Manufacturers' Monthly October 2012

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

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October 2012

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INSIDE Industry News & Comment >> New Products >> The Safety Show Preview >> Materials Handling >> Supply Chain Management >> Compressors & Pneumatics

ENDEAVOUR AWARDS 2013 >> Endeavour Awards open for 2012

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June 2012

July 2012

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INSIDE Industry News & Comment >> Coming Events >> New Products >> Metal Working >> Automation & Robotics >> Production Software >> Compressors & Pneumatics >> Materials Handling

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INSIDE Industry News & Comment >> Guide to Government Grants >> Industry Opinion >> New Products >> IT@MM - Mobile Technology >> Motors & Drives >> Materials Handling MANAGEMENT >> Workplace Safety Limiting workers’ exposure to airborne hazards p.16

ENDEAVOUR AWARDS 2012 >> Winners Anounced

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Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Managing Editor Cole Latimer Ph: (02) 9422 2352 Fax (02) 9422 2722 cole.latimer@reedbusiness.com.au Journalist Brent Balinski Ph: (02) 9422 2480 Fax (02) 9422 2722 brent.balinski@reedbusiness.com.au Journalist Hetal Badiyani Ph: (02) 9422 2722 Fax (02) 9422 2722 hetal.badiyani@reedbusiness.com.au Graphic Designer Ronnie Lawrence ronald.lawrence@reedbusiness.com.au Creative Director Julie Coughlan Production Co-ordinator Mary Copland Ph: (02) 9422 2738 mary.copland@reedbusiness.com.au VIC/Overseas Sales Michael Northcott PO Box 3069 Eltham VIC 3095 Ph: 0448 077 247 michael.northcott@reedbusiness.com.au NSW Sales Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067.

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Inside

For daily news visit manmonthly.com.au

OCTOBER 2012

8

4 Editorial Q More of the same

6 Comment Q Opportunity for a better future

8 Endeavour Awards

18

Q Manufacturers’ Monthly has

launched the Endeavour Awards

10 Analysis News Q Transport companies going bus-t Q Boost for additive manufacturing

14 IT@MM Q Four ways ERP improves supply chains Q All changes; products to services

44

Q Keeping your supply chain flexible

18 Compressors & Pneumatics

30 Fasteners & Adhesives

Q The cost of energy efficiency Q Maintaining reliability Q Oil-free air Q Hydraulic testing Q Providing performance

26 What’s New Q The latest products for Australian

manufacturers

manmonthly.com.au

ANALYSIS >> TECHNOLOGY >> SOLUTIONS

Est. 1961

October 2012

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INSIDE Industry News & Comment >> New Products >> The Safety Show Preview >> Materials Handling >> Supply Chain Management >> Compressors & Pneumatics

ENDEAVOUR AWARDS 2013 >> Endeavour Awards open for 2012

Q Better bonding

Q Industrial printers Q Renewable resin technology

34 Manufacturing Sustainability

42 Sensors, Analysers, & Process Control

Q Drumming up support Q Growing focus on high value Q Growing your footprint

44 Health & Life Science

40 Materials Handling

46 The Safety Show Preview

Q New Country of Origin Labelling

Q Showcasing Sydney’s Safety Show

Q Are pharmaceuticals the future?

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Manufacturers’ Monthly OCTOBER 2012 3

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Editorial

COLE LATIMER – Managing Editor

editor@manmonthly.com.au

More of the same Government inaction is not doing the manufacturing industry any favours.

W

hat next? That’s the question we hear a lot here at Manufacturers’ Monthly.

We are continually asked by those in the industry (and outside of it) what we as a nation can we do to get Australia’s manufacturing industry back on its feet; what can we do to ensure Australia’s industry remains competitive in this unprecedented downturn; and how do we keep it moving?

The Government attempted to take a step forward in reaching a solution by releasing its Taskforce’s report Smarter Manufacturing for a Smarter Australia.

This was pushed as a panacea for all of the industry’s woes, and acted as an acknowledgement by the Government that the industry is going through a rough patch.

But what did it achieve?

It took the brave step of stating the problems that are already well known, and then completely sidestepping the issues which have the manufacturing industry up in arms - those of the Carbon Tax and Fair Work Act. As the head of Manufacturing Australia, Dick Warburton, said: “For this particular government these issues are too hard‌.we need strong leadership, but if anything smells of controversy unfortunately both sides run away. “There is just no courageous leadership in this area at the moment.â€?

Sparks are flying as much of the government has purposefully avoided dealing with manufacturing’s endemic issues.

This has been a worrying, yet not entirely out of character move by a government which seems to have given up on the manufacturing industry.

They have essentially thrown it into the ‘too hard’ basket, claimed Warburton.

This was backed by the fact that Ford all but announced it was shutting automotive manufacturing in Australia by 2016 and not a single sound was heard from the current government in charge.

It seems as though it is too busy focusing on the current mining boom, and how to best tax that cash

cow while it still has the opportunity, and commodity prices are still relatively high.

In the mean time anything more difficult, such as supporting our manufacturers - both high end and low end, takes a backseat as it would require something akin to effort and diligence to ensure the industry survives in Australia.

In fact the Government has even gone out of its way to damage the industry by imposing the recent carbon tax, which just makes manufacturing harder than it already is; essentially penalising companies for using energy and simply existing.

And if this industry suffers more than it already has it will be a major blow to Australia, as the manufacturing industry provides the main impetus for research and development in this country; driving change and innovation.

But if the government continues to lack drive in its support of the industry, then it is questionable how well manufacturing can survive in what are currently very uncertain economic times.

While the end of the mining boom is likely to see a strengthening of the manufacturing sector again, with the boom predicted to last in some degree until the middle of this current decade it still paints a grim picture for many small to medium manufacturers that are currently working just to keep their heads above water.

Australia needs a vibrant manufacturing sector; the industry will still be here once mining has exhausted its deposits it has to stop mining.

But manufacturing needs government support while the times are tough, to ensure that manufacturing can support Australia when it is back on its feet.

Because if the government doesn’t support manufacturing now when the times are tough, and manufacturing dies, what can it do when the mining boom is gone?

The government and industry has to ask itself - what next?

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manmonthly.com.au

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Comment

INNES WILLOX – CEO Australian Industry Group

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Media Partners:

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n August, the non-government members of the Prime Minister’s Manufacturing Taskforce, including Ai Group, handed their report – Smarter Manufacturing for a Smarter Australia – to the Government. A response is expected within a couple of months.

The Report recognised the unique combination of global, structural and cyclical pressures facing manufacturing in Australia, the intensity of the restructuring and the erosion of capabilities. It nevertheless expresses very strong confidence in the future of the industry. It is optimistic about its opportunities and the potential for the sector to continue to play a key role in ensuring that Australia has a resilient and balanced economy.

The report makes the point that the erosion of capabilities threatens to reduce the capacity of the industry to take advantage and create new opportunities.

In terms of policy, it puts forward a five-pillar strategy that would raise the capacity of the industry to withstand the cyclical pressures and to gear up for new opportunities: 1) Address current pressures facing the industry by: • Bringing forward infrastructure spending; • Improving federal and state procurement regimes; • Assisting in lifting the commercial and residential construction sector out of its trough; • Removing blockages in defence procurement; and • Implementing a rigorous antidumping regime.

2) Lifting productivity by: • Investing in infrastructure; • Lifting the effectiveness of regulatory compliance and standards

conformity arrangements; and • Reducing costs and regulatory burdens and improving taxation arrangements.

3) Smarter Collaboration for Innovation by: • Facilitating and removing barriers to collaboration between the research sector and business and between businesses – this proposes a fundamental elevation of emphasis on applied knowledge.

4) Measures to improve SMEs in manufacturing • The aim is to build stronger more innovative and less financially constrained SMEs, including more active engagement between larger businesses and the SMEs in their supply chains.

5) Building smarter workplaces The proposals combine short-term survival measures with genuine measures to lift the capabilities of the sector, to raise rates of productivity growth and to re-focus on new opportunities wherever they lie.

Of course, the elephant in the room – the industrial relations system, currently under the microscope in the crucial Fair Work Act Review – is absent from the report.

It was left out of purpose to allow us to concentrate on these other important issues.

This is no way diminishes the great importance of IR reform to manufacturing’s future.

The same can also be said of the ongoing climate policy debate.

The ultimate objective is to build a more diverse and more balanced economy that is more resilient and less vulnerable to the export of a handful of commodities to a handful of countries.

The work of the Taskforce represents a useful start to this process. manmonthly.com.au

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AnalysisNEWS Endeavour Awards open for 2013

By Alan Johnson

M

ANUFACTURERS across the nation should be aware that nominations for Australia’s only awards program specifically for the manufacturing industry are now open.

Manufacturers’ Monthly Endeavour Awards program, which recognises companies and individuals for their contributions to the Australia’s manufacturing industry, is now seeking nominations for 2013.

Now in their tenth year, attracting over 1,000 worthy finalists over the decade, the Endeavour Awards have grown to become the most prestigious awards program for the Australian manufacturing industry, with 13 industry segments.

This year, Manufacturers’ Monthly is pleased to announce BlueScope Steel as both the principle sponsor of the 2013 Australian Endeavour Awards for excellence in Australian manufacturing, and the category sponsor for the Australian Steel Innovation Award.

Steve Gregson – Manager, Manufacturing Markets, said BlueScope Steel is proud to be involved with such prestigious awards again.

“We believe that the Endeavour Awards’ focus on manufacturing excellence and innovation are critical enablers for the future and that manufacturers who display these characteristics should be acknowledged for the work they do.

“As one of Australia’s largest manufacturers, we share many of the challenging issues faced by the broader manufacturing industry.

And like many domestic manufacturers, we are keen to be part of the solution,” he said.

“BlueScope Steel is Australia’s leading manufacturer of flat steel products. Our products are designed for Australian conditions and utilise advanced manufacturing technologies and best practice testing processes to produce steel products in Australia to ensure a consistently high level of quality.

“We are looking forward to seeing examples of how Australian manu-

8 OCTOBER 2012 Manufacturers’ Monthly

Teamwork: BlueScope Steel are both the principle sponsor of the 2013 Australian Endeavour Awards for excellence in Australian manufacturing, and the category sponsor for the Australian Steel Innovation Award. facturers, big and small, are building competitive advantage through innovation while providing consumers with competitive locally manufactured steel goods.

“Good luck to all nominating companies,” Gregson said.

Categories for 2013 For 2013, the Endeavour Award categories are: The Technology Application of the Year Award: sponsored by SMC, it is for successful applications of technology in manufacturing processes.

