Strength of Australian dollar hurting local manufacturers

PwC  global head of industrial manufacturing Graeme Billings said the strength of the Australian dollar, which has climbed to $1.0853, was hitting Australian manufacturers hard.

"Manufacturers are facing a most testing environment due to the strength of the exchange rate and consumer caution," Billings said.

"It is imperative for businesses to maintain the search for new opportunities, new markets, new product lines and new sources of industrial efficiency," he said.

And Australian Industry Group chief executive Heather Ridout said the continued weakness in the manufacturing index reflected the substantial erosion in the competitiveness of the industry.

"The uncertainty of how this will evolve is the essence of the pressures on the industry," Ridout said.

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