Industry Analysis & Industry Trends
Currently valued at $627.8 million, the Mattress Manufacturing industry has suffered in recent years due to import penetration and consumer reticence in high spending on household items such as furniture and whitegoods. Consumers that previously purchased premium products are now postponing their purchases or resorting to cheaper alternatives. Spending in downstream industries has been varied, though sectors such as nursing homes and hotels have shown growth in the five years through 2012-13, which is attributable to an ageing population. In the past five years, industry revenue is estimated to decline at an annualised rate of 2.0%, with a 2.4% contraction expected for 2012-13.
The Mattress Manufacturing industry in Australia is currently in the declining stage of its life cycle... purchase to read more
Industry Report - Industry Investment Chapter
The capital-to-labour ratio (wherein wage costs are used as a proxy for labour and depreciation is used as a proxy for capital) suggests that despite being a manufacturing industry, a high level of labour is used in the manufacturing process. Wages account for 22% of industry revenue over 2012-13. Depreciation represents about 1.5% of industry revenue. The Mattress Manufacturing industry has a capital-to-labour ratio of 1:14.64 and therefore has a low level of capital intensity, as for every dollar spent on capital, $14.64 is spent on wages.
Production units are typically small or medium and are labour intensive rather than capital intensive. Labour is used to operate automated processes in particular parts of production... purchase to read more