Australian manufacturing is growing at the fastest rate in 30 years, despite a significant labor shortage

According to the country’s Peak Industry Group, Australian manufacturing has achieved the highest monthly growth in almost 30 years.

Australian Manufacturing Performance Index of Australian Industry Group (Ai Group)pdf) In June, it increased by 1.4 points to 63.2 points, the highest score since the index started in 1992.

“The 2020-21 fiscal year ended with the attention of the Australian manufacturing sector,” said Ai Group CEO. Ines Willox said In the statement.

This achievement was driven by the rapid expansion in the manufacture of food and beverages, machinery, building materials and chemicals, all four of which were record highs. At the same time, two other measurement sectors have grown.

Companies that supplied directly to the construction industry reported the strongest results and were working to rapidly expand their services to keep up with demand.

“Despite the COVID outbreak and the associated blockades and border restrictions headwinds, high fares and the widespread difficulties employers experience in filling positions, the strength of the recovery continued,” Willox said. Stated.

In fact, without the biggest labor shortage in 14 years, manufacturing could have grown at a faster pace, the Australian Chamber of Commerce (ACCI) and Westpack said in an industry trend survey (in an industry trend survey).pdf).

“Employers are finding it increasingly difficult to find experienced workers as a result of national and international border closures. These labor constraints have been at levels not seen since September 2007. ACCI Chief Economist Ross Lambie said..

“Supply chain turmoil has also been identified as a major impediment to Australia’s manufacturing production growth due to significant scale constraints not seen since the 1970s oil crisis.”

Epoch Times Photo
A passerby is looking through a window at a man working at a construction site in Melbourne, Australia on July 2, 2019. (WilliamWest / AFP via Getty Images)

Manufacturers operate below full capacity, but companies take advantage of low interest rates and government support, so their plant and equipment investment plans are at their highest level in five years.

Respondents are also positive about their outlook, with about 40% expecting both general economic conditions and their own business to improve in the next six months.

However, despite optimism, Lambi warns that “significant reforms” are needed to ensure sector sustainability.

“Companies need to see plans to reopen their borders in a safe and step-by-step manner to accelerate the resolution of skills and material shortages,” he said. “If we don’t act urgently now, there is a significant risk that Australian manufacturing will struggle to stay competitive with international manufacturing and hinder long-term economic recovery.”

Manufacturing is not the only Australian sector suffering from labor shortages.Australian Bureau of Statistics today has jobs in all industries 57 percent higher From the level before COVID.

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