Performance and innovation in mid-market manufacturing businesses
What New Zealand and Australian manufacturers need to consider
The COVID-19 pandemic has caused significant disruptions, both locally and globally, and has emphasised the extent of interconnectedness in our global supply chain. The shortage of goods and prolonged wait times have underscored our reliance on manufacturers from around the world to provide us with a diverse array of products that we depend on in our daily lives.
Endeavour’s partner MYOB delve into the mid-market manufacturing sector across Australia and New Zealand. Their research has found that the next half decade will be a period of enormous change for the industry.
MYOB have collated the findings into the Mid-Market Manufacturing Report, and in it we discuss:
Business Outlook
- Economic confidence - despite the pandemic and inflation, two-thirds of NZ manufacturers surveyed are predicting the economy will improve in the next months to July 2023. Almost half of Australian manufacturers surveyed are also confident that they will see better conditions over the coming year.
- Business performance - 63% of larger manufacturers reported a revenue increase over the past 12 months, with 61% of smaller companies also reporting a revenue rise.
- Business challenges - repercussions from COVID-19 are still being felt, as is the rise in inflation.
Business Innovation
- Primary workflows - in Australia, the prevalent approach is 'make to order', while in New Zealand the 'make to stock' workflow is more common.
- Changes to business approach - a breakdown of how manufacturers are approaching the future.
- Investing in innovation - 83% of Australian manufacturers said they prioritise innovation, with NZ trailing behind at 73%.
Looking Ahead
- Strong growth ambitions - 78% of Australian businesses want to scale their businesses in the future, while 70% of NZ manufacturers said the same.
- Key driver for change - a growing demand for customisation
- Growth of automation - one of the biggest changes likely to shape the local industry in the next five years.
