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Conditions in the Manufacturing Sector

Author

Listed:
  • Sean Langcake

    (Reserve Bank of Australia)

Abstract

Manufacturing output and employment have fallen steadily as a share of the Australian economy for the past three decades. This article looks at the composition of the industry and draws on the Reserve Bank’s liaison with manufacturers to provide an insight into some of their responses to the structural challenges in recent years. According to liaison, the increase in the supply of manufactured goods from low-cost sources abroad, exacerbated by the appreciation of the Australian dollar during the period of rising commodity prices, impaired the viability of many domestic manufacturers and precipitated the closure of some manufacturing production over the past decade. While the recent exchange rate depreciation has helped to improve competitiveness of Australian producers, so far there is only limited evidence of a recovery in manufacturing output and investment.

Suggested Citation

  • Sean Langcake, 2016. "Conditions in the Manufacturing Sector," RBA Bulletin, Reserve Bank of Australia, pages 27-34, June.
  • Handle: RePEc:rba:rbabul:jun2016-04
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2016/jun/pdf/bu-0616-4.pdf
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    References listed on IDEAS

    as
    1. Bryn Battersby, 2006. "Does distance matter? The effect of geographic isolation on productivity levels," Treasury Working Papers 2006-03, The Treasury, Australian Government, revised Apr 2006.
    2. Bryn Battersby, 2007. "Does distance matter?: The effect of geographic isolation on productivity levels," OECD Economic Studies, OECD Publishing, vol. 2006(1), pages 205-225.
    3. Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Bulletin, Reserve Bank of Australia, pages 17-22, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Duke Cole & Samual Nightingale, 2016. "Sensitivity of Australian Trade to the Exchange Rate," RBA Bulletin, Reserve Bank of Australia, pages 13-20, September.

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