How the Car Manufacturing Industry is Reacting to the Recent Economic Downturn

How the Car Manufacturing Industry is Reacting to the Recent Economic Downturn

How big is the car manufacturing industry in Australia? What is the state of the car industry? Car manufacturing is a key sector in the economy of both Western Australia and New South Wales, supporting thousands of jobs. Over the last few years, the number of vehicles on the road has declined, however as the economy recovers car manufacturing is expected to grow strongly through to the future.

Manufacturing in Western Australia consists of two types of industries, High-value Manufacturing (HVMM) in Perth and Mild Steel in Western Australia’s Low Income Industry (LSI). In both cases, the main components manufactured are from locally produced steel and aluminum, with other components such as motor parts coming from worldwide sources. However, the majority of components in these factories are manufactured in China and India. There has been a dramatic increase in the number of vehicles on the road in recent years, but this has not helped the automotive industry to develop sustainable employment levels, nor created a high level of real local employment.

The Number of New Car Sales

The decline in the number of new car sales has had the desired effect on the employment figures for both Western Australia and New South Wales, but the picture is much worse in the rest of Australia. Between the Northern Australia Motor Vehicle Industry (NAMPV) and The Australian Motor Industry (AMDI), the decline in new car sales has had the most negative impact on employment levels, with the industry’s employment figures falling by almost 25%. While the overall level of industry employment has slightly risen, it is nowhere near what it was fifteen years ago, and the net result is a loss in employment compared to the level of new industry growth.

The car manufacturers are not the only businesses affected by the …

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