Sheet metal sector in Australia worth $2.5 billion: report

Revenue for the local sheet metal manufacturing sector has declined at a compound annual growth rate of 1.2 per cent for the five years through 2024-25, and is currently worth $2.5 billion, according to a new update from IBISWorld.

The market research firm’s Sheet Metal Product Manufacturing in Australia – Market Research Report (2014-2029) was updated this month. The landscape is characterised as highly-fragmented – “with no major company” – and made up of 892 businesses. Slightly over 10,000 employees are counted.

According to the report, the top three companies by revenue in the sector – represented by ANZSIC code 2240 – are Orora (predicted revenue of $101.2 million for 2025), Guala Closures Australia and Interpack Technology ($50.6 million each.)

Major product types include pressed or spun holloware, air ducts and bottle closures, and the largest demand segment was commercial and industrial building products.

Among forces contributing to the slight decline in the last five years are the “Australian dollar’s appreciation”, which “has made low-cost alternatives more attractive compared to domestically produced products”. 

A summary of the report notes a “weak demand and increased competition from imports and low-cost substitutes”.

It predicts 2024 – 25 will see a revenue decline of 0.7 per cent “as ongoing challenges continue to plague the industry.”

Other highlights can be seen at this summary.

Picture: credit WorldSkills Australia