
4.2 |
-2.1 |
-4.4% |
0.9% |
|
Pulp, Paper and Converted Paper |
26.0 |
26.2 |
28.0 |
19.4 |
20.6 |
21.5 |
14.0 |
-7.5 |
-6.5 |
-31.7% |
-6.3% |
|
Printing (includes Reproduction of Recorded Media) |
60.7 |
54.2 |
47.8 |
54.7 |
48.4 |
56.5 |
50.8 |
-5.7 |
2.4 |
4.9% |
-1.3% |
|
Petroleum and Coal Product |
11.9 |
9.9 |
6.9 |
7.2 |
8.2 |
6.0 |
5.6 |
-0.4 |
-2.6 |
-31.7% |
-2.2% |
|
Basic Chemical and Chemical |
48.0 |
39.8 |
45.6 |
44.8 |
43.5 |
49.4 |
49.4 |
0.0 |
5.9 |
13.6% |
-0.4 |
|
Polymer Product and Rubber |
42.8 |
39.4 |
41.4 |
43.2 |
34.2 |
34.6 |
34.0 |
-0.6 |
-0.2 |
0.7% |
-2.9% |
|
Non-Metallic Mineral Product |
40.8 |
34.6 |
31.8 |
42.6 |
39.4 |
36.4 |
33.3 |
-3.1 |
-6.1 |
-15.5% |
-4.4% |
|
Primary Metal and Metal Product |
71.9 |
85.3 |
83.1 |
76.8 |
84.7 |
79.9 |
79.8 |
-0.1 |
-4.9 |
-5.8% |
3.9% |
|
Fabricated Metal Product |
100.4 |
78.8 |
76.8 |
73.9 |
64.7 |
58.3 |
59.1 |
0.8 |
-5.6 |
-8.7% |
-7.0% |
|
Transport Equipment |
95.5 |
111.7 |
110.0 |
103.6 |
89.4 |
93.0 |
79.9 |
-13.1 |
-9.5 |
-10.6% |
-0.8% |
|
Machinery and Equipment |
117.9 |
113.5 |
113.5 |
120.8 |
119.1 |
123.2 |
125.9 |
2.7 |
6.8 |
5.7% |
0.8% |
|
Furniture and Other |
84.4 |
63.5 |
63.0 |
61.1 |
60.1 |
48.9 |
53.8 |
4.8 |
-6.4 |
-10.6% |
-5.0% |
|
Total Manufacturing |
1,059.9 |
1,040.4 |
1,010.5 |
1,045.0 |
1,014.7 |
1,014.3 |
985.4 |
-28.9 |
-29.3 |
-2.9% |
-0.5% |
|
Total- all industries |
9,010.8 |
10,064.4 |
10,330.7 |
10,621.7 |
10,778.2 |
10,706.5 |
10,848.8 |
142.3 |
70.6 |
0.7% |
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of manufacturing |
11.8% |
10.3% |
9.8% |
9.8% |
9.4% |
9.5% |
9.1% |
0.0 |
0.0 |
-3.5% |
-2.5% |
Source: ABS, Labour Force, Australia, Detailed, Quarterly, November 2009 (Cat No 6291.0.55.003)
In the November 2009 quarter, manufacturing employed 985,400 Australians and accounted for 9.1 per cent of the total workforce, down from 9.4 per cent in the November 2008 quarter. Employment in the manufacturing industry contracted by 29,300 persons (a decrease of 2.9 per cent) in the November 2009 quarter compared with the November 2008 quarter.
Most of the job losses from November 2008 to November 2009 occurred in Western Australia (down by 13,600), Victoria (down by 11,500), followed by Queensland (7,600). These job losses continue to reflect restructuring, downsizing, and in some cases, the closure of manufacturing businesses as a result of the impacts of the global financial crisis.
Over the year from November 2008 to November 2009 the only state and territory with manufacturing employment growth was New South Wales with an increase of 4,300 jobs and the Northern Territory with an increase of 1,400.
Within manufacturing sub-divisions, most of the job losses in the 12 months to November 2009 occurred in: Transport Equipment (down by 9,500 jobs), Pulp, Paper and Converted Paper (down by 6,500), Furniture and Other (down by 6,400), Non-Metal Mineral Product (down by 6,100) and Beverage and Tobacco Product (down by 6,000) indicating that current economic conditions are still contributing to job losses within these sub-divisions.