The Exporter of the Year Award: sponsored by EFIC, it is for manufacturers who have successfully entered or are developing an export market with a new or existing locally-made product.

The Environmental Solution of the Year Award: sponsored by Atlas Copco, it is for the successful implementation of solutions designed to reduce the environmental impact of manufacturing operations.

The Australian Steel Innovation Award: sponsored by BlueScope Steel, it is for innovative new products or projects using Australianmade steel.

The Global Integration Award: sponsored by ICN (Industry Capability Network), it is for companies who are successfully engaged in global supply chains.

The Safety Scheme of the Year: spon-

sored by Sick, it is for the successful implementation of a scheme, or schemes, to improve safety in manufacturing plants.

The Australian Industrial Product of the Year Award: sponsored by BOC, it is for new, innovative Australianmade products designed for industrial applications.

The Australian Consumer/Trade Product of the Year Award: is for new, innovative Australian-made products designed for consumer or trade applications.

The overall Manufacturer of the Year Award: sponsored by BlueScope Steel, it will be chosen from among the winners of the above categories.

The Lifetime Achievement Award: sponsored by IFM Efector, it recognises a person who has made a significant individual contribution to Australia’s manufacturing industry.

The Young Manufacturer of the Year Award: it is for the rising stars of Australia’s next generation of manufacturers.

The Most Innovative Company Award: it recognises Australian manufacturers who have looked ‘outside the box’ to implement new business ideas.

The Significant Achievement Award: sponsored by Enterprise Connect, it recognises manufacturers who have made a significant achievement in productivity, competitiveness or innovative capability since

completing their Enterprise Connect Business Review and Tailored Advisory Service project(s). (This award is for Enterprise Connect clients only.)

Part of the Endeavour Awards high standing in the industry is due to the high calibre of nominations and the program’s judges.

As well as Manufacturers’ Monthly’s Editor-at-large Alan Johnson, the other judges for 2013 are Dr John Blakemore, Blakemore Consulting; Dr Ivan Cole, CSIRO; Mark Goodsell, Ai Group; Derek Lark, ICN; and Stephen Johnson, NSW TAFE. The Endeavours offer a unique program for manufacturers to demonstrate and showcase their business successes and enhance the company’s reputation both locally and overseas, be it as a finalist or taking out an actual award.

The Endeavour Awards celebrate and recognise the achievements of industry leaders in their drive to achieve best practice and excellence in manufacturing.

Remember entry is free, and while the deadline for entries is not until COB 13 February 2013, the time to start planning your nominations is now.

For more information on the categories, and an application form visit www.manmonthly.com.au/Awards or call Madeline Prince on 02 9422 2759. manmonthly.com.au

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EFIC DID MORE THAN FINANCE OUR CONTRACT

THEY ENABLED IT. Cory Stevens, Managing Director, Lean Field Developments

When we won the contract to be part of the supply chain to the massive Queensland Curtis LNG project, we were delighted. This was an opportunity to further establish our track record and reputation within the oil and gas industry in Australia.

However, like other suppliers, we were required to provide performance bonds in support of our contractual obligations. We also needed to ensure that we had access to additional working capital for other contracts. Yet, as a company without a long

trading history in Australia, we couldn’t get sufficient bonding or bank finance for our needs.

Luckily we knew in which direction to turn. With the support of EFIC’s export working capital guarantee and bonds, we were able to meet the financial requirements and demonstrate our company’s ability to take on such challenging projects.

Overcoming financial barriers for exporters Visit efic.gov.au/mm

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AnalysisNEWS EVENTS

Tranport companies going bus-t.

A Hunter bus plant has laid off its workers and the company is blaming

OCTOBER 23-25: CleanScene 2012 will see around 100 exhibitors pack out the exhibition held in conjunction with the Sydney Safety Show, in October at the Sydney Showground, Sydney Olympic Park. It will showcase Australia’s newest and most innovative cleaning and hygiene products. Presented by the National Cleaning Suppliers Association (NCSA) and co-located with The Safety Show Sydney and Sydney Materials Handling, CleanScene will provide businesses with a unique opportunity to check out what’s best for their individual requirements.

For more information call 03 8672 1200 or go to www.cleansceneshow.com.au.

23-25: The Sydney Safety Show 2012 is the nation’s number safety and protection products and technology event.

Held at the Sydney Showground it will showcase the industry’s ‘essential’ OH&S equipment.

Visitors will have a unique opportunity to find the latest OHS products all under one roof along with hundreds of new and innovative ways to improve workplace productivity.

For more information call 03 8672 1200 or go to www.thesafetyshow.com.au.

23-25: Sydney Materials Handling is the place for all things safety and material handling, visitors have the unique opportunity to discover the most comprehensive range of products and services as well as network and learn from industry experts through a number of interactive live demonstrations, dedicated feature areas, and free seminars.

It will be held at the Sydney Showground For more information call 03 8672 1200 or go to www.materialshandling.net.au.

30-1 Nov: Goldfields Mining Exhibition (GME) features the latest equipment and technology for miners and manufacturers of mining equipment. Held in Kalgoorlie, at the Kalgoorlie-Boulder Raceourse in Western Australia, this event brings together decisions makers and those in the front liner as well as manufacturers.

For more information contact Reed Exhibitions, Paul Baker, 02 9422 8822, or visit www.goldfieldsminingexpo.com.au.

10 OCTOBER 2012 Manufacturers’ Monthly

the government, writes Brent Balinski.

“T

he plant has been placed in standby mode,” is an all too common phrase in the manufacturing industry right now. Volgren, a bus manufacturer, is yet one more manufacturing company to utter these words.

Tony Kerr, Volgren’s general manager of sales and marketing, told Manufacturers’ Monthly the company’s been forced to shed 43 manufacturing staff at its Tomago plant.

The decision has been linked to the NSW government’s decision to use a Queensland company for its North West T-way trial.

The trial, which began late last month, started with one double decker bus between Blacktown and the city’s Hills district.

It will run until 2014 and see seven more double decker buses serve the Sydney’s north-west, city, and northern beaches, later in the year.

Kerr told Manufacturers’ Monthly he is outraged at the decision to use BusTech, a Gold Coast manufacturer, for the T-Way trial.

“The questions I have, for example, to the government, are, ‘What process was followed for procurement? How does that occur?” he asked.

“There’s absolutely no accountability here for this government. No accountability.

“How can they go and buy in excess of $5 million worth of buses without going through a proper industry source process? It hasn’t happened.”

The Australian Manufacturing Workers Union has also voiced its unhappiness at what it sees as another local manufacturer being shafted.

“It’s a very strange decision and it sent a terrible signal to people who want to invest in manufacturing that the NSW Government’s not gonna stand up for the local industry,” Tim Ayres, NSW secretary, stated.

“It’s pretty hard to believe that [when] we’ve got such fantastic busbuilding companies in NSW.” Transport for NSW has said that a tender process is not required under the current arrangement if a bus

More than 40 workers were cut. operator proposes a trial. The NSW government insists that BusTech is currently the only company in the country that’s up to the job.

“Transport for NSW’s advice is that at the moment, the company that [is] building the buses are the only company in Australia currently that are able to build them to Transport for NSW’s legal specifications,” Gladys Berejiklian, the transport minister, told Manufacturers’ Monthly.

The government also defended its purchase of the buses.

“The NSW Government has established a procurement panel within Transport for NSW which is taking a measured approach to bus procurement,” explained Berejiklian.

“Its aim is to ensure taxpayers get value for money as we deliver more buses in the future.”

Kerr firmly disagreed with Berejiklian on both counts.

“That is absolutely incorrect,” he asserted.

“BusTech only ever built one double decker, last year. Volgren have been building double decks for twelve years.

“We’ve sent those double decks to Hong Kong and Singapore. Those double decks, to this day, are still running in those countries, without a problem.

“What our problem is, what we struggle with, is that this government – they went out and just procured eight double deck buses with taxpayers’ money, without following due process. No tender. No due process.

“This current government has not done that; they’ve just gone out, procured it, and done it without the rest of the industry knowing.

“These buses could’ve been built in New South Wales, in this factory here [at Tomago], if they engaged with industry correctly and followed due process as they should.”

Volgren also believes that the construction of its buses – aluminium with cobalt – is structurally more durable than BusTech’s.

BusTech’s buses are steel, which Kerr says doesn’t flex or last as well as aluminium.

The NSW opposition has – as oppositions will – railed against the government’s decision.

“In the Hunter, 85 workers are losing their jobs at (bus manufacturer) Volgren as a result of the O’Farrell government’s decision to stop ordering buses from them,” stated Penny Sharpe, the transport spokeswoman.

She stated that a local company should have been best used.

“This is a choice about jobs in NSW or jobs in Queensland.”

Berejiklian has claimed that the decision to use BusTech for the trial supported NSW jobs, as a portion of the Queensland company’s workforce commute from NSW. After the North West trial concludes, assuming that further double decker buses are needed, the government would then call for expressions of interest.

“Of course if the trial of the eight buses is successful we are happy to talk to other companies that may be interested in building these buses,” Berejiklian said.

One thing is for sure.

That the government’s tender process has been a trial for Volgren, and another example of a lack of support for local manufacturers. manmonthly.com.au

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AnalysisNEWS

Boost for additive manufacturing Described as the third industrial revolution, there is growing support for additive manufacturing utilisation and application for Australian manufacturers. Alan Johnson reports.

A

dditive manufacturing has been in the news for the past year or so, but very few Australian manufacturers have embraced the technology to date, mainly because of the cost of research, and not fully understanding how the technology will actually work for them.

To assist SMEs interested to know more, the Advanced Manufacturing CRC (AMCRC) has announced its commitment to the technology and to supporting business opportunities in this rapidly emerging area of the advanced manufacturing sector.

Bruce Grey, managing director of the AMCRC says the organisation is committed to showing the way to ensure Australian businesses remain at the forefront of both the technology and the commercial opportunity.

“This is an exciting technology with numerous possibilities for Australian manufacturers,” he said.

“In Melbourne, for example, we have RMIT, Monash, Swinburne and CSIRO, each with assets in SLM (Selective Laser Melting) and EBM (Electron Beam Melting),” Grey told Manufacturers’ Monthly.

“These [manufacturing] technologies are our core focus.”

He explained that selective laser melting uses a high powered laser beam (usually an ytterbium fiber laser) to create three-dimensional metal parts by fusing fine metallic powders together.

“With EBM, on the other hand, the laser beam works in a vacuum chamber and literally melts the titanium to build up the parts. Other metals we are working with are cobalt chrome, tool steel and stainless steel.”

