Australian manufacturing up in May


Australia’s manufacturing sector continued to recover in May which is good news for factories across the country.

According to the Australian Industry Group’s Manufacturing Performance Index, domestic production and manufacturing increased by 4.4 points, signalling a positive change for the sector.

Of the three areas surveyed by the Australian Industry Group, manufacturing was the second highest, recording better conditions than the construction industry and sitting only slightly behind the services sector.

This increase was driven by positive growth in three manufacturing sub-sectors: petroleum, coal, chemicals and rubber products; non-metallic minerals; and smaller wood and paper products. Expansion in these areas made up for weaker numbers in other areas.

In terms of activity, sales, new orders and production were all up for the month, providing positive news for those relying on manufactured products, like the transport industry. New orders alone climbed by 13 points, making it the strongest-performing area.

Employment has also remained strong in Australia’s manufacturing industry. According to the Department of Industry’s Manufacturing Data card for the March quarter of this year, manufacturing employs 8.3 per cent of the workforce and represents one-quarter of the country’s research and development spending.

With Australian manufacturing numbers making positive gains, demand is likely to increase for factory equipment and storage solutions. Investing in new equipment and pallet handling devices can help your business to operate more effectively and make the most of growing order numbers.

With food production making up the largest part of Australia’s manufacturing sector, it is also important the you choose the right equipment to handle foodstuffs safely. Getting the right containers and processing devices can ensure that your business stays on top of its food hygiene requirements.