Oil, gas sec­tor to lead growth

Townsville Bulletin - - NEWS -

OIL and gas, child­care ser­vices and beef farm­ing are tipped to be Aus­tralia’s lead­ing growth sec­tors in 2015/ 16, ac­cord­ing to busi­ness in­for­ma­tion an­a­lysts IBISWorld.

But while they surge ahead, credit unions, banks and ce­ramic prod­uct mak­ers are ex­pected to bat­tle fall­ing rev­enues.

Grow­ing de­mand from Asian mar­kets, es­pe­cially Ja­pan, is ex­pected to be a big rev­enue driver for Aus­tralia’s liq­ue­fied nat­u­ral gas ( LNG) sec­tor.

Ja­panese energy sup­pli­ers con­verted to gas- fired plants af­ter the Fukushima nu­clear dis­as­ter in 2011.

IBISWorld says Aus­tralian LNG pro­duc­ers are well po­si­tioned to meet the soar­ing de­mand as pro­duc­tion and ex­port ca­pa­bil­i­ties rise. Nat­u­ral gas projects off the coast of Western Aus­tralia – Gor­gon, Wheat­stone and Pre­lude – and Queens­land’s Gladstone LNG pro­ject are driv­ing pro­duc­tion growth.

“In con­junc­tion with grow­ing pro­duc­tion, selling LNG at global prices, rather than the cheaper do­mes­tic prices, will pro­vide an ad­di­tional boost to in­dus­try,” IBISWorld se­nior in­dus­try an­a­lyst Ryan Lin said.

Else­where, child­care is ex- pected to ben­e­fit from more women join­ing the work­force and strong gov­ern­ment sup­port for care providers.

An in­crease in dual- in­come fam­i­lies is also ex­pected to re­sult in more chil­dren be­ing en­rolled in child­care.

In the agri­cul­ture sec­tor, strong over­seas de­mand for Aus­tralian beef and higher prices should help boost rev­enues and off­set the im­pact of a forecast de­cline in live ex­ports to In­done­sia as it im­poses stricter im­port quo­tas.

On the flip side, ce­ramic prod­uct mak­ers are ex­pected to lead the in­dus­tries ex­pe­ri­enc­ing rev­enue falls.

GWA Group, for­merly the in­dus­try’s largest player, has moved its man­u­fac­tur­ing oper­a­tions off­shore, and no Aus­tralian man­u­fac­tur­ers are ex­pected to fill the gap.

GWA sells the Caroma and Dorf brands of prod­ucts.

“While GWA Group’s shift to off­shore man­u­fac­tur­ing is the most sig­nif­i­cant fac­tor in the in­dus­try’s de­cline, sales of lo­cally man­u­fac­tured re­frac­tory and spe­cial­ist ce­ramic prod­ucts are also ex­pected to take a hit in 2015/ 16, as de­mand from the iron smelt­ing and steel man­u­fac­tur­ing in­dus­try con­tin­ues to dwin­dle,” Mr Lin said.

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