Grey said his team are looking at a wide range of industries who can take advantage of this technology including medical, aerospace, sports equipment and general manufacturing, as well as toolmaking.

“Surprisingly there are still quite a number of injection moulding operations in Australia and using additive manufacturing for making the tooling is very attractive.

12 OCTOBER 2012 Manufacturers’ Monthly

This is an exciting technology with numerous possibilities Grey.

A titanium structure with maximum bulk modulus.

“Using additive manufacturing, they are able to put into the tool contour-following cooling channels, and with injection moulding plastics a good part of the cycle time is cooling the part, the cycle time will be much faster.

“For that sort of tooling there is no other way of making them. You can’t have these highly complex geometries with traditional machining or even EDM (Electric Discharge Machining) or wire cutting.

Grey said his organisation is very keen to talk to companies who think they would benefit from collaborative research in this area.

“They would be able to leverage their R&D investment in this region.

Typically it’s one for one, so if the company contributes $1, we match it with a $1 of federal funding, and we find the appropriate research expertise amongst the publicly funded researchers to do the work.”

He says there is no need for companies to actually buy a machine, “but they would need to have some idea of what they would like to produce”.

“We are wanting to assist SMEs to understand the processes as well, so they can decide in the future how they should apply the technology to their products and processes.”

He said the AMCRC is in the process of determining the top 50 Australian manufacturing SMEs likely to benefit from additive manufacturing and bring them together over the next six months to identify and focus the research and utilisation of the cutting edge technologies.

“Through a cooperative focus, the benefits to the Australia’s advanced manufacturing sector over the coming years will be maximised.

“Already we are talking to companies in the medical instrument field, but there a high number of other sectors who can apply the technology,” he told Manufacturers’ Monthly Grey says the feedback to date has been very good.

“There has been a lot of interest in the technology already.

“Some companies are more advanced and are already trailing the technology while others have read about it but haven’t done much to date. But they are keen get involved with our networking opportunities plus access to some of the machines to start trialling the technology.”

Grey said the AMCRC understood the importance of emerging technologies and itself had a proven track record in providing support to manufacturing SMEs for the development

of commercial opportunities that could go global.

He said the organisation already had expertise in the capabilities of 3-D printing in the aerospace sector, with two significant additive manufacturing project partners: Microturbo and Baosteel.

“The Microturbo project focuses on the development of 3D metal alloy printing for the production of micro engine components for aerospace applications.

“The project is well underway at Monash, and utilises SLM technology. We are developing the parts for nondestructive and destructive testing,” Grey said.

He explained that Advanced Manufacturing CRC will focus in on this area for its rebid for next year’s funding.

“We are optimistic the funding will be made available as this is one area that government can give manufacturing a bit of a lift.

“It matches its goal of higher paid jobs, with design engineering and engineering process development.

“We have put together an executive committee to manage the additive manufacturing process and are presently planning the activities including a number of presentation meetings in each state over the next three months to explain the technology and then to get engaged with those that are interested and start to work out collectively what the research challenges are,” Grey said.

Anybody interested in knowing more should contact Jacqui Martin at AMCRC on 03 9214 4780 or jacqui.martin@amcrc.com.au. manmonthly.com.au

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Former Ford head slams government The former Ford boss and current BHP Billiton chairman, Jac Nasser, has said the federal government needs to decide if it wants to keep Australia’s car manufacturing industry or not.

The ongoing job losses in the automotive industry have led the government to set up a manufacturing taskforce to analyse if the industry could survive or not.

The car industry employs 300,000 people, but 85 per cent of vehicles bought each year are imported, Nasser said.

He stated that the industry needed stability and long-term government support so it could plan for the long term.

He went on to say that when he was running Ford in Australia, he told the then Australian treasurer

Paul Keating that he would invest into the nation’s industry as long as the government wanted an automotive industry and would support it.

Nasser said he believes that the industry requires a supply base, education system and technical capability.

However the current situation involved abrupt self-analysis every two to three years, he added.

“Every two or three years some bright spark bureaucrat decides we need to look at the automotive plan again. You just can’t run businesses that way,” Nasser said.

“It’s important because it adds research and engineering and capability throughout the manufacturing and technical base of a country.”

The Government is providing a $5.4 billion package for the industry.

the inside that counts. Plibersek said this must surely be the ultimate sick joke from Big Tobacco and warned that the Australian Competition and Consumer Commission (ACCC) could be on their case.

In addition, she has warned other tobacco companies not to try any last minute dirty tricks to get around plain packaging laws.

“However, we will be closely watching the new packages to ensure that they comply with the regulations because we know that Big

Tobacco will use every trick in the book to try and get around the new requirements,” Plibersek added.

The government says it will monitor the new packs as they appear on the market and ensure that there were no markings or variations in colour and gloss which do not meet requirements.

“We have referred the packs to the ACCC to ensure that the graphic health warnings comply with the standard and we will continue to do so as issues are identified.”

Plain packaging laws unleashed The Australian Government’s new legislation has now made it mandatory for cigarettes manufacturers to package all tobacco products for domestic consumption in Australia in plain packaging from the start of this month. Australia will be the first country in the world to require tobacco products to be sold in a logo-free, dark brown packaging. From December all cigarettes produced for retail sale in Australia will be encased in plain packaging.

The first plain packaged products

manmonthly.com.au

are expected to be on major retailers shelves within weeks. With the plain packaging and tax increases, the Australian government aims to bring down smoking rates from 16.6 per cent in 2007 to less than 10 per cent by 2018. However not all tobacco companies are playing by these new rules. Health minister Tanya Plibersek said new packaging from Imperial Tobacco, in response to the government’s plain packaging law, has included partial plain packaging and the line: It’s what’s on

Manufacturers’ Monthly OCTOBER 2012 13

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ERP seen as the solution to facilitating change from a product focused business model to a products and services approach in the IME sector.

All change; products to services Value adding services such as product lifecycle management and consulting can lead to sustained growth for Australian manufacturers, writes Julian Archer*

T

HE Industrial Machinery and Equipment (IME) sector was one of the hardest hit manufacturing sectors in the recent economic downturn. Due to its capital intensiveness and cyclical nature, any contraction of expenditure hits the sector hard. Profit margins are however now returning to pre-crisis levels, although the IME sector still faces growing challenges.

The Australian manufacturing sector is still suffering from a drop in activity, coupled with an increasing level of complexity within organisations, which is being driven by a change in business model from a product orientated approach to a services orientated approach. According to IDC, 50 per cent of companies expect the level of complexity with the sector to increase over the next three years. As businesses look to implement initiatives aimed at driving out complication from operational

14 OCTOBER 2012 Manufacturers’ Monthly

processes and IT systems, how can the IME sector respond to these demands? According to a recent IDC survey, improving customer fulfilment is the most important business initiative for industrial machinery and equipment firms over the next three years. Improving overall service level is a critical differentiating factor, and industrial machinery firms need to stay closer to customers to create more engaging relationships. With the issues facing the sector, one way for sustained growth is though value adding services such as product lifecycle management and consulting. With more than 80 per cent of the sector believing this is the way forward for business growth, where does this leave innovation within the sector? Attempting to maintain a competitive edge in difficult times, IME firms have sought to provide their clients with aftermarket services such as product life-cycle management, consultancy

round the development of remanufactured products, and offering repair, maintenance, and overhaul services. The first and most important process they need to improve is their ability to understand where the market is going with better demand planning and forecasting. Combining design and development with the need to launch the product in the market at the right time, in the right locations, with the right features, and with the right quantity and quality has proven tricky for many IME manufacturers. However the process - spanning many different organisational silos, including marketing, supply chain, operations, and engineering - is crucial for mastering complexity.

The aim behind the drive to master complexity is simple; to sustain more growth. IT has proven to be a significant internal challenge in driving this growth. IDC research shows that IME manufacturers

understand the inadequacy of their current IT systems and the main concerns are system fragmentation, the lack of a collaborative environment and the intelligence of information, both internal to the enterprise and external along the value chain.

ERP is seen as a major culpritnearly 70 per cent of IME manufacturers believe their system does not provide them with fast decisionmaking capabilities. This is due to their current ERP system not offering collaborative or social networking-style features that increase productivity, and because the ERP is too complex to integrate with other applications. In contrast to this complexity, latest ERP systems offer a powerful solution which give unparalleled control over the complexities of local and/or global operations. * Julian Archer is marketing director - equipment with Lawson, 02 9468 8900, www.lawson.com. manmonthly.com.au

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Keeping your supply chain flexible

T

HE supply chain has been evolving quickly over the last decade spurred by wider globalisation and fierce competition.

The cost of transporting goods is forcing many Australian businesses to pass these costs onto consumers, making it increasingly difficult for businesses to compete within the global market.

In the 2012 Gartner Supply Chain Top 25 for Asia Pacific, only one Australian company, Woolworths, made the list. According to Gartner research director Vikas Sarandghar “while demand in Asia Pacific is growing, inflation, rising costs and a tightening labour market pose challenges for companies in the region.”

Many businesses across every conceivable market sector are scrutinising the supply chain for ways of reducing costs through improved efficiency while software vendors promise that their enterprise application will provide the desperately sought competitive edge.

Today, the chain is more like a carefully constructed web with spokes and bars of suppliers, subcontractor, customers, manufacturers and outsourcers in desperate need of cohesive processes and information to deliver profitability.

Although software can help, businesses need to align their strategic direction to a more service orientat-

A flexible supply chain - competitors are doing it, suppliers expect it, and customers are demanding it. ed architecture to match the way the industrial world has evolved.

The days when one company sourced materials, built it, and sold it all through direct control have long past and the supply chain, through its business processes and software architectures, must accept this economic reality to provide optimum fit.

Many still see Service-Oriented Architecture (SOA) as just a new form of Electronic Data Interchange (EDI), which for the last three decades has allowed disparate computer systems to exchange documents such as purchase orders,

receipts and bills. Developed in an era of mainframes and bespoke systems, EDI is notoriously complex to implement and lacks the rigid standards that often limit customer and supplier interaction.

Where EDI simply allowed data exchange, SOA is instead a true collection of self-contained services that communicate with each other and do not depend on the context or state of the other service.

An example could be a manufacturer who uses a Web service to gather the stock levels of its independent sales agents or an accounting package using the Web service of

a governmental revenue agency.

The service could be a full blown application such as stock control or shipping system allowing a company to outsource the non-core parts of the business to a third party but still maintain control and visibility of the information systems that are essential for smooth operation of the business.

The fundamental difference is that in a SOA, everybody understands the rules and even if they don’t – the service can pass the relevant XML schema so that all systems are able to interact based on the access level that each organisation requires or is assigned by the service owner.

