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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
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