4 Trends in Australian Manufacturing

When the future of modern manufacturing is discussed, it’s usually China that attracts the most attention. There’s a reason for this, but it doesn’t mean that other large economies are trailing that much behind. For instance, Australian manufacturing has been steadily growing for years and it’s becoming increasingly innovative.

This is partly due to the fact that Australia has an educated population able to find jobs in this industry, but also owing to its unique location that allows it to dominate both Asian and Western markets.

 

Key materials

The key to having a robust manufacturing industry is the access to materials needed for it. Australia is lucky to have the resources needed to supply its manufacturers for the years to come. However, as it is the case with any mining industry, there are pressing environmental concerns to have in mind, since expanding this industry is less important than preserving the environment.

 The industry currently has 3 billion dollars in profit but that doesn’t mean that it’s peaked. The advances in technology will change the industry in ways we can’t imagine at this point and the biggest mining companies need to keep their eye on it.

 

Changing industrial landscape

The landscape of this vast industry is changing. Due to the fact that there are more competitors than ever the industry is becoming more specialized and focused on the particular parts of the production process. There are both upsides and downsides to this approach.

For instance, a company producing the undercarriage components can focus on creating those parts alone while the rest of the process can be outsourced and often completed outside of the country. It allows for better management decisions while making it more difficult for manufactures to grow and expand their line of work.

 

A new market

Australian manufacturing is finding a new market in Asia and in the Pacific. These regions are rapidly growing in all industries and in all fields of production. That means that they are in need of manufacturing and they don’t have the infrastructure and the workforce needed to create these sophisticated products.

These markets will remain important and even dominate in the years or even decades to come. At the same time, Australia should prepare for the emergence of African market. It will start in South Africa but it will soon grow far beyond that.

 

Automation

Automation is what’s on everyone’s mind in almost all industries. The biggest expense for any business is the price of labour both in terms of salaries and in terms of the preparation needed to educate and train the best workers. Automation will significantly reduce these costs but it will also eliminate many jobs.

The automation could also make the workers much safer and allow the management to have a higher level of control of the production process. This technological innovation will probably change Australian manufacturing more than anything else ever. The companies working in the industry will try to understand and advance the technology and the workers will need to adapt.

 

Australian manufacturing is a booming industry on the cutting edge of tech innovation and globalization. That will make it even more lucrative and important in the years to come, as the world and the tech change. Since this is a fast-changing industry, detailed long-term predictions remain difficult to make.

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