Are resources companies helping drive Qld manufacturing revival?

QUEENSLAND resources companies are increasingly turning to local businesses to supply their goods and services, according to a new report, helping to drive a resurgence in the state’s manufacturing sector.

The Queensland Resources Council (QRC) has released a report showing Queensland businesses secured almost 20 percent more resources work in 2019-20, with local expenditure rising from $22.4 billion in 2018-19 to $26.7 billion in 2019-20.

QRC chief executive Ian Macfarlane said the latest data showed four in every five resources’ dollars was now being spent with local machinery and equipment suppliers, earthmoving contractors, food service providers, heavy engineering businesses and a range of other service providers.

He said it was the first time since the QRC began publishing its annual Local Content Report, nine years ago, that local goods and services’ expenditure had risen for three consecutive years.  

Mr Macfarlane said a resources-led revival in Queensland manufacturing was the result of resources companies working more closely with local suppliers to give them every opportunity to tender for work, to build on the state's capacity to support the mining sector.

“This ‘local first’ approach is strongly advocated by the Queensland Local Content Leaders’ Network, of which the QRC is a member, and it’s amazing to see the steady stream of cost savings, innovations and good ideas now flowing back to our companies through better engagement with suppliers,” he said.

Mr Macfarlane said 24 percent of member CEOs agreed the capabilities of local suppliers had increased over the year, with none reporting a decrease.

“About 16 percent of CEOs said Queensland suppliers had improved their price competitiveness, with none reporting a decrease in this category, and 44 percent said they expect to spend more with local suppliers over the next 12 months, and none expected to spend less,” Mr Macfarlane said.

“This is fantastic news and shows the resources sector’s focus on building the capability of local supply chains is delivering more opportunities for Queensland suppliers than ever before, with more growth to come.”

Mr Macfarlane said rising global demand for Queensland’s in-demand commodities and raw materials plus a commitment to pursue new technologies to achieve net zero by 2050 meant resources would continue to underpin the state economy for decades to come.   

“Regional centres, in particular, are leading the way in providing the innovation and expertise needed to keep the resources sector operating at a high level, particularly as we transition to a lower emissions future,” Mr Macfarlane said.

“Local suppliers are more likely to understand the high-tech needs and local conditions of our sector and are better placed to help companies manage supply chain risks, which has been an issue for all industries during the pandemic.

“Working with local suppliers also helps our companies reduce their transport costs and fuel consumption, which is better for the environment and adds to the long-term sustainability of resources communities.”

The QRC’s Local Content Report shows resources companies also spent less on internationally-sourced goods and services in 2019-20, recording a $600 million drop compared with 2018-19.

International procurement fell from $1.1 billion, or 3.6 percent of total purchases, to $500 million or 2 percent of total purchases in 2019-20.

www.qrc.org.au

 

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Manufacturing-from-home the only option for some small businesses in COVID era

THE NUMBER of people working from home has increased worldwide since the COVID-19 pandemic took hold last year – but for Sunshine Coast-based family business I Heart Wall Art, keeping their operation flourishing while at home has been far from simple.

“We sell canvas prints, art prints, wallpaper and decals and we manufacture them ourselves,” business owner Edwina Cameron said.

“We sell only online, and we saw a very rapid increase in sales at the start of the pandemic as people starting turning more to online businesses. That meant rapidly ramping up our manufacturing operations.

“But, with children suddenly requiring home-schooling and huge uncertainty around what was to come, we had to scale up those operations from home.

“My husband Gerry does most of the canvas stretching and framing from a converted garage and newly-built shed which doubles as a studio for people to come and see samples,” she said. 

“Our rumpus room now houses a large format printer and cutting machine, as well as the tables and equipment for our art print framing.

“I’ve had to move my desk back into my bedroom. We’re all constantly tripping over each other staff, kids, in-laws, visitors to the studio – so it’s definitely been an exercise in patience for everyone.”

HOME-MAKERS OF A DIFFERENT KIND

Edwina and Gerry are not alone.

ABS head of household surveys, David Zago, said the latest Household Impacts of COVID-19 Survey conducted from February 12–21, 2021, showed two in five people with a job (41 percent) worked from home at least once a week in February 2021, compared with 24 percent at least once a week before March 2020. (Source)

With population increases across the Sunshine Coast, more people than ever before are reconfiguring their homes to allow for offices, studios and workshops.

“We’re hoping to move the business out later in the year, but we’re waiting for the right space to come up in Maleny and to see what happens with the pandemic,” Ms Cameron said.

“Until then, we’re making do the best we can. We’re just lucky we’ve got a bit of space and very supportive neighbours.”

www.iheartwallart.com.au

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For more information, contact Edwina Cameron on 0408 203 922

Mask u-turn set to create jobs

A MELBOURNE manufacturer of reusable protective masks is set to recruit up to 10 new staff following yesterday’s announcement by Victorian Premier, Daniel Andrews.

