Manufacturing in Australia

Manufacturing in Australia peaked in the 1960s at 25% of the country's gross domestic product, and has since dropped below 10%. At one stage manufacturing employed almost a third of Australia's workforce.^[1] Automotive manufacturing in Australia began in the 1920s and came to an end in 2017.

Australia's greatest manufacturing achievement was the manufacture of the Beaufort, a twin-engined torpedo bomber, during World War II.^[2] Australia's manufacturing sector is diverse with the largest sub-industries being food, beverage and tobacco, machinery and equipment, petroleum, coal and chemicals and metal products.^[3]

History

The manufacture of small steam engines began in the 1830s.^[4] The majority of Australia's manufacturing was undertaken in the capital cities and Newcastle because of their proximity to shipping and rail hubs.^[4] Working conditions were poor with little regard to health and safety. Child labour was endemic.^[4] The clothing and footwear industries were particularly bad.^[4] In 1901, Australia's first blast furnace began producing steel near Lithgow in New South Wales.^[5] The furnace remains are now heritage listed as the Lithgow Blast Furnace. Another steel mill was opened in 1915 in Newcastle by BHP.^[5] Soon more steelworks opened in Whyalla and Port Kembla.^[5]

Due to a lack of imports during World War I, Australia saw a boost to manufacturing. The steel industry saw an increase in production as did the manufacture of aspirin and chlorine.^[6] The 1920s saw the introduction of car manufacturing in Australia with both Ford and General Motors opening factories.^[7] The first Australian-made bottle of Coca-Cola was made in 1938.^[8] The Government Aircraft Factories was established in 1939 to manufacture aircraft in Australia.

Manufacturing in Australia experienced an exceptional boom during World War II and the two decades that followed.^[7] Local manufacturers were assisted by protectionist tariffs.^[1] The Jackson Committee was established in 1974 by the Whitlam government of Australia to advise on policies for Australia's manufacturing industry. The tariffs were cut in the 1980s and early 1990s.^[1] Workers in iron, steel, auto, white goods, textiles, clothing and footwear industries were particularly hard hit.^[1] It wasn't long before new markets in Asian countries such as China and Japan opened up with much cheaper imports now possible.^[7]

The contribution of manufacturing to Australia's gross domestic product peaked in the 1960s at 25%, and had dropped to 13% by 2001–2^[9] and 10.5% by 2005–6.^[10] In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people.^[11]

In 2000–2001, $3.3 billion was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry.^[12] At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development.^[9] From 2000, the resource boom saw the Australian dollar soar on exchanges, making exports expensive on the global stage and imports exceptionally cheap.^[13]

In 2007, the breakdown of manufacturing by state, and the fraction of gross state product (GSP) which it contributed, were as follows:^[14]

Between 2001 and 2007, the approximate breakdown by industry changed as follows:^[14]

Food processing

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:^[15]

* Before the 2010 closure of the Port Lincoln Tuna cannery

Textile industry

Until trade liberalisation in the mid-1980s, Australia had a large textile industry.^{[citation needed]} This decline continued through the first decade of the 21st century.^[14] Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10 percent on clothing, and 7.5–10% to 5% for footwear and other textiles.^[16] As of 2010, most textile manufacturing, even by Australian companies, is performed in Asia.

Motor vehicles

As of 2008, four companies mass-produced cars in Australia.^[17] Mitsubishi ceased production in March 2008, followed by Ford in 2016, and Holden and Toyota in 2017.^[18]

Holden bodyworks were manufactured at Elizabeth, South Australia and engines were produced at the Fishermans Bend plant in Port Melbourne. In 2006, Holden's export revenue was just under A$1.3 billion.^[19] In March 2012, Holden was given a $270 million lifeline by the Australian government. In return, Holden planned to inject over $1 billion into car manufacturing in Australia. They estimated the new investment package would return around $4 billion to the Australian economy and see GM Holden continue making cars in Australia until at least 2022.^[20] However, Holden announced on 11 December 2013 that Holden cars would no longer be manufactured in Australia from the end of 2017.^[21]

Ford had two main factories, both in Victoria: located in the Geelong suburb of Norlane and the northern Melbourne suburb of Broadmeadows. Both plants were closed down in October 2016.

Until 2006, Toyota had factories in Port Melbourne and Altona, after which all manufacturing was performed at Altona. In 2008, Toyota exported 101,668 vehicles worth $1,900 million.^[22] In 2011 the figures were "59,949 units worth $1,004 million".^[23] On 10 February 2014 it was announced that by the end of 2017 Toyota would cease manufacturing vehicles and engines in Australia.^[24]

In March 2012, a new Australian auto maker, Tomcar, announced they are to build a new factory in Melbourne.^[17]

Chemical industry

Australia has a chemical industry, including the manufacture of many petrochemicals.^[25]

Many mining companies, such as BHP and Comalco, perform initial processing of raw materials.^[26] Similarly, Australia's agriculture feeds into the chemical industry. Tasmania produces 40% of the world's raw narcotic materials;^[27] some of this is locally converted into codeine and other pharmaceuticals in Tasmania by Tasmanian Alkaloids, owned by Johnson and Johnson, while GlaxoSmithKline processes some of the resulting poppy straw in Victoria.

Companies with manufacturing facilities in Australia

A partial list of companies operating manufacturing facilities in Australia, with their most important products.

Australian-owned

Consumer

Industrial

International

Companies that no longer manufacture in Australia

Companies that closed down, or moved manufacturing offshore.

Australian Owned:

• Pacific Brands Clothing
• South Pacific Tyres (Ansell/Goodyear) Tyres
• Downs & Son

International:

• Ford Australia
• Holden (General Motors)
• Sidchrome
• Bridgestone
• Mitsubishi Motors Australia
• Nissan Motor Australia
• Toyota Australia

See also

• Australian Made
• Ausbuy
• Balance of payments of Australia

References