AN Australian Industry Group (Ai Group) study provides a detailed analysis of the shifting trade fortunes of Australian manufacturers.
The report, Balancing the Risks: Building Australia’s Economic Resilience, examines the increased competitive pressures facing Australian industry.
Ai Group chief executive, Heather Ridout, said the report is the latest in a series of Ai Group studies aimed at gaining a better understanding of the transformations of the economy and developing appropriate policy responses to them.
“The Australian economy is undergoing a rapid transformation as unusually strong global forces are unleashed around us.
“The examination of Australia’s trade in manufactured goods, included in this report, finds that the challenges are being felt both in the domestic market and in the hard-won export markets developed over the past two decades. The tradeable sectors are therefore being doubly challenged by the emergence of more intense global competition and the commodity price fuelled exchange rate.
“Both the extent of the commodity boom and the prospect of a slow unwinding of existing global imbalances suggest that there is the potential for the Australian currency to remain at high levels for an extended period. Balancing the Risks raises the need to manage the risks surrounding this scenario.
“The report points to strategies underway in the manufacturing sector (the subject of an upcoming Ai Group report Manufacturing Futures) and suggests there is also a role for more active policy in the management of this risk,” Ridout said.