Australian Industry News & Events

0. Introduction

Australia has a diverse economy that has become very attractive not only for local investors, but also on the international market. During the recent global financial crisis, China’s reliance on Australian resources helped keep the nation’s economy from an even more devastating collapse. Some of the products and materials that are exported worldwide in vast quantities are minerals and other natural resources from Australia’s mines. An industry that has grown by leaps and bounds since the economic crisis is the Australian financial management industry. This industry’s rebound is set to bring the sector into global prominence. Another fast-growing industry in Australia is the wine industry. Australia has long been known for its high-quality wines on an export basis, but in recent years, wine tourism has become an integral part of the business. Other industries performing well include the health industry, agriculture, and aquaculture. Here is a breakdown of the seven fastest growing industries in Australia, today:

1. Financial Management

The world is still struggling to recover from the devastating financial collapse that drained the investment accounts of many individuals, leaving throngs jobless and many others without homes. In Australia, the mortgage crisis was at its worst in 2008, and some experts predict a resurgence in 2011. These past and present circumstances have only accentuated the need for strong and reliable financial management services. After the huge drop in the financial management industry, it didn’t have anywhere else to go but up, which is the primary reason it is the number one growing industry in the nation. The losses suffered by markets across the world hit bottom, but are now shooting upwards as Australia, and the rest of the world, recovers.

Australia’s financial services industry holds a top position in the world economy. Australia currently has one of the largest pools of capital under financial management in the world at $1.2 trillion compared with only $950 million in the United States. Seventy percent of this is in superannuation funds. With the exception of Japan, Australia has the largest free-float market capital in Asia and the seventh-largest in the world. The foreign exchange market is the fastest-growing in the Asia Pacific region, and the Australian dollar is the sixth-most traded currency in the world. The A$/US$ is the fourth-most traded pair.

2. Mining

Mining has been an important industry in Australia throughout the history of the continent. It has been the backbone of the economy for over 150 years and has been the source of several surges in immigration. When Australia was still a collection of colonies, mining kept them from falling into bankruptcy. The first Australian gold rush occurred in 1851 near what is now Ophir, New South Wales. Only weeks later, thousands flocked to Victoria when gold was found there. By 1861, the population grew from 438,000 at the beginning of the previous decade to over 1.15 million due to mining. Australia is the second leading producer of raw gold after China.

Today, the mining industry only continues to grow. Coal is mined in every state of the country, and 75 percent of it is exported, the majority to China and other parts of East Asia. Coal mining has risen from 259 million tonnes in 2000 to 261 million tonnes in 2008. This makes Australia the leading exporter of coal in the world.

In addition to coal, Australia is the source of an estimated 23 percent of the world’s uranium reserves. The Olympic Dam mine is thought to be largest source of uranium in the world. Copper and silver are also mined at the site. Although opponents to uranium mines have increased in number, this hasn’t stopped the mining from increasing out of worldwide demand. Future uranium mines are already planned. Honeymoon Mine, owned by Uranium One, is set to be the country’s fourth mine in operation, and Four Mile Uranium Mine will be the fifth. Both are located in South Australia.

Other important resources mined in Australia include iron, zinc, and diamonds. Although mining is extremely important, due to the diversity of the Australian economy, the 129,000 people employed in the mining industry make up only 1.3 percent of the total workforce.

3. Agriculture

One of the fastest-growing industries in Australia is agriculture. This is due to the increased demand of organic foods. As people become increasingly concerned about their environment and their health, the organic foods industry has grown rapidly. Organic food makes up only one percent of the total agriculture industry in Australia, but the sector is growing by 20 to 45 percent every year. A report by IBIS World, Australia’s leading business information analysis firm, the total value of the organic farming industry in Australia as of 2010 is $405 million. The leading product is organic vegetables, which makes up over half the industry. Other key organic food products include fruits, grains, beef, and poultry. Revenue is expected to grow by a minimum of 13.4 percent annually, with total revenues of $760 million predicted for 2014.