As the Victorian Government took the decision to recommend the wearing of masks in high risk areas, the Melbourne firm saw sales jump by 800 percent. 

FloatPac Group CEO Gavin Hodgins said website traffic had now increased by a staggering 3,500 percent after the site initially crashed under the influx of orders.

“At one stage last night we were receiving 15 orders a minute," Mr Hodgins said. "It’s been huge. For us, it’s been a life saver, keeping an almost 40-year-old firm afloat.

“Sales to the general public have been coming thick and fast, and we are actively engaging with the State Government to secure some of the orders for 2 million masks that Premier Andrews is ordering – it looks as though masks could become a way of life, at least in the short term.

“We have a very busy few days and weeks ahead of us, but we’re delighted to be in a position to create new jobs. Producing masks became a sideline as we fought to keep our staff employed, after Covid-19 wiped out the majority of our core business. From a community perspective, it’s a real privilege to be playing a part in helping to stop the spread.”

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UniSA industry workshops help Defence sector innovation fight COVID-19 impacts

YEARS OF HARD WORK have gone into developing the networks and connections, the expertise and investments and the global partnerships to make South Australia the ‘defence state’. But what impact will the COVID-19 pandemic have?

The impact of COVID-19 is being felt just as the defence sector has been ramping up some of the most significant defence projects Australia has ever seen, including $100 billion being spent on the new BAE Systems Hunter Class Frigates in Adelaide and the Naval Group Attack Class Submarines. 

University of South Australia (UniSA) researcher in its Centre for Workplace Excellence, Shruti Sardeshmukh, who is undertaking research into the development of the defence industry, is conducting a series of online workshops with defence stakeholders, defence companies large and small, government and industry organisations, to assess the impact of the COVID-19 crisis.

“I want to incorporate an understanding of the impact of COVID-19 into my research on the defence industry sector and its resilience as part of a globally networked industry,” Dr Sardeshmukh said.

“Many homegrown SMEs (small and medium enterprises) from South Australia have been successful in winning critical contracts just recently.

“And we are in a unique situation where international primes are working with local companies on projects of enormous national significance, so understanding more fully the impacts of the pandemic will be vital as we plan for business beyond COVID-19.” 

Director of Defence at UniSA, Matt Opie, said adapting to the challenging circumstances presented by the COVID-19 pandemic has had an impact.

“While public health and the health of the economy are top priorities right now for everyone, we can’t afford to allow the pandemic to impact our efforts to develop critical Sovereign Industrial Capabilities within the defence industry,” Mr Opie said.

“If anything, COVID-19 is teaching us that we need to strengthen Australia’s industrial and manufacturing capacity across the sector, and what we are developing through defence, in both know-how and in vital partnerships, will have applications beyond the sector.”

Dr Sardeshmukh said the industry consultation workshops will help to inform the wider research project and provide strategies to ensure current projects are delivered successfully.

Industry representatives wanting to take part in the workshops can register with Dr Sardeshmukh at This email address is being protected from spambots. You need JavaScript enabled to view it.

www.unisa.edu.au 

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Hellyers Road whisky welcomes back 'an old friend'

RENOWNED Australian whiskey distiller Hellyers Road, Tasmania's reigning Regional Exporter of the Year, has recovered from the sudden success of its Original 12 Year Single Malt, which cleaned out stocks within 18 months, to bring out its successive release.

According to Hellyers Road’s master distiller, Mark Little, the cyclical  of single malt whisky production is one of the nuances that make the category so intriguing and unique.  

"Arguably, there would not be a distillery in the world that can guarantee an infinite supply of a particular skew, given the fact these whiskies take years to mature and, once released, consumer demand can quickly usurp any forecasts around long-term supply," Mr Little said.

Such was the case with Hellyers Road’s Original 12 Year single malt. First taken to market in 2014, its quality and keen pricing soon found strong market favour with available stocks gobbled up within 18 months of release.

Mr Littler said the distillery was taken by surprise at how quickly the release became fully allocated but the latest news is good in that a new batch of Original 12 year is available with market interest already very keen.

“We have in excess of 3000 700ml bottles available in the current batch and will have more 12 year stock coming on line for bottling in 2021 which is really exciting," Mr Little said. "Our oldest whiskies are now approaching 20 years of age and are reserved for ultra-premium single cask releases however we are thrilled, to again be able to offer this lovely core range 12 year single malt which was so popular previously."

