Aussie manufacturers bank optimistic about post-pandemic boom: report

SYDNEY, March 25 (Xinhua) -- A new report from Australia's largest bank, the Commonwealth Bank of Australia (CBA), has shown optimism about a boom in manufacturing as the nation and its supply chains emerge from the effects of the pandemic.

According to the Manufacturing Insights report released on Thursday, 58 percent of onshore manufacturers expect revenues to increase over the next 12 months.

The survey of 300 key players in Australia's manufacturing industry showed businesses are optimistic about growth and building resilience to supply challenges posed by the pandemic.

"It is pleasing to see that most manufacturers adapted well to the persistent supply chain disruptions, rising operating costs and labor shortages, and now expect higher revenues and profit in the year ahead," said Mark Couter, executive general manager of Commercial Banking at CBA.

The report also showed that 98 percent of larger companies, those with a turnover of over 200 million Australian dollars (about 150 million U.S. dollars), felt they had dealt with the impacts of the pandemic well. The same was true for just over 70 percent of companies under this threshold -- showing uneven levels of confidence.

"The vast majority of manufacturers have proved to be resilient despite many experiencing a drop in revenue or profit," said head of Consumer and Diversified Industries in CBA Business Banking division Jerry Macey in the report.

And as manufacturers ready themselves for growth, 42 percent noted they intended to grow their workforces over the next 12 months. This optimism will be put to the test by ongoing supply and labor shortages.

A 2021 supply chain report from the Australian Industry Group showed that over half of Australian businesses expected their supply would continue to be disrupted into 2022, with just 17 percent of 346 private businesses, feeling more optimistic than the previous year.

Louise McGrath, head of Industry Development and Policy at the Australian Industry Group, told Xinhua it would likely be a while before onshore manufacturing could return to pre-pandemic levels of production.

"The biggest challenge and constraint on growth for Australian manufacturers presently is securing sufficient skilled and semi-skilled labor to meet expected demand," said McGrath on Friday.