One major downside reported by IBIS World is that the organic foods industry is highly volatile. Organic food prices fluctuate wildly due to a wildly fluctuating demand. Other factors that make the industry volatile are the possibility of bad weather, pests, disease, and the numerous upstarts that emerge every year. The volatility of the industry is disputed, however. The chairman of the Organic Federation of Australia claims that the industry has done nothing but rise steadily over the past 40 years. Another important organic foods organization is the Biological Farmers of Australia. They were instrumental in the passing of the new Australian Certified Organic Standard in 2010.

4. Wine

Wine has been a popular product in Australia since it was first produced in the latter part of the 1700s by the European colonists. Recently, however, Australia’s wine industry has experienced unprecedented growth. The Department of Foreign Affairs and Trade reports Australia’s total wine production to be 1.23 billion litres. Of that, approximately 760 million litres are exported around the world. The countries receiving the bulk of Australia’s wine include the United Kingdom, United States, Germany, and Canada. Australia is ranked as the sixth-largest producer of wine in the world, and fourth-largest exporter. Wine production in Australia is a $5.5 billion industry, and it is produced in every state in the country. In total, Australia has 60 unique wine regions, most of which are located in the New South Wales, South Australia, Victoria, and Western Australia. The industry had hard times as recently as the 1980s. Growers have been called on more than once to destroy grape vines as a means of stabilizing the market.

The worldwide popularity of Australian wine was created a new sector in the industry, wine tourism. Thousands of tourists travel to Australia each year with winery and vineyard tours their primary reason for arriving.

5. Aquaculture

Aquaculture is another term for the fishing and seafood industry. Due to the fact that Australia has almost 60,000 km of coastline in prime Pacific waters, the country is a world leader in the aquaculture industry. Some of the key products of the industry include fish, prawns, oysters, and mussels. Also included in the industry is pearl-gathering. The Australian Department of Agriculture, Fisheries, and Forestry foresee continued growth and improved stability in the aquaculture industry. The goal is to have the most competitive aquaculture industry in the world, with $2.5 billion in annual sales within reach.

6. Fitness and Health

The wine industry is closely related to the agriculture industry, but stands out due to its size and uniqueness. In the same way, the fitness and health industry deserves its own category, even though it overlaps with agriculture. Australians are becoming more and more health-conscious every year. Not only are they spending record amounts on organic foods, but they are spending record amounts on exercise equipment and fitness centre memberships. While fitness equipment and formal exercising are luxuries, those who have the disposable income for luxuries are spending higher percentages of it for this purpose. Included in this industry are bottled water sales. Each year, the sales of bottled water, including mineral water, spring water, and purified water, continues to grow.

7. Healthcare

Another offshoot category among Australia’s fastest-growing industries is the healthcare industry. While closely related to fitness and health, its growth and size demands it be recognized separately. Much of the growth in the industry is due to increased awareness informally through word-of-mouth and formally through government and health organization promotional campaigns. Some of the highest growth in this industry in hospital services, nursing homes, and pharmaceuticals. Because Australians are living longer every year, the healthcare industry is only expected to grow.

Currently, healthcare expenditures for the country are at $65 million per year, a full 10 percent of the GDP. A total of 1200 hospitals are located in Australia. Industry growth is spurred on by several healthcare organizations, including the National E-Health Transition Authority, Australia Self-Medication Industry, Medical Technology Association of Australia, and the National blood Authority.

Conclusion:

While there are a large number of fast growing and emerging industries in Australia one that it rarely mentioned is the rapidly growing home based business industry, and that many Australians are choosing to work from home rather than work from someone else. This industry has many opportunities for all Australian’s with literally 1000′s of home business ideas available, and is fast becoming a valuable part of the Australian economy, bring in millions of dollars worth or revenue not only from Australia but overseas income as well.