Boom or bust, key sectors for 2011-12

| July 12, 2011

It’s good news for Oil & Gas Producers, with the sector topping the list of industries set to boom in the 2011-12 financial year.

On a more somber note, research from IBISWorld also predicts a poor year for Gaming & Vending Machine Manufacturing.

Forecast to grow by 18.3% in the coming year to reach $41.2 billion in 2011-12, the Oil & Gas Production industry is expected to be the best performer.

IBISWorld Australia general manager Robert Bryan said: “Despite the fact that Australia’s oil production is falling, gas output has continued to grow strongly, and significant industry growth is expected off the back of higher gas output – through the discovery of new fields and expanded production at existing fields – and higher prices, which will stimulate revenue.”

The Sugar Manufacturing industry appeared second on the list with IBISWorld forecasting increased ethanol demand will assist the industry to grow by 16.3%, to reach $2.7 billion in revenue.

“Sugar cane can also be used to produce ethanol, and it is this increasing diversion of sugar into ethanol production that is playing a key role in the industry’s growth,” Bryant said.

“Rising global sugar prices and streamlined production will also play a part in boosting industry revenue.

The top five growth industries are rounded out by Organic Farming, Mining and Automotive Fuel Retailing.

Meanwhile, Gaming & Vending Machine Manufacturing are expected to decline 12.6% to $439 million as the strong Australian dollar and government restrictions surrounding gaming machines are expected to play a key role in the downturn.

Appearing on IBISWorld’s worst-performers list for the second year in a row, the downward spiral for Wired Telecommunications Carriers is expected to continue fall at a rate 7.6% in 2011-12.

Institutional Building Construction, Image Processing & Printing Services and  Book & Telephone Directory Publishing feature in the bottom five worst performing industries.