At the end of the day, when selecting the supply chain management software for your organisation, the most important decision should be whether your business is prepared to adopt business processes that meet the service-oriented market that the world is moving towards.

Competitors are doing it, suppliers expect it, customers demand it – the change is already here and businesses that want to succeed need to evaluate whether they can break the rigid chain and instead construct a flexible supply web that the market is demanding. * Craig Charlton is senior VP and GM with Epicor Software, www.epicor.com.

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Manufacturers’ Monthly OCTOBER 2012 15

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Four ways ERP improves supply chains Separate supply chain management systems are no longer needed, modern ERP systems are fully loaded writes Mike Lorge*.

Latest ERP systems are able to deliver integration and visibility of customer and supplier relationships, sales and order fulfillment, and operational performance.

A

CCEPTED wisdom tells us that successful supply chain management requires an integrated management system providing an enterprise-wide view of key activities.

Supply chain managers need the ability to monitor and direct every aspect of their business including customer relationships, supplier relationships, sales and order fulfillment, and operational performance.

A comprehensive ERP system can deliver just that integration and visibility.

CUSTOMER RELATIONSHIP MANAGEMENT - Customer Relationship Management starts with the initial contact and is often first tracked in a Contact Relationship Management system or module.

Basics such as name, address, telephone, and other contact information is recorded and tracked in anticipation of the initial sale. In our experience, Customer Relationship 16 OCTOBER 2012 Manufacturers’ Monthly

Management goes far beyond that initial contact.

Once the initial contact is complete there may be payment terms, contracts, or other agreements to track. Favorite items, shipping preferences, or special instructions may also be vital to the relationship.

An effective ERP system accommodates all of this information and pulls it together in a centralised fashion along with purchasing patterns, customer service information, information on returns and credit history.

SUPPLIER RELATIONSHIP MANAGEMENT - Managing the supplier relationship is larger than it seems at first glance.

As anyone who has ever done it will tell you, purchasing is far more complex than simply placing an order and receiving goods.

In today’s economy businesses need to take advantage of the best pricing, delivery, and incentives

available from various vendors.

Additionally, lead times, quality control and payment terms such as EDI must be considered. Vendor performance and accuracy ratings are critical to the overall success of your business.

An ERP system integrated across purchasing, receiving, quality monitoring, and disbursements with electronic funds transfer capabilities simplifies these processes and provides overview or detailed analysis allowing you to manage all aspects of the supplier relationship.

SALES AND ORDER FULFILLMENT Whether your business is a heavy manufacturer from raw material to finished goods, a light assembly plant, or solely distribution, you require some level of sales and order fulfillment.

Included in the mix could be processes as complex as engineering and product development, shop floor control, or manufacture-to-order.

Certainly every type of operation requires the ability to process orders either from a web site or through a sales force. Inventory and stock levels must be managed. Quality controls have to be in place. Returns are a reality of life. Physical distribution, packaging and tracking, and logistics must be scheduled and monitored. All of these activities can and should be tracked and monitored by the ERP system. Closely integrated modules, business intelligence views, and reports provide a comprehensive view of material flows, stock statuses, work order progress, delivery dates, and logistics performance – making the management of sales and order fulfillment seamless and convenient.

PERFORMANCE MANAGEMENT Overarching every aspect of your business is performance management.

Performance management answers the bottom line questions: • Are costs within the norms?

• Are profit margins sufficient?

• Do the production lines operate at peak efficiency?

• Is productivity adequate?

• Where can quality be improved?

• Is the workforce fairly compensated and sufficiently prepared to perform their functions?

Once again, the ERP system provides the means to determine these critical answers.

Costing calculations from production operations or purchases are pulled together with sales results to allow profit calculations; scheduling and productivity reports and analysis provide insight to efficiencies; quality review and returns analysis provide data to help identify possible areas where quality might need improvement .HRMS provides compensation and benefit management, plus training and advancement planning. The implementation of an ERP system provides the structure and tools to coordinate, monitor, and manage a successful supply chain management enterprise. * Mike Lorge is MD of Sage Business Solutions, 02 9921 6500. manmonthly.com.au

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Compressors& PNEUMATICS The cost of energy inefficiency Cutting compressor costs, but not efficiency, is the aim of many manufacturers. Hartley Henderson writes.

I

n the current challenging economic climate, manufacturers are increasingly looking at ways to reduce their cost base, and this should include attention to the energy efficiency of compressors.

It has been estimated that compressed air accounts for around 15 per cent of industry’s electricity consumption, that 90 per cent of the input energy is discharged to the atmosphere as waste heat, and that some 50 per cent of the air generated by a compressor is wasted on non-productive demands.

According to Quentin St Baker, national manager Energy Efficiency Services at compressed air specialist company, CAPS Australia, while there have been significant advances in compressed air technology in recent times, finding ways to allow a system of compressors to operate more effectively is where substantial savings can be achieved.

“Technology has become very efficient and the most gains are now in how the technology is applied in order to come up with the best system for a specific application,” he told Manufacturers’ Monthly.

“However, it’s risky making decisions about the application of technology for efficiency objectives without having data and evidence to support the investment. That’s where compressed air audits can help.

“But, one should be wary about audits that blindly suggest variable speed without being able to demonstrate how the technology will properly apply to the demand.

“In some cases, variable speed can be less efficient than appropriately selected alternative technologies.

For example, in constant demand applications, traditional fixed speed technologies are often better suited and they are also less costly to purchase.

“Pressure has a big impact on the energy efficiency of compressors and significant benefits, including a reduction in leakages, are possible through a reduction in pressure.”

18 OCTOBER 2012 Manufacturers’ Monthly

employs advanced new technology that is capable of delivering massive savings over conventional technologies,” he said.

System design

Compressed air audits can generate substantial energy and C02 reductions and reduce greenhouse gases.

Software development St Baker advises that CAPS Australia has recently completed a major software development that he says is a real innovation in the area of compressed air auditing.

“Compressed air system data from both the supply and demand sides of the system can be utilised to create a profile that allows options to be considered and intelligent business decisions to be made,” he explained.

“This software is highly interactive and enables the user to delve into various parts of the system, such as the performance of different

types of equipment. Strong consistency and accuracy can be delivered, and the risks of manual calculation can be avoided.”

CAPS Australia offers a range of advanced compressed air system products including the Ingersoll Rand X-Series System Automation technology, the R-Series 90-160kW variable speed and two-stage technology, and Centac centrifugal compressors for large users that St Baker says are the most efficient if applied correctly.

“In considering low pressure applications, the Neuros turbo blower

KAESER Compressors offers the KAESER Energy Saving System (KESS) to assist in the correct design of air compressor systems.

The company’s national sales manager, Mark Dudman, says an air system is cost effective only if it suits the application for which it is intended and fits the location and conditions under which it operates.

“In other words, the compressors, air treatment equipment and pipe work must be correctly chosen, sized and controlled. Control of compressors is a critical factor in the development of an energy efficient system,” he said.

“KESS in-house designed energy saving software provides the ability for an air system to be designed in detail and laid out to suit the user’s requirements after taking into account the projected air demand and the equipment needed to cope most efficiently with the demand.”

KAESER Compressors recently released the new Sigma Air Manager (SAM) 3D controller system for compressors.

Dudman says that with a powerful industrial PC at its core, SAM enables compressor delivery volume and energy consumption to be precisely adjusted to match actual compressed air demand.

“SAM is a highly flexible management system that is able to control, analyse and monitor performance of virtually any compressed air application. It is an all-in-one master control system and web server that ensures energy control as well as key data such as operation status and compressed air system costs,” he said.

CAPS Australia 03 8527 6812 www.capsaust.com.au Kaeser Compressors 1800 002 504 www.kaeser.com.au manmonthly.com.au

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Servicing the Manufacturing Industry for over 30 years Hydraulic and Industrial hose and fittings 92 Service and Supply Centres Australia wide National fleet of 320+ fully stocked mobile service workshops Rapid response time, 24 hours 7 days All Service and Supply Centres ISO9001:2008 accredited NATA certified hose testing facility Registered training organisation Nationally accredited and certified technicians National pricing policy

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Compressors & PNEUMATICS

Maintaining reliability Planning compressor maintenance ahead of time ensures reliability.

D

iligence stops downtimes.

Unexpected downtimes hit manufacturers hard, no matter what they produce.

So regular maintenance is crucial, especially in the case of compressors.

But how should operators approach maintenance?

Do they simply react to issues and schedule ad hoc maintenance routines when ever equipment has been running for a certain number of hours, arranging a service at random times through out the year.

Or should a company create a service plan, knowing what will be maintained, changed over and repaired, and when?

The issue of maintenance is crucial, especially considering that to produce a single kilowatt of air, we need between seven and eight kilowatts of electricity, as compressors chew through energy.

If a compressor is not working at maximum efficiency it consumes more energy, wasting up to 80 per cent of its power. And with the increasing cost of energy as well as

Diligence stops downtimes. the impost of the carbon tax, wasted power is a cost the industry can not afford. Speaking to Atlas Copco’s product manager - Compressor Technique Service David Irwin, he told Manufacturers’ Monthly that implementing a service plan for your compressors is the best way forward.

He explained that while many companies stick to ad hoc mainte-

Making an impact Ingersoll Rand has unveiled its latest air tool - the Ingersoll Rand 2155QiMAX Impactool.

Distributed by CAPS Australia the Impactool has a one inch drive designed for assembly and disassembly of machinery and heavy equipment, vehicle service, and equipment maintenance applications.

It delivers 1828NM of maximum reverse torque with approximately 1,150 blows per minute and has a forward torque range of 270 to 1218NM .

Weighing only 3.35 kilos with an overall length of 22.35 centimetres, the 2155QiMAX is light enough for prolonged use, but compact enough to access tight spaces.

“The Ingersoll Rand 2155QiMAX has the best power-to-weight ratio in the industry,” Andrew McLean, product manager – air tools for CAPS Australia, said., adding that “we’re confident that users will be manmonthly.com.au

astonished at how versatile, comfortable and lightweight such a powerful tool can be”.

McLean went on to say that “the 2155 is designed to withstand even the toughest use in rugged Australian environments. Its innovative new steel wear plate provides extreme wear resistance. The 2155QiMAX also features a sevenvane motor that delivers more air power yet consumes 16 percent less air than other impacts”.

The tool’s ergonomic housing increases technician comfort, while the easy-to-clean inlet pre-screen captures debris. An improved grease fitting makes for easy maintenance, reducing down time and saving money by using less air compression while also increasing tool life and performance.

