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ECONOMIC CONTRIBUTION OF THE MANUFACTURING INDUSTRY
The contribution of an industry to the overall production of goods and services in an economy is measured by gross value added (GVA). Information on the relationship between industry GVA and gross domestic product (GDP) is provided in the Industry Structure and Performance chapter.
Total production of the manufacturing industry, as measured by industry GVA (in chain volume terms), increased in most years from 1983-84 to 2003-04 (graph 18.1). During this period, production increased by 53%. It has been steadily increasing since 1991-92.
Table 18.2 shows the industry GVA of the subdivisions (components) within the Manufacturing Division as defined in the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition (1292.0). The table also shows the contribution of the manufacturing industry to Australia's GDP in the period 1999-2000 to 2003-04.
In this period, the manufacturing industry GVA (in chain volume terms) rose by 10%, while its contribution to GDP (in current prices) declined marginally from 11.4% in 1999-2000 to 10.9% in 2003-04.
The largest increase in production in the period was for Other manufacturing (33%), followed by Non-metallic mineral product manufacturing (22%) and Machinery and equipment manufacturing (17%). Production for these industries had been growing progressively each year from 1999-2000.
Production for Textile, clothing, footwear and leather manufacturing fell by 26%. It was the only industry subdivision that recorded a fall over this period. Its production has been declining each year except for 2003-04 when an increase of 2.3% was recorded.
Between 2002-03 and 2003-04, production increased for all manufacturing subdivisions except for Petroleum, coal, chemical and associated product manufacturing (-2.2%) and Food, beverage and tobacco manufacturing (-0.3%). The largest increase was for Other manufacturing (5.4%).
18.2 MANUFACTURING GROSS VALUE ADDED AND CONTRIBUTION TO GDP
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Industry subdivision | Units | 1999-2000 | 2000-01 | 2001-02 | 2002-03 | 2003-04 | Percentage change from 1999-2000 to 2003-04 |
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Industry gross value added(a) | | | | | | | |
| Food, beverage and tobacco manufacturing | $m | 15,279 | 15,954 | 15,813 | 15,892 | 15,844 | 3.7 |
| Textile, clothing, footwear and leather manufacturing | $m | 3,521 | 3,250 | 2,838 | 2,551 | 2,610 | -25.9 |
| Wood and paper product manufacturing | $m | 5,065 | 4,939 | 5,224 | 5,333 | 5,476 | 8.1 |
| Printing, publishing and recorded media | $m | 8,636 | 9,099 | 9,237 | 9,170 | 9,363 | 8.4 |
| Petroleum, coal, chemical and associated product manufacturing | $m | 12,726 | 13,023 | 13,426 | 14,579 | 14,252 | 12.0 |
| Non-metallic mineral product manufacturing | $m | 3,536 | 3,627 | 3,902 | 4,190 | 4,322 | 22.2 |
| Metal product manufacturing | $m | 10,031 | 9,986 | 10,592 | 10,653 | 10,946 | 9.1 |
| Machinery and equipment manufacturing | $m | 14,577 | 15,307 | 15,630 | 16,495 | 17,015 | 16.7 |
| Other manufacturing | $m | 2,856 | 2,971 | 3,396 | 3,599 | 3,793 | 32.8 |
| Manufacturing(b) | $m | 76,009 | 77,991 | 80,022 | 82,462 | 83,622 | 10.0 |
Contribution to GDP(c) | % | 11.4 | 10.9 | 10.8 | 10.9 | 10.9 | . . |
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(a) Chain volume measures, reference year is 2002-03.
(b) Chain volume measures for years other than 2002-03 and 2003-04 are not additive.
(c) In current prices.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
The manufacturing industry is the largest contributor to Australia's export earnings. Its value of exports based on industry of origin accounted for 53% of total exports in 2004-05.
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