New data has revealed the largest 1000 companies in Australia have seen their combined revenue decline since 2016, despite fruit and vegetable and administrative services industries coming out as winners.
Each year, market research company IBISWorld compiles a list of the largest companies in Australia, according to their revenue figures from the previous financial year. For 2017, the top 1000 companies recorded $1.94 trillion in revenue and accounted for 28% of all trade in Australia. This revenue figure, however, was a two percent decline in comparison to 2016.
The majority of the companies within this year’s top 10 have kept their previous positions, with Wesfarmers taking out the number one spot once again with a revenue of $69 billion.
Wesfarmers’ revenue had grown 3.8% since the previous year. Meanwhile, IBISWorld highlighted the growing interest in healthy eating as an influence contributing to an increase in revenue for the fruit and vegetable wholesaling industry.
Within the top 10, BHP jumped up the list from eighth to fourth place in terms of revenue for the 2017 financial year, with a 23.8% growth in revenue. BHP’s revenue at $39 billion overtook its competitor Rio Tinto (sixth place) which recorded a 3.2% decline in revenue. BHP held the number one spot in 2015.
The report also details how a greater demand from Australian businesses to outsource payroll and other administrative services has led to an increase in this sector. Professional services company Workpac leapt from 539 to 523 in the rankings as a result of acquiring smaller companies offering specialised payroll services.
“Many new small and medium enterprises are shifting their operational focus to core functions and outsourcing their administrative needs,” IBISWorld said in the report.
“Outsourcing has allowed these firms to realise cost savings through the lower overheads required to maintain legal compliance standards, and to reduce the costs required to maintain their administrative systems.”
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