Industry needs structural change to be sustainable: ACCI

Industry leaders have commented on the pressures facing manufacturers, following yesterday’s poor PMI result.

The result in the Australian Industry Group Performance of Manufacturing Index showed the sector went backwards for the eighth straight month.

On the same day, key auto parts maker Autodom announced that three factories in Victoria and South Australia would stop operating, cutting 400 jobs.

“Manufacturers continue to find the going very tough,” commented Innes Willox, the AiG’s CEO, said to AAP.

"Wages and input costs continued to rise in October, while the persistent decline in selling prices worsened, indicating that the profits remain under pressure."

The Australian Chamber of Commerce and Industry has suggested that changes to taxation to encourage investment, more flexible industrial relations laws and other structural changes were needed to ensure manufacturing’s viability.

“This is the policy framework to deliver more sustainable employment opportunities where manufacturing is likely to be at the higher-value end, the product of greater research and development activity or it forms part of a wider global supply chain,” ACCI economist Greg Evans told The Herald Sun.

Image: asiaaustralis.com