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Production can be measured on a net basis, that is, the value of goods and services produced less the value of inputs (e.g. labour, capital) used in production. In national accounting terms, the contribution of an industry to the overall production of goods and services in an economy is measured by industry gross value added (GVA). Industry GVA sums the gross value added by each producer in the industry.
Table 18.2 shows the industry GVA of the broad subdivisions within manufacturing as defined in the Australian and New Zealand Standard Industrial Classification (ANZSIC). The table also shows the contribution the manufacturing industry made to Australia's gross domestic product (GDP). During the period 1998-99 to 2002-03, manufacturing industry GVA rose by 9.4% and its contribution to GDP declined marginally from 11.1% to 10.8%.
Although industry GVA rose steadily over the period for the manufacturing sector as a whole, a closer look at individual manufacturing industry subdivisions shows some volatility. Food, beverage and tobacco manufacturing increased by 6% between 1998-99 and 2000-01, then fell 3% over the next two years, reflecting the impact of the recent drought. Two of the largest manufacturing subdivisions-petroleum, coal, chemical and associated product manufacturing, and machinery and equipment manufacturing-rose strongly over the period, recording 19.0% and 12.7% growth in industry GVA respectively. Industry GVA for textiles, clothing, footwear and leather manufacturing decreased by 28.5% - the only industry subdivision in manufacturing to record a decrease every year over the period.