Damon Mcknight
Australia's manufacturing industry has gone through several changes over the years, from its beginnings in the 1830s with the production of small steam engines to its post-World War II boom. The industry has faced challenges due to cheaper imports and fluctuations in the Australian dollar, impacting its global competitiveness. However, Australian manufacturing continues to evolve and thrive across various sectors, including automotive, chemical, and consumer goods. The industry is known for its innovation, with products ranging from electric bikes and microphones to bathroom heaters and earthmoving components, showcasing the diverse nature of Australia's manufacturing capabilities.
| Characteristics | Values |
|---|---|
| Economic complexity ranking | 102nd in the world in 2024 |
| Economic Complexity Index rankings compiled by | Harvard Kennedy School's Growth Lab |
| Manufacturing contribution to exports in 2000 | 48% |
| Manufacturing contribution to research and development in 2000 | 45% |
| Manufacturing contribution to gross domestic product in the 1960s | 25% |
| Manufacturing contribution to gross domestic product in 2001-2002 | 13% |
| Manufacturing contribution to gross domestic product in 2005-2006 | 10.5% |
| Value of exported manufactured products in 2004-2005 | $67,400 million |
| Number of people employed in manufacturing in 2004-2005 | 1.1 million |
| Companies with manufacturing facilities in Australia | UGL, BHP, Comalco, Tasmanian Alkaloids, GlaxoSmithKline, Alstom, Tomcar, RØDE, Abel Sports, Shawx Manufacturing, IXL Home, Microsafe, Stria, Quality Air Equipment, Clingon Label |
| Products manufactured in Australia | Locomotives, petrochemicals, pharmaceuticals, trains, cars, microphones, bathroom heaters, microwavable containers, earthmoving components, sprinklers, electric bikes, AFL goal posts, printed labels and stickers, etc. |
| Manufacturing industries with poor working conditions in the past | Clothing and footwear |
| Manufacturing industries impacted by tariff cuts in the 1980s and 1990s | Iron, steel, auto, white goods, textiles, clothing, and footwear |
| Manufacturing insurance requirements | Business interruption insurance |
| Manufacturing legislation and standards | Product safety, product recalls, licensing and permits, electrical equipment safety, etc. |
| Manufacturing workplace laws and regulations | Work health and safety, engineered stone benchtop restrictions, crystalline silica handling rules, etc. |
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What You'll Learn
- Manufacturing industries in Australia include textiles, clothing, and footwear
- The automotive industry in Australia has declined, with companies like Toyota ceasing production
- Australian manufacturing exports include chemicals, pharmaceuticals, and agricultural products
- Manufacturing standards and regulations ensure product safety and reliability
- Manufacturing businesses must comply with workplace laws and health and safety regulations. They should also be aware of energy costs and environmental impact
Manufacturing industries in Australia include textiles, clothing, and footwear
Australia's manufacturing industries include textiles, clothing, and footwear. In this article, we will explore each of these sectors in detail, highlighting their history, current landscape, and future prospects.
Textiles:
The textile industry in Australia has a long history, with Australian Textile Mills, a leading fabric supplier and textile manufacturer, operating for over 70 years. The company uses locally and internationally sourced yarns and fabrics, offering a diverse range of textile manufacturing capabilities. Australian Textile Mills has adapted to changing economic trends and is committed to environmentally responsible manufacturing practices.
Clothing:
The clothing industry in Australia has experienced a decline in recent decades, with most manufacturing moving offshore due to worker shortages, rising electricity costs, and cheaper labour in other countries. In 2025, it was estimated that 97% of Australia's $28 billion fashion industry was produced overseas. However, there is a growing push to bring clothing manufacturing back to Australia, driven by trade wars and the desire for more secure supply chains.
Footwear:
The footwear manufacturing industry in Australia is navigating a complex market landscape, facing challenges from inexpensive imports. The industry is expected to contract, with a decline in revenue of 4.9% annualized over the five years through 2024-25, reaching an estimated $666.5 million. However, brands focusing on premium and niche segments, like R.M. Williams and Blundstone, are experiencing robust sales and are anticipated to continue thriving.
Overall, the manufacturing industries of textiles, clothing, and footwear in Australia have faced challenges, including competition from cheaper imports and rising costs. However, there are efforts to revitalize these sectors, particularly in clothing and footwear, by bringing manufacturing back to Australia and focusing on premium products.
