Manufacturing Industry in this Decade

Over the last decade or two, a number of reports has been commissioned by the Commonwealth government into various aspects of manufacturing industry including the Vernon, Crawford, Jackson and Myers Reports. Early reports identified an acute 'malaise' in industry and an urgent need for restructuring within industry sectors but perhaps there was a lower level of appreciation of the time scale which would be required before marked changes would become evident. It was noted also that Australia should become less dependent on primary and mineral products export but should urgently strengthen export of manufactured or added value goods to help improve the balance of trade.

In addition, the Government has commissioned reports looking at the amount of research and development undertaken in Australia and particularly the amount and effectiveness of that in the private sector. One report, for example, identifies that computer aided manufacturing had been introduced slowly in Australia because the initial cost was perceived to be too great for small companies to bear.

In March 1984 the then Minister for Industry and Commerce established an important new framework for industry consultative arrangements. The components of the new framework were an Australian Manufacturing Council and a number of Industry Councils. The objectives of the new arrangement were:

• to promote through consultation increased cooperation and understanding among those elements of the economy with an interest in the manufacturing sector;


• to facilitate the development and implementation by industry of solutions to industry problems;


• to provide an industry based mechanism for monitoring and co-ordinating industry activity and for advising the Government on appropriate policies and other matters.

Members of the various councils were drawn from employer and employee organizations and from Government but included also people bringing an independent perspective to the groups. These councils have now completed their first three years of operation and have achieved considerable progress. In particular a stocktake has been undertaken of each industry segment as a basis for developing a strategy for future development. An attempt has been made to identify the strengths and weaknesses of each sector and to see how best the overall sector could achieve more export orientation. Much is expected of these councils in the next three-year period.

As shown in Table 3, there are now over forty thousand establishments operating within manufacturing industry and employing over one million people, of whom around 25 per cent are females. In 1985, turnover amounted to $97,658 million or 47 per cent of GDP. Peak employment in the industry was 1973-74, when 1.3 million people were employed; since then, there has been a slow decline in numbers. The number of establishments, however, has, if anything, increased over this time, indicating the introduction of greater automation.

Table 3 Manufacturing establishments operating at 30th June 1985


Source: ABS Catalogue No. 8204 Manufacturing Establishments

Australian Academy of Technological Sciences and Engineering