Manufacturing Takes Centre Stage This May
May marks Australian Manufacturing Week, and the timing is particularly relevant. The pandemic exposed the vulnerabilities of just‑in‑time global sourcing, and recent shifts in global geopolitics and energy markets have reinforced these challenges. At the same time, a strong local manufacturing sector is more important than ever, presenting significant opportunities for businesses ready to adapt and grow.
What manufacturing contributes
Manufacturing punches well above its weight in the Australian economy. It is Australia’s sixth largest industry, producing $137 billion in value-added output and employing 930,000 people. It generates 12.4% of Australia’s exports and 7.9% of capital expenditure investment, despite representing just 5.1% of GDP.
Manufacturing’s footprint in employment, exports, and investment is disproportionately large relative to its GDP share, meaning it drives economic activity well beyond its own sector.
In mid-2025, around half of Australian industrial businesses reported experiencing supply chain disruptions, which marks a 12% increase in less than nine months. In response, 44% of manufacturers plan to boost their investments in supply chain resilience in 2026.
Governments are now reconsidering their reliance on fragile international supply lines and are prioritising supply chain sovereignty over purely seeking cost savings. As a result, there is a gradual but noticeable shift back to local manufacturing, presenting a genuine opportunity for Australian manufacturers.
What this means for your business
The manufacturers who will thrive are those making decisions based on clear financial data. That means understanding margins at a product level, having visibility over cash flow and structuring the business to fund growth without over-leveraging. It also means having an advisor who understands your industry, not just your tax return.
Manufacturing and engineering are one of our core client sectors. The conversations we are having with business owners have shifted. It is no longer just about managing costs. It is about capital structure, workforce investment, pricing strategy and building a business that can absorb external shocks.
How Advivo can help
Whether you are looking to grow capacity, restructure your finances, or ga the product level, having visibility into cash flow, into business performance, we work alongside manufacturing clients throughout the year as part of their team.
Contact Advivo on 07 3226 1800 or email info@advivo.com.au.
