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In the third quarter of 2025, Australian small to medium-sized enterprise (SME) manufacturers demonstrated notable resilience, achieving a 9% increase in sales compared to the previous quarter.
This growth brought the average sales figure to $625,400, marking a significant recovery from the subdued performance observed earlier in the year.
According to data from inventory management software provider Unleashed, these manufacturers also improved their profit margins by 3.2 percentage points, reaching 39.2%. This enhancement is attributed to strategic reductions in purchasing volumes and a deliberate drawdown of existing stock, measures aimed at bolstering cash flow amidst ongoing economic uncertainties.
The construction sector stood out, with manufacturers in this field experiencing a 17.6% quarter-on-quarter sales increase, culminating in an average of $739,841. Their margins expanded by 2.39 percentage points to 37.31%, while stock holdings were reduced by over 40% compared to the previous quarter. This performance aligns with Infrastructure Australia's projection of $242 billion in major projects over the next five years, underscoring the sector's pivotal role in the national economy.
These developments highlight the adaptability and strategic acumen of Australian SME manufacturers. By effectively managing inventory and focusing on cash flow, these businesses are not only navigating current economic challenges but also positioning themselves for sustained growth. Such proactive measures are essential for SMEs aiming to thrive in a competitive and ever-evolving market landscape.
Published:Sunday, 21st Dec 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Markel Insurance has announced the appointment of Tim Wills as Head of Marine for Australia, marking a significant expansion into the country's marine insurance sector. Based in Sydney, Wills will spearhead the introduction of Markel's marine products, starting with marine cargo coverage. This move represents the company's first foray into the Australian market beyond its existing long-tail lines established two years prior. - read more
Pelagic Risk Services, a specialist marine insurance broker, has announced an increased commitment to the Australian marina industry by upgrading its sponsorship of the Marina Industries Association (MIA) from Silver to Gold. This enhanced partnership underscores Pelagic's dedication to supporting marinas across the nation. - read more
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