While the high dollar will remain a challenge for some time to come, Prime Minister Julia Gillard says manufacturers can still survive in the current environment.
Earlier this week Gillard told Southern Cross Radio companies needed to make changes to their business in order to stay profitable.
“The competitive disadvantage of the high Aussie dollar is obvious but we can still manufacture things, provided we're at the forefront of innovation and quality,” she said.
“We can still be a country that manufactures things. But we're going to have to do it differently.”
Gillard said in comparison to other major countries Australia's economy was in good shape, but the Aussie dollar was still expected to stay high for the foreseeable future.
The Prime Minister's comments echo previous statements from Innovation Minister Greg Combet, who last month claimed manufacturers needed to make changes if they wanted to survive.
“Industries and businesses that succeed are going to be those that develop new technologies, new processes, that innovate, that apply technology to their manufacturing processes,” he said.