Linkedin
Facebook
Email
more
As we enter the first quarter of the new year, Australian manufacturers – both large and small – are evaluating industry trends to identify opportunities for growth and success.
After a 2024 that saw industry’s landscape continue to evolve in sectors, businesses are striving to find ways to enhance supply chain efficiency and product quality.
As a cornerstone of the nation's economy, the manufacturing industry relies on informed decision-making. Audit, Tax and Consulting firm RSM Australia remains committed to analysing trends and providing strategic insights to support manufacturers nationwide.
National Manufacturing leader at RSM, Louis Quintal, believes that sustainability initiatives, technological advancements, workforce development, supply chain resilience, and energy cost management will ultimately shape the sector’s 2025.
“These trends are driving the industry towards greater sustainability, efficiency, and resilience,” said Quintal.
National Manufacturing Sector, business advisory director at RSM, Ross Dixon, echoed Quintal’s sentiments, adding that financially, he believes we will see a more buoyant landscape than in 2024.
“Hopefully, this will encompass some interest rate reductions and election promises that could provide SME manufacturers with a more optimistic perspective,” said Dixon.
Sectors driving manufacturing success in 2025
Aside from a broad 2025 outlook, Quintal identified sub sectors within the industry that are expected to experience growth due to broader shifts towards sustainability, technological innovation, and changing consumer preferences. He said the first and obvious beneficiary of the shift to a sustainable industry is renewable energy manufacturing.
“The production of solar panels, wind turbines, and hydrogen fuel cells is expected to grow. Australian manufacturers are making strides towards decarbonisation,” he said. 
>
Additionally, Quintal believes that advanced manufacturing – including aerospace, and medical technology – are also slated to continue their positive momentum. Finally, he also believes that food and beverage processing will gain popularity as Australia’s reputation for high-quality produce continues to spread in a world that has an increasing demand for processed foods. Dixon agrees with this sentiment, adding that food and beverage associated sectors, like ag tech, are also set to benefit.
“Ag tech and food and beverage processing is where we will see a lot of value. You look at certain regions like WA and the Riverina, the exports are strong,” he said.
Quintal predicts that Industry 4.0, AI, robotics, and automation will also continue to have a large impact on shaping manufacturing strategies in 2025.
“AI and predictive analytics will enable manufacturers to optimise operations, reduce downtime, and improve quality control,” he said.
“Robotics and automation will handle repetitive and hazardous tasks, allowing human workers to focus on more complex and creative activities.
“Additionally, digital twins and IoT will provide real-time insights into production processes, enabling better decision-making and proactive maintenance.”
Quintal and Dixon both agree that while large manufacturers look poised to invest into these technologies at a time where cost of labour and electricity are increasing, challenges will arise with what they refer to as a “two speed economy”.
“Smaller businesses are maintaining their position and waiting to see how the future unfolds” said Dixon.
Because of this, Dixon recommends SMEs to wait and assess whether consumer and business sentiments are strong enough for investment. Quintal agreed with this suggestion, saying that government intervention is the only way to overcome this inherent issue.
“These processes come with a cost that can only be achieved through reduced interest rates,” said Quintal.
“We have the National Reconstruction Fund and other initiatives in place. Let's wait and see if these will truly support businesses through tax reform.” said Dixon.
Quintal emphasised that this government intervention is also a large talking point heading into 2025, with initiatives set to have a large impact on the sector’s prosperity.
“Grants and incentives for energy-efficient systems and advanced manufacturing, along with favourable taxation policies, are expected to influence manufacturing growth and investment decisions,” he said.
Quintal also believes that tax incentives for investing in energy-efficient equipment and renewable energy projects can help in lowering the overall tax burden for manufacturers.
“Programs such as Industrial Energy Transformation Funds (IETF) and various green technology grants will assist in adopting new techniques and making Australia procedures more attractive,” he said.
Australia’s place within the global economic environment
A major, yet still uncertain part, of Australian manufacturing’s 2025 outlook is the impact it will feel from the current global economic environment. Quintal predicts that it will have a mixed impact on exports and commodities, with several challenges posed.
“Global trade risks and rising export prices could pose challenges and volatility in commodity prices, such as coal and iron ore. It may also affect export revenues,” he said.
Describing this as the “million-dollar question,” Dixon said it is hard to tell whether rhetoric will evolve into tariffs.
How to stay competitive and what to avoid in 2025
Aside from trends and outlooks, to stay ahead Quintal recommended that Australian manufacturers should strengthen supply chain resilience, prioritise workforce development and embrace technological innovation and sustainability. Dixon said to embrace these elements, businesses should plan finances to ensure targeted investment.
“The focus will be on ensuring that individuals prepare for the next six to nine months, so when opportunities present themselves, they are well-positioned to take advantage” said Dixon.
Quintal also noted several common financial and operational mistakes to avoid for manufacturers in 2025. These included poor inventory management, inadequate production tracking, overuse of machinery, neglecting workforce development and ignoring sustainability practices. Additionally, Dixon pointed out that meeting your statutory obligations to the ATO as a company is vital to avoiding any financial trouble.
“Cash flow management is so important to try and stay compliant in terms of meeting those obligations,” he said.
Insights from RSM Australia
More than its industry knowledge, RSM Australia supports manufacturing businesses by providing a range of advisory services designed to help them navigate these challenges and capitalise on opportunities.
“RSM provides services ranging from regional Australia to international clients. We offer competitively priced support to SMEs while also catering to world-class industries ” said Dixon. 
>
RSM offers audit and strategic advisory services to help manufacturers innovate, boost efficiency, and expand. Its financial and tax expertise includes securing grants for energy-efficient systems and managing financial risks. RSM also advises on sustainability, regulatory compliance, and supply chain resilience while addressing skills shortages through workforce development.
“By utilising these services, Australian manufacturers can enhance their competitiveness, drive innovation, and achieve growth,” said Quintal.
RSM’s services were applied to Omega Manufacturing Group, an advanced manufacturer in Wodonga. Here, the company helped Omega leverage automation and vertical integration to enhance manufacturing capabilities.
“Automation is something that we have been transitioning to over the past three to five years to enhance operational efficiency,” said the Finance and Commercial Support manager at Omega Manufacturing Group, Emma Forbes.
With support from RSM, Omega continues to accelerate growth through R&D incentives, grant programs, and a planned US expansion, positioning itself as a global competitor in automotive manufacturing.
“Part of it is finding a niche and setting yourself up to be able to manufacture as efficiently as you can in that niche,” she said.
Like Omega, RSM continues to aid Australian manufacturing companies in adapting to a forever-evolving state industry.
FOR MORE INFORMATION
Speak with your local RSM adviser today.
This article was previously featured in Manufacturers Monthly.
