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Insight - 1 August 2025

Australia’s Manufacturing Sector: Change, Challenge, and Opportunity

Australia’s Manufacturing Sector: Change, Challenge, and Opportunity

How it compares to Asia, and what it means for buyers and sellers of industrial assets

As manufacturing rapidly evolves across Australia and Asia, opportunities are emerging for industrial asset buyers, sellers, and service providers. Whether you’re a manufacturer, producer, or machinery supplier, navigating this shift effectively could mean the difference between idle equipment and unlocked capital.

Australia: Manufacturing Is Reshaping, Not Retreating

Australia: Manufacturing Is Reshaping, Not Retreating

Australia’s manufacturing footprint has been shrinking for decades, driven by high operating costs, limited domestic demand, and energy pricing structures that punish local industry, even while we export cheap power abroad. Today, the sector makes up under 6% of GDP, down from 10%+ in the 1990s.
But there’s a new story emerging.


Targeted investment is flowing into areas where Australia has a global edge:

At the same time, we’re seeing continued rationalisation in traditional sectors like automotive parts, plastics, manufacturing and fabrication. This means more factory exits, voluntary and forced closures, and generational transitions, particularly in outer metro and regional locations.

For businesses in this space, this transition opens two critical paths:

  1. Sellers can monetise surplus machinery through trusted, compliant sales channels.
  2. Buyers can access quality second-hand equipment in short supply, often before auctions go live.

However, with rising transport and dismantling costs, timing and strategy are everything.

Asia: A Complex, Shifting Landscape

Across Asia, volatility and opportunity go hand in hand. The manufacturing picture is equally dynamic but far more fragmented. Key regional trends include fragmented global trade due to tariff uncertainty.

Each of these countries presents distinct asset profiles, motivations, and buyer behaviours — and we’re tracking them all.

Timing Is Critical

If you’re closing a site, replacing machinery, or divesting surplus assets, market conditions and timing can significantly impact your return.

We Help Businesses Turn Machinery into Capital

At Hilco APAC, we’re helping clients across Australia and Asia unlock value from industrial realignment — from voluntary exits to distressed sales. Whether you’re selling a full plant or a single line, we connect the right buyers, execute fast, and deliver strong outcomes.

Have surplus equipment? Planning a plant closure? Let’s talk.

We’re ready when you are. Book a free strategy call and see how we can help you turn idle assets into working capital.

 

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Published: 01 Alchemy
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