Blog

By Baytech

Jul 26, 2019

New opportunities abound in FMCG manufacturing

Australia’s manufacturing sector has been hit by several setbacks in recent years, but it has taken a positive turn during the first half of this year, driven by growth in several sectors including fast-moving consumer goods (FMCG). Many of the major signs, from production to sales and exports have been increasing from month to month.

 

Some sectors are on the rise

While the Australia Industry Group’s Performance of Manufacturing Index (PMI) dropped marginally in June 2019, three sectors have grown - building materials, wood, furniture and food and beverages. This is being driven by overseas demand for processed food, beverages, pharmaceuticals, vitamins and cosmetics. The future also looks positive with new orders continuing to roll in, while production and exports continue to expand

One area that is showing significant signs of growth is eCommerce and online shopping, with Australians spending $28.6 billion online last year. As more people rely on the internet and mobile technology, they offer new opportunities for consumers to create the lifestyle of their choice. According to Nielsen, the top three sectors for online shopping in the Asia Pacific are travel, fashion and information technology. There is also considerable growth in grocery shopping online with 40 per cent of consumers purchasing fresh grocery items online and 44 per cent purchasing packaged grocery items. It is estimated that online shopping can represent up to $17 billion a year for Australian FMCG suppliers and retailers.

 

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Signs of growth is good news for workers

The increase in demand for consumer goods drives the manufacturing sector. Since 2017, one in five new jobs in Australia has been in manufacturing, with the food and grocery sector accounting for nearly 40 per cent of all of these roles. Tapping into the growth in online shopping, large retailers like Amazon, Coles and Woolworths are also increasing their investments in warehousing and distribution centres as well, which requires greater staffing.

Wages are also rebounding at a fast rate. This is expected to continue with the Fair Work Commissions 3 per cent minimum wage rise that came into effect on 1 July 2019. This is good news for anyone looking for a new challenge in the manufacturing sector.

If you’d like to know more about the opportunities available to you in the manufacturing sector, get in touch with us.

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