none

Manufacturing on rise despite fall in employment

02-02-2010
by 
in 

The manufacturing sector has opened the year in positive territory with a modest rise in activity across most sectors.

The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index (Australian PMI®) rose 2.5 points to 51.0 in January (readings above 50.0 indicate a rise in activity).

Manufacturing activity expanded in the month on the back of a lift in new orders and exports.

The sector saw renewed demand in the housing and resources sectors, particularly for companies involved in construction materials, transport equipment and petroleum and coal products. 

Overall activity expanded despite the first contraction in employment in three months.

Ai Group chief executive, Heather Ridout, said: "While manufacturing made a relatively encouraging start to the year, the performance of key components remained patchy, with a rise in new orders broadly offset by a heavy run down in stocks and a decline in employment.

"With output in the sector having fallen by 7.8 per cent in the year to the September quarter 2009, and with around 80,000 jobs lost from the sector in 2009, a sustained upswing in manufacturing activity is needed to fill the large chunk taken out of the sector by the global economic downturn," Ms Ridout said.

PricewaterhouseCoopers Global Head of Industrial Manufacturing, Graeme Billings, said: "Despite the continued improvement in the broader economy, manufacturers are finding revenue growth to be a major challenge. 

“In January profit margins were squeezed further by a decline in selling prices and a slight acceleration in input costs and wages growth.

“In recent months, the rate of capacity utilisation in the manufacturing sector has lifted to be more or less in line with the long-run average, and it is therefore vital that manufacturers seek new ways in which to boost their levels of productivity."

Related news & editorials

  1. Bonfiglioli’s extensive range of quality products are designed to meet the needs of the maritime industry.
    10.03.2021
    10.03.2021
    by      In , In
    As an island continent, Australians are well aware of the need for a robust and efficient maritime sector.
    Indeed, the maritime industry equates to an estimated annual global revenue of $6.88 billion and around $2.32 billion of this belongs to our local economy, according to the Australian Industry... Read More
  2. 04.02.2021
    04.02.2021
    by      In
    As the global aerospace industry evolves, new challenges emerge.
    Production delays, manufacturing materials shortages and even counterfeit parts, can keep your fleet grounded.
    Aerospace OEMs and their supply chains demand manufacturing partnerships with the highest levels of precision, quality... Read More
  3. 21.01.2021
    21.01.2021
    by      In
    The roller chain drives lurking in warehouses and factories across the country are outdated.
    They require regular lubrication and retensioning and even then they corrode over time. Now there’s a better way.
    Design for high torques and high performance, even with heavy loads the Delta chain carbon... Read More
  4. 21.01.2021
    21.01.2021
    by      In
    Reliable and accurate measurement of linear displacement has been a long standing challenge in harsh environments such as machine tools and injection moulding machines.
    But a new range of sensors has risen to the challenge.
    TURCK’s newest generation of contactless linear position sensors make high... Read More
Products
Suppliers