| Article appears in June 2019 Issue

STAT ATTACK: MANUFACTURING GROWS REVENUES FASTER THAN JOBS

31-05-2019

The latest industry-wide figures from the Australian Bureau of Statistics show the manufacturing sector punching well above its weight in the productivity stakes.

The data, from the 2017/18 tax year, show that earnings before interest, tax, depreciation and amortisation (EBITDA) across the manufacturing sector grew by 10.8% over the previous year to a robust $3.5 billion, while employment rose by a paltry 1.2%, from 830,000 to 840,000 over the same period.

Wages and salaries in the manufacturing industry grew 2.9% from 2016/17 to 2017/18.

One of the few sectors to beat this performance was wholesale trade, with strong growth in EBITDA of 24.5% (to $4.4 billion), while employment in that sector actually fell by 0.9% from 545,000 to 540,000.

The construction industry was also buoyant in the 2017/18 tax year, with EBITDA up by 9.8% (to $4.1 billion) and employment up by 4.2%.

In contrast, the agriculture, forestry and fishing industry was in decline, with EBITDA falling by 12.9% (to $3.0 billion), with employment falling by 0.4% from 484,000 to 482,000.

Among the largest contributors to employment growth in Australia during the period covered were the professional, scientific and technical services industry (up by 6.2%) and the administrative and support services industry (up by 6.3%).

RELATED NEWS

  1. According to the Deloitte 2022 Manufacturing Industry Outlook, The global manufacturing industry is building back fast, undeterred by significant labour and supply chain challenges. To maintain this momentum, Deloiite suggests that manufacturers navigate elevated risks while advancing...
  2. Manufacturers play a critical role in Australia’s economic success. But an innovative, tech-driven sector doesn’t thrive in isolation. It requires support via government funding, strategic consultation and a vibrant research community to help fuel its growth. The good news? It’s all within reach. ...
  3. The Reserve Bank (RBA) Governor, Philip Lowe, delivered a speech to the Press Club in early February. 
    Make no mistake, Lowe has a tough job! Navigating the economic outlook amid heightened uncertainty from the pandemic is no easy feat. 
    The speech followed a pivotal RBA meeting on February 1. The...