Australian manufacturing businesses warned they must innovate or face imminent collapse
By business reporter Sue Lannin
Updated 31 Jul 2018, 7:15am

Australia's manufacturing industry is being warned to innovate or face perishing over the next five years.

Just under half of local manufacturers are innovating — using improved products, services, processes or methods — despite tough global competition and disruptive new technologies.

And compared to international peers, Australia ranks in the middle of OECD countries when it comes to the ability to innovate.

It is ahead of China and Russia but behind the United States and Japan.

Former University of Technology Sydney professor and manufacturing consultant, Graeme Sheather, said Australian manufacturing was in decline and firms needed to transform or go under.

"If they don't make the change in five years then they won't be here," he said.

The number of manufacturers in Australia has fallen from 96,000 10 years ago to nearly 84,000 last year.

Medina Engineering in south-west Sydney is one firm that has moved with the times.

Gus Medina senior started making parts in his garage in 1974.

Now his children, Gus Medina and Jessica Uzelac, are running a high-tech manufacturing business which exports around the world.

It makes parts and machinery for industries including defence, mining and construction and even astronomy equipment.

Ms Uzelac said the firm has had to innovate to survive.

"We've had to adapt to changing events in the industry. Technology has played a big part and also our customer base has also changed," she said.

The younger Mr Medina said that has meant spending millions of dollars to upgrade their factory.

"We were having a big issue with overseas competition — we needed to invest in equipment in order to succeed, and that's what we've done over the last 15 years," he said.

Some of that equipment includes high-tech machines which use 3D models to make parts for products including racing cars and train seats.

Time and cost leaving companies reluctant to change
While firms like Medina are spending big on technology and seeking expert help, only 48 per cent of Australia's manufacturers are innovating, according to figures from the Bureau of Statistics.

That is compared to nearly 45 per cent of Australian firms overall.

Mark Goodsell, the national director of manufacturing at the Australian Industry Group, said some firms were reluctant to change because of the time and the cost.

A polished metal cylindrical component.
PHOTO: Medina Engineering now manufactures a range of parts for multiple industries, and even astronomy equipment. (ABC News: Sue Lannin)
"I think there is a lot of research around the world that not every manufacturer will go on a journey of change; some of the figures put it as low as a third or even lower than that," he said.

According to the NSW Industry Department, just 5 per cent of manufacturers have teamed up with universities or research institutions in the state and only 16 per cent have a formal research agreement.

And some manufacturers are not taking advantage of government and industry programs to help them survive.

Mr Goodsell said some programs were missing the mark.

"There's quite a few government programs both at the federal and state level," he said.

"When we last added them up, there was well over 150 so there's no shortage of individual programs, but it can be bit of a confusing mix."

"The real trick for government programs is to make sure they are flexible enough to meet the needs of the individual company because every transformation story is slightly different and it's not really a one size fits all game," he said.

Professor Sheather is trying to launch a new program in collaboration with the manufacturing industry to help small and medium-sized firms innovate.

His program plans to use virtual reality so manufacturers can learn on-site from firms which have made the transition.

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VIDEO: In danger of losing the innovation race (The Business)
Professor Sheather's research has found that firms find it difficult to navigate the maze of information about government grants.

"The schemes are confusing, they are mis-aligned with industry needs," he said.

"They focus on technology innovation — not business innovation — and essentially the innovation programs are too broad, documents [are] unreadable without legal background."

"So they've basically said we don't want to be involved with government and we'll do it ourselves; it's almost a DIY approach to manufacturing change."

'Simple skills' can prevent collapse: manufacturer
With help from business and government grants, South Australian manufacturer Grant Tinney has transformed his business, Precise Advanced Manufacturing Group, from one which manufactures car parts to one which services the railway, mining, defence and oil and gas industries.

"I assessed that not only was the US automotive manufacturing sector in decline but also you could see the signs obviously of the Australian sector going into decline. ...

Portugal, Denmark, Sweden, and Austria are ahead of Australia and they have even smaller populations.

You must be even more proud of them.

Mr Hammer wrote on Aug 19^th, 2019 at 12:59pm:


Poms don't count?

Australia has been in existence since the industrial revolution.

Many Asian countries have risen from poverty to prosperity in the last 50 years while Australia has gone backward in that time.

Laugh till you cry wrote on Aug 19^th, 2019 at 2:13pm:


Do the Asian countries have a lifestyle for their citizens like Australia does?

Hot, wet start to summer sees fly numbers boom across Australia
ABC Radio Adelaide By Brett Williamson
Updated 27 Jan 2017, 4:56am

Feeding our growing population with livestock raised on flies

No matter how much you swat, wave, yell, or occasionally swallow flies, their persistence always beats yours.

And tropical to start to summer for most of the country has provided the perfect breeding conditions for these pesky insects.

Associate Professor James Wallman from the School of Biological Sciences at the University of Wollongong said fly numbers had increased exponentially recently.

"This combination of warmth and moisture is just nirvana for flies and other creepy crawlies," he told ABC Adelaide's Afternoons program.

Dr Wallman said if you started with one breeding pair of flies, and all of their offspring survived and reproduced, you would end up with a ball of maggots the size of the earth within one year.

"Luckily all of those flies don't survive to reproduce," he said. 

Well hell I mean we were invaded by convicts in chains and we still haven't recovered.

So let's get ready for national sorry day, forget about the future we have the oldest stone age culture in the world, we all wanna stay there (I think).

Laugh till you cry wrote on Aug 19^th, 2019 at 12:57pm:

They have 1,000s of years of history to build a intellectual base numbskull. Australia is only a baby.