Australian manufacturing IT spending to reach A$3.7 billionStaff Writer | October 25, 2016
Australian manufacturing IT spending is at the beginning of a slow rebound. The exit of automotive players from the sector is creating a vacuum.
Technology Enhancing production efficiencies
Low cost competition, poor demand, lack of adequately skilled labor, high input costs and a small national market are constraints for manufacturers delivering against the potential that exists.
Transformational efforts focussed on frameworks like “Industry 4.0” offer the potential to create rapid interconnectedness of resources, equipment, people, processes and products with IT systems.
Australian manufacturing IT spending is gaining steady momentum. IT spending across the sector will reach a 1.6% five-year compound annual growth rate (CAGR) till 2019.
IT investments will be aimed at enhancing production efficiencies and enabling development of customer-specific and highly personalized products.
In 2016, Australian manufacturing IT spending is expected to touch A$3.5 billion and is forecasted to steadily reach A$3.7 billion by 2019. Software will represent the largest spending category in 2016 and is expected to grow at 6.4% CAGR till 2019.
Investments in hardware and telecommunications are expected to be flat with negligible growth rates. ■