Manufacturing is one of the most lucrative and fastest growing industries in Australia. This unique industry was always at the intersection of the latest technology and the global tendency in trade. It’s hard to predict what the entire industry might do, but there’s a chance that manufacturing will remain competitive in the years to come.
At the same time, the type of employees that are starting to work in this industry is much different than it was years ago. This is partly due to the rise of automation and partly because manufacturing requires a more sophisticated and particularly trained worker.
The largest market that needs to be supplied by Australian manufacturers is probably the emerging Asian market. The Chinese economy is growing and expanding and they have a need for manufacturing of all kinds which means that they need Australian labor to provide the best work they can.
Japan and South Korea are also competitive in this market, but since Australia has a much larger population and a larger worker base, it can provide more and in more diverse industries than any of these countries.
Mining and manufacturing are closely related since mining provides the materials needed to actually do the work. It’s a source of great productivity for Australian industry because mining requires a lot of sophisticated equipment in order to be done safely and in the most lucrative manner. For instance, track undercarriage production is booming in Australia in order to support the mining industry.
As is the case everywhere else, Australian mining needs to be concerned about the effects they have on the environment. Soon, the profits and the environmental concerns might become mutually exclusive and Australian companies need to make a choice.
Governmental policies are what helps a growing industry more than anything else. Australia has done a lot to prop up companies of all sizes, working in the manufacturing and industries related to it. This is best done by a tax policy because saving on taxes can help business more than anything else.
Research and development tax cuts are used to help companies fund their technological advances. All the funding that was used to organize research gets deducted from the yearly taxes. However, it needs to be research that can be used by companies beyond your own.
The latest development in manufacturing is also the one that changes every other industry in Australia. The cost of labor is often too much for businesses to handle and investing in automating the production process becomes a less expensive option for many. At the same time, since this is often dangerous work that requires the workers to pay close attention – automation also makes everyone safer.
Advances in 3D printing allow the companies to manufacture their own tools and to assemble the whole production specifically to their needs at the moment. This, in turn, leads to more specialized work and therefore, to larger profit margins.
Australian manufacturing is a booming industry and it will continue to be so in the years to come. The country is uniquely positioned to handle both Western and Asian markets and it has qualified labour to do the job. At the same time, the government is supporting the growth of manufacturing via research and development programs.