Mr Little said Hellyers Road Original 12 Year carries the typical citrus and vanilla tones of the distillery’s Original flavour profile whiskies but age has added a new dimension to the character and body. Its rich brassy colour gives rise to a mouthfeel that exudes an oily sweetness, tinged with shavings of citrus peel poking through. The finish is calming and long, with vanilla evident, he said.

www.hellyersroaddistillery.com.au

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Shadow Minister Brendan O’Connor addresses workforce capability and availability at National Manufacturing Summit

SHADOW Minister for Employment and Industry, Science and Small and Family Business, Brendan O’Connor, will address delegates at the National Manufacturing Summit in Melbourne on August 22

According to organisers, manufacturing industry group Weld Australia, there is widespread evidence that Australia’s manufacturing sector is experiencing a period of sustained growth.

 In July, the Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) rose by 1.9 points to 51.3, indicating growth across manufacturing production, sales, exports and new orders.

However, industry participants continue to cite a critical constraint: workforce capability and availability.  

According to Weld Australia CEO Geoff Crittenden, “Finding and retaining skilled workers is front of mind for manufacturing industry business owners and operators, as is maintaining currency of skills and knowledge. Australia requires a significant increase in skilled, qualified trades workers to meet future demand on major projects in industries as diverse as defence, shipbuilding, aerospace, infrastructure, rolling stock, and resources.

“A targeted strategy for workforce development is crucial and will require the manufacturing industry, federal and state governments, and the VET sector to work together to ensure its success.”

Shadow Minister O’Connor is expected to focus on both the challenges and opportunities facing manufacturing. According to Shadow Minister O’Connor, “As a country we must choose to build a nation rich in educational, training and employment opportunities, with a broad based engine of economic growth.

“Lifting skills to ensure the workforce is prepared for the jobs of the future is crucial to future employment security and better wages. It requires bipartisanship and collaboration, none of which can be achieved without leadership, a plan, and vision from the current government.”

This year marks the third National Manufacturing Summit. The event was held in both 2018 and 2017 at Australian Parliament House in Canberra.

Attended each year by over 100 delegates, the Summit program is designed to open new ground in the policy dialogue over how to sustain and nurture manufacturing: a vital segment of Australia’s economy. The 2019 Summit will be held at the Australian Synchrotron in Clayton, Melbourne.

Mr Crittenden said Weld Australia members were involved almost every facet of Australian industry and make a significant contribution to the nation’s economy. Weld Australia is the Australian representative member of the International Institute of Welding (IIW). 

"The primary goal of Weld Australia is to ensure that the Australian welding industry remains locally and globally competitive, both now and into the future," Mr Crittenden said. 

https://manufacturingsummit.com.au/

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World-first printed solar panels completed at Newcastle Uni

THE FIRST commercial installation of printed solar panels in Australia was completed in August, with the University of Newcastle wrapping up the process for Chep Australia.

In one day, the Chep team installed 200sqm of the material, made by printing electronic ink onto sub-millimetre plastic sheets, with double sided tape on the roof of its warehouse in Beresfield, Newcastle.

With a production cost of less than $10 per square metre, printed solar panels are much more affordable than other commercially available solar technologies.

The university also believes the technology should soon be widely available for the broader market. 

Professor Paul Dastoor, from the School of Science and Mathematics at the University of Newcastle said, “This is the first commercial uptake of printed solar in Australia, most likely the world. It’s an historic step in the evolution of this technology and another example of private enterprise and community leading the charge in the adoption of renewables.

“Our printed solar cells are now considered to be at the top of the technology readiness tree.

“Those working in technology development use a NASA developed Technology Readiness Level or TRL system to determine how evolved our solutions are, with 1 being the lowest and 9 the highest,” Prof. Dastoor said. “We are now rated TRL 8 and essentially considered green lit.

“On the University’s lab-scale printer, hundreds of metres of material can be produced per day, however upgrading production to a commercial-scale printer would increase this output to kilometres. No other renewable energy technology can be manufactured as quickly.

“The low cost and speed at which this technology can be deployed is exciting as we need to find solutions, and quickly, to reduce demand on base-load power – a renewed concern as we approach another summer here in Australia.”

Prof. Dastoor said due to the low cost of upgrading and replacing the panels, they may be provided as a service rather than an ownership based model.

“One of the most common questions I’m asked is when will people be able to buy this on shelves at Bunnings,” Prof. Dastoor said.

“Unlike most centralised or de-centralised energy infrastructure, which requires a substantial upfront investment, printed solar might resemble something more akin to a mobile phone plan.

“In future, we expect users might sign onto this energy solution in a similar way to a mobile phone plan, where you determine your usage requirements, pay a monthly service fee, but never need to ‘own’ the infrastructure. The service provider installs and upgrades your service for you as the technology continues to develop.

“This is quite a step change in how we’ll think about energy provision and energy markets in the near future.”

The panels are printed using roll-to-roll printing, and could one day provide printers in the country with an entirely new revenue stream, according to a report by Australia’s ProPrint online magazine.

www.newcastle.edu.au

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