Manufacturing in Australia
Encyclopedia
Although primary production is the main industry in Australia, manufacturing in Australia is still a significant industry.

History

The contribution of manufacturing to Australia's gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 peaked in the 1960s at 25%, and had dropped to 13% by 2001–2 and 10.5% by 2005–6.
In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people

In 2000–2001, $3300 million was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry. At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

.

In 2008, the breakdown of manufacturing by state, and the fraction of gross state product
Gross state product
Gross state product is a measurement of the economic output of a state or province...

 (GSP) which it contributed, were as follows
State Fraction of manufacturing Fraction of GSP
New South Wales 32 10
Victoria 28 12
Queensland 17 9
South Australia 8 13
Western Australia 10 8
Tasmania 3 13
Northern Territory 1 7
Australian Capital Territory 0.5 2


Between 2001 and 2007, the approximate breakdown by industry changed as follows
Industry Percent in 2001 Percent in 2007
Food, beverages and tobacco 19 19
Textile, clothing and footwear 5 3
Wood and paper products 7 6
Printing, publishing and recorded media 10 10
Petroleum, coal and chemical products 15 14
Non-metal mineral products 4 5
Metal products 18 19
Machinery and equipment 17 19
Other manufacturing 4 4

Food processing

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:
Sector Turnover(2005–06, $millions)
Meat and meat products 17,836
Beverage and malt manufacturing 13,289
Dairy products 9,991
Sugar and confectionery manufacturing 6,456
Fruit and vegetable processing 4,672
Bakery products 4,005
Flour mill and cereal food manufacturing 3,692
Oil and fat manufacturing 1,547
Seafood processing 1,330 *
Other food manufacturing 8,554
Total 71,372


* Before the 2010 closure of the Port Lincoln Tuna cannery

Textile industry

Until trade liberalisation in the mid 1980s, Australia had a large textile industry. This decline continued through the first decade of the 21st century. Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10percent on clothing, and 7.5–10% to 5% for footwear and other textiles.
As of 2010, most manufacturing, even by Australian companies, is performed in China.
Although primary production is the main industry in Australia, manufacturing in Australia is still a significant industry.

History

The contribution of manufacturing to Australia's gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 peaked in the 1960s at 25%, and had dropped to 13% by 2001–2 and 10.5% by 2005–6.
In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people

In 2000–2001, $3300 million was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry. At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

.

In 2008, the breakdown of manufacturing by state, and the fraction of gross state product
Gross state product
Gross state product is a measurement of the economic output of a state or province...

 (GSP) which it contributed, were as follows
State Fraction of manufacturing Fraction of GSP
New South Wales 32 10
Victoria 28 12
Queensland 17 9
South Australia 8 13
Western Australia 10 8
Tasmania 3 13
Northern Territory 1 7
Australian Capital Territory 0.5 2


Between 2001 and 2007, the approximate breakdown by industry changed as follows
Industry Percent in 2001 Percent in 2007
Food, beverages and tobacco 19 19
Textile, clothing and footwear 5 3
Wood and paper products 7 6
Printing, publishing and recorded media 10 10
Petroleum, coal and chemical products 15 14
Non-metal mineral products 4 5
Metal products 18 19
Machinery and equipment 17 19
Other manufacturing 4 4

Food processing

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:
Sector Turnover(2005–06, $millions)
Meat and meat products 17,836
Beverage and malt manufacturing 13,289
Dairy products 9,991
Sugar and confectionery manufacturing 6,456
Fruit and vegetable processing 4,672
Bakery products 4,005
Flour mill and cereal food manufacturing 3,692
Oil and fat manufacturing 1,547
Seafood processing 1,330 *
Other food manufacturing 8,554
Total 71,372


* Before the 2010 closure of the Port Lincoln Tuna cannery

Textile industry

Until trade liberalisation in the mid 1980s, Australia had a large textile industry. This decline continued through the first decade of the 21st century. Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10percent on clothing, and 7.5–10% to 5% for footwear and other textiles.
As of 2010, most manufacturing, even by Australian companies, is performed in China.
Although primary production is the main industry in Australia, manufacturing in Australia is still a significant industry.

History

The contribution of manufacturing to Australia's gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 peaked in the 1960s at 25%, and had dropped to 13% by 2001–2 and 10.5% by 2005–6.
In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people

In 2000–2001, $3300 million was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry. At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

.

In 2008, the breakdown of manufacturing by state, and the fraction of gross state product
Gross state product
Gross state product is a measurement of the economic output of a state or province...

