Shining a spotlight on innovation in Australian manufacturing
Even before the COVID pandemic, there were plenty of doom and gloom stories about Australian manufacturing. But look a little closer and it’s clear that there’s still plenty of local manufacturing success stories in many sectors and throughout Australia.
The manufacturing sector in Australia has indeed been gradually shrinking. In the late 1950s and early 1960s manufacturing accounted for just under 30 per cent of Australian GDP, which was its all-time peak. Since the 1970s, rapid growth in the services sector has seen manufacturing’s share of output decline. It now accounts for just 5.7 per cent of Australia’s total GDP.
Despite its declining share of GDP, the manufacturing sector’s absolute output has consistently grown for most of that time. So much so that in 2020 Australia is making more things than ever before - and we are making them better than ever before as well.
CSIRO: Embrace the circular economy to grow
A 2016 CSIRO report into advanced manufacturing in Australia notes that, “Australian manufacturing can and must be a thriving component of Australia’s economy through the application of advanced manufacturing technologies, systems, and processes. The sector will focus on pre-production (design, R&D) and post-production (after-sales services) value-adding, sustainable manufacturing, and low volume, high margin customised manufacturing.”
The CSIRO also concluded that opportunities will also emerge for businesses that embrace the circular economy concept, taking responsibility for whole-of-life impacts.
Businesses can achieve improvements to resource efficiency through waste reduction, recycling, remanufacturing and reuse. This includes energy-efficient products and products designed with recycling, recovery and collaborative consumption in mind.
Australian manufacturing alive and well
Australian manufacturing is alive and well and will continue to flourish over the coming decades. Icon has the privilege of working with great Aussie manufacturing innovators like Leussink and Foamex that continue to evolve and grow.
