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NOTES


ABOUT THIS PUBLICATION

This publication presents estimates for the manufacturing industry for 2003-04 from the Economic Activity Survey, together with data on a comparable basis for 2001-02 and 2002-03.

CHANGES TO THIS PUBLICATION

This publication includes the first release of employment estimates (and related ratios) using the new statistical infrastructure described in the previous issue of this publication. These were not included in the previous issue, due to methodological problems in deriving employment data from the taxation system data used. (See Appendix 2 for details.) A time series of employment estimates using the new statistical infrastructure is presented in table 1.1.

Estimates of most assets and liabilities items (and related ratios) are not available from the 2003-04 collection, and hence are not included in this issue.

REVISIONS

Data for 2001-02 and 2002-03 have been revised since the previous issue of this publication. All comparisons with earlier years are based on revised data. Revisions to key data items are presented in table 1.1. Revised data for other items are available on-line in updated versions of the original datasets. Please see below.

INFORMATION AVAILABLE ON-LINE

The text components of this publication are available free on-line. A PDF publication and extended data spreadsheets are also available free on-line. To access this information, go to the ABS website home page <https://abs.gov.au>. Open the Industry link shown under Themes (located in the left-side navigator), then open the Manufacturing Statistics link shown under Industry.

INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or John Ridley on Sydney (02) 9268 4541.

CHAPTER 1 SUMMARY



INTRODUCTION

This publication presents 2003-04 estimates for the manufacturing industry based on new statistical infrastructure introduced for 2001-02.

KEY DATA

Table 1.1 presents a time series for selected items, from 2001-02 to 2003-04. All value data in this table are shown at current prices.

For more information about:

• employment estimates, see Appendix 2, page 49
• survey methodology, see Technical Note 1, page 50.

GROSS VALUE ADDED

Table 1.2 illustrates the growth of Australian industries over time using chain volume measures of their gross value added. Chain volume measures provide estimates free of the direct effects of price change.

Of the seventeen industries shown in table 1.2, Manufacturing ranked fifteenth in its average annual growth rate over the past 10 years and lowest over the past 25 years, with increases of 2.0% and 1.7% respectively. By comparison, the highest growth rates were recorded by Communication services, with annualised rates of 6.1% and 6.7% for the 10 year and 25 year periods.

FURTHER COMMENTARY

Please see:

• National data: Chapter 2, page 9
• States, territories and Australia: Chapter 3, page 29
• Exports: Chapter 4, page 37.

Statistics in this publication relate to the manufacturing industry as defined by the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition. These data are presented at the ABN unit/TAU level (see the Glossary for definitions) and, therefore, can contain data about activities normally associated with industries other than manufacturing. See Explanatory Notes paragraphs 4-16 for further details. The commentary focuses mainly on the major data variables for the nine ANZSIC industry subdivisions that comprise the manufacturing industry.

OVERVIEW

Most major indicators of activity for the Australian manufacturing industry increased, in current price terms, during 2003-04. Sales and service income increased 3.5% and industry value added (IVA) rose by 4.1%. Manufacturers paid $46.2b in wages and salaries in 2003-04, 3.1% more than in 2002-03 (despite a decline in employment). The increase in net capital expenditure was 9.0% (from $9.9b in 2002-03 to $10.8b in 2003-04). Export sales of goods produced decreased by 1.1% (from $48.3b in 2002-03 to $47.8b in 2003-04).

SELECTED VARIABLES, 2002-03 AND 2003-04

Employment fell in six of the nine manufacturing industry subdivisions between June 2003 and June 2004. The industry subdivisions which experienced the greatest percentage declines in employment were Metal product manufacturing (down 4.7%, from 178,700 to 170,300), Textile, clothing, footwear and leather manufacturing (down 3.7%, from 69,100 to 66,600), and Other manufacturing (down 3.1%, from 85,900 to 83,300). The increases were recorded by Petroleum, coal, chemical and associated product manufacturing (up 3.6%, from 104,200 to 107,900), Wood and paper product manufacturing (up 2.5% from 72,300 to 74,100), and Machinery and equipment manufacturing (up 1.9%, from 239,700 to 244,200).

