Home topics news Image Credit: Pickawood News News AU SMEs losing more than one-third of profits in inventory crisis, data reveals Yajush Gupta December 5, 2022 Australian manufacturers’ stock profitability has dropped through the floor since the pandemic, signalling an inventory crisis for Australian businesses, according to current industry data. Overall, manufacturers’ stock on hand climbed steadily in Australia, from $770,950 in Q3 2019 to $895,729 in Q3 2022 (up 11.52 per cent), compared to more abrupt rises in NZ (115.37 per cent) and the UK (99.78 per cent). On the other hand, Australian businesses are losing more than one-third of their inventory returns, which have fallen from 1.5 per cent pre-pandemic to 0.9 per cent now (a 39.33 per cent reduction). Fulfilment times have been cut to an average of ten days after peaking above 16 days last year, decreasing below pre-pandemic levels of 12 days. Unleashed’s Manufacturers Health Check report used data to track how SMEs in Australia, New Zealand and the UK have fared in 2022. The report betrays a common theme among businesses, now forced to grapple with a storm of rising costs, slimmer profits, and stockpiled goods. The five industries with the biggest per cent increase in stock on-hand value (Q3 2019 v Q3 2022) Energy, Chemicals 176.57 per cent Automotive and Automotive supplies 114.58 per cent Clothing, Footwear, Accessories 52.21 per cent Building and Construction 27.35 per cent Electronics, telecommunications, Electrical & Electronic components 24.50 per cent All industries included in this study held