Every month at the Cumberland Business Chamber we look at the nation’s Manufacturing performance figures. After all, we’re in a huge industrial business park and Manufacturing is the life blood of the nation.
Business organisations use a Purchasing Managers Index (PMI) to assess how well Australia is going. It looks at new orders, inventory levels, production, supplier deliveries and employment.
Sectors that are examined include wood and paper, food and beverages, textiles, clothing, furniture, construction, metal products.
If the figure is over 50 it means the economy is growing.
The PMI for December 2017 stood at 56.2. This marked the 15th month in a row that it has been above 50.
To give you a comparison, between 2000-2017 the average was 50.25 and it went as high as 62 in 2002. The lowest it fell during the global financial crisis was 30 in 2009. This means we are nearing our best-ever figure in 16 years.
This information gives the government ammunition to claim that our industrial sector is flourishing. However, we all know it is going through a state of change. Disruptive technology, strong overseas competition, rising energy costs and a high Australian dollar work against us.
In our region of Western Sydney we meet some companies going strongly and others “making do”. The key is going to be in change management. Technological change and greater efficiencies are needed in order to remain competitive. Our role at CBC is to help to connect business leaders with that information.
If you have any topic of interest that you would like us to explore please contact us on firstname.lastname@example.org