At the industry class level, the five largest manufacturing industries as measured by employment at the end of June 2004 were Printing (ANZSIC Class 2412) (44,500 persons), Wooden furniture and upholstered seat manufacturing (ANZSIC 2921) (36,700 persons), Fabricated metal product manufacturing n.e.c. (ANZSIC 2769) (31,400 persons), Meat processing (ANZSIC 2111) (28,800 persons) and Motor vehicle manufacturing (ANZSIC 2811) (28,700 persons).

At the end of June 2004, employment in Australian manufacturing was marginally lower (by 2,000 persons) than at the end of June 2002.

WAGES AND SALARIES

The Australian manufacturing industry paid $46.2b in wages and salaries in 2003-04, 3.1% higher than in 2002-03.

Total wages and salaries paid rose, in current price terms, in seven of the nine manufacturing industry subdivisions between 2002-03 and 2003-04.

The manufacturing industry subdivision showing the largest percentage increase in wages and salaries in 2003-04 was Other manufacturing (up 6.5%, or $0.1b, to $2.3b). In absolute terms, Machinery and equipment manufacturing recorded the largest increase (up $0.5b, or 4.4%, to $10.7b).

The industry group, of those available for publication, which recorded the highest wages and salaries expense was Motor vehicle and part manufacturing (ANZSIC Group 281), with $3.3b or 7.2% of total manufacturing.

WAGES AND SALARIES PER PERSON EMPLOYED AT END OF JUNE, 2002-03 and 2003-04

SALES & SERVICE INCOME

Sales and service income of manufacturing industry in Australia in 2003-04, at $315.6b, was $10.6b (or 3.5%) higher than in 2002-03.

Over the period from 2001-02 to 2003-04, manufacturing's total sales and service income increased by 8.0%.

At the industry group level, of those groups available for publication, Non-metallic mineral product manufacturing n.e.c. (ANZSIC group 264) recorded the largest percentage increase in sales and service income (16.6%) between 2002-03 and 2003-04. The largest absolute increase, of $2.1b, was recorded by Motor vehicle and part manufacturing (ANZSIC group 281), which also contributed the largest share (7.5%) of sales and service income.

Sales and service income per person employed in Australian manufacturing in 2003-04 was $288,200, 4.4%, or $12,100, higher than for 2002-03, and 8.2%, or $21,900, higher than in 2001-02.

INDUSTRY VALUE ADDED (IVA)

DISTRIBUTION OF IVA ACROSS INDUSTRIES, 2002-03 and 2003-04

All nine manufacturing industry subdivisions increased IVA in current price terms between 2002-03 and 2003-04.

At the industry group level, of those groups available for publication, Furniture manufacturing (ANZSIC group 292) recorded the largest percentage increase in IVA (17.3%) in 2003-04. Motor vehicle and part manufacturing (ANZSIC group 281) experienced the largest growth in IVA, $0.7b (12.4%), followed by Publishing (ANZSIC group 242) with $0.6b (13.3%).

As measured by contribution to IVA, the largest manufacturing industry groups in 2003-04 (of those available for publication) were Motor vehicle and part manufacturing (ANZSIC group 281), with $5.9b, or 6.5% of total manufacturing, Publishing (ANZSIC group 242), with $5.4b, or 6.0%, and Basic non-ferrous metal manufacturing (ANZSIC group 272), with $4.4b, or 4.9%.

IVA per person employed in manufacturing has increased by 5.0%, from $78,700 in 2002-03 to $82,600 in 2003-04.

EMPLOYMENT SIZE

In 2003-04, businesses employing 100 or more persons accounted for 46.4% of total manufacturing employment in Australia and 61.1% of wages and salaries. Their contribution to sales and service income was 64.7% and to industry value added 62.6%.

