Home > Automotive electrical component manufacturing set for a fall in new financial year

Automotive electrical component manufacturing set for a fall in new financial year

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The level of automotive electrical component manufacturing is likely to fall by 6.7 per cent in the new financial year.

This figure is part of a report by business information analysts at IBISWorld which has revealed the industries which are likely to rise and fall in 2013-14.

According to the report, an overall economic slowdown and poor demand for new vehicles have affected sales for automotive electrical component manufacturers, as has the consumer shift towards smaller, more fuel-efficient imported cars. 

IBISWorld General Manager (Australia) Ms Karen Dobie said in a statement, "Falling demand for domestic vehicles has hurt specialised equipment manufacturers, since their products are mainly used in new vehicles.

"Overall, the Australian supply chain is uncompetitive compared with overseas manufacturers.

"While the government is making efforts to support the local manufacturing sector, its future performance is on shaky ground and the exit of Ford from local manufacturing will have a negative knock-on effect on component manufacturing industries."

This forecast is more bad news for the ailing auto manufacturing sector in Australia. It comes as Ford prepares to cease all local manufacturing in 2016, Holden’s future remains uncertain, and the debate about government assistance continues.

According to the IBISWorld report, the growth industries (in order of growth) are Superannuation Funds; Iron Ore Mining; Online Shopping; Internet Publishing and Broadcasting; Wind and Other Electricity Generation.

And the falling sectors (in order of contraction) are Video and DVD Hire Outlets; Automotive Electrical Component Manufacturing; Heavy Industry and Other Non-Building Construction; Book Publishing; Mineral Exploration.

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