Biz Blogs

Discover more about ERP and business management
technologies, as well as recent news, trends, and innovations.

Making Advances: Performance and Innovation in Mid-Market Manufacturing Businesses

The mid-market manufacturing sector in Australia has long been a vital pillar of Australia’s economy. In the face of rising costs and stiff competition from global manufacturing powerhouses like China and India, Australian manufacturers have demonstrated impressive resilience. They are not merely surviving these challenging market conditions, but indeed, they are thriving. 

A recent research study conducted by Dynata for MYOB, involving mid-market business leaders and decision-makers from the Australian manufacturing sector, offers a compelling snapshot of this resilience. This study paints a picture of an industry that is not only weathering the storm but also looking ahead with an optimistic outlook for the future. 

This blog post is more than a narrative of resilience and innovation; it’s a roadmap to the future of manufacturing in Australia. And importantly, towards the end, we will introduce a transformative solution that could significantly impact your manufacturing operations. 

So, if you’re keen to understand why Australian manufacturing is a sector to watch, and how it could influence your business or investments, we invite you to continue reading. There’s a wealth of knowledge ahead, and a revelation that you won’t want to miss. 

Business Outlook 


Economic Confidence
 

Economic Confidence mid-market manufacturing
Despite the challenges of a highly competitive international market and rising costs, the Australian mid-market manufacturing sector is showing resilience. Our local manufacturers are performing solidly in a market that has remained uncertain, with prices for key inputs like energy and shipping that are wildly fluctuating.
 

Business Performance 

Business performance mid-market manufacturing industry

Encouragingly, these manufacturers are confident they will see improvements in the economy and their own business performance. More than half of the manufacturers surveyed are expecting to see an increase in revenue over the next 12 months, while just a fifth reported a decrease in revenue. This is despite growing pressure from increasing costs and a challenging economic environment. 

Looking ahead to the next 12 months, these manufacturers are confident they will see improvements in their own businesses and the economy as a whole. More than half of the manufacturers surveyed are expecting to see an increase in revenue over the next 12 months, while just a fifth reported a decrease in revenue. This is despite growing pressure from increasing costs and a challenging economic environment. 

Challenges in Mid-Market Manufacturing
Challenges in Mid-Market Manufacturing 

The Australian mid-market manufacturing sector, despite facing international competition, is resilient and ambitious, making significant strides in productivity through automation and digitisation.

However, it’s not without its challenges. Inflation impacts both the costs of goods and operational expenses, and a long-standing skills shortage has been exacerbated by border closures and migration disruptions. 

Moreover, supply chain disruptions have posed significant challenges for a sector reliant on importing materials and exporting goods globally. Most Australian manufacturers anticipate these issues to persist for another six months to two years. Despite these hurdles, the industry’s resilience and adaptability underpin its robust growth ambitions. 

Innovation in Mid-Market Manufacturing 


Primary Workflows
 

Primary workflows

The ‘make to order’ approach is currently more dominant in Australia, whereas, in New Zealand, the ‘make to stock’ workflow is more prevalent amongst local manufacturers polled. 

Changes to Business Approach 

Changes to Business Approach

Over the next 12 months, this will drive significant change in the industry. This includes a greater emphasis on ‘make to order’ processes which is likely driven by the need to reduce the costs of holding stock, while also providing greater choice and flexibility to respond to customer demand. 

Investing in Innovation 

Investing in Innovation
Over 8-in-10 (83%) Australian mid-market manufacturers surveyed said they prioritise innovation. However, despite most focusing on innovation, only 47% of Australian manufacturers have an annual innovation budget, with 40% of this group spending between $20,000 and $50,000 per annum, and 39% spending over $50,000.
 

Investing Focus Areas 

In the last 12 months, 70% of Australian manufacturers surveyed have invested in innovation, with a focus on improving production lines (43%), more automation (35%) and new management software (35%). 