CONTRIBUTION TO MANUFACTURING INDUSTRIES BY BUSINESSES EMPLOYING 100 OR MORE PERSONS, 2003-04

NET CAPITAL EXPENDITURE

Net capital expenditure by manufacturing businesses rose by 9.0%, or $0.9b, to $10.8b between 2002-03 and 2003-04. Total acquisitions grew by 3.1% ($0.4b), mainly reflecting a 16.6% ($0.2b) increase in outlays on dwellings, other buildings and structures and a 2.0% ($0.2b) increase in plant, machinery and equipment. Asset disposals in 2003-04 were 17% ($0.5b), lower than in the previous year.

LABOUR COSTS

The value of the selected non-wage labour costs as a proportion of wages and salaries increased for total manufacturing from 17.3% in 2002-03 to 18.3% in 2003-04. This mainly reflected an increase (from 8.4% to 9.2%) in the proportion represented by employer contributions into superannuation. Apart from Textile, clothing, footwear and leather manufacturing, this proportion rose in all manufacturing subdivisions.

INDUSTRY SUBDIVISION ANALYSIS

Food, beverage and tobacco manufacturing

Food, beverage and tobacco manufacturing recorded increases of 2.2% in sales and service income and 2.5% in IVA. Although wages and salaries increased by 2.0%, employment fell by 1.0%.

In 2003-04, Food, beverage and tobacco manufacturing was the largest manufacturing industry as measured by its share of sales and service income (21.7%); it ranked second in IVA (19.5%) and wages and salaries (18.4%). This industry also outlayed the largest amount on purchases of goods and materials, $38.3b, or 22.6%, of the Australian manufacturing total. The value of assets acquired by Food, beverage and tobacco manufacturing ($2.8b, or 21.4% of total acquisitions) and net capital expenditure ($2.4b, or 21.9%) also exceeded that of all other manufacturing industry subdivisions.

Of the nine manufacturing industry subdivisions, Food, beverage and tobacco manufacturing is the second largest employer, accounting for 17.6% of the estimate for total manufacturing. In percentage terms, the industry is dominated by businesses employing 100 or more persons. These businesses contribute 82.1% of the subdivision's IVA, 80.3% of wages and salaries, 78.3% of sales and service income and 69.9% of employment. Compared to businesses employing 100 or more persons across the other eight industry subdivisions, those in Food, beverage and tobacco manufacturing provided the greatest proportion of total manufacturing employment (26.6%), sales and service income (26.3%), IVA (25.6%) and wages and salaries (24.2%). One half of this industry's IVA is produced by businesses employing 1,000 or more persons.

Textile, clothing, footwear and leather manufacturing

Despite sales and service income declining during 2003-04 by 4.0%, IVA of Textiles, clothing, footwear and leather manufacturing rose by 3.9%. This was mainly due to a $0.5b decrease in the value of purchased goods and materials compared to 2002-03.

The smallest manufacturing subdivision by most key measures presented, the industry accounted for less than 4% of total manufacturing IVA, sales and service income, purchases of goods and materials, and wages and salaries. Textile, clothing, footwear and leather manufacturing was the second smallest manufacturing employer in 2003-04, with 6.1% of total persons employed in Australian manufacturing.

Over the period from 2001-02 to 2003-04, employment in this industry has decreased by 8.1%. Within Textile, clothing, footwear and leather manufacturing, businesses employing 0-4 persons accounted for 30.3% of the subdivision's estimated total employment. However, of the employment size categories presented, businesses employing from 20 to 49 persons (with 14.5% of the industry's employment) made the greatest contribution to the subdivision's sales and service income (18.7%), wages and salaries (18.6%) and IVA (17.2%).

Exports made up 17.6% of the industry's sales of goods produced.

Wood and paper product manufacturing

IVA and sales and service income of Wood and paper product manufacturing increased by 3.9% between 2002-03 and 2003-04, accompanied by growth of 3.0% in purchases of goods and materials and 4.9% in other intermediate input expenses. Wages and salaries rose by 5.0% and employment by 2.5% to 74,100 persons.

