Manufacturing, Manufacturing News

Report shows Australian manufacturers and distributors set to expand production

New CommBank report shows production output and financial performance to lift in 2024 while labour shortages and competitive pressures weigh on productivity and growth.

The report revealed that 61 per cent are targeting a moderate or significant uplift in production levels in the next year in contrast to only 6 per cent predicting a decrease.

CommBank’s new Manufacturing and Supply Chain Insights report is based on a survey of manufacturing, wholesale trade and distribution businesses.

Production forecasts are robust in Western Australia and Queensland, with 71 per cent and 67 per cent anticipating an increase, respectively.

Victoria and South Australia both showed forecasts of 58 per cent while New South Wales was at 54 per cent.

At a national level, most businesses are also forecasting revenue and profit growth in line with rising output.

This is reflected in business optimism, with 83 per cent expressing confidence in conditions over the next 12 months.

However, as businesses strive for growth, they face persistent challenges.

According to respondents, cost-related factors, driven by energy prices (80 per cent), inflation (74 per cent), and interest rates (72 per cent), are set to be the highest-impact issues this year.

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