Australian Manufacturing Still Going Strong
While we are still working out what the new normal is going to look like as we come to grips with COVID-19 and coming out of lockdown, there has been some good news.
Australian Manufacturing has been growing since 2016 and 2021 has seen some of the strongest growth as we finally wake up to the importance of being to make stuff.
Whether you want to call it Sovereign Capability, Economic Defensibility, Risk Management or any other synonym term, we can now see that not having local value creation ability in manufacturing is a risk we can’t afford.
Borrowing from another source and refactoring it I ended up with this as a definition I was happy with: Sovereign manufacturing capability ‘is the ability to design, build, sustain, upgrade and export Australian made product in Australian manufacturing facilities by Australian workers’. This is adapted from the Australian Parliamentary Report on Naval Shipbuilding Sovereign Capability.
In the last 3 months there were 91,000 new jobs created in Australian Manufacturing. Which represents a growth of around 10%.
And the Australian Manufacturing PMI (Purchasing Managers Index) is also looking very healthy rising above 60 for several months this year (above 50 = growing, below 50 = shrinking).
And that is a healthy trend line. August saw a dip back down to slowly growing and interestingly August 2020 was a slight decrease. But the overall trend is excellent.
So I’m looking forward to this continuing through the rest of the year and 2022.
Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In Australia. Ray Keefe has developed market leading electronics products in Australia for more than 30 years.
This post is Copyright © 2021 Successful Endeavours Pty Ltd