IBISWorld report sees huge cars sector decline wit trucks holding their line
Australian motor vehicle manufacturing is set for a decline of more than 40 per cent this year, with the demise of cars leaving heavy-duty truckmaking the main game, IBISWord says.
In a somewhat alarming report, the research firm forecasts the top five “industries to fly” this year growing mostly at a slower rate than the bottom five “industries to fall”.
The leading faller is ‘motor vehicle manufacturing’, seen as being down 43.1 per cent as major manufacturers depart, leaving Volvo and Paccar “now the major players in the Australian industry”.
“While truck manufacturers are affected by the same tough trading conditions as passenger car makers, there is an element of protection for those designing and building trucks specifically for Australian conditions, such as transporting heavy loads over long distances in high temperatures,” IBISWorld senior industry analyst William McGregor states.
“With truck manufacturers now the key players in our domestic motor vehicle manufacturing sector, the industry’s future performance is set to rely more on business confidence than consumer sentiment in years to come.”
Other ‘fallers’ are seen to be ‘intellectual property leasing’ -31.4 per cent, ‘outdoor vegetable growing’ -13.5 per cent, ‘sugar manufacturing’ -12.5 per cent and concreting services -6.4 per cent.
The ‘fliers’ are seen as being ‘wind and other electricity generation’ 35.3 per cent, ‘sports and recreation facilities operation’ 9.3 per cent, ‘dairy cattle farming’ 8 per cent, ‘petroleum exploration’ 7.2 per cent, and “nature reserves and conservation parks’ 6.2 per cent.
The full report can be purchased here.