The decline of the Australian manufacturing sector has long been documented. Since 1974 manufacturing's contribution to GDP has halved, declining from 17% to 8%. However, perceptions of the relative unimportance of Australian manufacturing amid the growing resources and services sector are overly simplistic.
Traditional manufacturing may be in a state of decline. But a new approach to manufacturing is evolving. One which centres around innovation and sells solutions rather than products, one which embraces mass commercialisation and personalisation and targets low volume, high value over high volume, low value. This new manufacturing thrives on business model innovation and positions itself in rich webs of relationships and knowledge flows.
To compete in a global changing landscape, Australian manufacturers must redefine themselves. The future of the Australian manufacturing sector will depend upon the readiness of manufacturers to seize the opportunity of innovation and harness emerging technologies to develop new and sustainable ways to remain competitive.
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