Industry Analysis & Industry Trends
The Synthetic and Natural Textile Manufacturing industry has faced difficult trading conditions over the past five years, and as a result, industry revenue has declined rapidly. International trade is high and industry operators are exposed to intense competition from low-cost manufacturing countries. Industry operators have struggled to compete with foreign producers due to high average wages in Australia and increasing operating costs. The industry is vulnerable to fluctuations in the exchange rate, and a high Australian dollar over most of the past five years has further reduced industry operators' price competitiveness... purchase to read more
Industry Report - Starting a New Business Chapter
The level of capital investment needed to establish certain industry operations acts a significant hurdle for new participants. For example, spinning and wool scouring are capital intensive and require large upfront investments in plant and machinery. The textile sector's struggles have been much publicised in the media. As a result, obtaining finance for capital may prove difficult, as finance companies may be reluctant to approve loans to enterprises wanting to enter a declining industry.
The high operating costs of the industry acts as a further barrier to entry. The prices of wool, cotton and chemicals used in the production of fabric and yarn have increased over the past five years. High price-based competition and high operating costs mean that returns to investment are low... purchase to read more