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Manufacturing Futures

Manufacturing Futures. A Report on Manufacturing by Australian Business Foundation. Contribution of Manufacturing. $111 billion output in 2010 1,000,000 employees 36% of total exports 32% of Australian manufacturing is in NSW – the largest share. Contribution of Manufacturing.

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Manufacturing Futures

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  1. Manufacturing Futures A Report on Manufacturing by Australian Business Foundation

  2. Contribution of Manufacturing • $111 billion output in 2010 • 1,000,000 employees • 36% of total exports • 32% of Australian manufacturing is in NSW – the largest share

  3. Contribution of Manufacturing • $1 manufactures > $1.43 elsewhere in economy • $1 services > $0.71 elsewhere • Other sectors growing more quickly = declining share of economy globally

  4. How is Manufacturing changing? • Manufacturing ≠ production • Manufacturing and services merging • ‘Inventors, supply chain managers, service providers’ • Developing new services less risky and differentiates • Customers want solutions

  5. How is Manufacturing changing? • Case Study - Aeronaut Automation • Changed from sail making to manufacturing automated fabric cutting tools and software • Couldn’t get quality or service from imported machinery • They make the gear they would like to use • More expensive but 400% percent productivity increase • Increased product quality • Reduced waste

  6. New Manufacturing • Competition gets even more intense leading to • Customised, high value products • Higher service component • Customers and employees bigger part of business

  7. New manufacturing (cont’d) • Global supply chain opportunities • Low carbon economy opportunities – resource (eg water) efficiency products/services • Increased management and shopfloor skills

  8. New Manufacturing (cont’d) • Low carbon economy opportunities – resource (water) efficiency products/services • Increased management and shopfloor skills • Innovation technologies - rapid prototyping > design and produce more elaborate products • Changing business model to take more of the value created and in more markets

  9. Action • Putting all this together the Report recommends • Experiment with innovations • Invest in people and skills • Multiply knowledge connections

  10. Action • Experiment with innovations • Business model innovation eg by adding services, better understanding customer needs • Invest in people and skills • Right people, lifelong learning • Improve Management’s people management skills • Multiply knowledge connections • Access more knowledge and business opportunities through collaboration • Cluster to compete

  11. Ahead • NSW Business Chamber Manufacturing program is based on Manufacturing Futures recommendations • Innovation in Manufacturing Master Classes with global expert, Göran Roos, 18-19 November and again in National Manufacturing week – May 2012 • Manufacturing forums around NSW • Today’s gathering!

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