Blog Layout

Insights: Manufacturing in Australia
September 26, 2024

AI Group has this month released a Manufacturing in Australia, Performance Benchmark Report 2024 (The Report), providing insights into how the industry is adapting and operating post-pandemic.


The manufacturing sector in Australia has been undergoing significant transformations, driven by technological advancements, rising costs, changing consumer preferences, and global economic shifts.


According to The Report, manufacturing performance has strongly rebounded during and following the pandemic, with material increases in value-add, employment, exports, financial performance and capital expenditure. In fact, organisations have increased gross operating profit by 9.3% and real output growth of 4.1% from the previous year. However, employment while up since the pandemic, has declined by 1.4% over the last year.

We look at manufacturing employment trends, and other trends in manufacturing that may influence employment in the future.

 

Employment in Manufacturing


While there has been a 5% increase in manufacturing jobs since the pandemic, post-pandemic growth only partially recovers a 15% decline in jobs which occurred over the decade prior. In fact, manufacturing as a share of total Australian jobs has declined from around 10% at the turn of the century to just 6% by 2018.


The Report notes that Australia’s manufacturing workforce has consolidated into core subindustries. The workforce in the food, metals and machinery manufacturing subindustries is around 10-15% higher than a decade earlier, while the smaller branches of manufacturing, which includes thermoplastic foam casting (TFC) manufacturing, wood and timber products, and other durable consumer products have recorded a workforce decline of around 20%.


Over the last two decades, real manufacturing value-add has grown in QLD (16%) and WA (60%), which according to The Report reflects growing demand in these states’ industrial ecosystems, driven by the resource sector and population growth. Manufacturing value-add has declined in NSW and VIC by 15%, and in SA by 40% (the exit of the automotive industry and offshoring of much pharmaceutical manufacturing have played a role in these statistics).


The good news for manufacturing employees is that wages are growing at a similar rate to all private sector industries, increasing by 4.2% - the fastest rate since 2007. The manufacturing workforce has experienced the lowest turnover of all Australian industries, of just 8% which makes for a stable work environment. Furthermore, manufacturing has outperformed other industries with the gender pay gap in Australia, falling from 16.8% to 11.2% over the last decade, although there is still work to do.


This workforce consolidation reflects the broader Australian trend towards growth in higher value-add manufacturing subsectors.

 

Trends in Manufacturing


Significant trends that are impacting on manufacturing that will impact on employment include:

  • The composition of Australian manufacturing has shifted over the last decade toward the value-adding of primary products, such as food and metals.
  • Automation, artificial intelligence (AI), and the Internet of Things (IoT) are revolutionising production processes, leading to increased efficiency and reduced operational costs.
  • There has been a shift towards green manufacturing practices, with companies adopting eco-friendly materials and energy-efficient processes, as well as exploring circular economy models.
  • From a supplier perspective, organisations are sourcing locally more and diversifying suppliers to ensure continuity of operations. Additionally, digital supply chain solutions are being implemented to enhance visibility and agility.
  • Government initiatives and trade agreements are also playing a crucial role in facilitating market access and promoting Australian-made products globally.



As a result of these shifts, there is a growing emphasis on upskilling and reskilling workers to handle advanced machinery and digital tools.

Acclaimed Workforce can provide quality manufacturing staff to help build your organisational capability and meet future goals.  Tell us who you’re looking for or get in touch for a confidential discussion today.

a woman in a job interview looking unhappy
March 24, 2025
Our updated Employer Interview Guide features a section called "You Can't Ask That," which helps hiring managers understand the recent changes to the Fair Work Act concerning protected attributes.
man and woman signifying gender pay gap
March 19, 2025
Australia's gender pay gap is slowly shrinking, with 56% of employers reducing the gap. However, significant progress is still needed, especially in male-dominated industries.
A worker picking grapes in the vintage harvest.
February 25, 2025
Alison Bright, Griffith's Account Manager, discusses some of the risks specific to seasonal workers and the five actions Acclaimed Workforce undertakes in regional areas to overcome them.
Share by: