Top Manufacturing Industries set to see Growth in 2021

Despite the pandemic wrecking havoc round the world, the market for manufacturing and related businesses in Australia is set to see growth. The local industry is seeing resurgence due to enhanced demands and because of the positive impacts these have for employment.  As per the Australian Industry Group, the Australian Performance of Manufacturing Index (PMI) has seen a rise by 1.1 points and stands at 59.9, as of March 2021. Since 2018, this figure is the best. After large-scale disruptions in 2020, the fresh figures offer a lot of reason to cheer for budding business owners in the country.

Most sectors in manufacturing are reporting positive trends in recent months. Manufacturers are investing in upping the energy efficiency levels with choice of right material and inventory such as the right plastic door curtain, flooring and HVAC systems. The highest buoyancy seems visible across the follow industries-

  • Equipment
  • Textiles
  • Footwear
  • Clothing
  • Printing and paper

What’s the Inside Story?

  • The major reasons fuelling growth of the equipment and machinery sector are greater demand, heightened needs in the mining segment as well as good levels of construction activity across the country. Manufacturers can additionally benefit from the scaling up of selling price in the construction sector. The price index currently stands at 8.5 points. Once manufacturers gain more confidence, massive scale of employment will naturally stabilize itself.
  • However, few backlogs tarnish the manufacturing sector’s sheen this year. Added to this is shortage of skills and inability to keep pace with sales. Once the shadow of Covid passes over, manufacturers can expect these issues finally sorting out. A primary challenge that manufacturers will have to face is the need to keep up momentum given that Covid remains a threat.
  • With growth in manufacturing business such as cold storage chains and beverage making, the need to have proper factor codes in place is essential. It is important as operational managers or business owners take note to build energy efficient setups. Installing the right PVC strip curtain or roller doors in the manufacturing unit is a vital first step.

More and more Australian businesses are settling units for manufacturers on their native soil. This has a number of advantages-

Generation of more Jobs

  • Access to more jobs at home is not a mean feat. With manufacturing sectors set to see more demand in the coming months, the employment options will only grow alongside. The national economy will also receive some influx and thrive with fresh vigour.
  • While the argument in favour of offshore manufacturing of any product was always backed by the availability of lower costs, the scenario is changing. Of late, the production costs have been affordable even in Australia and not having to set up a unit overseas has led to reduction in shipping costs. Moreover, the local setups ensure that owners or managers do not have to deal with language barriers and management differences.
  • A top reason why Australian manufacturing industries will see heightened growth is that the production cycle takes less time than when it is produced offshore. With better distribution plans at hand, and no long transport times involved, Australian local manufacturing is an ideal deal to invest in.


The industry growth across Australia will also reduce the negative footprints on the environment. With lesser transport, emissions and higher carbon footprint—units running offshore are turning out to be risky choices. After all, a local business might even get better clients while showing responsibility towards fighting the climate crisis.

With manufacturing industry owners choosing to stay in their hometowns across Australia, local industry is seeing a push like never before. Onsite safety is better ensured with easy to adhere regulations.

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