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Footwear Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Apr 11, 2014, 16:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Companies surviving in the industry have been those able to adapt to lower tariffs and international competition.

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Melbourne, Australia (PRWEB) April 12, 2014 -- Operators in the Footwear Manufacturing industry in Australia have faced a tough operating environment over the past decade as the dominance of low-cost foreign competitors, tariff reductions and import penetration have caused the industry's structure to change significantly. According to IBISWorld industry analyst Lauren Magner, “The industry also faces skilled-labour shortages, accelerated industry reforms and companies outsourcing production overseas.” Finding a significant low-cost footwear producer based in Australia is now a difficult task. However, several larger footwear manufacturers produce industrial and safety boots, while sheepskin footwear such as ugg boots has retained stable domestic output levels over the past five years.

In 2013-14, industry revenue is estimated to decline by 2.7% to total $489.3 million as the number of firms operating in the industry also continues to fall. IBISWorld estimates revenue will decline by an annualised 2.8% over the five years through 2013-14, largely due to the closure of several manufacturing facilities operated by Pacific Brands and lower pricing levels across industry products. “Companies surviving in the industry have been those able to adapt to changing conditions, such as lower tariffs and increasing international competition,” says Magner. The local market is already flooded with imported footwear, which is expected to make up 78.3% of domestic demand in 2013-14. In response to extensive problems across Australia's textile, clothing and footwear (TCF) sectors, the Federal Government implemented a $406.0 million TCF Innovation Package to run from 2010-11 through 2014-15. Footwear manufacturers in the industry that meet government requirements are eligible to receive this assistance.

The Footwear Manufacturing industry exhibits a low level of market share concentration. The two most significant players are Pacific Brands Limited and Strathig Holdings. Operators that have taken advantage of technology and government subsidies to produce higher value added or niche products, or have significantly improved process efficiencies, are expected to make some revenue gains over the next five years. However, lower output and prices are expected to result in overall revenue decreasing in the five years through 2018-19.

For more information, visit IBISWorld’s Footwear Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry consists of operators that manufacture footwear or footwear components. These products are then purchased by footwear wholesalers and retailers who resell them to consumers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]

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