CAPS Australia 03 8527 6815 www.capsaust.com.au

nance and service schedules, thinking that it is cheaper, a service plan actually saves money in the longer term.

“A service plan is about long term thinking, and it costs less in the long term than having an ad hoc plan to

M I L L I O N S

OF

simply fix it when it runs a certain number of hours..

“By knowing when you are going to have maintenance downtimes, you can ensure uninterrupted air supply and don’t have to be constantly counting the running times,” Irwin stated.

“Operators also won’t have to waste time trying to arrange a servicing as well.”

On top of this is the issue of obtaining the right spare parts for the compressor.

With planned maintenance and upgrading, the right parts will often be put aside or prepared ahead of time.

This issue is compounded if operators do not use Irwin went on to say that a service contract for compressors means “that you’ll have parts ready, and operators can even budget a year ahead of time.

“It’s about being prepared.”

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WWW.BOKERS.COM/MANM Manufacturers’ Monthly OCTOBER 2012 21

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Atlas Copco Compressors Solid as a Rock

Atlas Copco is a world leading provider of industrial productivity solutions since more than a century. The Atlas Copco Group's core values of interaction, commitment, and innovation formed our past, created our present, and will guide our future.

Atlas Copco Compressors provides: * Industrial compressors

* Gas and process compressors and expanders

* Air and gas treatment equipment

* Air management systems

Atlas Copco Compressors Australia P: 1800 023 469 E: ausairinfo@au.atlascopco.com www.atlascopco.com.au

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Compressors & PNEUMATICS Oil free air When using compressed air during manufacturing, it is not only about power, but also about purity.

The compressed air has to not only provide enough energy to efficiently get the job done, but the air itself has to be clean, oil free, and without contaminants.

In certain areas of sensitive manufacturing, such as for food and beverage processors, plastic manufacturers, health and life sciences manufactureres who regularly create vaccines and other life saving products, or chemical technology industries that produce refined materials they all require completely oil free air to ensure the integrity of the product.

However treating the compressor or the compressed air itself to remove the incidence of oil, or even having the capability to effectively carry out an oil change has traditionally been more difficult than it has needed to be.

Now Boge has released its K 8 Booster, which not only increase the power of the compressed air

Hydraulic testing from 10 bar to a maximum pressure of 40 bar, it is also able to provide completely oil free air.

According to the company, this not only provides purer air, but is also for users that attach “importance to permanent compressed air generation or have no possibility of carrying out an oil change�.

Boge stated that “the K 8 Booster completes the oil free piston compressors of the K-Series�.

It works by using a push rod principle that has also been tried and tested in the rest of the K-Series, which enables a low friction and low wear reciprocating duct without the use of oil as a lubricant. By doing this it removes the need for oil in the first place and also removes the potential for oil contaminated air to be used in manufacturing.

Previously, to obtain oil free air operators had to remove the oil from the compressed air in multistage treatment phases that diminished the efficiency balance of the compressors station.

With the inefficiencies of compres-

Compresses air from 10 bar up to 40 bar sorsalready well documented, this has a major impact on energy consumption.

Boge stated that this booster avoids the intermediate step of compressed air treatment, while its activated carbon filters lead to an increased differential pressure which provides a stronger output.

Additionally, unlike regular units the annual filter change and condensate removal are no longer needed for K 8 Booster compressor operators The compressors use an IE3 class motor, and generates up to 1160 l/ minute at pressures of 40 bar.

It is available in models with and without pressure receivers.

Boge, www.boge.com.au

Ensuring your hydraulic equipment is up to scratch isn’t an easy task.

Because if you get it wrong you ar risk of equipment damage and serious injury And while many companies claim to have tested their equipment, the fact remains that many times is a company carrying out in-house test on their own equipment, which may produce bias results. So it is important to have a recognised third party, independent testing of hydraulic hoses and pneumatic equipment. Speaking to BPI Technologies’ Michael Khamas, he told Manufacturers’ Monthly that “independent NATA testing by a third party is about peace of mind, it’s about quality assurance�.

Khamas explained that a lot of testing is about safety as “more people are importing low cost country products, so by testing them you can be assured that they work to high Australian standards and conditions�. “BPI’s testing facilty can reduce the cause of reoccuring equipment failures and assist in the groundwork for product improvement,� he added.

$ 1HZ (YROXWLRQ ,V ,Q 7KH $LU Ingersoll Rand air compressors have been certiďŹ ed as meeting the Class 0 air quality standard, limiting oil contamination in liquid, aerosol and vapour forms.

FOR 100% OIL FREE AIR, CALL CAPS AUSTRALIA TODAY ON 1800 800 878

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Manufacturers’ Monthly OCTOBER 2012 23

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Compressors & PNEUMATICS

Providing performance Air treatments are improving efficiency and compressor performance, Richard Tuft writes.

C

ompressed air use is ubiquitous throughout manufacturing. To ensure effective and efficient operation of equipment or a process, it is important to know the air quality level required.

A diverse range of air treatments can be utilised within an industrial compressor system. The primary air treatments include air receivers, air dryers and filters. Ancillary treatments include moisture separators, drains and after-coolers. Air treatments can be combined in a variety of ways in order to achieve a regulated supply of compressed air of the required quality and pressure.

Prior to purchasing a new compressed air system, or upgrading an existing system, it is important that all available options are carefully considered. According to William Chan, Gas and Special Projects manager at Compressed Air and Power Solutions Australia (CAPS), it is important to carefully plan a compressed air installation to create the appropriate quality air in the most cost effective and efficient manner.

“You must think about what you need to do with the compressed air and how you want to achieve the compression and the environment the compressor is to be used,” Chan said. One of the first decisions to be made is the quality of air that is required for a process—the purity of the air in terms of particulates, moisture and vapours. After that the volume and flow rate must be determined.

24 OCTOBER 2012 Manufacturers’ Monthly

A diverse range of treatments can be provided for industrial compressors.

Stabilising usage Air receivers — pressure vessels that allow compressed air to be stored prior to use—are a key part of any industrial air system.

They are useful adjuncts to many applications as they can be added to allow for the output capacity of a compressor to be temporarily exceeded so that short-term spikes in demand can be met. Installing a larger receiver tank can sometimes allow a smaller capacity and less expensive compressor to be utilised.

Receivers also create more stable pressure conditions, working to dampen compressor pulsation, separate out particles and liquids, and make the compressed air system easier to control.

Air receivers can be supplied in a variety of sizes and strengths to meet specific customer requirements. A number of standards cover the certification of pressure vessels depending on where and how they are used.

Australian standard AS1210 sets out the requirements for the materials, design, manufacture, testing, inspection, certification and despatch of pressure vessels.

The standard was developed to ensure safe and proper functioning of pressure vessels in order to minimise potential injuries to people using the equipment. All pressure vessels should comply with AS1210 as a minimum requirement.

In certain environments, a standard pressure vessel is inadequate and, potentially, a safety hazard.

For example, if a compressor is required to operate in a cyclone prone area, a special, reinforced design is required. “Australia is a

country with geological and climatic extremes,” Chan added.

“A compressor could face Antarctic winds, earthquakes, cyclones and ambient temperatures from -40 to +60 degrees.”

Dry air reduces downtime There are several ways to dry compressed air depending on the type of process for which it is used.

For example, air guns and blowers used in a car workshop would typically use only a refrigerant dryer. In more critical applications, such as on an oil rig and high-tech manufacturing — such as electronic manufacturing, CD/DVD printing or food processing — a desiccant dryer must be used because no moisture can be allowed to touch the product.

Refrigeration dryers employ two heat exchangers, one for air-to-air and one for air-to-refrigerant. The compressors used in this type of dryer are usually of the hermetic type and the most common gas used is R-134a. The goal of having two heat exchangers is that the cold outgoing air cools down the hot incoming air and reduces the size of manmonthly.com.au

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compressor required. At the same time the increase in the temperature of outgoing air also prevents re-condensation.

In a desiccant dryer, compressed air is passed through a pressure vessel filled with an absorbent media such as activated alumina, silica gel, or similar material.

The desiccant adsorbs vapour moisture in the compressed air.

Two vessels with desiccant material are used: while one is drying the air, the other vessel is being regenerated.

Automatically operated solenoid valves are the usual way to control the switching of the vessels and the regeneration sequence.

Additionally, an air receiver can also act as a secondary cooling device. By locating the receiver prior to the dryer, the moisture content of the air entering the dryer is reduced, increasing efficiency of the dryer.

Multiple air receivers may also be utilised, with one receiver prior to the dryer and others closer to where

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Provision of compressed air

Reducing downtimes for dry compressed air is essential for food manufacturers. the air is used. Such an arrangement can further reduce any pressure drop across the system providing smoother overall operation.

Filtration for product safety It is recommended that compressed air be filtered to remove particulates and lubricant droplets in order

to prevent damage to downstream equipment. Filters are available in a variety of grades designed to remove different sizes and types of contaminants.

It is also possible to combine a high flow rate with highly effective particulate and oil removal in the one unit.

According to Chan, the usual sequence of air treatments in a compressed air installation consists of the compressor connected to a storage vessel.

After storage, the compressed air is filtered, dried, and then often filtered once more before usage.

When deciding on the configuration of an industrial air supply, it is important to obtain expert advice as to the types of compressors available and how best to utilise the compressed air generated.

It is important to have a clear understanding of what filters are needed for a specific application, how dry the air must be and whether demand will be relatively constant, or fluctuate during the course of operation.

Once these are known, the sequence of filters, driers and other ancillary equipment can be determined.

Once this is know compressors can then be efficiently utilised.

EtherNet/IP ENABLING PROCESS DEVICE INTEGRATION ON STANDARD, UNMODIFIED ETHERNET. Enhance your control loops with the same unmodified Ethernet network you use for information sharing and Automation Control.

Multi-variable process measurements like mass or volume flow can now be simply managed when integrated into a single network environment. Rockwell Automation and its partner Endress+Hauser have been driving these developments so that you can take standard, unmodified Ethernet and do extraordinary things.

See something extraordinary at: www.apac.rockwellautomation.com/ethernetip/MMD

manmonthly.com.au

Manufacturers’ Monthly OCTOBER 2012 25

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What’sNew See more new products at manmonthly.com.au

Heavy duty boots

Nesting software ADVANCED Robotic Technology has released a new, re-engineered version of its in-house developed CAM package, ART ToolShop 2.0.

According to the company it is able to communicate with MRP software, can be fully integrated in existing processes and manages all necessary data such as CAD drawings, parts libraries or customer data.

