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Grant Thornton has published its annual Manufacturing Benchmarks report, examining the financial data of 100 mid-sized Australian manufacturers and presents an overview of the Australian manufacturing sector.
Like most businesses across Australia, mid-sized manufacturers are in the midst of a cost-conscious and complex environment, navigating through supply chain constraints, cost pressures and global competition.
Yet our analysis shows a story of innovation and adaptation, with a group of top performers growing revenue more than six times faster than average, freeing up capital and allowing them to invest in automation, product innovation, and digital infrastructure.
The top manufacturers have continued to deliver strong results with 18 per cent sales growth, compared to the industry average of 3 per cent this year. In contrast to the wider industry, stronger performing manufacturers appear to be retaining more earnings.
However, while there’s growth in the sector for those focused on strategic priorities, it’s clear there is an overall softening in the sector reflective of a broader economic slowdown.
Manufacturers with revenue above $75m have increased gross profit percentage from 31 per cent to 33 per cent mirroring our top performer results, while businesses below $75m experienced a sharp contraction in gross margin from 36.2 per cent to 32.6 per cent.
EBITDA multiples have decreased to 8.3x, marking the industry's second consecutive year of decline in EBITDA margins – now below those seen in 2022 – likely due to ongoing inflationary pressures impacting costs. Notably, EBITDA improved for businesses with revenue under $75m, indicating strong cost management during the year, particularly given a decreased gross margin.
“From our analysis, it’s clear that success in the industry hinges on the ability to manage cost pressures and complexity while continuing to invest in capability, innovation and technology,” said Michael Climpson, National Head of Manufacturing at Grant Thornton.
“The current economic slowdown provides an opportunity to re-evaluate future strategies. This could involve securing government grants for investments in technology and innovation, exploring new product lines and markets, or leveraging mergers and acquisitions to enhance scale and diversify operations.”
Press Release
Grant Thornton’s 2025 Manufacturing Benchmarks report shows adaptability and innovation key to success
09 Jul 2025
Grant Thornton has published its annual Manufacturing Benchmarks report, examining the financial data of 100 mid-sized Australian manufacturers and presents an overview of the Australian manufacturing sector.
Like most businesses across Australia, mid-sized manufacturers are in the midst of a cost-conscious and complex environment, navigating through supply chain constraints, cost pressures and global competition.
Yet our analysis shows a story of innovation and adaptation, with a group of top performers growing revenue more than six times faster than average, freeing up capital and allowing them to invest in automation, product innovation, and digital infrastructure.
The top manufacturers have continued to deliver strong results with 18 per cent sales growth, compared to the industry average of 3 per cent this year. In contrast to the wider industry, stronger performing manufacturers appear to be retaining more earnings.
However, while there’s growth in the sector for those focused on strategic priorities, it’s clear there is an overall softening in the sector reflective of a broader economic slowdown.
Manufacturers with revenue above $75m have increased gross profit percentage from 31 per cent to 33 per cent mirroring our top performer results, while businesses below $75m experienced a sharp contraction in gross margin from 36.2 per cent to 32.6 per cent.
EBITDA multiples have decreased to 8.3x, marking the industry's second consecutive year of decline in EBITDA margins – now below those seen in 2022 – likely due to ongoing inflationary pressures impacting costs. Notably, EBITDA improved for businesses with revenue under $75m, indicating strong cost management during the year, particularly given a decreased gross margin.
“From our analysis, it’s clear that success in the industry hinges on the ability to manage cost pressures and complexity while continuing to invest in capability, innovation and technology,” said Michael Climpson, National Head of Manufacturing at Grant Thornton.
“The current economic slowdown provides an opportunity to re-evaluate future strategies. This could involve securing government grants for investments in technology and innovation, exploring new product lines and markets, or leveraging mergers and acquisitions to enhance scale and diversify operations.”
Experts / Authors
Carla van den Hoorn
Communications Manager at Grant Thornton Australia
