(Australian Associated Press)
Australian manufacturing has become less competitive compared to its global peers – and it’s expected to get worse.
A Deloitte report says the nation could become less competitive over the next five years while the United States is expected to become the most competitive country in the world, overtaking China.
Deloitte’s 2016 Global Manufacturing Competitiveness Index shows Australia has fallen five places from 16 to 21 in the past two years.
And within fives years that ranking is expected to fall one place to 22, the survey of 500 manufacturing bosses shows.
Deloitte Australia Partner and Manufacturing Group leader, Damon Cantwell, said Australia should take heed of the forecast ability of the US to take the top spot in five years time thanks to investment in research, technology and innovation.
“It is vital Australia’s positive attributes are being promoted in a targeted manner,” Mr Cantwell said.
He said the nation was strong in eight of the 10 top competitiveness drivers, suggesting Australia should be occupying a higher position in world rankings.
Success in Australia would be dependent on improving the relationship between industry and the research and development sector, he said.
TOP 10 COMPETITIVE MANUFACTURING NATIONS
2. United States
5. South Korea
6. United Kingdom