Author: James Organ | Posted On: 01 Sep 2023
Australian manufacturers expect to increase production volumes in the next 12 months, supported by higher capital expenditure and investment in technology, CommBank report shows. Research conducted by Fifth Quadrant forms the cornerstone of the CommBank Manufacturing Insights Report 2023. This comprehensive report delves into the intricacies of the Australian manufacturing landscape, offering invaluable insights into the trends that are shaping the industry’s pursuit of efficiency, productivity, and sustainability.
Insights into Manufacturing Expansion
The spotlight is on Australian manufacturers, as the CommBank Manufacturing Insights Report 2023 unveils compelling predictions for the industry. An impressive 72% of manufacturers are poised to boost their production volumes within the next year. Remarkably, an equivalent percentage of manufacturers are strategically planning to amplify their capital expenditure, underscoring a strong commitment to growth.
Despite fluctuations in operational costs and complexities within supply chains, a noteworthy 74% of manufacturers are confidently anticipating increased profits in the upcoming year.
fostering innovation through technology
Innovation is the cornerstone of progress, and this sentiment is echoed in the report’s findings. A substantial 87% of manufacturers are fully embracing investments in new technology. Notably, this commitment to innovation is even more pronounced in regional areas, where an astounding 99% of manufacturers are gearing up to enhance their tech investments.
However, technology is just one facet of the transformation. The report underscores that manufacturers are also focusing on efficiency enhancements, quality improvements, and the expansion of operational capacity. Investment priorities span diverse areas, including process controls (32%), cloud-based applications (28%), supply chain optimization (27%), and refining customer experiences (27%). Emerging technologies are set to revolutionize the manufacturing landscape, with next-generation enterprise resource planning (ERP) systems (31%), autonomous systems (31%), and artificial intelligence (30%) at the forefront of this revolution.
embracing sustainable practices
Sustainability is emerging as a driving force within manufacturing. The report reveals that an impressive 88% of manufacturers view sustainable practices as a core component of their business strategies. Significantly, 36% of these manufacturers consider sustainability not only important but essential to their operations.
Sustainability initiatives span a wide spectrum, encompassing environmental, social, and governance considerations. The report highlights a significant increase in manufacturers setting emissions reduction targets—78% of them, to be precise. This marks a substantial rise from the 45% recorded in the previous year. Over half of these manufacturers have already achieved their sustainability goals or are well on their way, underscoring the profound impact sustainability has on adaptability, resilience, and overall business performance.
about the research
CommBank Manufacturing Insights is an exclusive, wide-ranging analysis of Australian manufacturers. This edition examines how manufacturers are navigating the industry’s emerging challenges and opportunities with a focus on trends in business performance, inflation and supply chain management, digital transformation, and sustainable manufacturing.
The research is based on an online quantitative survey conducted by Fifth Quadrant (formerly ACA Research) on behalf of the Commonwealth Bank. The survey was in field during January 2023 and was completed by 300 key influencers or decision-makers from Australia’s manufacturing industry.
The full CommBank Manufacturing Insights Report 2023 is available from the CBA Website below.