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1301.0 - Year Book Australia, 2006  
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Contents >> Chapter 18 - Manufacturing >> Economic contribution of the manufacturing industry

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.

Graph 18.1: MANUFACTURING PRODUCTION(a), Chain volume measures(b)


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

Industry subdivision
Units
1999-2000
2000-01
2001-02
2002-03
2003-04
Percentage change from 1999-2000 to 2003-04

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
. .

(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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