Australia’s industrial technology sector is facing its worst year in three decades, with the loss of more than $200 billion in industry.
Key points:The Australian Bureau of Statistics (ABS) is releasing data on Australia’s manufacturing sector in a bid to help investors understand the trendsKey points Industrial technology sector lost $100bn in 2016-17The ABS is releasing the data for the first time, ahead of the release of the Government’s industrial policy on MondayThe data is compiled from the ABS’s industrial industry report.
“The industry is suffering the effects of uncertainty, low commodity prices, and volatile political events in the global economy,” ABS Director-General of Economic Research and Statistics Peter Wright said.
“Manufacturing is a major industry that generates more than 70 per cent of our economic output.”
While this sector has been hit by volatile economic conditions, it is not the end of the world.
“We are seeing an industry struggling to recover from a high-risk and high-reward environment.”
Industry data showed the Australian manufacturing sector lost more than 25 per cent in 2016, while industrial technology output fell by 10 per cent, the latest figures released by the ABS showed.
The manufacturing sector is comprised of the manufacturing, information, services and utilities sectors, the ABS said.
The industry has been losing billions of dollars a year, with industry output dropping by more than 5 per cent from the previous year.
The industrial sector was expected to grow by 2.7 per cent this year, while the manufacturing sector has fallen by 7.6 per cent.
Mr Wright said there was a need for a more diversified, long-term investment in the sector.
“Industry is facing a number of issues, including weak demand, low growth and an uncertain political environment,” he said.
Mr Mitchell said he believed the manufacturing industry needed to have more investment in a longer term.
“I think the real question is whether there’s an appetite for it in the market,” he told ABC Radio Perth.
“There is a need to look at where the business is in the marketplace and what the growth opportunities are.”
Industrial relations commissioner Andrew Fagan said the industrial sector faced a tough environment and there was no reason to think the situation would improve in the future.
“What we need to do is look at what the sector needs, how do we get that out of it, how can we bring that up to date, and that’s the main challenge,” he was quoted as saying.
“And if we don’t do that then the industrial industry will continue to shrink and we’ll be in trouble.”
It’s really hard to see a return to what it was like when the industrial manufacturing sector was growing in the mid-90s.
“Mr Fagan also said there were many questions about the economic impact of the Federal Government’s new manufacturing policy, including the impact on the supply chain.
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