Australian small to medium-sized manufacturers have achieved a significant milestone, posting an average quarterly revenue of $640,000 in the first quarter of 2025 — only the second time in seven years that the sector has surpassed the $600,000 mark.
This result, revealed in the latest Unleashed Manufacturing Health Index, signals robust growth across the industry despite ongoing global trade uncertainty.
Out of 13 manufacturing subsectors, 12 recorded revenue growth over the past financial year, highlighting the sector’s resilience.
The only exception was the Building and Construction industry, which saw a 12.6 per cent decline in revenue.
Building and construction manufacturers earned $2.01 million in the past financial year, down sharply from $2.96 million in 2023/24.
Despite this downturn, confidence remains among suppliers to the construction sector. Dmitry Kuzmik, Business Manager of ACT Australia, attributes the company’s success to the sector’s underlying stability.
“In the past decade, construction and building has been experiencing a relatively stable growth with low volatility of the market.
“It is supported by such factors as stable and comparatively steady government expenditure on public infrastructure projects, that is backed by upcoming Olympic Games as well as continuous immigration to Australia,” said Kuzmik.
Warehouse managers across the sector have also responded to economic headwinds by slashing excess stock.
Average surplus inventory fell from $61,000 at the end of 2024 to $33,000 in the first quarter of 2025, a dramatic reduction compared to $285,000 in excess stock at the same time last year.
Unleashed’s Head of Product, Jarrod Adam, pointed to currency pressures as a key factor.
“The cheap Australian dollar in the first quarter certainly loomed large for local manufacturers, who often rely on US-dollar denominated imports to create their products.
It’s likely some makers would have looked to eat into their extra inventory to try and wait out the trade storms and currency volatility, before committing to large ongoing purchases,” Adam said.
The first quarter’s strong revenue, coupled with leaner inventory management, reflects a cautiously optimistic outlook for Australian manufacturing in 2025.
