Industry Analysis & Industry Trends
Over the past five years, the Synthetic and Natural Textile Manufacturing industry has faced difficult trading conditions, which have caused industry revenue to rapidly decline. 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 exchange rate fluctuations, and the strength of the Australian dollar until late 2013 reduced industry operators’ price competitiveness.
Synthetic and natural textile manufacturers produce fabric and yarn used by carpet, apparel and textile product manufacturing industries... purchase to read more
Industry Report - Starting a New Business Chapter
The level of capital investment needed to establish certain industry operations is a significant hurdle for new participants. For example, spinning and wool scouring are capital-intensive processes that 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 in the industry act as a further barrier to entry. The prices of wool, cotton and chemicals used to produce fabric and yarn have increased over the past five years. High price-based competition and high operating costs mean that investment returns are low... purchase to read more