In 2003-04, Wood and paper product manufacturing accounted for 7.2% of total IVA for manufacturing, 6.8% of employment, 6.3% of wages and salaries, and 5.9% of sales and service income, and 5.2% of purchases of goods and materials.

Wood and paper product manufacturing recorded a 45.1% increase in net capital expenditure during 2003-04, the strongest percentage growth of any manufacturing subdivision. The industry accounted for 7.4% of manufacturing asset acquisitions and 8.1% of net capital expenditure.

Printing, publishing and recorded media

During 2003-04 the industry recorded an 4.4% increase in IVA. This increase was mainly attributable to a 3.9% decrease in other intermediate input expenses, with purchases of goods and materials increasing by 2.5% and a modest rise of 1.5% in sales and service income. Wages and salaries increased by 5.2%.

Printing, publishing and recorded media's share of manufacturing purchases of goods and materials in 2003-04 was, at 3.6%, substantially less than its contribution to manufacturing's total IVA (10.3%), wages and salaries (10.2%), and sales and service income (6.5%). Of total employment in manufacturing at the end of June 2004, 10.0% was accounted for by this subdivision. Printing, publishing and recorded media exported 4.5% of the value of its sales of goods produced, and non-exporting businesses represented over 75% of its employment, wages and salaries, sales and service income and IVA.

Petroleum, coal, chemical and associated product manufacturing

IVA increased marginally (1.2%) in 2003-04, following a rise of 10.5% the previous year. Petroleum, coal, chemical and associated product manufacturing sales and service income and purchases of goods and materials both increased by 4.2% in 2003-04, and wages and salaries by 5.1%. The industry accounted for 12.4% of IVA for manufacturing, 16.7% of sales and service income, 19.7% of purchases of goods and materials and 11.8% of wages and salaries. Total assets acquired by the subdivision represented 17.3% of total manufacturing and net capital expenditure 18.3%. The increase of $0.6b (34.6%) in total capital acquisitions was the largest increase of any manufacturing industry.

Employment in the Petroleum, coal, chemical and associated product manufacturing industry constituted 9.9% of total manufacturing employment at the end of June 2004. Businesses employing 100 or more people accounted for 53.8% of employment in Petroleum, coal, chemical and associated product manufacturing. Such businesses produced 77.5% of the industry's sales and service income and 68.3% of its IVA, and paid 66.4% of its wages and salaries.

Non-metallic mineral product manufacturing

This industry increased its wages and salaries paid by 4.4% from 2002-03 to 2003-04. IVA increased by 7.4%, reflecting a 9.2% increase in sales and service income and a 7.3% increase in purchases of goods and materials. In 2003-04, the subdivision's share of total acquisition of assets in manufacturing was 8.0% and 7.9% of net capital expenditure.

As well as being the smallest manufacturing subdivision in terms of employment (contributing 4.2%), Non-metallic mineral product manufacturing is the subdivision in which businesses employing fewer than 100 persons made the smallest contributions in 2003-04 to total manufacturing sales and service income, IVA and wages and salaries. In contrast, Non-metallic mineral product manufacturing recorded the highest IVA per person employed, at $104,000.

Metal product manufacturing

In 2003-04, IVA of Metal product manufacturing increased by 0.6%. Sales and service income increased by 2.3%, and purchases of goods and materials by 2.8%. Wages and salaries fell marginally, by 0.5%. The industry was a significant contributor to manufacturing total asset acquisitions (20.2%) and net capital expenditure (18.8%).

Metal product manufacturing is the most heavily export-oriented manufacturing industry. In 2003-04, 36.5% of sales of goods produced were exported. Businesses exporting 50% or more of sales contributed 30.4% of the Metal product manufacturing's sales and service income and 29.3% of IVA, much higher than such businesses in any other manufacturing subdivision.

Businesses employing fewer than 100 persons provided 59.5% of this industry's employment at the end of June 2004. The contribution of businesses in this employment size category was greater in Metal product manufacturing than to manufacturing overall. The percentage difference was especially marked in relation to IVA, to which they contributed 48.6% for this industry but only 22.9% at the total manufacturing level.

