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1301.0 - Year Book Australia, 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Manufacturing >> Elaborately transformed manufactures

ELABORATELY TRANSFORMED MANUFACTURES

INTRODUCTION

This article presents statistics for manufactured goods classified by degree of transformation. The basic premise of this classification is that each manufactured product reaching the point of sale will have been subjected to one or more processes beginning at a raw material state and passing through a range of manufacturing processes and intermediate products to become a final end use product. The number and complexity of such processes determine the category for degree of transformation to which that product is classified. Readers should note that the statistics presented are still experimental as the classification used to categorise goods by degree of transformation is still under development by the ABS. Statistics in graph 19.8 and table 19.9 are indicative rather than precisely classified estimates.

The concept of degree of transformation is also related to the concept of value adding. The amount and complexity of transformation strongly influence the amount of value added by manufacturing processes. However, in making the connection between degree of transformation and value adding, it should be noted that other factors also influence the amount of value added by manufacturing activity. Furthermore, for a given Australian produced final product, not every transformation required to produce the product has necessarily been carried out in Australia.

The classification has five broad categories. However, the first three of these have been combined together in the graph and table below because the boundaries between the categories have not been finally established. The categories are:

  • Primary products (such as butter, pasteurised milk, red meat, hides and skins)
  • Primary product manufactures (such as beer, flour, refined sugar, wood pulp)
  • Simply transformed manufactures (such as clay bricks, paper, pig iron, plaster)
  • Moderately transformed manufactures (such as broadwoven fabrics, soaps and detergents, steel wire)
  • Elaborately transformed manufactures (such as clothing, motor vehicles, machinery, paint)

There are slight differences between the classification used for production statistics and the classification used for export statistics. However, both classifications describe elaborately transformed manufactures in a virtually identical manner.


Production

Graph 19.8 shows that the proportions of Australian produced goods classified as simply modified, moderately modified or elaborately modified have remained virtually unchanged over the three years to 1998–99.




Table 19.9 shows that Machinery and equipment manufacturing is the industry subdivision with the greatest proportion of elaborately transformed manufactures among its products, while Metal product manufacturing and Wood and paper product manufacturing have the most even spread of values across the various degrees of transformation categories.


19.9 DEGREE OF TRANSFORMATION OF MANUFACTURED GOODS(a)

Industry subdivision
Simple(b)

$b
Moderate

$b
Elaborate

$b

Food, beverage and tobacco manufacturing
48.7
-
-
Textile, clothing, footwear and leather manufacturing
1.1
2.8
5.1
Wood and paper product manufacturing
4.8
4.3
3.0
Printing, publishing and recorded media
-
-
10.9
Petroleum, coal, chemical and associated product manufacturing
13.3
6.6
12.1
Non-metallic mineral product manufacturing
7.7
0.8
0.6
Metal product manufacturing
14.4
9.1
13.3
Machinery and equipment manufacturing
0.2
0.2
38.1
Other manufacturing
-
-
6.2
Total manufacturing
90.2
23.9
89.2

(a) Excludes approximately $600m of goods which have not yet been classified to any degree of transformation category.
(b) Also includes products classified to the 'Primary products' and 'Primary product manufactures' categories.

Source: Manufacturing Australia (8225.0).


Exports

Table 19.10 shows that elaborately transformed manufactures now exceed 20% of goods exported, and remain the fastest growing category of exports.


19.10 DEGREE OF TRANSFORMATION OF EXPORTED GOODS(a)

Category of goods
Shares of
1999 exports
%
Average growth
1988-89 to 1998-99
%

Unprocessed primary products and minerals
37.8
4.0
Processed primary products and minerals
21.0
5.6
Simply transformed manufactures
10.8
5.4
Elaborately transformed manufactures
20.4
12.6
Other (mainly non-monetary gold)
9.5
6.9

(a) As classified by the Department of Foreign Affairs and Trade (DFAT).

Source: Exports of primary and manufactured products, Australia, 1999 (DFAT).


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