Table 4: Manufacturing Exports, Fob Value, Original ($ millions)
|
|
2006 |
2007 |
2008 |
2009 |
Year on Year |
Annual average growth since 2006 |
|
Food Product |
14,014 |
13,353 |
15,213 |
14,158 |
-6.9% |
0.3% |
|
Beverage and Tobacco Product |
3,029 |
3,268 |
2,802 |
2,623 |
-6.4% |
-4.7% |
|
Textile, Leather, Clothing and Footwear |
2,226 |
2,265 |
2,138 |
1,688 |
-21.0% |
-8.8% |
|
Wood Product |
1,244 |
1,312 |
1,441 |
1,137 |
-21.1% |
0.0% |
|
Pulp, Paper and Converted Paper Product |
911 |
972 |
1,046 |
910 |
-13.0% |
3.5% |
|
Printing (including the Reproduction of Recorded Media) |
299 |
250 |
262 |
218 |
-16.8% |
-10.0% |
|
Petroleum and Coal Product |
3,242 |
3,367 |
3,741 |
2,609 |
-30.3% |
-7.0% |
|
Basic Chemical and Chemical Product |
6,421 |
7,353 |
7,601 |
7,145 |
-6.0% |
3.6% |
|
Polymer Product and Rubber Product |
1,102 |
1,259 |
1,306 |
1,180 |
-9.6% |
2.3% |
|
Non-Metallic Mineral Product |
303 |
267 |
258 |
253 |
-1.9% |
-5.8% |
|
Primary Metal and Metal Product |
30,244 |
34,295 |
36,915 |
31,492 |
-14.7% |
1.4% |
|
Fabricated Metal Product |
1,074 |
1,233 |
1,340 |
1,262 |
-5.8% |
5.5% |
|
Transport Equipment |
5,667 |
5,743 |
6,808 |
4,214 |
-38.1% |
-9.4% |
|
Machinery and Equipment |
10,089 |
10,914 |
11,570 |
10,713 |
-7.4% |
2.0% |
|
Furniture and Other |
1,210 |
1,131 |
1,427 |
1,561 |
9.4% |
8.9% |
|
Publishing (except Internet and Music Publishing) |
212 |
240 |
230 |
226 |
-1.7% |
2.2% |
|
Total Manufacturing |
81,287 |
87,222 |
94,098 |
81,389 |
-13.5% |
0.0% |
|
Total - (ANZSIC) 2006 |
163,753 |
168,386 |
222,341 |
196,090 |
-11.8% |
6.2% |
|
|
|
|
|
|
|
|
|
Manufacturing's share |
49.6% |
51.8% |
42.3% |
41.5% |
|
|
|
Due to change in ANZSIC code, information before 2005 is unavailable |
Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0, Table 32a)
Table 5: Manufacturing Imports, Current Prices, Original ($ million)
|
|
2006 |
2007 |
2008 |
2009 |
Year on Year |
Annual average growth since 2006 |
|
Food Product |
5,986 |
6,728 |
7,832 |
8,074 |
3.1% |
10.5% |
|
Beverage and Tobacco Product |
1,626 |
1,856 |
2,115 |
2,204 |
4.2% |
10.7% |
|
Textile, Leather, Clothing and Footwear |
8,799 |
9,058 |
10,040 |
9,927 |
-1.1% |
4.1% |
|
Wood Product |
1,201 |
1,302 |
1,386 |
1,214 |
-12.4% |
0.4% |
|
Pulp, Paper and Converted Paper Product |
2,910 |
3,057 |
3,237 |
2,839 |
-12.3% |
-0.8% |
|
Printing (including the Reproduction of Recorded Media) |
1,154 |
1,282 |
1,631 |
1,635 |
0.2% |
12.3% |
|
Petroleum and Coal Product |
9,149 |
8,785 |
15,842 |
10,906 |
-31.2% |
6.0% |
|
Basic Chemical and Chemical Product |
17,658 |
18,997 |
22,204 |
20,340 |
-8.4% |
4.8% |
|
Polymer Product and Rubber Product |
5,919 |
6,274 |
6,993 |
6,724 |
-3.8% |
4.3% |
|
Non-Metallic Mineral Product |
1,735 |
1,836 |
2,109 |
1,995 |
-5.4% |
4.8% |
|
Primary Metal and Metal Product |
10,619 |
11,877 |
17,393 |
14,620 |
-15.9% |
11.2% |
|
Fabricated Metal Product |