Machinery and equipment manufacturing

The largest industry in terms of employment (244,200 or 22.3%) and wages and salaries ($10.7b or 23.2%), Machinery and equipment manufacturing was also the largest contributor to manufacturing IVA ($17.8b or 19.7%). The subdivision's contribution to total capital acquisitions and net capital expenditure were both proportionately lower, at 13.1%. In 2003-04, IVA increased by 8.1%, sales and service income 5.4% and purchases of goods and materials by 5.5%. Wages and salaries grew by 4.4% (following a 9.5% increase in 2002-03), and employment increased at a more moderate rate of 1.9%.

Uniquely among the manufacturing industries, employment within Machinery and equipment manufacturing was almost equally shared between businesses employing fewer than 100 persons (50.7%) and those employing 100 or more (49.3%). However, businesses employing 100 or more persons paid 60.1% of the industry's wages and salaries, and made similar contributions to sales and service income (63.2%) and IVA (60.6%).

Other manufacturing

Sales and service income of this industry increased by 7.6% and purchases of goods and materials by 4.5%. In 2003-04, Other manufacturing accounted for 7.6% of total manufacturing employment but 5.0% or less of wages and salaries, IVA, sales and service income and purchases of goods and materials.

Of the nine manufacturing industry subdivisions, Other manufacturing is heavily dominated by businesses employing fewer than 100 persons. In this industry, these businesses account for 88.3% of employment, 82.5% of wages and salaries, 85.3% of sales and service income, and 84.2% of IVA. In all the employment size categories representing businesses employing fewer than 20 persons, Other manufacturing made the greatest percentage contribution of any manufacturing industry.

Other manufacturing exported 3.3% of its sales of goods produced, the second lowest of any other manufacturing subdivision. Businesses which did not export accounted for 81.6% of employment in the industry, with similar levels of contribution to wages and salaries, sales and service income and IVA.

CHAPTER 3 STATES, TERRITORIES AND AUSTRALIA



INTRODUCTION

This chapter presents estimates of key variables at the state and territory level. For information about how these estimates are derived, please see paragraphs 20-22 of the Explanatory Notes. The commentary outlines features of the distribution of these key variables across states and territories, together with a summary of the state and territory dimension of each of the nine manufacturing industry subdivisions.

OVERVIEW

Compared to the previous year, manufacturing employment has increased in five of the eight states and territories. Similarly, all states and territories apart from Victoria recorded an increase in wages and salaries paid.

Compared to 2002-03, sales and service income and IVA of the manufacturing industry increased in all eight states and territories.

Of those industries available for publication, the industry which most heavily dominates manufacturing IVA in any state or territory is Printing, publishing and recorded media in the Australian Capital Territory (which accounts for 35% of Australian Capital Territory manufacturing IVA, compared to 10% nationally). This is followed by Machinery and equipment manufacturing in South Australia (32%; nationally 20%), Metal product manufacturing in Western Australia (31%; nationally 18%), and Wood and paper product manufacturing in Tasmania (26%; 7% nationally).

Metal product manufacturing was the major manufacturing industry, as measured by share of industry value added, in two states (Queensland and Western Australia), and Machinery and equipment manufacturing in two others (Victoria and South Australia). Food, beverage and tobacco manufacturing dominated in New South Wales, as did Wood and paper product manufacturing in Tasmania. Not all subdivisions are available for publication for the two territories.

INDUSTRY SUBDIVISION ANALYSIS

Food, beverage and tobacco manufacturing

Food, beverage and tobacco manufacturing is the largest manufacturing industry in New South Wales as measured by contribution to that state's manufacturing sales and service income (23%) and IVA (22%). It is also the largest contributor to manufacturing in Queensland and Tasmania as measured by employment (22% for Queensland and 23% for Tasmania), sales and service income (26% in Queensland and 25% in Tasmania) and wages and salaries (22% in Queensland and 24% in Tasmania).

