Manufacturing in Australia is experiencing one of its biggest periods of growth, and forms a significant element of the country’s overall economic prosperity. Yet with this financial affluence comes a certain amount of operational risk, so it’s important for business owners in the sector to safeguard their assets with the right insurance for manufacturing businesses.
Manufacturing has been growing consistently for the past year.
Manufacturing thriving in Australian
The manufacturing industry has been booming so far in 2016, with Australian Industry Group’s (Ai Group ) June performance index showing it has soared to a relative point level of 51.8. The sector has not done this well for such a prolonged period of time since September 2006, and the turnaround suggests that long-term prospects may remain positive.
According to Innes Willox, chief executive of Ai group, this growth has been consistently strong for the past year.
“Australian manufacturing is recovering in 2016 in response to the lower dollar, but it is also rebalancing in response to changes in global production and consumption trends. We are seeing an increasing focus on consumable goods such as food, groceries and health products as well as building materials for the construction industry,” he said.
Jens Goennemann, managing director of Advanced Manufacturing Growth Centre, suggests that a distinct factor in the progress of the industry may be due to embracing innovation.
“Every industry across the economy is being disrupted through technological advances, and promisingly manufacturing is at the forefront of adapting new methods and techniques to take advantage of this revolution,” he explained.
Defending against financial risk
As more technologies begin to transform the industry, manufacturing may be able to have an even more significant influence on Australia’s economic well-being. The sector is vital to a variety of other industries, including clothing, machinery, food and automotive. It thus needs to be protected so that it can continue to benefit Australia.
As manufacturing is such a broad industry, each business can encounter its own set of hazards that could impact its financial health. This is where a specialty insurance broker comes in, as they can help to find the right package to cover every aspect of the business, including fire and perils, machinery breakdown, business interruption cover, and professional indemnity.
So as manufacturing continues to thrive, talk to the team at MGA Insurance brokers who can help you grow and profit into the future.