Home » News » AiGroup Warns of Manufacturing Recession as New Industry Minister Tim Ayres Commences

AiGroup Warns of Manufacturing Recession as New Industry Minister Tim Ayres Commences

May 20th, 2025

A recent article on InnovationAus.com has covered Australian Industry Group’s (AiGroup) latest Key Industry Indicators numbers, showing that the economy slowed across 2024, and is now in the longest period of low growth since the 1991 recession.

AiGroup’s Key Industry Indicators data reveals that the broader economy has seen its longest period of slow growth since the 1991 recession, but manufacturing has been hit hardest, entering a recession, with output contracting at a 1.7% per annum rate in the second half of the year.

The data also revealed that other than the petrochemicals (chemicals derived from petroleum (oil) or natural gas) sector, each industrial sector also faced downturns, with metals suffering the steepest decline at 6.4% annually.

AiGroup’s study identified that several allied industries including mining, construction, and wholesale trade all posted material output falls over the 2024 year. These declines can largely be attributed to the continued reliance on government spending to stimulate the economy, which primarily benefits non-market sectors rather than industrial sectors.

Despite challenges in traditional industries, non-market sectors such as education, health, and public administration—experienced growth, highlighting an increasing dependence on public funding rather than private investment.

At the same time, Australia’s tax-to-GDP ratio climbed above 30% for the first time in 20 years, primarily due to rising personal income and company tax burdens, which have risen by 1.2% and 1.3% over the past ten years. AiGroup warns that these increased company and personal income tax burdens, which fall on productive activities, make the tax system more unfavourable to business investment and job growth.

Private business investment stalled at 0.3% annual growth, largely due to a sustained decline in mining investment over the past 18 months, with the sector now contracting.

This is a challenge for Australia’s newly appointed Minister for Industry and Innovation, Tim Ayres who has big shoes to fill in replacing the well regarded former Minister Ed Husic.

For Minister Ayres, AiGroup’s Key Industry Indicators data highlights the urgent need for policies that support manufacturing and encourage investment in Australia.

The challenge ahead is finding ways to balance government spending with strategies to stimulate growth in productive sectors.

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 11. August, 2022
 
 
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 15. June, 2022
 
 
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 6. June, 2022
 
 
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 6. June, 2022
 
 
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 3. June, 2022
 
 
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 31. May, 2022
 
 
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 31. May, 2022
 
 
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         Posted on Google  
   
   Daniel McGregor  
 11. August, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  I have been using Swanson Reed for my clients for more than a decade.  Having a specialist firm that can provide practical and commercial advice that produces real outcomes is very important and we have received great feedback from our clients. Highly recommended.
  
 
 
      Posted on Google  
   
   John  
 15. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  Damian and the rest of the team at Swanson Reed have been supporting us for several years.  We always appreciate their insights, expertise, and efforts.
  
 
 
      Posted on Google  
   
   Rueben Rajasingam  
 6. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  Experienced responsive Team. They have been a great help to me and my company navigate the R&D tax claim process and have provided invaluable advice.
  
 
 
      Posted on Google  
   
   Enrique Esquivel  
 6. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  Damian and the team at Swanson Reed have been extremely helpfully and professional during all of our consultations. Highly recommended.
  
 
 
      Posted on Google  
   
   Jess at Y&C  
 3. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  
  
 
 
      Posted on Google  
   
   Anatole Kononewsky  
 2. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  The Swanson Reed team have provided our company with exceptional professional advice and assistance for all of our R&D claims for many years - have always achieved great results with excellent value for their services.
  
 
 
      Posted on Google  
   
   Payam Toloo  
 2. June, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  Damian Smyth and his team are very helpful, supportive and experts in their field of R&D Tax claims. I'm always happy with the work they do and been a customer of their for over 5 years.
  
 
 
      Posted on Google  
   
   Melissa Doddy  
 31. May, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  The Team at Swanson Reed are very experienced R&D Tax Advisors and gave us ongoing support with all of our R&D Claims, the consultants ensured we were always working with current legislative guidelines, gave us assistance with compiling technical and government documentation and went out their way to ensure they were with us for the entire process from beginning to end.  Highly recommended to anyone who needs assistance with working through what can at times be a daunting process.
  
 
 
      Posted on Google  
   
   Gary Watson  
 31. May, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  We can highly recommend Swanson and Reed as an R & D accountant. We have worked with them for several years now as they make our R & D claim so easy and communicate quickly with both us and our accountant.
  
 
 
      Posted on Google  
   
   Rob van den Bergh  
 31. May, 2022
 
 
 Trustindex verifies that the original source of the review is Google.  Always professional.
  
 
 
  
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AiGroup Warns of Manufacturing Recession as New Industry Minister Tim Ayres Commences

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