 (GSP) which it contributed, were as follows
State Fraction of manufacturing Fraction of GSP
New South Wales 32 10
Victoria 28 12
Queensland 17 9
South Australia 8 13
Western Australia 10 8
Tasmania 3 13
Northern Territory 1 7
Australian Capital Territory 0.5 2


Between 2001 and 2007, the approximate breakdown by industry changed as follows
Industry Percent in 2001 Percent in 2007
Food, beverages and tobacco 19 19
Textile, clothing and footwear 5 3
Wood and paper products 7 6
Printing, publishing and recorded media 10 10
Petroleum, coal and chemical products 15 14
Non-metal mineral products 4 5
Metal products 18 19
Machinery and equipment 17 19
Other manufacturing 4 4

Food processing

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:
Sector Turnover(2005–06, $millions)
Meat and meat products 17,836
Beverage and malt manufacturing 13,289
Dairy products 9,991
Sugar and confectionery manufacturing 6,456
Fruit and vegetable processing 4,672
Bakery products 4,005
Flour mill and cereal food manufacturing 3,692
Oil and fat manufacturing 1,547
Seafood processing 1,330 *
Other food manufacturing 8,554
Total 71,372


* Before the 2010 closure of the Port Lincoln Tuna cannery

Textile industry

Until trade liberalisation in the mid 1980s, Australia had a large textile industry. This decline continued through the first decade of the 21st century. Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10percent on clothing, and 7.5–10% to 5% for footwear and other textiles.
As of 2010, most manufacturing, even by Australian companies, is performed in China.

Motor vehicles

As of 2010, three companies manufacture cars in Australia: GM-Holden
Holden
GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...

, Ford
Ford Australia
Ford Australia is the Australian subsidiary of Ford Motor Company and was founded in Geelong, Victoria, in 1925 as an outpost of Ford Motor Company of Canada, Limited. At that time, Ford Canada was a separate company from Ford USA...

 and Toyota
Toyota Australia
Toyota Motor Corporation Australia, or Toyota Australia, is a subsidiary of Toyota Motor Corporation, which is based in Japan. TMCA markets Toyota products and manages motorsport, advertising and business operations for Toyota Motor Corporation in Australia...

. Mitsubishi Motors Australia
Mitsubishi Motors Australia
Mitsubishi Motors Australia Limited is a fully owned subsidiary of parent company Mitsubishi Motors Corporation of Japan. Its Australian administrative headquarters are located at Tonsley Park , with branch offices in Brisbane, Sydney, Melbourne and Perth...

 ceased production in March 2008.

Holden bodyworks are manufactured at Elizabeth, South Australia
Elizabeth, South Australia
Elizabeth is a northern suburb of Adelaide, South Australia. It is located in the City of Playford.-History:Elizabeth was established in 1955 as part of a planned satellite town by the South Australian Housing Trust on rural land between the older towns of Salisbury and...

 and engines are produced at the Fishermens Bend plant in Port Melbourne, Victoria
Port Melbourne, Victoria
Port Melbourne is a suburb of Melbourne, Victoria, Australia, 5 km southwest of Melbourne's central business district. Its Local Government areas are the cities of Port Phillip and Melbourne. At the 2006 Census, Port Melbourne had a population of 13,293....

. In 2006, Holden's export revenue was just under $1300 million.

Ford has two main factories, both in Victoria: located in the Geelong
Geelong, Victoria
Geelong is a port city located on Corio Bay and the Barwon River, in the state of Victoria, Australia, south-west of the state capital; Melbourne. It is the second most populated city in Victoria and the fifth most populated non-capital city in Australia...

 suburb of Norlane
Norlane, Victoria
Norlane is a northern suburb of Geelong, Victoria, Australia. Norlane is located approximately 7 km from the Geelong central business district and approximately 70 km from the state capital, Melbourne...

 and the northern Melbourne suburb of Broadmeadows
Broadmeadows, Victoria
Broadmeadows is a suburb in Melbourne, Victoria, Australia, 16 km north from Melbourne's central business district. Its Local Government Area is the City of Hume...

.

Until 2006, Toyota had factories in Port Melbourne and Altona, Victoria
Altona, Victoria
Altona is a suburb in Melbourne, Victoria, Australia, 13 km south-west from Melbourne's central business district. Its Local Government Area is the City of Hobsons Bay. At the 2006 Census, Altona had a population of 9685....

. Since then, all manufacturing has been at Altona. In 2008, Toyota exported 101,668 vehicles worth $1900 million.

Chemical industry

Australia has a chemical industry, including the manufacture of many petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....

s.

Many mining companies, such as BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...

 and Comalco
Comalco
Rio Tinto Aluminium is now known as Rio Tinto Alcan after Rio's takeover of Alcan. It was the world's eighth largest aluminium company...

, perform initial processing of raw materials. Similarly, Australia's agriculture feeds into the chemical industry. Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...

 produces 40% of the worlds raw narcotic materials; some of this is locally converted into codeine
Codeine
Codeine or 3-methylmorphine is an opiate used for its analgesic, antitussive, and antidiarrheal properties...

 and other pharmaceuticals in Tasmania by Tasmanian Alkaloids
Tasmanian Alkaloids
Tasmanian Alkaloids is the largest opium poppy processing company in the Australian state of Tasmania. Approximately forty-percent of the worlds legal opiate crop is grown in Tasmania...

