Manufacturing in Australia peaked in the 1960s at 25% of the country's gross domestic product, and has since dropped below 10%. At one stage manufacturing employed almost a third of Australia's workforce.^[1] Automotive manufacturing in Australia began in the 1920s and came to an end in 2017.

Australia's greatest manufacturing achievement was the manufacture of theBeaufort, a twin-enginedtorpedo bomber, during World War II.^[2] Australia's manufacturing sector is diverse with the largest sub-industries being food, beverage and tobacco, machinery and equipment, petroleum, coal and chemicals and metal products.^[3]

The manufacture of small steam engines began in the 1830s.^[4] The majority of Australia's manufacturing was undertaken in the capital cities and Newcastle because of their proximity to shipping and rail hubs.^[4] Working conditions were poor with little regard to health and safety.Child labour was endemic.^[4] The clothing and footwear industries were particularly bad.^[4] In 1901, Australia's firstblast furnace began producing steel nearLithgow in New South Wales.^[5] The furnace remains are now heritage listed as theLithgow Blast Furnace. Another steel mill was opened in 1915 inNewcastle by BHP.^[5] Soon more steelworks opened inWhyalla andPort Kembla.^[5]

Due to a lack of imports during World War I, Australia saw a boost to manufacturing. The steel industry saw an increase in production as did the manufacture ofaspirin andchlorine.^[6] The 1920s saw the introduction ofcar manufacturing in Australia with bothFord andGeneral Motors opening factories.^[7] The first Australian-made bottle ofCoca-Cola was made in 1938.^[8] TheGovernment Aircraft Factories was established in 1939 to manufacture aircraft in Australia.

Manufacturing in Australia experienced an exceptional boom during World War II and the two decades that followed.^[7] Local manufacturers were assisted byprotectionist tariffs.^[1] TheJackson Committee was established in 1974 by the Whitlam government of Australia to advise on policies for Australia's manufacturing industry. The tariffs were cut in the 1980s and early 1990s.^[1] Workers in iron, steel, auto, white goods, textiles, clothing and footwear industries were particularly hard hit.^[1] It wasn't long before new markets in Asian countries such as China and Japan opened up with much cheaper imports now possible.^[7]

The contribution of manufacturing to Australia'sgross domestic product peaked in the 1960s at 25%, and had dropped to 13% by 2001–2^[9] and 10.5% by 2005–6.^[10]In 2004–05, the manufacturing industry exported products worth $67,400 million, and employed 1.1 million people.^[11]

Australia's economic complexity -- a measure^[12] of a country's ability to manufacture and export complex goods -- was ranked 102nd in the world in 2024. The Economic Complexity Index rankings are compiled by the Harvard Kennedy School's Growth Lab. Tim Cheston, Senior Research Manager at the Growth Lab, commented on Australia's sustained fall in the rankings: “You have fallen just behind Bangladesh and Senegal in what you’re able to produce within your goods exports today…  Also Australia has fallen from its ranking of 63rd in the year 2000^[13]".

In 2000–2001, $3.3 billion was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry.^[14] At that time, manufacturing accounted for 48% of exports, and 45% of Australianresearch and development.^[9] From 2000, the resource boom saw the Australian dollar soar on exchanges, making exports expensive on the global stage and imports exceptionally cheap.^[15]

In 2007, the breakdown of manufacturing by state, and the fraction ofgross state product (GSP) which it contributed, were as follows:^[16]

Between 2001 and 2007, the approximate breakdown by industry changed as follows:^[16]

By 2021 the number of people employed in manufacturing dropped to 6.2% of the workforce.^[17] In 2025, Incat Tasmania manufactured the world's largest battery-electric ship.^[18]

The food and beverage manufacturing industry is the largest in Australia. The sectors include the following:^[19]

* Before the 2010 closure of the Port Lincoln Tuna cannery

Untiltrade liberalisation in the mid-1980s, Australia had a largetextile industry.^{[citation needed]} This decline continued through the first decade of the 21st century.^[16] Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 percent to 10 percent on clothing, and 7.5–10% to 5% for footwear and other textiles.^[20]As of 2010, most textile manufacturing, even by Australian companies, is performed in Asia.

As of 2008, four companies mass-produced cars in Australia.^[21]Mitsubishi ceased production in March 2008, followed byFord in 2016, andHolden andToyota in 2017.^[22]

Holden bodyworks were manufactured atElizabeth, South Australia and engines were produced at theFishermans Bend plant inPort Melbourne. In 2006, Holden's export revenue was just underA$1.3 billion.^[23] In March 2012, Holden was given a $270 million lifeline by the Australian government. In return, Holden planned to inject over $1 billion into car manufacturing in Australia. They estimated the new investment package would return around $4 billion to the Australian economy and see GM Holden continue making cars in Australia until at least 2022.^[24] However, Holden announced on 11 December 2013 that Holden cars would no longer be manufactured in Australia from the end of 2017.^[25]

Ford had two main factories, both inVictoria: located in theGeelong suburb ofNorlane and the northern Melbourne suburb ofBroadmeadows. Both plants were closed down in October 2016.

Until 2006, Toyota had factories inPort Melbourne andAltona, after which all manufacturing was performed at Altona. In 2008, Toyota exported 101,668 vehicles worth $1,900 million.^[26] In 2011 the figures were "59,949 units worth $1,004 million".^[27] On 10 February 2014 it was announced that by the end of 2017 Toyota would cease manufacturing vehicles and engines in Australia.^[28]

In March 2012, a new Australian auto maker,Tomcar, announced they are to build a new factory in Melbourne.^[21]

Australia has a chemical industry, including the manufacture of manypetrochemicals.^[29]

Many mining companies, such asBHP andComalco, perform initial processing of raw materials.^[30] Similarly, Australia's agriculture feeds into the chemical industry.Tasmania produces 40% of the world's raw narcotic materials;^[31] some of this is locally converted intocodeine and other pharmaceuticals in Tasmania byTasmanian Alkaloids, owned byJohnson and Johnson, whileGlaxoSmithKline processes some of the resultingpoppy straw inVictoria.

Trains are manufactured in Ballarat byAlstom.^[32] AtTorbanlea the Queensland Train Manufacturing Program constructs trains including 65 new passenger trains due to enter service from 2027.^[33] InBellevue trains are constructed for the Perth rail network.^[34]

Locomotives are made inBroadmeadow byUGL.^[35]

A partial list of companies operating manufacturing facilities in Australia, with their most important products.

Companies that closed down, or moved manufacturing offshore.

Australian Owned:

• Pacific Brands Clothing
• South Pacific Tyres (Ansell/Goodyear) Tyres
• Downs & Son

International:

• Ford Australia
• Holden (General Motors)
• Sidchrome
• Bridgestone
• Mitsubishi Motors Australia
• Nissan Motor Australia
• Toyota Australia

• Australian Made
• Ausbuy
• Balance of payments of Australia

• Manufacturing in Australia

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