An investigation into automotive manufacturing in Australia by ACA Research has found the number of companies increased from 260 to 300, employing 9,800, and with a combined value of $4 billion.
Commissioned by the Australian Automotive Aftermarket Association, the AAAA said the report showed “positive signs are emerging” from the sector, which lost passenger car assembly in 2017. They explained the growth in the number of companies as a result of pivoting by OEM suppliers to diversify into new markets and “skilled workers previously employed by vehicle manufacturers starting new ventures in more specialised/niche areas.”
“The highlight of this research for us is the positive outlook for the future of the Australian automotive manufacturing sector, despite an uncertain economic environment,” said ACA Research Director Steve Nuttall.
“In our view, this confidence is justified, with our manufacturing firms focusing on investing in talent and innovation which will position them for success in Australian, and international markets.
As with the rest of the manufacturing industry, automotive companies surveyed were small in size, with 84 per cent of enterprises made up of between 1 and 49 employees. 86 per cent of businesses were engaged in the four-wheel drive market and 70 per cent were selling for the passenger car sector. 70 per cent of companies were exporting, with this worth $640 million.
The research can be read here.
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