At the AAMC, we have been collecting fast facts about Australia and how we compare in advanced manufacturing measures. Did you know?:
- Recent research from the UN Conference on Trade and Development reveals that Australia’s participation rate in global value chains is lower than that of 22 of the 25 largest-exporting economies. This means that Australia is missing out on a lot of opportunities to value-add, as we trade increasingly in raw materials instead of using our human capital—our ideas and our imagination—to our greatest advantage.
- In 2011, Australia spent just .227% of Gross Domestic Spending on R&D in manufacturing. This compares to the US, which spent 1.29% and Germany, which spent 1.33% – almost six times Australia’s level.
- The Australian Government spends $9 billion a year on Research, through grants to the higher education sector (60 per cent), to research institutions such as the DSTO, NHMRC and CSIRO, and through tax incentives.
- Manufacturing CAPEX (capital expenditure) in Australia peaked in 2005 and has never fully recovered. It’s now at its lowest level since 2001.
- Australia has one of the lowest numbers of researchers in business enterprises (PhD graduates) in developed nations (3 workers per 1000). This compares to Finland (14 per 1000), the US (9 per 1000) and Germany (7 per 1000).
- The fourth industrial revolution, or what the Germans refer to as ‘Industry 4.0’, is set to become a reality in the coming decade. Also known as ‘integrated industry’, this revolution will revolve around smart products, procedures and processes.
- In net terms, since 1994 employment Australia’s manufacturing sector has fallen from 1.1 million workers to approximately 950,000 workers – or a decline of around 15%, but still remains the country’s equal 5th largest sector, contributing 6.3 per cent of Australia’s total GDP
Multinational Enterprise (MNE) coordinated Global Value Chains are estimated to account for 80% of global trade.