As of recent data, Australia ranks 15th globally in manufacturing output, contributing approximately $91.3 billion to the world's manufacturing value.
This positions Australia behind leading manufacturing nations such as China, the United States, Japan, and Germany. Notably, Australia's manufacturing sector accounts for about 5.39% of its Gross Domestic Product (GDP), which is below the global average of 12.87%.
In recent years, the Australian government has initiated efforts to revitalize the manufacturing industry. For instance, the "Future Made in Australia" plan aims to enhance national security and support a carbon-neutral economy by boosting local manufacturing capabilities. However, industry leaders have emphasized the need for government intervention to level the playing field and support domestic industries effectively.
Additionally, significant investments are being made to establish high-tech manufacturing facilities. A notable example is the $400 million federal government loan to Alpha HPA for constructing Australia's first high-purity alumina production facility in Queensland. This project is expected to create numerous jobs and position Australia as a leading producer of high-purity alumina by 2025.
Despite these initiatives, challenges persist, including competition from countries like China and the United States, which are also investing heavily in domestic manufacturing. Australia's high labor and building costs, along with reliance on imported gas, further complicate efforts to expand its manufacturing sector.
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