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Publisher & Editor-in-Chief
Leo Simpson, B.Bus.
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4
SILICON CHIP
Australia's unseen electronics industry
From time to time, some of our readers express concern that the Australian electronics industry is dying or dead and that this is a symptom of the
problems with our economy in general. Well it is true that our economy
does have problems, in common with many countries around the world.
And it is also true that we have a worryingly high level of imports. But all is
not black; far from it.
Surprising though it may seem, there is a large electronics industry in
Australia although it is very fragmented. This may be news to many of our
readers because there are few Australian brands represented in the consumer electronics market and therefore people naturally assume that the
industry has largely disappeared.
In fact, the amount of electronics manufacturing in this country is much
larger than it ever was in the past, and considerably larger than before 1973
when we had a substantial consumer electronics industry. The biggest
sector is in communications but it is represented right across the board and
a considerable amount is exported. As an example of this, a press release
has just crossed my desk telling of $131 million of exports in 1991 from
IBM's Wangaratta plant - this in spite of rumours in the press about IBM's
long-term plans.
More surprising still, 25% of Australia's exports are manufactured goods
and this has a substantial electronics component. Still not reassured? Go
into a club or casino and see all the poker machines - most are made in
Australia. Or go into an amusement parlour - again, most of the machines
are made in Australia. Or what about your computer modem? Again, it is
probably made in this country. Or what about all the security electronics in
the places where you live, work, shop or play? Again, it is mostly made in
Australia.
I could go on but it is clear that electronics manufacturing is happening
on a large scale in this country and has been for many years. The question
which then arises is should the Government do more to encourage local
industry? The classic answer is to say yes but each time government acts to
help one particular sector of the economy it causes distortions in other
sectors. However, it would be good if government did more to buy locally
made products - too often overseas made goods are favoured.
Overall though, there are considerable grounds for optimism about Australian industry and the electronics industry in particular.
Leo Simpson
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