Digitisation in Mid-Market Manufacturing 

Digitisation in Mid-Market Manufacturing

The need to drive greater efficiency and productivity in order to remain internationally competitive has seen digitisation become a major focus for the manufacturing sector. Australian manufacturers show lower digitisation levels. Only 36% surveyed conduct over half their business digitally.

Looking Ahead in Mid-Market Manufacturing 

Looking Ahead

Manufacturers in Australia are also expecting to see rapid change in their sector, with 81% surveyed saying they expect the industry to change rapidly in the next five years. Drivers of change remain consistent. Increased competition and automation growth are likely to shape the industry in the next five years.

Embrace the Future with MYOB Advanced Manufacturing 


As we’ve seen, the Australian manufacturing sector is on a journey of digitisation and innovation. To navigate this journey successfully, mid-market manufacturers need the right tools.
MYOB Advanced Manufacturing, is the answer. 

  • Cloud-Based Solution: Access your data anytime, anywhere. This cloud-based solution ensures your operations keep running smoothly, no matter where you are. 
  • Comprehensive Solution: MYOB Advanced Manufacturing is an integrated business management solution designed for manufacturing businesses. 
  • Cost Management: Capture total manufacturing costs, including material, labour, machine, tool, overhead, and outside processes, for informed decision-making. 
  • Bill of Materials: Provides both engineering and costed views of the entire product structure, aiding in decision-making. 
  • Competitive Edge: In a rapidly changing market, MYOB Advanced Manufacturing helps you stay competitive. 
  • Integration: IoT, integrating with other software and trading partners 

Alphabiz Solutions Logo

Ready to take your business to the next level?

Experience the power of MYOB Advanced Manufacturing with AlphaBiz Solutions. Book a demo today and unlock success in your manufacturing journey.

Contact Button

 

 

Table of Contents

Elevate Your Business Success with MYOB Advanced

Join the ranks of successful businesses across WA and Australia that have benefited from our MYOB ERP solutions expertise.

 

Latest Blogs to Know More
About Business Management Solutions

Sybiz 2024 EOFY Comprehensive Guide

As the 2024 financial year comes to a close, businesses using Sybiz Vision and Sybiz Visipay must be prepared for the end-of-financial-year (EOFY) processes. This comprehensive guide summarises the key

Read More »
  • Fill out the form below and we’ll quickly get in touch

  • This field is for validation purposes and should be left unchanged.

  • SIGN UP HERE TO DOWNLOAD.

  • This field is for validation purposes and should be left unchanged.

Scroll to Top

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

Thank you for your interest!

Please check your email for the downloaded file.

Should you require further assistance, don’t hesitate to contact one of our expert ERP consultants.

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

Get started today

Embark on your journey towards streamlined delivery management with AlphaPOD. Easy integration, customizable features, and dedicated support await. 
 
Please fill out the field below:

SIGN UP HERE TO DOWNLOAD

Thank You for Registering!

Your Seat is Reserved for the TRAILD Webinar

We’re excited to have you join us for the upcoming webinar on “Streamlining, Automating, and Protecting Your Accounts Payable with TRAILD”. 
 
The webinar is scheduled for August 18, 2023, from 10am to 11am Perth Time. 

What's Next?

You will receive a confirmation email shortly with the webinar details and a calendar invite. Please check your spam folder if you don’t see it in your inbox. 
 
If you can’t attend live, don’t worry! We’ll send a recorded version of the webinar to your email once it’s available. 

Questions?

If you have any questions before the webinar,
feel free to reach out to us at:

admin@alphabiz.com.au

We look forward to seeing you at the webinar!

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

SIGN UP HERE TO DOWNLOAD

Experience the MYOB Advanced Difference

Explore tailored MYOB Advanced demos demonstrating how these ERP solutions uniquely enhance your business processes. 

Please fill out your details below to get started

Schedule Your Free
No-Obligation Consultation

Discover how our tailored solutions can meet your specific business process needs. Submit your information below, our MYOB Advanced expert will reach out to you: 

SIGN UP HERE TO DOWNLOAD

Thank you for reaching out!

One of our specialized consultants will be in touch soon to assist with your query