Manufacturing is one of the most significant industries in Australia with over $26 billion worth of exports. Although manufacturing still holds 12% of the total Australian economy, its share has been decreasing over the years. Despite this decrease, the manufacturing industry of Australia is now being directed towards foreign markets instead of local sales. Major export markets include USA, UK, Southeast Asia, China, Middle East, New Zealand, and Canada.

The state of South Australia owes almost 70% of its exports to manufacturing. Hence, it is the largest industry in the state accounting for approximately 12% of the economy and 11% of employment. Manufacturing sectors include automotive and rail; defense and electronics; food and wine; energy and resources; bioscience and medical; and, building and construction materials.

In New South Wales, manufacturing contributed approximately $30 billion to the states economy being its third largest employer with more than 300,000 employees to date. The state government works with local institutions to further develop the industry by doing research on manufacturing techniques and capabilities, and educating its workforce through its universities. Its manufacturing industry specializes in pharmaceuticals; iron and steel; and, meat and bakery products.

The state of Victoria has a manufacturing industry that has sectors that include aerospace, automotive, biotechnology, chemical, defense, environmental technologies, food, metal, and information and communication technologies.

Manufacturing plays an important economic role in the state of Queensland. It has an efficient system that allows the industry to generate approximately $18 billion of income and employ more than 190,000 people. Sectors include engineering, aviation, mining, and medicine; with potential for electronics, rail equipment, and fiber composites.

Manufacturing in Western Australia plays a somewhat modest role in its economy. Petroleum, coal, chemicals, machinery, equipment, and metal products are some of the sectors that comprise the manufacturing industry of the state.

In Tasmania, manufacturing is an important sector that employs more than 11% of the states workforce. The manufacturing industry includes marine, wood processing, automotive components, communications, lightning protection, fine food and beverages. The industry also includes machinery and equipment manufacturing, heavy engineering, mining, and electrical products.

Manufacturing in the Northern Territory constitutes a small portion of its overall economy. The industry accounts for a small portion of the states workforce even though it is a growing area of the economy. The industry included food, beverage, and basic and fabricated metal products.

In the Australian Capital Territory, the manufacturing industry is the fourth smallest contributor to the states economy. It employs approximately 4,000 people, which is only a small portion of its total workforce.

Notable examples of brands that are no longer manufactured in Australia include Pacific brands for clothing and Sidchrome. Both brands have received criticism and negative publicity since being moved offshore.