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The automotive industry in Australia has declined, with companies like Toyota ceasing production
Manufacturing in Australia experienced a boom during World War II and the two decades that followed. However, the country's manufacturing sector has been in decline since the mid-1980s, with a sustained fall in its Economic Complexity Index ranking. This decline has been attributed to various factors, including the reduction of tariffs in the 1980s and 1990s, the rise of cheaper imports from Asian countries, and the shift in economic policy from protectionism to neoliberalism and globalisation.
The automotive industry in Australia has been particularly affected by this decline, with companies like Toyota, Ford, and General Motors ceasing production in the country. Toyota's decision to stop manufacturing in Australia by the end of 2017 followed a long period of decline in the local industry. In the 1990s, Toyota complained about the falling local share of car sales and requested government support. However, the company's sales continued to decline, with a decrease of 3.2% to 20,225 units in May 2025 and a further drop of 6.7% to 19,380 units in April 2025.
The decline of the automotive industry in Australia has been attributed to various factors, including reductions in government assistance, volatility in exchange rates, global strategic decisions by parent companies, and the role of industrial relations and trade unions. The shift towards neoliberalism and globalisation in the 1980s and 1990s restricted the range of policy choices available for restructuring the industry. Additionally, the high Australian dollar made exports expensive and imports cheap, further contributing to the industry's challenges.
Despite the decline in automotive manufacturing, there are still some positive developments in the Australian manufacturing sector. For example, a new Australian auto maker, Tomcar, announced plans to build a factory in Melbourne in 2012. Additionally, companies like Tasmanian Alkaloids and GlaxoSmithKline are involved in the manufacture of pharmaceuticals, and trains are being produced in Ballarat by Alstom. However, the overall trend shows a decline in Australia's manufacturing sector, with a decreasing contribution to the country's gross domestic product over the years.
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Australian manufacturing exports include chemicals, pharmaceuticals, and agricultural products
Australia has a diverse manufacturing sector, which includes exports of chemicals, pharmaceuticals, and agricultural products.
The country's manufacturing industry has a long history, dating back to the 1830s when the production of small steam engines began. The industry experienced significant growth during and after World War II, aided by protectionist tariffs. However, Australia's economic complexity ranking, which measures the ability to produce and export complex goods, has fallen in recent years. Despite this, the country still boasts a robust manufacturing sector with a wide range of exports.
One of the key exports from Australia's manufacturing industry is chemicals. The country has a well-established chemical sector, including the production of petrochemicals and pharmaceuticals. Tasmania, for example, produces 40% of the world's raw narcotic materials, some of which are converted into codeine and other pharmaceuticals by companies like Tasmanian Alkaloids. Additionally, GlaxoSmithKline processes poppy straw in Victoria. The country's mining companies, such as BHP and Comalco, also contribute to the chemical industry by performing initial processing of raw materials.
Pharmaceuticals are another important export from Australia's manufacturing sector. With companies like Tasmanian Alkaloids and GlaxoSmithKline, Australia is actively involved in the production of pharmaceuticals, building on its strong chemical industry.
Agricultural products also feature prominently in Australia's manufacturing exports. The country has a strong agricultural sector that supports its chemical industry, as previously mentioned. Additionally, Australia has a history of manufacturing products related to agriculture, such as the production of steel for farm equipment and machinery.
While cars are no longer manufactured in Australia, the country continues to produce a range of innovative products, including electric bikes, sprinklers, earthmoving attachments, and high-quality microphones like the RØDE Wireless Go II. Australian manufacturers are also environmentally conscious, with companies like Abel Sports producing AFL goal posts made from 100% recycled materials.
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Manufacturing standards and regulations ensure product safety and reliability
Australia's manufacturing sector is governed by a range of regulations, standards, and initiatives that safeguard consumers, protect workers, and promote sustainability. Manufacturing standards and regulations are crucial for ensuring product safety and reliability, maintaining business reputations, and avoiding legal penalties.
Workplace health and safety (WHS) laws are a key component of Australia's manufacturing regulations. These laws are designed to protect the health and safety of workers in the industry. The Commonwealth, states, and territories are responsible for regulating and enforcing these WHS laws, which were established in 2011. While the WHS laws only require conformance with a small number of standards, adhering to relevant standards is important for demonstrating compliance with the WHS Act and Regulations. Courts may consider conformance with relevant standards when determining an entity's compliance with its health and safety duties.
