Australia: The State of Manufacturing


Manufacturing as a whole is growing in Australia. This trend has been noticeable for years now and it’s going to continue in this manner in the years to come. This is partly because the construction industry is growing and that affects everyone in the market and partly because of the constant influx of workers coming from all over the world.

The industry is also facing some challenges, mostly in regards to changes in technology and the time it takes for the workers to adapt to these changes. However, there’s going to be more jobs and higher salaries in manufacturing for years.

The price of materials

The demands in the materials market are changing. Younger homeowners and business owners want the materials used for their construction projects to be eco-friendly and not to waste energy. This is causing manufacturing businesses to turn to traditional materials, such as wood and earth.

The increase in demand obviously means that the prices are increasing as well. This, in turn, will lead to additional money being poured into research to create more eco-friendly materials and to make them more accessible.

The infrastructure industry

One of the biggest markets of interest for manufacturers is the emerging infrastructure industry. Before any region can develop its industry and other economic potentials, it needs to have roads, an electricity grid, and access to the internet. This is especially noticeable in the Asia-Pacific region, which is experiencing fast growth and needs these commodities as quickly as possible.

This region represents the largest portion of the market. It’s expected to continue to grow for the next five years at least because there are large construction projects planned for the region. Most of these will require manufacturing and expertise in Australia.

Automotive industry

The automotive industry is always closely connected to the growth of construction and infrastructure. It also leads to the growth of manufacturing. Professionals working in manufacturing are needed to maintain and expand on the successes of the automotive industry. At this point, it is a 75-billion-dollar industry in Australia and most people working in it say that they expect it to grow further.

Spare parts will probably be the most important part of this growth since that will employ the most workers from every part of the country and with all levels of expertize. For instance, replacing the ASV rubber tracks is going to be needed for both the construction machinery and the agriculture vehicles.


The need for materials and energy is increasing the role mining plays in manufacturing. The materials are becoming scarce and their prices are rising which means the mining companies need to find ways to work more efficiently and cost-effectively. This is mostly done by investing in safer and more productive technologies that are making mines safer and easier to manage.

At the same time, there are many smaller mining companies working hard on establishing brand names. This creates a competitive environment in which mining companies are improving their working condition in order to keep up with the market.


In the end, the overall growth and expansion of the industry mean that there’s a need for more labor and most importantly, for cheaper labor. This is especially true as it relates to the infrastructure, customer support and other marginal activities that can actually add up and mean a lot.

In order to save money in this manner, more people are outsourcing this work. Outsourcing means that the cost of wages is much smaller for the employers while remaining competitive for the employees due to the difference between the economy of their countries and the economy of Australia. It’s important to have in mind that there are still managerial expenses when so much work is outsourced.

Manufacturing in Australia is growing and improving. It’s going to employ more people in the years to come because the Asia-Pacific market will grow as well. The role technology plays in this industry will also become more prominent.