, owned by Johnson and Johnson, while GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...

 processes some of the resulting poppy straw in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

.

Currently Australian-made products

The following Australasian-made products are still fairly readily available. For more boutique products, see the search engines below.
  • Cars
    • Toyota makes some medium-large cars (such as Camry) in Altona, Victoria
      Altona, Victoria
      Altona is a suburb in Melbourne, Victoria, Australia, 13 km south-west from Melbourne's central business district. Its Local Government Area is the City of Hobsons Bay. At the 2006 Census, Altona had a population of 9685....

      .
    • Holden
      Holden
      GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...

       and Ford make large cars at various factories around Australia
  • Cleaning products
    • Velvet soap is made by Unilever
      Unilever
      Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....

    • Solvol soap is made by the WD-40 company
  • Clothing
    • See above
  • Food: Many staples are still manufactured in Australia. However many manufactured products such as sauces are imported.
  • Hardware
    • Some Dulux
      Dulux
      Dulux is an internationally available brand of paint. It is produced by AkzoNobel . The brand name Dulux has been used by both ICI and DuPont since 1931 and was one of the first alkyd-based paints.-History:...

       paint is made in the Hutt Valley (Wellington, NZ).
    • Lofty Ladders makes ladders
    • Sutton Tools
  • White goods
    • Electrolux
      Electrolux
      The Electrolux Group is a Swedish appliance maker.As of 2010 the 2nd largest home appliance manufacturer in the world after Whirlpool, its products sell under a variety of brand names including its own and are primarily major appliances and vacuum cleaners...

       makes make large refrigerators in Orange, New South Wales
      Orange, New South Wales
      Orange is a city in the Central West region of New South Wales, Australia. It is west of the state capital, Sydney, at an altitude of . Orange has an estimated population of 39,329 and the city is a major provincial centre....

      , under brands such as Westinghouse (licensed from Westinghouse Electric
      Westinghouse Electric (1998)
      Westinghouse Licensing, doing business as Westinghouse Electric Corporation , is a Delaware General Corporation Law organized subsidiary that was founded by CBS Corporation in managing the intellectual property assets relating to the Westinghouse trademarks.Westinghouse Licensing has...

      ), Simpson and Kelvinator
      Kelvinator
      Kelvinator is an appliance brand. It takes its name from William Thomson, 1st Baron Kelvin, who developed the concept of absolute zero and for whom the Kelvin temperature scale is named...

      .

Australian/NZ icons no longer made in Australia/NZ

Many brands which used to be manufactured in Australasia no longer are. The following are notable examples.
  • Clothing
    • Pacific brands
      Pacific Brands
      Pacific Brands is a major Australian company marketing Berlei, Bonds, Clarks , Dunlop, Everlast, Grosby, Holeproof, Hush Puppies, King Gee, Malvern Star, Sheridan, Slazenger, Sleepmaker and Tontine . It once held the Asian Pacific licence for British Knights footwear. It was formed as a division of...

       moved their manufacturing offshore in 2009, causing intense negative publicity.
  • Tools
    • Sidchrome
      Sidchrome
      Sidchrome is an Australian brand of mechanics' tools. It is a subsidiary of Stanley Black & Decker.-History:The brand emerged when Royston Siddons' Siddons Drop Forgings Pty Ltd turned to tool making to fill post-war shortages after World War II...

       was bought by Stanley
      Stanley Works
      Stanley Black & Decker , formerly known as The Stanley Works, is a manufacturer of tools and hardware and provider of security products and locks headquartered in New Britain, Connecticut...

       in 1990, and manufacturing moved offshore

See also

  • Australian Made
    Australian made logo
    The Australian Made and Australian Grown trade mark logos signify products whose ingredients or production mostly originate from Australia...

  • Ausbuy
    Ausbuy
    The Australian Companies Institute is a not-for-profit; non-political organisation that encourages Australians to support Australian owned and made products and services, so that the jobs and profits stay in Australia and the decisions are made by Australians.-History and background:Ausbuy was...

  • Australia's balance of payments
    Australia's balance of payments
    In trade terms, the Australian economy has had persistently large current account deficits for more than 50 years. One single factor that undermines balance of payments is Australia's narrow export base....

  • Economy of Australia
    Economy of Australia
    The economy of Australia is a developed, modern market economy with a GDP of approximately US$1.23 trillion. In 2011, it was the 13th largest national economy by nominal GDP and the 17th largest measured by PPP adjusted GDP, representing about 1.7% of the World economy. Australia was also ranked...

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