A nesting function operates to automatically arrange the required number of individual parts to be created on sheets or plates of stock material, while multiple users can use the software at the same time.

The software now features a full remote material library on the company network that allows the entry of sheet and plate stock levels, which are automatically subtracted when a nest is created on that sheet.

Its post processor can be used with different machines, brands and processes including plasma cutters, routers or water jets Other features include fills; diamond cut toolpaths, 3D-world environment, label printing, layering, and node editing and cut ordering, among others.

Advanced Robotic Technology 1300 565 528 www.advancedrobotic.com

Winding machines

Water and heat resistant boots.

OLIVER Footwear has recently released the AT 55-232Z 150mm, or six inch, zip sided boot to its All Terrain range of safety and industrial footwear.

The boots are designed to fulfil numerous safe working applications across heavy industry, services and demanding on site job conditions.

The boots have a water resistant, wheat coloured nubuck leather upper and a dual density nitrile rubber outsole with a Polyurethane midsole.

The soft midsole of the boot cushions the foot on impact and the high density outsole meets demanding site wear conditions.

The non-slip boots are resistant to 300°C of surface contact, along with minerals and organic oils as well as industrial acids.

They are equipped with ‘Natureform’ Type 1 toe caps, and exterior side zips that are intended to allow for fast donning and removal.

The ‘ComfortCushion’ feature, which comprises cellular urethane and poron, is designed to protect the heel and ball of the foot, which helps to reduce foot, leg and lower back fatigue.

Oliver Footwear 1300 832 228 www.oliver.com.au

Graewe of Neuenburg has released a range of fully automatic winding machines for low to high speed extrusion lines.

They are designed for the precise coiling of pipes, hoses and profiles and offer a range of strapping units using PP band with a choice of 2/3/4/6 straps or stretch film wrapping, or a combination of the two.

The machine can coil pipe with a maximum diameter of 180mm into coils of 1600mm diameter and widths of 1200mm.

The coil diameter and width can be changed quickly by a centralised adjustment.

The coils can weigh up to 1500kg and the winding machines have a speed of up to 150m/minute.

Their compact design allows for easy placement of the machines into existing production lines.

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A coil unloading and palletising system are available, along with a labelling system.The winding machines utilise a force ventilated AC winder motor, which can be regulated by a dancer control or tractive force.

The traverse is synchronised with the coil revolution and can be adjusted with little effort.

Graewe is represented by HBM Plastics Technologies in Oceania.

HBM Technologies, www.hbm.com.au

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26 OCTOBER 2012 Manufacturers’ Monthly

manmonthly.com.au

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All cupboards are fitted with adjustable shelves at 20mm and are three point key lockable.

Slope-Top reduces WH&S incidents by eliminating the ability to place items at an unsafe height.

Implement cupboard configured with centre veritcal divider and 2 internal shelves for storing various sized product.

BLA/EMM/1012/KUD

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What’sNEW DC micromotors

Grizz bar isolation NHP has released its new product for power distribution - the Grizz Bar islation chassis.Designed and manufactured in Australia, this isolation chassis has been designed to meet the needs of applications that require maximum “up time” from its power distribution system.The isolation Grizz-Bar Chassis from NHP includes a strong design and High short circuit current withstand ratings; high temperature rise ratings, with a 250A rating, tested to AS/NZS 3439.1:2002; its main busbars are fully encapsulated including the neutral bar; has identical dimensions to the CD and NC chassis and with its comparable Icw and temperature rise ratings it is a direct replacement; has a multi pole attachment bar can convert a single switch toggle into a 2P, 3P or 4P toggle, ensuring multi-phase circuits cannot accidentally have one pole switched; and is available as a single end feed or a universal feed for total flexibility.

NHP Electrical Engineering www.nhp.com.au

PITTMAN Motors has released a new range of high performance slotless brushless DC motors for medical applications including high-speed surgical tools, dental tools, medical instruments, and other small medical devices.

These miniature motors are capable of high speeds, produce little or no EMI emission, provide long life, and have low audible noise.

The stator teeth are completely eliminated by forming and encapsulating the entire stator winding along the inside surface of the back iron, resulting in zero detent torque, low inductance and fast response rates.

The units are available in a range of small and larger diameters with various torque ratings.

They are constructed using 4 pole rotors, 3 phase stators, and integral hall sensor feedback spaced for 120 electrical degrees. Standard features include shielded ball bearings, stainless steel construction and high-energy

EAGLEBURGMANN Australia offers pressure balanced expansion joints.

According to the company the expansion joints are designed to absorb axial, lateral and angular deflections or combinations of the three.

In addition, they can restrain the thrust found when tie-rods or similar devices are used.

Manufactured as in-line or elbow type pressure balanced assemblies, the expansion joints are recommended for use where it is not possible to make fixed corners or elbows in piping systems.

The company explained that these balanced expansion joints are

Relocatable bulk stores Safety cabinets Gas cylinder stores Lube stations Bunding Safety showers Custom design to suit your situation

DESIGNED AND MANUFACTURED IN AUSTRALIA

1300 134 223 1300 307 895 sales@storemasta.com.au www.storemasta.com.au

Autoclavable versions are available Pittman Motors www.pittman-motors.com

Burner systems designed to eliminate pressure thrust in applications , which is the force that acts upon bellows.

This pressure thrust must be contained with either main anchors or through restrained expansion joints which can carry pressure thrust loads, Eagleburgmann Australia stated.

These expansion joints absorb axial movement and/or lateral deflection and restrain pressure thrust.

They are often placed next to pumps or turbines, the company added.

Eagleburgmann Australia 1300 686 994 www.eagleburgmann-ej.com

aluminum or heating tanks.

The systems can be incorporated into new applications or retrofitted to existing equipment, where they may overcome restrictions to production levels.

Valve trains and control panels are designed and built in-house, which ensures compliance with the relevant local codes.

The company’s trained employees can select the best burner and control package for an application, with the aim of ensuring optimum energy efficiency is achieved without compromising reliability.

Hurll Nu-Way www.hurll.com.au

Laser marking systems

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28 OCTOBER 2012 Manufacturers’ Monthly

neodymium rotor magnets. Permanent magnet rotors are balanced for smooth, quiet operation at high speeds.

Expansion joints

SET TING THE WITH STANDARDS AFE INNOVATIVE S TIONS STORAGE SOLU • • • • • • •

Eliminates magnetic cogging

protecting the

DATALOGIC Automation’s Arex family of fibre laser marking systems delivers high speed marking on metal and plastic material.

Suitable for the automotive and electronics industries, they use utilise a very small marking head footprint and are intended to simplify design for system integrators.

In addition, they can help make mechanical installations easy in applications ranging from stand alone marking stations to fully automated

working centre in production lines.

These laser markers have a very compact marking head which is designed for precision work. They also have a new embedded platform and a dedicated encoder for marking on fly.

They consume low levels of power and have a very light software platform.

Advanced software functions allow the systems to work in many different conditions.

Datalogic Automation www.automation.datalogic.com

manmonthly.com.au

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Energy chain TREOTHAM Automation has released the new “micro flizz” MF10 energy chain which allows cable diameters up to 16mm, with bending radii up to 75mm to be routed compactly and reliably.

A special energy chain supplies moving media and control signals via a carriage or slide within a metal guiding channel. Special wings at the side keep the chain safely in the channel, ensuring the upper and lower runs are mechanically separated.

The chain is completely enclosed, keeping out dirt, dust and humidity. It is suitable for automated applications, sliding doors, folding doors, camera equipment and studio equipment. It can also be used to replace cable drums in sewage treatment plants.

Gas detectors

The carrier integrated in the guide channel can bear loads of up to 50kg, making it suitable for manual

workstations. This allows tools to be supplied with all the media they require.

Treotham, www.treotham.com.au

data transmission to a host application via a wireless Bluetooth connection to smartphones, laptops, etc. Their ergonomic design is intended to ensure user comfort and ease of use. In fact, they require virtually no training to operate.

They feature a simple 2-button interface and grooves designed to guide hand and fingers into the most comfortable scanning position.

Motorola Australia www.motorolasolutions.com

Mobile laser scanners MOTOROLA’s CS3000 series is intended for anywhere anytime mobile 1d laser scanning. The CS3000 can be utilized in standalone mode for the batch scanning of bar codes, while the CS3070 offers batch mode as well as real-time bar code

manmonthly.com.au

MSA introduces its range of Altair gas detectors, Sirius gas monitors and sensors, and Solaris gas detectors.

The Altair maintenance free and pro single gas detectors identify carbon monoxide, hydrogen and oxygen, and they provide protection against water and dust. The Altair four multi gas detectors recognise LEL, carbon dioxide, hydrogen sulphide and oxygen gases. Designed to deliver results in demanding environments, the Altair 4X eXtreme multi gas detectors monitor LEL, carbon dioxide, hydrogen sulphide and oxygen. The Altair five multi gas monitor is a portable device that is galaxy test system compatible and features MotionAlert and InstantAlert.

Sirius PID multi gas sensors monitor organise compounds while testing harsh gases in the air.

Solaris multigas detectors are portable devices that detect oxygen, hydrogen sulphide, carbon dioxide and combustible gases.

MSA Australia 1300 035 749 www.msasafety.com

Manufacturers’ Monthly OCTOBER 2012 29

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Fasteners& ADHESIVES Application flexibility

Sticking with low blooming, or frost, is a key aim.

Sticking point Instant adhesives provide the speed and strength required for today’s manufacturers to bond together an ever-increasing array of materials. Sarah Falson reports.

S

TICKING materials together is necessary in various manufacturing sectors, including footwear, aerospace components, commercial signage and advanced medical devices, to name a few.

However, choosing the right ‘bonding’ technique can be difficult, especially when a single, finished product is often made up of an array of different materials.

Job-matching In today’s competitive marketplace, strength, speed and versatility are important requirements when choosing a bonding solution.

However, many manufacturers remain unaware of the benefits offered by different bonding techniques – which can cause problems when it comes to selecting the right solution for the job at hand.

According to 3M Industrial Adhesives & Tapes product specialist, Gavin McClelland, ‘instant adhesives’ are gaining traction both in Australia and overseas.

“Awareness is certainly growing in the marketplace, however continuous education is required to continue to 30 OCTOBER 2012 Manufacturers’ Monthly

challenge conventional thinking and allow companies to unlock numerous advantages with using adhesives,” he told Manufacturers’ Monthly.

“Customers are tired of paying a premium for their engineering adhesives. They demand reliability, production efficiencies, and cost savings.”

3M makes an array of instant adhesive products, which McClelland claims are superior offerings to other bonding technologies on the market, such as fasteners.

