1. The terrible quality of the locally manufactured items. I am in Sydney and will absolutely not buy anything marked Made In Australia. I have been burnt too many times.
2. The nearly 100% mortality rate among the companies.
No, that is only one customer. There need to be lots of customers for a company to survive. So, ideally you recommend, based on good quality.
You take a bit of a gamble if you need warranty or customer service later on.
Some sort of network effect again, I suppose. There's a better term that's can't find now.
Australian made products unfortunately do not pass that initial hurdle..