INDUSTRY ANALYSIS


FEATURED SERIES

The estimates in this issue cover the performance of selected industries compiled from the annual Economic Activity Survey (EAS) and from Business Activity Statement (BAS) data reported to the Australian Taxation Office (ATO) and are expressed in current prices. Employment is reported at the end of June. For more information on the scope and coverage of the collection for Australian Industry, 2015-16, please refer to the Explanatory Notes.

This release marks 10 years of industry estimates based on the 2006 version of Australian and New Zealand Standard Industrial Classification (ANZSIC) (cat. no. 1292.0).


INDIVIDUAL INDUSTRY TIME SERIES ANZSIC DIVISIONS A TO J

The following graphs show annual time series from 2006-07 to 2015-16 for ANZSIC Divisions A to J for key data items.






Division A Agriculture, forestry and fishing

The Agriculture, forestry and fishing industry experienced strong growth in 2015-16 across most key data items, with sales and service income increasing by 10.5%. This was dominated by the Agriculture subdivision, with sales and service income up by 10.1% driven largely by strong demand for Australia's beef cattle, locally and internationally. The Forestry and logging subdivision also contributed to growth, with a 31.1% rise in sales and service income.

Division B Mining

The Mining industry experienced a strong decline in EBITDA (-17.5%) and sales and service income (-11.4%) in 2015-16 as a result of lower mining commodity prices, particularly for the Metal ore mining and Oil and gas extraction subdivisions. The Mining division Export Price Index fell by 17.3% between 2014-15 and 2015-16. Total income fell below sales and service income in 2014-15 and 2015-16 as a result of significant losses reported in other income following large negative revaluations and losses on sales of assets.

For more detailed financial performance information on the Mining industry please refer to the 'Mining in Australia' page in this issue or the 'Mining operations' data cube on the Downloads page.

Division C Manufacturing

The Manufacturing industry continued its recent contraction, which was reflected in a decline of 0.6% in sales and service income. This was driven by the Petroleum and coal product manufacturing and the Beverage and tobacco product manufacturing subdivisions and tempered by growth in Primary metal and metal product manufacturing.

For ANZSIC class level information on the Manufacturing industry please refer to the 'Manufacturing industry' data cube on the Downloads page.

Division E Construction

The Construction industry recorded slight growth with EBITDA increasing by 3.3%, driven by growth in Building construction and Construction services moderated by the strong decline in Heavy and civil engineering construction.

Division F Wholesale trade

The Wholesale trade industry grew strongly in 2015-16 with EBITDA increasing by 8.0% ($1.5b). This growth was mainly driven by Grocery, liquor and tobacco wholesaling (31.3% or $1.1b) and Machinery and equipment wholesaling (8.7% or $372m). This growth was not evident in all subdivisions. Basic material wholesaling declined 1.5% in EBITDA and 13.5% in sales and service income ($21.8b).

Division G Retail trade

The Retail trade industry showed growth across key indicators in 2015-16, with sales and service income increasing by 5.4%. Other store-based retailing, Motor vehicle and motor vehicle parts retailing and Food retailing subdivisions contributed the most to growth. In contrast, the Fuel retailing subdivision declined. Non-store retailing and retail commission-based buying and/or selling, which include retailers operating only in the online space, grew 23.7%.

Division H Accommodation and food services

The Accommodation and food services industry experienced moderate increases across the majority of key data items with sales and service income increasing 4.8% and EBITDA 7.2%. Food and beverage services dominated this division, accounting for over 80% of sales and service income. Accommodation drove the growth in EBITDA, with an increase of 18.1% in comparison to Food and beverage services which increased by 3.1%.

Division I Transport, postal and warehousing

The Transport, postal and warehousing industry exhibited moderate growth in 2015-16 with EBITDA increasing by 4.7% and sales and service income growing 0.7%. This diverse industry is by its nature strongly impacted by the performance of other industries and their demand for transport services. The growth in EBITDA was driven by Other transport, Air and space transport and Road transport, while the growth in sales and service income was dominated by Postal and courier pick-up and delivery services.

Division J Information media and telecommunications

The Information media and telecommunications industry experienced declining EBITDA (-1.8%) in 2015-16, while sales and service income grew 3.5%. The Telecommunications services subdivision dominates this industry and was the main driver for both of these indicators. Also contributing to the fall in EBITDA were Publishing (except internet and music publishing) and Broadcasting (except internet) with falls of 5% and 1.8% respectively.


INDIVIDUAL INDUSTRY TIME SERIES ANZSIC DIVISIONS L TO S

The following graphs show annual time series from 2006-07 to 2015-16 for ANZSIC Divisions L to S for key data items.





Division L Rental, hiring and real estate services

The Rental, hiring and real estate services industry displayed strong growth across key indicators with sales and service income up by 6.2% and EBITDA increasing by 14.0%. The Property operators and real estate services subdivision accounted for the bulk of the industry's activity and showed growth of 17.7% in EBITDA in 2015-16. In contrast, Rental and hiring services (except real estate) displayed negative movements for EBITDA and sales and service income.

Division M Professional, scientific and technical services

The businesses in the Professional, scientific and technical services industry provide a wide range of services to the rest of the economy, including information technology, engineering, accounting, legal and consulting services. This industry experienced slight growth for most indicators in 2015-16, with sales and service income increasing 2.9%. However, EBITDA declined by 4.2% as a result of large increases in other selected expenses (9.7%).

For more detailed financial and performance information on the Professional, scientific and technical services industry please refer to the 'Professional, scientific and technical services' page in this issue and the associated data cube on the Downloads page.

Division P Education and training (private)

The private sector Education and training industry continued to grow across most key indicators in 2015-16 including sales and service income (17.7% or $3.8b) and EBITDA (19.6% or $791m). This was shown across all the subdivisions, with private sector Tertiary education showing the largest growth in sales and service income of 26.8% ($1.9b).

Division Q Health care and social assistance (private)

The private sector Health care and social assistance industry continued to grow across all key indicators in 2015-16, including 4.1% ($3.4b) for sales and service income and 2.9% ($604m) for EBITDA. This was in line with increasing demand for its services from an ageing population. The Hospitals and Residential care services subdivisions had the strongest growth in sales and service income terms, with growth of 11.1% ($1.4b) and 18.9% ($1.2b) respectively.