Inaugural industry report released

The Australian Industry Report 2014 has been released by the Department of Industry’s Office of the Chief Economist. Providing an overview and analysis of the major economic factors affecting Australia’s industries, the focus of this year’s inaugural report is structural change.

The report notes that in order to maintain Australians’ high standard of living, the economy has had to adapt and respond to a range of economic and demographic pressures. According to Chief Economist Mark Cully, such structural change must be embraced if we are to sustain economic growth and future prosperity.

“We must capitalise on the opportunities provided by new technologies, an emerging Asian middle class and an ageing population,” he said.

Cully’s thoughts were echoed by Minister for Industry Ian Macfarlane, who noted that Australia is “entering a third wave of economic development, based around higher value-added manufacturing, niche product development and growth in professional services”. He said Australia is “in the box seat to grasp new economic opportunities … so long as we recognise the changes that are occurring and act to capitalise on them”.

The report also examines the prospects for the five growth sectors announced by the government in October in its Industry Innovation and Competitiveness Agenda, the aim of which is to “identify and pursue opportunities to expand our economy and boost our productivity, including through greater collaboration between science and research”, according to Macfarlane.

It was found that the five sectors - food and agribusiness; mining equipment, technology and services; medical technologies and pharmaceuticals; oil, gas and energy resources; and advanced manufacturing - are growing more strongly than other sectors. They also have high productivity levels and account for more than a quarter of all exports.

“Continued growth will depend on the ability of these and other sectors to be globally competitive,” said Macfarlane. “The Industry Innovation and Competitiveness Agenda, supported by the economic analysis in this report, will help to make this a reality.”

The report can be found at www.industry.gov.au/oce