Manufacturing Benchmarks 2026: Scale as a competitive advantage

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Australian manufacturing is becoming more differentiated. While industry growth moderated to 4.1% in FY26, performance is increasingly splitting across the sector, with scale emerging as a key driver of stronger growth, profitability and investment capacity.

Larger manufacturers (>$150m) achieved 5.6% growth, compared with a 7.8% decline among smaller businesses (<$75m), highlighting a widening gap in performance. At the same time, industry EBITDA margins recovered to 10.6%, while top-performing manufacturers reached profit before tax margins of 19.2%.

Across the market, the strongest performers are consistently investing in productivity, managing costs more effectively and converting growth into earnings more efficiently. Sub-sector performance also varies, with Transport & Automotive Manufacturing leading growth at 7.8%, Food, Beverage & Agribusiness delivering strong earnings, and Chemicals, Pharmaceuticals & Advanced Materials maintaining gross margins above 40%.

What this report covers

This Manufacturing Benchmarks Report analyses the financial performance of 100 mid-sized Australian manufacturers, providing clear benchmarks across growth, profitability, productivity and capital allocation.

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Inside you’ll find:

How scale is influencing performance across the sector
Where profitability is strengthening and where pressure is emerging
Key working capital and cost trends across manufacturers
Sub-sector performance insights and standout performers
What the Top 10 manufacturers are doing differently

Access the full report to benchmark your performance against industry peers and understand the key forces shaping Australian manufacturing in FY26.

If you’d like to discuss what this means for your business, our manufacturing specialists can help interpret the findings and identify opportunities for improvement.