The depreciation in the Australian dollar has seen manufacturing exports up sharply, led by high-value companies selling into global supply chains.
The Australian Financial Review reports that transport equipment exports and machinery & equipment categories have seen exports grow by 9.9 and 11 per cent in the last year.
"Perhaps traditional manufacturing is not doing so well, but high-tech, high-value manufacturing is booming,” the Australian Industry Group’s John O’Callaghan told The AFR, adding that the highest-value global supply chain was in defence and aerospace.
Companies such as Boeing, Lockheed Martin and Thales valued Australian SMEs as suppliers for their innovation, engineering and other sets of expertise, as well as the political stability of the market and its nearness to Asia. He cited suppliers to Thales for its Bushmaster, Quickstep and Marand Precision Engineering.
"These are Australian companies, building the most complex pieces of machinery in the world today. They employ hundreds of people and build skills capacity in this country," said O’Gallaghan.