Call for Australian manufacturing rejuvenation by considering ‘entire value chain'

MANUFACTURING capability development organisation QMI Solutions CEO, Gary Christian, knows the rejuvenation of the Australian manufacturing sector is a complicated challenge.

 

But QMI Solutions research, he said, reveals a more holistic approach like that being undertaken by Germany and the UK, is now urgent and vital for Australia.

"An enormous amount of work is already being undertaken to address the issue of manufacturing competitiveness, and industry leadership needs to be fostered at a holistic level where the entire value chain and all relevant industries are represented," Mr Christian said.

While he does not shy away from the extent of that challenge, he warns action must be taken urgently or Australia runs the risk of losing certain formerly successful manufacturing categories, not just individual businesses.

"To effectively address the declining competitiveness in Australian manufacturing, the definition and understanding of the manufacturing industry needs to change to include the entire value chain," Mr Christian said. "This includes R&D, design, supply management, production, go-to-market strategies, logistics and services.

"Effectively, manufacturing is a collation of industries which include not just traditional clothing and car manufacturers, rather more inclusive of manufacturing inputs and services to mining, chemicals and engineering, among others.

"By taking a broader view of the value generated by manufacturing and taking a holistic view of the industry, Australia can improve its resource allocation and strategies to boost productivity."

Mr Christian said QMI Solutions research and industry contact over a long period of time - QMI Solutions began as the Queensland Manufacturing Institute in 1993 and has progressed as a partnership between the Queensland Government, UQ and QUT to now encompass the four divisions of Australian Institute for Commercialisation, Industry Capability Network (Queensland), Manufacturing Skills Queensland and QMI Productivity & Improvement - revealed a broadening of scope was vital. This approach was buoyed by results in other developed economies facing similar challenges.

 "This approach will enable Australia to view the fruitful work and progress currently being made and to implement impactful change and policies which address the most significant issues affecting all facets of manufacturing," he said.

"Similar reasoning is already proven in other developed economies such as Germany and the UK."

The good news coming out of QMI Solutions research, Mr Christian said, was that Australia could turn things around, as long as there was decisive action.

"Australia can create a favourable and effective platform to reinvigorate manufacturing," Mr Christian said.

"This is critical to help rebalance the economy away from debt-financed expenditure, to a long-term strategy centred on tradable goods. 

"The mining industry is now maturing and a medium to long term strategy in high value manufacturing will help sustain mining by providing more competitive local inputs and services.

"To accomplish this, the various industry groups organisations, unions, academia and government need to come together to develop an effective strategy," Mr Christian said.

Mr Christian said this would happen by "prioritising manufacturing industries and developing a tailored action plan according to their maturity and their comparative advantage in domestic and international markets". He was eager for QMI Solutions to be a catalyst in "developing a strategic action plan and industry policy by pro-actively engaging industries".

Mr Christian said, "Holistic policy and industry action needs to address and redefine manufacturing and consider how each element of the value chain impacts the competitiveness of the Australian manufacturing industry, from R&D and design to distribution and after sales service."

QMI Solutions is also an Industry Expert member of Queensland Leaders, the organisation helping to develop the next generation of leading companies in Queensland.

http://www.qmisolutions.com.au/

http://www.queenslandleaders.com.au/

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