Australian manufacturers expect to increase production volumes in the next 12 months, according to the latest CommBank Manufacturing Insights Report.
Seventy per cent of manufacturers reported profit growth in the past 12 months, compared to just 52% last year. This is notwithstanding broad challenges facing the industry, with 75% expecting increases in operating costs and 92% saying lingering supply chain issues are holding back capacity or growth. Around 86% of manufacturers said this is impacting cash flow.
The top-ranked business priority for Australian manufacturers in the year ahead is investing in new technology, with 87% of manufacturers expect to increase expenditure — even higher in regional locations, where 99% of manufacturers are planning to invest more. The top areas for investment include process controls (32%), followed by implementing more cloud-based applications (28%), as well as supply chain and logistics and customer experience (27%).