5,316 |
5,789 |
7,263 |
6,731 |
-7.3% |
8.2% |
|
Transport Equipment |
27,616 |
29,769 |
33,717 |
24,317 |
-27.9% |
-4.2% |
|
Machinery and Equipment |
53,845 |
56,269 |
61,849 |
59,652 |
-3.6% |
3.5% |
|
Furniture and Other |
5,521 |
5,907 |
6,688 |
6,511 |
-2.6% |
5.7% |
|
Publishing (except Internet and Music Publishing) |
861 |
876 |
938 |
868 |
-7.5% |
0.3% |
|
Total Manufacturing |
159,915 |
169,662 |
201,237 |
178,557 |
-11.3% |
3.7% |
|
Total - (ANZSIC) 2006 |
176,089 |
187,873 |
225,946 |
200,598 |
-11.2% |
4.4% |
|
|
|
|
|
|
|
|
|
Manufacturing's share |
90.8% |
90.3% |
89.1% |
89.0% |
|
|
|
Due to change in ANZSIC code information before 2005 is unavailable |
Source: ABS, International Trade in Goods and Services, Australia (Cat No 5368.0, Table 35a)
Manufacturing exports for 2009 were $81.4 billion (in current prices), and accounted for 41.5 per cent of all exports of goods. Manufacturing exports have fallen by 13.5 per cent since 2008. This is slightly above the 11.8 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 $178.6 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)
|
|
1999 |
2005 |
2006 |
2007 |
2008 |
2009 |
Year on Year |
Annual average growth since 1999 |
|
Food Product |
1,506 |
1,724 |
1,704 |
1,565 |
2,081 |
1,994 |
-4.2% |
2.8% |
| Beverage and Tobacco Product |
689 |
701 |
669 |
722 |
675 |
499 |
-26.1% |
-3.2% |
|
Textile, Leather, Clothing and Footwear |
216 |
215 |
155 |
119 |
106 |
151 |
42.5% |
-3.5% |
|
Wood Product |
337 |
190 |
237 |
208 |
150 |
393 |
162.0% |
1.5% |
| Pulp, Paper and Converted Paper Product |
656 |
577 |
619 |
558 |
771 |
511 |
-33.7% |
-2.5% |
|
Printing (including the Reproduction of Recorded Media) |
467 |
415 |
401 |
420 |
357 |
546 |
52.9% |
1.6% |
|
Petroleum and Coal Product |
392 |
822 |
467 |
346 |
876 |
632 |
-27.9% |
4.9% |
| Basic Chemical and Chemical Product |
787 |
1,357 |
955 |
1,102 |
956 |
985 |
3.0% |
2.3% |
| Polymer Product and Rubber Product |
360 |
559 |
426 |
473 |
472 |
511 |
8.3% |
3.6% |
|
Non-Metallic Mineral Product |
385 |
602 |
511 |
478 |
539 |
757 |
40.4% |
7.0% |
|
Primary Metal and Metal Product |
1,251 |
3,729 |
4,173 |
3,318 |
3,467 |
3,265 |
-5.8% |
10.1% |
| Fabricated Metal Product |
690 |
788 |
874 |
939 |
941 |
777 |
-17.4% |
1.2% |
| Transport Equipment |
861 |
1,205 |
1,278 |
800 |
665 |
438 |
-34.1% |
-6.5% |
|
Machinery and Equipment |
595 |
679 |
538 |
339 |
501 |
691 |
37.9% |
1.5% |
|
Furniture and Other |
59 |
84 |
91 |
82 |
157 |
114 |
-27.4% |
6.8% |
|
Total Manufacturing |
9,255 |
13,648 |
13,100 |
11,874 |
12,713 |
12,268 |
-3.5% |
2.9% |
|
|
|
|
|
|
|
|
|
|
|
Total - all industries |
48,068 |
72,301 |
82,598 |
93,416 |
106,796 |
110,096 |
3.1% |
8.6% |
| |
|
|
|
|
|
|
|
|
|
Manufacturing Share |
19.3% |
18.9% |
15.9% |
12.7% |
11.9% |
11.1% |
-6.4% |
-5.3% |
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 2.9 per cent since 1999 to be around $12.3 billion in 2009.