Deloitte Global’s Global Manufacturing Competitiveness Index survey finds Australia dropping a place in the rankings.
The international survey of 500 CEOs and business leaders found Australia placed 21, down from a ranking of 16 in the 2013 survey, and predicted to fall another place in five years.
The USA was tipped to overtake China as the most competitive nation over the next five years, with this put down to the country’s investment in R&D and innovation in a separate report from Deloitte.
"Manufacturing competitiveness, increasingly propelled by advanced technologies, is converging the digital and physical worlds, within and beyond the factory to both customers and suppliers, creating a highly responsive, innovative, and competitive global manufacturing landscape," said Craig Giffi of Deloitte.
Damon Cantwell, manufacturing group leader for Deloitte in Australia, said there was a lesson to be learned from the US’s predicted rise in competitiveness.
“Given these global trends, the uptake of advanced manufacturing techniques in the Australian sector is the key to future consolidation and growth,” Cantwell told The Herald Sun.
“These innovations change the basis of competition for Australian manufacturing away from cost only, which suits the structure of the local manufacturing sector.”