Victorian manufacturing is on the up. Australian Industry Group (AIG) CEO Innes Willox takes us inside the resilience of our manufacturing sector.
Despite some doomsayers predicting the death knell for local manufacturing, the reverse is in fact true.
Victoria’s manufacturing sector is a real powerhouse that continues to boost jobs and exports, according to figures released today in the Australian Industry Group’s (AIG’s) monthly Australian Performance of Manufacturing Index (PMI). The state has recorded yet another month of manufacturing growth, making it the longest consecutive streak of expansion (15 months) since records began in May 2001.
“The run of growth the Victorian economy has enjoyed in manufacturing since 2001 is testament to its resilience, the benefits of diversification and a supportive government,” observes AIG CEO Innes Willox.
“The big winners are the many thousands of Victorians who have filled job vacancies or found more work opportunities. This is not just lifting standards: it’s creating additional demand and is helping to boost business investment. It’s a virtuous circle. As ever, there are vulnerabilities and there is a need to renew efforts to build further sources of economic strength,” he said.
What can’t be denied is that the sector is a money spinner, bringing $27.7 billion into the local economy and employing more than 286,000 people in 13,000-plus businesses. It also exported more than $18 billion in goods in 2016-17.
To help propel such growth, the State Government has invested more than $120 million into manufacturing support, generating more than 5000 jobs and $1.4 billion in private investment along the way.
It has also mapped out a visionary $12 million plan for the industry in Advancing Victorian Manufacturing – A Blueprint for the Future, which outlines new initiatives to help manufacturers grow. Programs include Boost Your Business Advanced Manufacturing vouchers that are supporting manufacturers to develop new products, streamline processes and capabilities and expand export opportunities.
Ratings above 50 points indicate manufacturing activity is expanding; below 50, and it is declining. The AIG’s PMI rating for Victoria was 61 points in April, expanding for the 15th consecutive month.
For a glimpse into Victoria’s manufacturing pioneers, look out for the winners of the 2018 Victorian Manufacturing Hall of Fame, to be announced at a gala dinner on 28 May.
Read more about Victoria’s advanced manufacturing sector.