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Section Eleven<br />

Manufacturing<br />

11.1 Descri<strong>pt</strong>ion of the sector<br />

E-commerce raises questions for the Australian manufacturing sector as to<br />

how to take advantage of the possibilities for more market-responsive<br />

production processes and leaner inventory levels and whether to use the<br />

Internet to sell directly to customers or develop new distribution<br />

relationships with wholesalers and retailers.<br />

In Australia, the major manufactured goods are machinery and electrical<br />

equipment products; food, beverages and tobacco; and metal products.<br />

The manufacturing sector contributed $69 billion to GDP in 1997–98, or<br />

13.2 per cent. It is Australia’s largest industry sector.<br />

Figure 11.1<br />

Manufacturing industry gross value added, 1997–98<br />

Other manufacturing<br />

Textile, clothing, footwear and leather<br />

Wood and paper products<br />

Non-metallic mineral products<br />

Petroleum, coal, chemical, etc<br />

Printing, publishing and recorded media<br />

Metal products<br />

Food, beverage and tobacco<br />

Machinery and equipment<br />

0 2 4 6 8 10 12 14 16<br />

$ billion<br />

Source: National Income, Expenditure and Product, ABS 5206.0, December Quarter 1998.<br />

In total, manufacturing industries employed over 945 000 people as at<br />

the end of June 1997.<br />

Table 11.1<br />

Employment in manufacturing industries in Australia, as at June 1997<br />

Industry classification No. of employees ‘000<br />

Food, beverage and tobacco 164.0<br />

Textile, clothing, footwear and leather 77.0<br />

Wood and paper product 61.5<br />

Printing, publishing and recorded media 96.7<br />

Petroleum, coal, chemical and associated product 93.4<br />

Non-metallic mineral product 37.1<br />

Metal product 150.2<br />

Machinery and equipment 207.5<br />

Other manufacturing 57.9<br />

Total 945.3<br />

Source: Manufacturing Industry, ABS 8221.0, 1996–97.<br />

167

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