The Australian manufacturing industry is finding it increasingly difficult to invest in capital and innovation, which is severely affecting its ability to grow and contribute more strongly to Australia’s GDP.
According to the media release by Grant Thornton, industry requires incentives to grow and meet the future needs of the sector, and turnaround in manufacturing growth in advanced economies is demonstrating that GDP is positively related to growth in manufacturing. However, the budget released by the Government is reliant on induced private sector investment, for which programme design is yet to be finalised.
“It is critical that the productive capacity and capability of the automotive sector, and manufacturing in general, is preserved. The Government should be focused on redirecting this capability rather than resigning itself to market forces,” Mark Phillips, National Head of Manufacturing at Grant Thornton Australia said.
“Manufacturing is essential to the long-term health of economies, as it is the engine that drives innovation. In Australia, the manufacturing sector contributes significantly more to innovation than other industry sectors,” he said.