New South Wales businesses contributed 33% of the sales and service income of the Food, beverage and tobacco manufacturing industry, Victoria 30% and Queensland 20%. Corresponding proportions of employment were 30%, 27% and 22%.

Textile, clothing, footwear and leather manufacturing

This industry is heavily concentrated in Victoria, where some 44% of the industry's sales and service income is produced. New South Wales's share is 32% and Queensland's 10%. Their contributions to IVA and employment show a similar pattern.

Wood and paper product manufacturing

Victoria's share of this industry's sales and service income, at 32%, just exceeded that of New South Wales (31%) in 2003-04. These are more than double Queensland's contribution (15%). New South Wales, however, contributes slightly more than Victoria to employment (31% vs 28%) and IVA (30% vs 28%). In terms of its share of IVA, Wood and paper product manufacturing is the major manufacturing industry in Tasmania, contributing 26%.

Printing, publishing and recorded media

Printing, publishing and recorded media is dominated by New South Wales businesses. They contribute 43% of the industry's sales and service income, compared to 30% from Victoria and 11% from Queensland. New South Wales also accounts for 38% of employment in this industry, and 41% of its wages and salaries. Of the manufacturing industries available for publication for the Australian Capital Territory Printing, publishing and recorded media is the largest, contributing 31% of Australian Capital Territory manufacturing sales and service income, 30% of employment, 35% of IVA and 33% of wages and salaries paid.

Petroleum, coal, chemical and associated product manufacturing

New South Wales businesses contributed 34% of the industry's sales and service income, Victoria 33% and Queensland 15%. Corresponding proportions of IVA are 31%, 38% and 13%. Although the distribution of sales and service income among the three largest states follows the pattern typical of several other manufacturing subdivisions (New South Wales 34%, Victoria 33% and Queensland 15%), their shares of IVA are very different. Victoria dominates IVA in Petroleum, coal, chemical and associated product manufacturing, accounting for 38% compared to New South Wales's 31% and 13% for Queensland. This pattern also characterises their shares of wages and salaries and employment.

Non-metallic mineral product manufacturing

In terms of sales and service income, New South Wales contributes 32% of this industry, Victoria 25% and Queensland 18%. Their shares of employment and IVA are similar.

Metal product manufacturing

New South Wales contributes 31% of the employment and 28% of the sales and service income of the Metal product manufacturing industry. The shares of the next three biggest states are 26% of employment and 19% of sales and service income for Victoria, 19% and 20% respectively for Queensland, and 13% and 23% for Western Australia. The relative importance of Western Australia and Queensland reflects the location of major smelting and refining operations in those states, where Metal product manufacturing is the major manufacturing industry as measured by share of state IVA (31% and 23% respectively).

Machinery and equipment manufacturing

Concentration of the Motor vehicle and part manufacturing and Electrical equipment and appliance manufacturing industries in Victoria and South Australia is mainly responsible for those states' shares (respectively, 38% and 16%) of sales and service income for Machinery and equipment manufacturing; New South Wales contributes 26% and Queensland 12%. Of employment in this industry at the end of June 2004, 31% is attributed to Victoria, 29% to New South Wales, 16% to Queensland and 15% to South Australia.

By all four measures presented, Machinery and equipment manufacturing is the largest manufacturing industry in South Australia and Victoria. Its domination of South Australian manufacturing is the most pronounced of any state or territory: 35% of South Australia's manufacturing employment, 32% of IVA, and 37% of both sales and service income and wages and salaries paid are attributable to Machinery and equipment manufacturing. Corresponding proportions for Victoria are, respectively, 23%, 22%, 24% and 25%.

Other manufacturing

Measured by sales and service income, New South Wales contributes 34% of this industry, Victoria 30% and Queensland 20%. Their shares of employment, wages and salaries and IVA are similar.

COMPARISON ACROSS INDUSTRY

Table 3.2 shows the contribution of industries to the production (as measured by total factor income) of each state and territory, as well as Australia, in 2003-04. For the purposes of this table, the activity of general government and the ownership of dwellings are each treated as industries.

