Industry Analysis & Industry Trends
As with numerous manufacturing industries in high labour cost countries such as Australia, the Natural Rubber Product Manufacturing industry is facing stiff competition from imports on the back of the strong Australian dollar. Local manufacturers are finding it increasingly difficult to compete on prices, much to the detriment of the industry. In addition to this, demand from major markets such as the Australian motor vehicle manufacturing industry is weakening and is therefore unable to offer much respite. Consequently, industry revenue is estimated to decline by an annualised 3.3% over the five years through 2012-13 to reach $843.1 million. Industry revenue is expected to grow at a marginal 0.7%... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the Natural Rubber Product Manufacturing industry is estimated to be at a medium level. The industry is estimated to spend $7.20 on labour for every $1.00 invested in new capital. Rising import penetration has forced domestic manufacturers to pursue niche markets focusing on the production of custom products. These products are usually one-off products requiring manual retooling to manufacture another custom product, increasing the level of labour used in the manufacturing function. In addition, this type of custom precision manufacturing is difficult to replicate on a production line, requiring more labour to operate machines.
Overall, there is a low level of innovation in the production of industry products... purchase to read more