“There is a clear trend to move away from using mechanical fasteners in many applications. Mechanical fasteners require drilling into the substrate materials – inviting corrosion, which can diminish the structural integrity. They are timeconsuming, labour intensive and reduce the overall aesthetics. For companies who want to be at the cutting edge of design and performance, tapes and adhesives offer significant advantages,” he said.

“When you need super fast, incredibly tough bonds, instant adhesives are up to the job. In automotive/commercial vehicle manufac-

turing, instant adhesives are used for countless applications such as steering wheels, door trim and loudspeaker attachment.”

3M showcased the strength of one of its instant adhesive products in Germany last year, using it to lift an 8,100 kg forklift in the air for one hour, thereby breaking the Guinness World Record for the heaviest weight lifted with glue. The vehicle was suspended from a crane by a steel cylinder only 7cm in diameter, with the two parts of the cylinder secured together with 3M ScotchWeld Plastic & Rubber Instant Adhesive PR100 “It’s chemical makeup is cyanoacrylate. The technology in the product allows for such high bond strength in a matter of seconds to almost any substrate. The world record was applied by hand, but the product is suitable for automated production lines also.

“This technology offers a practical, easy-to-use alternative to conventional attaching methods like bolts, welds, rivets and screws in many industrial applications requiring high-strength joints.”

According to Henkel Australia market development manager, Michael Rowe, bonding using adhesives offers a simple way to stick together materials that were traditionally difficult to work with.

“Advantages of bonding include the ability to join dissimilar substrates (for example that could not be welded together). Bonding also provides even distribution of stress (whereas using bolts or rivets can create stress points),” he told Manufacturers’ Monthly.

“By using bonding instead of mechanical assembly methods manufacturers are looking to reduce weight, and also reduce costs by implementing more efficient production and maintenance processes.”

Loctite supplies a range of bonding solutions for industrial production, and plant and equipment maintenance, including: instant bonding; elastic bonding; structural bonding; gasketing and sealing; anti-seize; retaining; threadlockers; thread sealants; and surface cleaning.

Rowe says that while threadlocking (a type of adhesive) and instant adhesives are becoming more popular, there needs to be more education in the marketplace.

“Educating customers about the broad range of adhesives and the huge range of possible applications can be challenging – as people often find it difficult to understand how a chemical can fix a mechanical problem,” Rowe said.

Safety concerns According to Rowe, some manufacturers are hesitant to use adhesives in their bonding processes due to perceived safety issues related to teaming these products with existing chemical compounds.

However, Rowe says the superior bonding strength of adhesives along with the reliability offered should be a compelling argument to switch to the technology.

“Most adhesives cure to an inert product and generally do not react or breakdown (i.e. compatible) to most chemical exposure,” said Lowe.

“However, there is a range of threadlocking products now available with no hazard symbols, no risk >> phrases and no safety phrases.” manmonthly.com.au

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Industry benchmark.

Enough said

The worldâ&#x20AC;&#x2122;s #1 brand of engineering adhesives and sealants, Loctite has been setting the benchmark for more than 50 years.

Our innovative solutions are about consistently delivering the highest level of performance, reducing cost and increasing reliability.

To view our complete range of products and receive your FREE Loctite bottle opener, visit loctite.com.au/MM

STRENGTH IN SUPPORT

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STRENGTH IN INNOVATION

STRENGTH IN BRAND

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Fasteners & ADHESIVES Silverside In manufacturing bonding is all about speed and reliability.

So a new, ultra-fast curing adhesive that bonds in only 45 seconds is an important development for the industry. According to Mereco Technologies Group it has crated a fast curing electrically conductive silver adhesive for cold soldering and bonding electric and electronic components where soldering is an impractical option. Dubbed the Mereco Metaduct 1245 Silver Adhesive, it is an electrically conducive two part epoxy that cures in 45 seconds at room temperature, and provides more than 600 psi in tensile shear strength.

Mereco added that it is â&#x20AC;&#x153;suitable for a wide variety of cold solder applications, and that this 100 per cent solid silver adhesive is solvent-free, non-bleeding, thixotropic, and nonflammable, and is designed to replace leaded and lead free hot solderâ&#x20AC;?.

These adhesives are two parts base to one part activator by weight and by volume.

Mereco Technologies Group, www.mereco.com

Better bonding

A

dhesives are about bonding reliability.

You want to ensure that what youâ&#x20AC;&#x2122;ve put together, stays together.

But you also want to ensure that when bonding materials workers are able to do so safely and with a professional finish.

With the continued demand to work better and safer coming from the industry, Henkel has released its new range of upgraded Loctite Instant Adhesives.

According to the company these new formulas are able to reliably bond almost any combination of materials in second. â&#x20AC;&#x153;With a higher temperature resistance and higher humidity resistance, the new formulations are suited to a wider range of industrial applications,â&#x20AC;? Henkel said.

Its three new products include the General Purpose, Universal (401, 406, and 454).

These products come with â&#x20AC;&#x153;improved formulation and can

The low odour range is designed for use in confined or low air flow areas. resist temperatures of up 120° Celsius,â&#x20AC;? an increase of 40 degrees from the previous temperature limit of 80° Celsius.

Henkel went on to add that â&#x20AC;&#x153;with a very fast fixture speed, the general purpose adhesives are particularly suited for bonding a wide variety of materials such as metals, plastics, elastomers, wood, fabric, and chromate plated partsâ&#x20AC;?.

It has also released a Low Odour/ Low Bloom range (the 403, 408, and 460 products).

The focus with these products was on safety and smoother finishing. â&#x20AC;&#x153;Low bloom allows for a neat finish with reduced white residue â&#x20AC;&#x2DC;bloomingâ&#x20AC;&#x2122; or â&#x20AC;&#x2DC;frostingâ&#x20AC;&#x2122;,â&#x20AC;? Henkel stated.

In addition its low odour makes the job much easier for users when working in confined spaces or areas with low air flows.

These adhesives are also moisture resistant.

Henkel www.henkel.com.au

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The XCS-L Electroslim Solenoid Gate Guard Switch is a compact, space saving solution designed for mounting on and around machinery gates and guards.

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32 OCTOBER 2012 Manufacturersâ&#x20AC;&#x2122; Monthly

manmonthly.com.au

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When an adhesive can hold up a 13 tonne bulldozer for 25 years, you know it works.

For your nearest stockist visit www.pratleyadhesives.com.au

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Management& SUSTAINABILITY Drumming up support An initiative by the agricultural chemical manufacturing industry is set to make manufacturing more sustainable, Hetaal Badiyani writes.

D

rummuster, an initiative by the agricultural chemical manufacturing industry is greening up the entire industry’s image as it recycles it 20th million container.

Farmers and chemical users deserve a huge pat on the back for helping keep more than 24,735 tonnes of material from ending up in landfill. That’s enough waste to fill a four kilometre long coal train.

Formed in 1999 for the safe collection and recycling of cleaned eligible non returnable crop production and on-farm animal health chemical containers, the Drummuster program has set an example in the manufacturing industry for led waste reduction,ensuring a cleaner environment, and Australian industry’s clean and green image.

34 OCTOBER 2012 Manufacturers’ Monthly

Thirteen years after the introduction of Drummuster, the program’s popularity across Australia can be gauged from its 60 new recycling facilities, successfully collecting and recycling as many as 19.7 million containers.

The scheme, run by AgStewardship Australia, believes that it is diverting about 75 per cent of chemical containers ranging in size from one litre to 100 litres away from landfill.

Drummuster’s national program manager Allan McGann said “the program has come a long way since its first collection in early 1999. The program has gone from strength to strength. It took us eight years to collect our first 10 million drums.

In little under five years we have collected close to 10 million.”

The program includes 93 chemical manufacturers.

McGann added “the program goes to show the growing support drummuster has garnered over the past 13 years. We have established ourselves as a valuable program for farmers and growers and we are here to stay.

“The importance of recycling drums is extremely important as burning or burying them is not a practical solution. Plastics do not break down easily and can take thousands of years to biodegrade and burning them can cause air or water contamination with burnt gases, where as burying would lead to landfills which would occupy land spaces and eventually disperse metallic particles in the ecosystem,” he explained. Drummuster program benefits the manufacturers and farmers by providing them with a demonstrated disposal route. In addition, manufacturers adopting correct methods of disposal lessen environmental damage and add a greener image to their company.

After the collection, the plastic and metal containers are shredded or granulated and remanufactured into practical items such as plastic cable covers, wheelie bins and cement reinforcing bar chairs for reuse. Chief executive officer AgStewardship Australia Karen Gomez said “when drummuster began in 1999, there were no collection points and only a few agricultural chemical manufacturers supportive of the program.”

Currently there are 760 collection sites scattered across Australia which is run by more than 450 councils. Together they have held 30,607 collections nationwide.

“The collection program was one of the most successful of its type in the world and the organisation commissions a survey every 2 years to gauge the program’s success,” Gomez said. “The success of the program included 93 chemical suppliers and the growing interest among people to reduce waste going into landfills,” added Gomez. She went on to say that the program is working out ways to get all farmers on board, and participating in the program. A recent survey in Victoria showed farmers returned 448 tonnes of containers for recycling, indicating a 22 per cent rise, whereas in NSW 734 tonnes of containers were collected for recycling, pointing to a rise of 21.5 per cent when compared to a previous survey in 2009.

The program explains to the farmers and chemical users how nonbiodegradable waste takes longer time to decompose and recycling lessens the waste materials that are placed into landfills saving money.

In addition it also encourages reproducing products from recycled materials as they are less expensive.

“The program is committed to continue its work in solving the issue of disposing chemical containers in an eco- friendly manner,” he said. manmonthly.com.au

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Sustainable Wood & Paper Wood and paper products certified by a recognised eco-label to be from a sustainable source Waste Reduction Products that help manage waste in the workplace

Green Cleaning Cleaning products certified by a recognised eco-label

Recycled Content Products made from recycled materials

Energy Conservation Products that help reduce electricity consumption in the workplace

Cleaner Alternatives Products identified by Blackwoods suppliers to have environmental benefits that do not fit into other categories Water Conservation Products that help reduce water consumption in the workplace

Greener Workplace Range Blackwoods and our people share a commitment to sustainability within our own business striving to continually improve the environmental and social impact of our operations in order to meet community expectations and our own safety and environmental goals.

The Greener Workplace Range is in the 2012 Blackwoods Catalogue, Chapter 22 or alternatively see the range on our website at blackwoods.com.au/greener-workplace

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A Greener Solution

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Management & SUSTAINABILITY

Growing focus on high value Staying flexible and focusing on the future is how Australian manufacturers will survive, writes Hartley Henderson.

