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Automotive Manufacturing Revised Bus, Truck & Trailer Units available for comment here Automotive manufacturing is the largest manufacturing sector in the world - a key activity in leading industrial nations and of increasing significance elsewhere. It draws on a range of supplier industries, from raw materials (such as steel, aluminium, plastics and chemicals) through to sophisticated component assemblies, design, tooling and engineering services. Moreover, as an intensive developer and user of advanced technologies, the automotive industry is typically viewed as generating significant 'spill over' benefits from other activities. As well as undertaking product and process development relevant to other manufacturing activities, the industry is seen as contributing to skill development in areas such as production, design, engineering, computer programming, software development and management systems. KEY FACTS Size Around 900,000 new motor vehicles are sold each year in Australia. Around 360,000 vehicles are produced domestically. The automotive sector is much larger than traditional data would suggest, with over $27 billion of sales per year (Source: Australian Industry Group). Four companies produce vehicles in Australia - Holden, Toyota, Ford and Mitsubishi. These companies produce five main vehicle models at four plants in Victoria and South Australia. Total sales by the four vehicle producers are around $17 billion a year. Some 55,000 people are employed in automotive firms. Of these, about 26,000 people are employed directly in vehicle manufacturing. The industry accounts for about six per cent of total manufacturing activity and employment. The industry is a vital customer for other manufacturing activities, such as steel, rubber and plastics. Australian vehicle manufacturing is supported by more than 250 domestic suppliers of components, services and tooling. Supplier companies provide employment for more than 25,000 people. Australia's automotive component manufacturers produce sales of about $10 billion a year. Exports of automotive products have almost trebled since 1995 and are approaching $5 billion a year. Of that figure, component exports are almost $2 billion a year. The industry is now the sixth largest exporter, ahead of primary products such as wool, beef and wheat. The industry has responded to increased competition by improving its performance, including:- Labour productivity up from 15.8 vehicles per person in 1995 to 17.7 in 2000. Prices of cars have fallen sharply - down 13 per cent between December 1995 and December 2001. Average faults per vehicle have declined significantly over the past five years. In 2002, there will be an estimated $1.4 billion of new investment by the automotive sector, or about 17 per cent of all manufacturing investment $420 million is expected to be spent on research and development by the sector. Around $6 billion a year of intermediate supplies are purchased from sources outside the automotive industry. For every $1 spent on supplies produced within the automotive sector, an additional $1.25 is generated in direct demand for related supplies from the rest of the economy. (Source: Ai Group). 36 veicle brands comprising passenger, commercial, four-wheel-drive vehicles and motorcycles are imported and distributed throughout Australia. Around 3,000 franchise dealers retail new vehicles across Australia, employing some 60,000 people. The Australian automotive industry is crucial to employment in sectors such as tooling, iron and steel, paint, rubber and glass product manufacturing sectors, which together employ a further 50,000 people and have a turnover exceeding $16 billion a year. Within Australia, the four vehicle manufacturers spend almost $1 billion annually on externally provided services. Almost half of this involves high-end production-related services such as design, engineering logistics and IT services. The automotive industry has played a leading role in the adoption of ISO-9000 quality standards and ISO-14001 environmental management accreditation standards Source: FCAI The Automotive Manufacturing National Training Package is one of two training packages developed for the Australian automotive industry by ATA. The development of 'competency-based' Training Packages provides the opportunity to broaden the provision of recognised vocational training to a greater range of occupations and provide for skill development and recognition from entry level to management level. The Manufacturing sector represents a complex and diverse range of enterprises involved in the manufacture of vehicles and components. Over 54,000 people are employed across Australia in the Manufacturing sector of the automotive industry, with 24,000 involved in the manufacture of passenger cars and light commercial vehicles, and 30,000 in automotive component manufacture. It is a sector where the majority of vocational training has traditionally been focussed in the four vehicle manufacturing plants and a number of key automotive component manufacturers. This section enables users to access: ** At 31st October 2005 For more information on the Manufacturing Training Package please contact Michael Littlechild, ATA Project Manager - Manufacturing, on (03) 9479 3480 or alternatively on michael@automotivetraining.org.au.
Author : ATA |