Of the nineteen industries shown in the table, Property and business services ranked first (at 13.0%) in its contribution to Australian production for 2003-04. Manufacturing was the second largest industry (at 12.8%). Manufacturing was the largest industry in Victoria, Queensland, South Australia and Tasmania, and in New South Wales was exceeded only by Property and business services. South Australia and Tasmania (at 16.7%) had the highest proportion of state or territory production attributed to Manufacturing, followed by Victoria (15.7%).

CHAPTER 4 EXPORTS



INTRODUCTION

This chapter illustrates the extent and importance of export activity by Australian manufacturing businesses. Table 4.1 presents estimates of the value of exports by Australian manufacturing businesses of goods that they produced. Table 4.2 categorises businesses by their involvement in exporting, and presents estimates of the contribution of each category to industry aggregates. For information about how these data have been derived, please see Explanatory Notes paragraphs 26 to 30. Even though, as explained there, the exports data presented in these tables are not directly comparable with the ABS's overseas trade series, the commentary below also uses the trade series to illustrate some characteristics of Australian manufacturing's export performance.

INDUSTRY COMPARISON

The October and November 2004 issues of International Trade in Goods and Services, Australia (ABS cat. no. 5368.0) report that, in terms of value of goods exports, the most significant exporting industries (of the 'owning business' of the goods exported) in 2003-04 were manufacturing (40% of the value of goods exports), mining (31%) and wholesale trade (20%). The exporting business as defined in this analysis is the owner of the good at the time of export and not necessarily the producer of the good. Approximately 60% of exports of manufactured goods were exported by the manufacturing industry, 18% by the wholesale trade industry, and 12% by the mining industry.

VALUE OF EXPORTS

In 2003-04, the Economic Activity Survey indicated that Australian manufacturers directly exported $47.8b worth of the goods they produced. This represented 19.1% of their value of sales of goods produced and a decrease of $534m (or 1.1%) compared to the value for 2002-03, when the proportion was 19.8%. The following graph illustrates the percentage contribution of each manufacturing industry subdivision to total manufacturing exported sales of goods produced.

Of the nine manufacturing industry subdivisions, the value of exports of goods produced decreased between 2002-03 and 2003-04 in five and increased in the remaining four. In percentage terms, the manufacturing industry with the largest decrease in value of goods exported was Other Manufacturing, exports of which fell by 34.0% (or $141m) to $274m. The largest absolute decreases in the value of goods exported were recorded by Petroleum, coal, chemical and associated product manufacturing (down $746m, or 15.5%) and Machinery and equipment manufacturing (down $402m, or 4.8%).

EMPLOYMENT SIZE OF EXPORTING BUSINESSES

Excluding Metal product manufacturing (see paragraphs 23 and 24 of the Explanatory Notes), manufacturing businesses employing 100 or more persons tend to export a higher proportion (by value) of the goods that they produce, compared to businesses employing fewer than 100 persons.

The industry subdivision in which export activity is most heavily concentrated in businesses employing 100 or more persons is Wood and paper product manufacturing, where 87.7% (or $1.3b) of total exports are produced by businesses in this size category. This is followed by Machinery and equipment manufacturing, where businesses in this category account for 83.5% (or $6.7b) of total exports. The $101m in exports produced by businesses classified to Other manufacturing represents the lowest proportion (36.8%) of exports produced by businesses employing 100 or more persons.

CONTRIBUTION OF BUSINESSES THAT EXPORT

Depending on the measure selected, businesses that do not export accounted for between 41% and 56% of activity at the total manufacturing level in 2003-04. For manufacturing subdivisions, their percentage contribution was greatest, across all variables, in Other manufacturing, Printing, publishing and recorded media and Non-metallic mineral product manufacturing.

Petroleum, coal, chemical and associated product manufacturing remains the industry in which businesses which export up to and including 50% of their sales of goods produced make the greatest contribution to the key aggregates presented.

Businesses which exported more than 50% of their sales of goods produced tended to contribute a higher proportion to sales and service income than to employment and wages and salaries.