Thinking of Buying an Electrical Manufacturing Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s electrical equipment manufacturing industry, which includes power automation products, batteries, transformers, and motors, generated $4.5 billion in revenue in 2025 across 901 enterprises, employing about 9,700 people.

Profit totalled $434 million, reflecting a 9.7% profit margin, with manufacturers benefiting from renewable energy demand and advanced automation systems. Despite a slight forecast contraction of 1.3% annually to 2030, the sector remains stable due to government support for clean energy technologies and industrial electrification initiatives.

1. Is the Business Financially Resilient Against Import Competition and Cost Pressures?

Why It Matters:

Electrical manufacturing in Australia operates in a highly globalised market, facing heavy import competition from China and the US. Profitability depends on efficiency, scale, and the ability to produce specialised or high-value products.

What to Check:

• Revenue and profit – Industry revenue reached $4.5 billion in 2025 with a 9.7% margin, but imports grew to $9.8 billion, almost double domestic output.

• Input costs – Prices for key inputs such as copper and aluminium surged following the Russia–Ukraine conflict, increasing material expenses by up to 20% for local producers.

• Energy costs – The National Electricity Market reported an 11% increase in wholesale energy prices in 2024, pressuring manufacturers to improve energy efficiency through solar and battery integration.

• Supply chain resilience – Companies like Century Yuasa and Schneider Electric offset disruptions through local sourcing and vertical integration, improving delivery reliability.

• Profit sustainability – Smaller manufacturers have turned to niche markets such as custom battery systems and energy-efficient motors to maintain competitiveness.

2. Does the Business Have a Technological Edge and Diversified Product Range?

Why It Matters:

Emerging technologies — including automation, AI, and renewable energy systems — are transforming the electrical manufacturing landscape. Businesses with strong R&D and advanced production capabilities are best positioned for growth.

What to Check:

• Key segments – The industry’s largest revenue sources are other electrical equipment (39.2%), power automation systems (22%), and batteries, motors, and generators (19%).

• Innovation leaders – Siemens, ABB, and Schneider Electric dominate through R&D partnerships in energy efficiency, robotics, and industrial IoT applications.

• Automation investments – Over 60% of large manufacturers have adopted AI-powered automation systems, cutting production costs and enhancing precision.

• Product diversification – Local producers increasingly focus on energy-efficient motors, smart grid components, and renewable energy storage systems to align with decarbonisation projects.

• Capital intensity – Entry requires significant investment in machinery and compliance, but government programs under the “Future Made in Australia” strategy are improving access to grants and clean energy incentives.

3. Is the Business Positioned to Benefit from Australia’s Energy Transition?

Why It Matters:

The shift to renewable energy and decarbonisation is a major growth driver for electrical manufacturers. Businesses that align with sustainability targets and government programs will capture long-term demand.

What to Check:

• Green energy demand – The Federal Government’s Battery Breakthrough Fund ($523 million) and Solar Sunshot Program ($1 billion) are boosting domestic production of solar and energy storage components.

• Decarbonisation opportunities – The Australian Energy Market Operator (AEMO) estimates $76 billion in industrial electrification investment by 2050, directly supporting automation and power equipment manufacturers.

• EV expansion – Demand for EV batteries and charging infrastructure continues to rise, with ABB and Siemens securing major contracts for renewable power systems.

• Export markets – The A-UK Free Trade Agreement has strengthened trade with the UK, while exports to New Zealand and Papua New Guinea now represent 25% of total exports, offering regional expansion potential.

• Sustainability focus – Industry leaders are adopting recyclable materials and low-emission manufacturing to comply with AS/NZS 3820 electrical safety and environmental standards.

Ready to Invest in a Thriving Electrical Manufacturing Business?

Despite high import competition, Australia’s electrical manufacturing industry benefits from renewable energy growth, local innovation, and government-backed sustainability programs.

Success depends on product diversification, energy-efficient innovation, and strategic alignment with Australia’s decarbonisation and electrification goals.

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