A Review of Manufacturing in Australia

Maruf Hasan, Asare Boateng


Manufacturing as a share of Australia’s gross domestic product has constantly declined since 1960. In 2016 manufacturing activity accounted for less than 10% of gross domestic product and employed less Australians than ever before. The paper intends to review the history of manufacturing in Australia and evaluate the condition of the sector in 2016. After this evaluation; recommendations are made on how both governments and businesses can reform to rejuvenate growth. An extensive analysis of the literature in conjunction with interviews with different Australian manufacturing businesses was used to execute the analysis. The literature emphasised tariff removal, a high Australian dollar and an increasingly globalised world as the primary causes of manufacturing’s decline. Businesses highlighted the geographical isolation of the nation, the low population, high labour costs and the high Australian dollar as some of the barriers to growth of the sector. Focusing on new advanced manufacturing technologies, reducing corporate tax and improving public infrastructure are some of the recommendations made to help the sector reverse the negative trend. The evaluation of the sector with these recommendations is significant to both governments and businesses as it provides avenues for growth and investment relevant to the post mining boom economy.

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DOI: https://doi.org/10.5296/jpag.v7i3.11522

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Journal of Public Administration and Governance  ISSN 2161-7104

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