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, demand from major markets such as the Motor Vehicle Manufacturing industry is weakening and is therefore unable to offer much respite. However, industry revenue is estimated to increase by an annualised 3.3% over the five years through 2013-14. This growth is mainly due to a recovery from a large fall in 2008-09. Industry revenue is expected to grow by 5.4% to $904.7... 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 $4.02 on labour for every $1.00 spent on capital. Rising import penetration has forced domestic manufacturers to pursue niche markets focusing on the production of custom products. Also, there is a low level of innovation in the production of industry products. Firms focus upon servicing customer needs rather than investing heavily in research and development to make products that would create new markets.
Many industry products are one-off designs requiring manual retooling to manufacture another custom product, increasing the level of labour used in the manufacturing function... purchase to read more