Manufacturing


Manufacturing is the second largest industry in NSW accounting for 14% of Gross State Product and more than 30% of national manufacturing output. It also accounts for a quarter of the State's total exports.

The NSW Manufacturing Council is an advisory body to the NSW Government on issues impacting on manufacturing in NSW.  The members of the council represent industry, academia, trade unions, government and industry associations. The council meets six times each year.

Manufacturing in NSW

NSW has the largest manufacturing sector in Australia. As the second largest industry in NSW it accounts for 14 per cent of Gross State Product and more than 30 per cent of national manufacturing output. It is a skill-intensive and knowledge-intensive sector that drives research and development and is a significant export earner, accounting for one quarter of NSW's total exports.

The NSW manufacturing industry contributed $31 billion to the NSW economy in 2005-06. However, globalisation developments such as the emergence of new and low cost competitors, the rapid pace of technological change, access to capital and skills shortages are placing enormous pressures on the sector.

NSW accounts for:
  • almost one-third of Australia's food and beverage manufacturing industry, with particular strengths in flour milling, cereal food and biscuit manufacturing plus soft drink, cordial and syrup manufacturing
  • about 45 per cent of Australia's medicinal and pharmaceutical product manufacturing
  • more than:
    • 40 per cent of Australia's publishing industry (newspapers, magazines and books)
    • half of Australia's iron and steel manufacturing
    • half of Australia's architectural aluminium product manufacturing
    • half of Australia's aircraft manufacturing industry including aircraft repair and maintenance
    • 60 per cent of Australia's medical and surgical equipment manufacturing
    • half of Australia's electronic equipment manufacturing, including computers and business machines.

The State's manufacturing industry employs about 310,000 people, about 10 per cent of the NSW workforce. The manufacturing sectors employing the most people are machinery and equipment manufacturing; food, beverages and tobacco manufacturing; metal products manufacturing; and printing, publishing and recorded media production.

Exports
In 2005-06, NSW exported more then $10 billion of manufactured goods, representing 25 per cent of its total exports. Among NSW's top exports are medicinal and pharmaceutical products; office machines and computing equipment; and professional, scientific and controlling instruments. NSW's largest export markets for manufactured goods are New Zealand, the US and Japan.

NSW manufacturing companies successful in the global marketplace include Nautitech (marine, automotive and mining), GKN (aerospace and defence), the Byron Group (transport design and solutions) and Broens Industries (design, tooling and manufacture).

Research and development
Twelve Cooperative Research Centres (CRCs) are dedicated to manufacturing technologies, and bring together researchers from industry, universities and government laboratories such as the CSIRO and the Australian Research Council.

Manufacturing related CRCs include institutions focused on advanced composite structures, metals casting manufacturing and intelligent manufacturing systems and technologies, such as robotics and mechatronics.

Industry strengths
NSW has a highly developed and diverse manufacturing industry with major national and global operators.

  • Aerospace manufacturing includes maintenance, repair and overhaul, plus component and engine manufacture. Companies include Boeing and BAE Systems, as well as Turbomeca Australasia and Eurocopter
  • Rail and transport systems manufacturing includes the rolling stock specialists United Goninan and EDI Rail
  • Automotive components manufacturers include US Group Dana, which exports axle sets to Ford and Mazda in Thailand, and Broens Industries whose client base includes Mercedes Benz and General Motors Holden
  • Marine manufacturing has a strong defence focus with Tenix, ADI and Forgacs. Super yacht builder Azzura Marine is also based in NSW
  • Precision manufacturing companies such as biomedical experts Cochlear, ResMed and Ventracor as well as avionics and communications supplier Rockwell Collins have found NSW an effective base for Asia Pacific operations.


Bridging the Barriers: A Study of Innovation in the NSW Manufacturing Sector
In July 2007, the Department of State and Regional Development, in support of the NSW Manufacturing Council, commissioned the Centre for Industry and Innovation Studies (CInIS), at the University of Western Sydney to undertake a study to:

  • provide a gap analysis of the policy goals of the NSW Statement on Innovation as they relate to manufacturing
  • establish the availability of public and private sector programs and services to assist manufacturers
  • analyse the effectiveness of these programs and services in addressing the goals of the NSW Government Statement on Innovation
  • identify priority actions to foster innovation in NSW manufacturing.

The CInIS report, Bridging the Barriers: A Study of Innovation in the NSW Manufacturing Sector, provides an analysis of NSW manufacturing trends, and selective inputs on the policy issues of the NSW Government Statement on Innovation. The report of detailed discussions with manufacturers (pp 37-42) also provides useful guidance on priority issues facing the sector.

Download Bridging the Barriers: A Study of Innovation in the NSW Manufacturing Sector

See Innovation in the manufacturing sector.



For more information

Industry Development and Investment Division |  +61 2 9338 6605 | industry@business.nsw.gov.au