Beyond WHS, there are numerous other manufacturing standards and regulations in Australia. These include the Food Standards Code, which governs food safety, handling, and composition, and the Electrical Equipment Safety Standards, which ensure the safe design and testing of electrical goods. The Hazardous Waste (Regulation of Exports and Imports) Act 1989 controls the movement of hazardous waste in and out of the country, while also ensuring accurate measurement in packaging and labelling for fair trade practices. Trade Measurement Standards guarantee accuracy in weights, measures, and packaging sizes, and Product Safety Standards cover regulations for product reliability and consumer safety.
Manufacturers of specific goods, such as industrial chemicals, narcotics, hazardous chemicals, and electrical goods, must also comply with relevant safety standards and obtain the necessary licences. For instance, the Responsible Supplier Registration under the Electrical Equipment Safety System (EESS) applies to manufacturers and suppliers of electrical goods to ensure they meet safety standards. Additionally, specific licences are required for producing pharmaceuticals, medical devices, and other health-related products.
By adhering to these manufacturing standards and regulations, Australia ensures product safety and reliability, protects its workers, promotes sustainability, and maintains fair trade practices. These regulations also help businesses avoid legal penalties and enhance consumer trust in their products.
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Manufacturing businesses must comply with workplace laws and health and safety regulations. They should also be aware of energy costs and environmental impact
Manufacturing businesses in Australia must adhere to workplace laws and health and safety regulations. The Work Health and Safety Act 2011 (Qld) outlines the requirements and standards for creating safe and healthy workplaces. It places the primary duty of ensuring the health and safety of workers, volunteers, and visitors on the business owner or employer. This includes eliminating or minimising risks and hazards, ensuring the safe use and handling of machinery and substances, providing access to adequate facilities, and monitoring the health of workers. Each state and territory has its own WHS laws and a regulator to enforce them, and businesses must comply with the relevant codes of practice.
In addition to workplace health and safety, manufacturing businesses in Australia should also be mindful of their energy costs and environmental impact. Energy-intensive industrial sectors, including manufacturing, account for a significant proportion of Australia's energy consumption. As such, there is a growing focus on improving energy efficiency and transitioning to cleaner energy alternatives. Australia has already made progress in this area, with energy-heavy industries like manufacturing reducing their energy intensity by 21% over the last decade. Improving energy efficiency can also lead to cost savings for businesses.
To drive energy efficiency, Australia has implemented various environmental regulations and legislation. For example, the National Greenhouse and Energy Reporting Act 2007 requires businesses to report their greenhouse gas emissions, energy production, and consumption, promoting transparency in emission reduction efforts. Renewable Energy Legislation encourages the use of renewable energy sources, and Chemical Management Regulations ensure the safe handling, storage, and disposal of chemicals. Businesses must also comply with Air Quality Standards, Water Management Legislation, and Environmental Noise Regulations to reduce their environmental impact.
Compliance with environmental regulations can lead to both challenges and opportunities for manufacturing businesses. While it may involve financial investments and operational adjustments, it also spurs innovation in eco-friendly product design and supply chain management. Businesses that excel in environmental compliance can market themselves as eco-friendly, appealing to environmentally conscious consumers. Overall, by complying with workplace laws and health and safety regulations and considering their energy costs and environmental impact, manufacturing businesses in Australia can operate sustainably and ethically.
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Frequently asked questions
The ECI is a measure of a country's ability to manufacture and export complex goods. In 2024, Australia ranked 102nd in the world, falling from 63rd in 2000.
The manufacturing sector in Australia includes industries such as automotive, chemical, steel, textiles, clothing, footwear, and food production.
Some products that are manufactured in Australia include electric bikes, sprinklers, microphones, and even AFL goal posts made from 100% recycled materials.
There are national workplace laws and general work health and safety regulations that all businesses must comply with. Additionally, there are state-specific requirements, such as WorkSafe in Western Australia, that businesses in the manufacturing industry must adhere to.
Manufacturing in Australia experienced a boom during and after World War II, with improvements in working conditions and a reduction in child labour. The 1960s marked the peak of manufacturing's contribution to Australia's gross domestic product, and the introduction of car manufacturing with Ford and General Motors opening factories.
