The largest 100 manufacturers in Australia generate in excess of $282 billion in revenue, down slightly from nearly $300 billion in 2014-15, and employ more than 260,000 Australians.
IBISWorld has revealed the long-awaited annual Top 100 Manufacturing Companies in Australia list in conjunction with Manufacturers’ Monthly.
According to IBISWorld Senior Industry Analyst Spencer Little, overseas manufacturers, particularly in China and other South-East Asian countries, operate with far lower labour and overhead costs and this can be passed on to their customers both locally and globally in the form of lower product prices.
“While Australia’s manufacturers are finding it tough to compete, it is anticipated that the downward trend across manufacturers will ease and a contraction of only 0.1 per cent is expected in 2016-17,” he said.
While many industries that the top 100 manufacturing companies operate in are struggling or posting weak growth, meat processing in Australia is a standout industry, with anticipated growth of 11.8 per cent in 2015-16.
“The trend of strong demand and rising prices has really assisted the meat processing industry over the last 12 months,” Mr Little said.
Key industry trends underpinning major company movements in 2015-16 identified by IBISWorld include strong growth in agriculture industries and associated food-processing industries – particularly meat processing – driven by free-trade agreements and increasing global demand for Australian produce.
Additionally, the beer manufacturing industry has struggled, with industry revenue set to decline as alcohol consumption, particularly that of traditional beer brands, continues to fall.