Industry Analysis & Industry Trends
The Synthetic Resin and Synthetic Rubber Manufacturing industry plays an important part in Australia's overall chemicals and plastics industries. Almost 91% of industry output feeds into the manufacture of downstream products and the industry employs an estimated 4,091 people in 2012-13. It consists of about 252 establishments, most of which are very small. The larger industry players are located in a few key-producing sites in Victoria and New South Wales.
The industry is in the decline phase of its life cycle. General macroeconomic uncertainty, generally weak product prices and continued customer destocking across key value chains characterised the industry over the five years through 2012-13. Industry revenue is expected to fall by 3.9% per year over that period to reach $3.14... purchase to read more
Industry Report - Industry Investment Chapter
The Synthetic Resin and Rubber Manufacturing industry is capital intensive, as indicated by the 2.6:1 ratio of wages to depreciation.
Capital intensity is high because of the large and expensive plants, machinery and equipment required to manufacture synthetic resin and rubber. Efforts to further automate processes and cut wage costs have also led to increased capital intensity. Over the past five years, the limited capital expenditure undertaken has been directed towards the gradual upgrade of existing facilities, with a view to improving operating efficiency. Despite this spending, capital intensity has eased, although it remains at a high level. .. purchase to read more