Building Resilience in Australian Manufacturing
Resilient firms are defined as those that outperform their industry in a downturn, with higher earnings than average companies. For one in three Australian manufacturing businesses, however, the loss of one customer would have a moderate to significant impact on their business. For one in 10 manufacturers, the loss of one customer would force their business to shut down.
Superiority: superior firms possess an unassailable competitive advantage by offering technically superior products or services that are unique within the market, and highly valued irrespective of accompanying conditions.
Diversity: diversified firms possess a competitive advantage across many product segments, service offerings or geographically diverse export markets. This enables them to respond to shifting consumer tastes or reduced overall demand.
Flexibility: flexible firms possess an agile business structure allowing them to manage fluctuations in input costs or change industry focus in the event of a downturn.