Press release
Grant Thornton 2024 Manufacturing Benchmarking report shows resilience and growth
15 Jul 2024
Grant Thornton has released its annual Manufacturing Benchmarking report, providing a review of the financial data of 100 mid-sized Australian manufacturers and painting a unique picture of the Australian Manufacturing sector.
The report shows the manufacturing sector has shown adaptability in the face of economic adversity, with many in the sector achieving growth in 2023 through reduced costs and strategic investments.
In the face of inflationary pressures, the manufacturing sector displays clear ability to optimise operations and capitalise on opportunities to support sustainable growth, with the data showing 7.7 per cent growth in sales for the industry, up from 6.7 per cent in the previous year. Interestingly, business with up to $40m revenue experienced significant growth, with 19 per cent growth in sales.
“It’s clear the manufacturing sector has been able to rebound from the initial impact of COVID-19, and capitalise on the resulting opportunities for growth,” said Michael Climpson, National Head of Manufacturing at Grant Thornton. “The sector has shown consistent growth in sales over the past five years, with strong inventory management and consistent capital expenditure allowing them to maintain a competitive edge and foster innovation.”
According to the data, companies with robust inventory turnover ratios – averaging 8.5 – proved robust, with higher ability to respond to fluctuations in demand.
A renewed focus on inventory management alongside closer monitoring of demand and optimisation of stock holding has allowed businesses to balance working capital requirements.
The report also shows the importance of investing in innovations for efficiency, flexibility, and emerging technologies to future-proof growth, with the data showing CAPEX investments consistent at 3.3 per cent and growth in spending on research and development for electric vehicles and clean energy technologies.
** Research methodology of the Grant Thornton 2024 Manufacturing Benchmarking Report
Grant Thornton used a sample of 100 Australian mid-sized manufacturers to create the 2024 Manufacturing Benchmarking Report. The data is largely extracted from audited financial statements, the majority being Grant Thornton clients. The analysis can include an element of judgement applied, including normalising out of the averages any major outliers. For the purposes of this report, mid-sized manufacturers generally have an annual turnover of $20 million - $600 million.
Experts / Authors
Carla van den Hoorn
Communications Manager
