The search for new growth sectors has become imperative following the end of the mining boom. With the new Coalition government also set to have an impact, here are five industries set to shine.
Sydney is likely to benefit from the forecast growth of the financial services industry, with the Financial Services Council predicting it could replace mining as the next major export industry1.
According to the council's chief executive, John Brogden, Australia's world-leading financial system, robust governance and h3 systems will make Australia "a very attractive prospect as an exporter of financial services" to Asia. This may be aided by the recent signing of an "Asian Regional Funds Passport" including such nations as South Korea and Singapore.
Industry analysis provider IBISWorld expects the superannuation industry to show the h3est growth during fiscal 2014, forecasting an impressive 40.5 per cent rise in revenue to more than $324 billion2.
Iron ore mining
The boom may be over, but IBISWorld still expects 23 per cent revenue growth for iron ore mining due to continued h3 demand from China.
"While there's currently an oversupply of iron ore, we expect that this capacity will be absorbed this year and demand will outpace supply," says IBISWorld's Karen Dobie. "This will cause a rise in prices - the primary driver of forecast revenue growth."
Established iron ore and coal producers will benefit from the scrapping of the mining and carbon taxes, while explorers may attract increased investment due to proposed exploration incentives.
Despite the weaker Australian dollar, online shopping is still in favour among consumers and is set to enjoy further growth, as more retailers join the internet race and the National Broadband Network rolls out.
IBISWorld expects the industry to grow revenue by 13.3 percent to more than $12 billion, helped by initiatives to expand product delivery and collection options, such as Australia Post's installation of "click and collect" parcel locker sites in major cities.
In parallel with the growth of online retailing, internet publishing and broadcasting is expected to see revenue growth of 12.7 per cent to $1.6 billion, supported by faster connection speeds and the growth of paid subscription services.
Construction and infrastructure
The Coalition's pledge to spend more than $20 billion on infrastructure will aid the construction and engineering sector, particularly those businesses involved with the major road projects planned for the east coast.
IBISWorld expects reduced investment in new mining projects to have a negative impact on demand for new port and rail facilities, meaning the sector's growth is likely to be patchy until the mining industry picks up speed again.
Technology entrepreneurs dominate the BRW Young Rich 2013 list, which is led by Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar. Others on the rich list include technology investor Simon Clausen, an investor in Freelancer.com, along with online retailer Ruslan Kogan. According to the BRW list, the top five industries for the self-made wealthy aged under 40 were technology, sport, retail, financial services and property.
A weaker exchange rate should also benefit exporters including the tourism industry, which has struggled to offset declining domestic tourists and high costs. With Asia's middle class expected to comprise three billion people by 2030, or two-thirds of the global middle class, service providers and other businesses attuned to the Asian market should be on a h3 growth platform for the future3. Industries include those subject to technological changes, such as video and DVD hire businesses and book publishers, while the domestic automotive industry may find it difficult if government support is reduced.
The mining industry may no longer be Australia's leading growth driver, but there are still many new growth sectors to pursue for ambitious entrepreneurs.
This article represents the views of the author only and not those of American Express.
Anthony is a communication consultant at BWH Communication and a freelance writer with 15 years' experience in the stockbroking and media industries of Australia and Asia. He is a regular writer on business and other issues for publications in Australia and Japan. He consults on communication strategy to businesses ranging from private enterprises to professional service firms and publicly listed companies, with a particular interest in entrepreneurship in all its forms.