2014 Federal Budget
Australian manufacturers’ diminished capacity to invest in capital and innovation will severely impede the industry’s ability to revive itself to a position as a strong contributor to Australian GDP.
The industry requires incentives that foster growth to meet the future needs of the sector. The budget released by the Government, however, is reliant on encouraging private sector investment, for which programme design is yet to be finalised.
“It is critical that the productive capacity and capability of the automotive sector, and manufacturing in general, is preserved. The Government should be focused on redirecting this capability rather than resigning itself to market forces,” Mark Phillips, National Head of Manufacturing at Grant Thornton Australia.
The turnaround in manufacturing growth in advanced economies demonstrates that GDP is positively related to growth in manufacturing.
“Manufacturing is essential to the long-term health of economies, as it is the engine that drives innovation. In Australia, the manufacturing sector contributes significantly more to innovation than other industry sectors,” said Mr Phillips.
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