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n the current challenging economic climate, increasing attention is being given to the most effective and rewarding way ahead for manufacturing in Australia. This includes a growing focus on high value manufacturing whereby customers are offered outstanding value by manufacturers through their expertise, innovation, production efficiencies and environmental benefits. In South Australia for example, there is an emerging trend to move away from traditional to high value manufacturing with an emphasis on differentiation rather than cost in order to provide a competitive edge against low labour cost countries.

High technology processes, specialisation, customisation, a highly trained workforce and niche markets are becoming key factors in the development of company business plans.

Adelaide based company, Seeley International, which has more than 300 employees and manufactures air conditioners including Breezair, Braemar, Coolair, Convair and the recently launched Climate Wizard, has a strong focus on technical innovation, lean manufacturing, productivity, quality, safety and training.

This vertically integrated company, unlike many of its competitors, designs and manufactures most of the components for its products within Australia at factories in Adelaide and Albury.

The company’s executive chairman, Frank Seeley, is a strong believer in automation, innovation and what he calls ‘stickability’, which relates to persistence in challenging times.

“By being vertically integrated, which includes motor assembly, Chill-cel manufacturing, and injection moulding, we have better control over our operations and can produce products quicker,” he said.

“Our new plant is 35 per cent more efficient, and initiatives such as our radical value analysis program have led to greater productivity, significant scrap reduction, and quieter air conditioners that are cheaper to run.”

manmonthly.com.au

Some companies look towards diversification.

Technical innovation will drive many manufacturers

cal in providing a competitive edge, especially in the current challenging economic climate. Alfon Engineering has one of SA’s biggest CNC mills, plus a range of other state-of-the-art machines including 11 CNC machine centres and a multiple five axis milling machine.”

“The current high A$ and declining consumer confidence have forced us to make changes in the business.

We are aimed at the mid to high end of the market to differentiate from low cost producers, with a big focus on high value and innovation,” he said.

“Krix has a big commitment to R&D, as well as to staff training and lean manufacturing to eliminate waste.

“It’s important to understand what customers want, and in relation to this we have a value analysis program aimed at delivering features that customers like and removing those that aren’t considered important.”

Seeley International recently released the world’s first six star ducted gas heater and the world’s only five star non-condensing ducted gas heater, under the Braemar brand.

Diversified and flexible Alfon Engineering in the Adelaide suburb of Lonsdale utilises the latest CNC machines to produce complex parts for a wide range of customers.

Products include press tools, gauges, jigs and fixtures, special purpose machines, and a huge variety of oneoff items.

Managing director, Martin Moore, says the company has the capacity to machine parts as small as a 5 cent piece, as big as an average family car, and as heavy as 16 tonnes.

“We are extremely flexible in our operations and keep a constant watch on prevailing economic conditions and market trends. In particular, the company has progressively diversified away from the car industry into the mining and defence sectors,” he explained.

“State and Federal Government grants are assisting our employee up-skilling and apprentice training programs, and we also have a big focus on ensuring that the latest technology is utilised in conjunction with a lean manufacturing program that includes 5S. “CNC machines and CAD/CAM technology are criti-

High value Adelaide company, Krix, manufactures a range of high quality loudspeakers for home and commercial use that are distributed throughout the world.

According to managing director, Gary Krix, the company utilises test equipment, 3D modelling and computer simulated design technology.

Manufacturers’ Monthly OCTOBER 2012 37

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Management & SUSTAINABILITY

Growing your footprint For some companies, staying sustainble means moving offshore. Brent Balinski speaks to Blundstone and asks why it has moved offshore.

L

ast month Ken Henry, the former Treasury secretary, told the Australian Industry Group’s national forum that more Australian manufacturers should consider looking offshore for their labour to stay competitive, citing Tasmanian boot-maker Blundstone as an example.

Acknowledging the political unpopularity of doing so, he mentioned that the high dollar was likely to be a strain on manufacturers hoping to remain competitive.

Offshoring and engaging with Asia (Henry is currently writing the government’s white paper on the Asian Century) to take advantage of cheaper labour were ways that Australian manufacturing could play to its strengths. Blundstone was singled out as an example of the possibilities.

“Well we were needing to compete against people who’d already made the decision, and for that matter people who never made a product in Australia,” Steve Gunn, Blundstone’s CEO, told Manufacturers’ Monthly about the company’s controversial 2007 decision to close its factories is Tasmania and New Zealand and move its labour operations to Thailand and India.

“There was a stage where we were employing across Australia and New Zealand something like 430 people.

These days it’s around about 115.”

The public sadness at the job losses was understandable, and the

Cheaper imports are stepping on Australian manufacturers. anger at “losing” another Australian brand wasn’t hidden, but some were saying Blundstone did well to hold on for so long, and Gunn believes that the company functions much more effectively now.

He cited the pressure the company and other Australian manufacturers were under, with freer trade and cheap imports working against them.

Capacity was also an issue.

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“Well we were needing to compete against people who’d already made the decision, and for that matter people who never made a product in Australia,” he said. “They were able to make better quality products, a higher feature set; we weren’t making a better price – it’s only because we were price-matching.

“We were constantly letting people down with supply because – as soon as something went wrong at the factory it becomes affected.

Whereas nowadays we have got more flexibility in the chain if something goes wrong in the chain it’s still a problem, but it’s a problem that we can do something about.

“And we’ve gone from saying no all the time to saying yes fairly regularly. And that certainly transforms the way the market relates to you” Indeed, even before it outsourced its labour, Blundstone was importing components such as uppers to make its finished products.

“Before we moved our manufacturing away from Australia, a signifi-

cant amount of the components were from overseas,” Gunn said. “So it was always – we were only part of the value-add.”

But if you move so much of what you do overseas, can you still rightfully call yourself an Australian brand? In a timeline of milestones on the company’s website, the 2007 move overseas isn’t mentioned.

Perhaps it’s something they’d rather not emphasise. At what point do you lose the right to call your brand an Aussie one?

“Well, first of all we’re a strongly Australian company, 100 per cent Australian owned, family-owned company, operating in Tasmania,” explained Gunn. “And we’re still providing employment for a significant number of people. I get quite concerned about definitions or segmentation of the manufacturing market.”

The boot company’s CEO believes if you’re going to be a purist about it, you’re not going to be left with very many Australian brands at all. manmonthly.com.au

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“The first thing I’d say is there’s very few companies that are operating a truly 100 per cent Australian supply chain,” he said. “They may well be bringing components from overseas and assembling it in Australia, but they can’t say they’re 100 per cent Australian.”

He points out that a brand – manufacturing or otherwise – has to recognise its strengths and in what areas it is competitive. Pretending that one can compete where it’s impossible to is silly.

“That’s a fool’s paradise. What we’ve done is say, ‘What can we do really well and can we add value?

Can we have sustainable employment that doesn’t need government support?’” he said. “The [clothing] industry has long been a protected industry: it could only survive on the back of government tariff protection. Can we still bring profit back into Australia for the benefit of the Australian economy?”

Gunn pointed out that company still employs well over 100 Australians, mainly in white-collar positions, but also making gumboots.

“The gumboots are still made here – about a quarter of a million pairs,” he said. “And the gumboot business has grown since 2007.”

What’s also come along, relatively recently, has been the use of recycled PVC in the gumboots.

“We have introduced in the last two or three years gumboots that have the waste material, the waste

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Blundstone is choosing to make its footprint overseas.

PVC is re-ground and put back into the products, so there’s a percentage of the product that is recycled material,” he said.

“And that’s a percentage to soak up some of the waste material that we create. And that went to market

three years ago and hasn’t affected the way the product performs, it just required us to modify our arrangements to ensure that we were designing it in, rather than just treating it as a waste we didn’t even worry about.”

Sustainability is part of Blundstone’s brand. Gunn pointed out three other initiatives: the choice of environmentally sound tanneries, being a signatory to the Australian Packaging Covenant, and building a more environmentally office to run the business in.

Before the interview’s over Manufacturers’ Monthly asks “what about the sustainability of the manufacturing industry itself? Didn’t Gunn once controversially say that there’s no future in manufacturing?”

He laughs heartily at this, saying the ABC badly misrepresented him.

“The question [asked on the 7:30 Report in a story about the closure of the Hobart factory] was ‘where do you see the future of Australian manufacturing?’” he recalled. “And my answer was ‘I don’t think it’s got any future in the area of bulk processing.’ And unfortunately ‘in the area of bulk processing was edited out!’ ” So what advice would he share if he was asked the question again (and was quoted faithfully)?

He suggests pragmatism.

“I think that the country needs to embrace that we want to be a net exporter, so that means that if we want people to buy the things that we’re good at making, we have to accept that we’re going to buy what other people are making,” he said.

“That’s just the way the world is these days, and it’s neither right nor wrong, it’s just reality.”

sales

manmonthly.com.au

Manufacturers’ Monthly OCTOBER 2012 39

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MaterialsHANDLING Push for new Country of Origin Labelling Present loopholes in country of origin rules are set to close for the benefit of local manufacturers. Alan Johnson reports.

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HE Greens present push in the Federal Parliament for changes to Country of Origin Labelling legislation has been welcomed by Ian Harrison, chief executive of the Australian Made, Australian Grown Campaign (AMAGC).

“We welcome their interest in clarifying the labelling laws to meet more appropriately with consumer expectations.

“The current suite of definitions in Australian consumer laws, particularly in the areas of food and beverages, fall far short on what consumers are looking for by way of information,” Harrison told Manufacturers’ Monthly.

Senator Christine Milne, leader of the Australian Greens, says the Accurate Country of Origin Labelling for Food bill will provide clear foodspecific country of origin labelling so that customers will better understand where the produce they buy comes from.

“Polling consistently shows that Australians want clear and accurate labelling to help them identify and buy Australian-grown food,” she said.

“The problem is that our current food labelling laws are not clear and can give a false impression so that cheap imports can be put in a packet in Australia to the detriment of Australian farmers and still boast an ‘Australian Made’ label.

So while something might have

‘Made in Australia’ on the label, this doesn’t necessarily mean that the food it contains is Australian grown. Under current laws ‘Made in Australia’ or ‘Australian Made’ can legally be used when food has been transformed through the manufacturing process and 50 per cent of those costs were incurred in Australia.

“This is misleading the public and it gives imported foods an unfair advantage. Through processing, imported foods can trade on ‘Australian Made’ which gives the impression of locally grown content, and disadvantages genuine Australian food competing in the same market,” Milne said.

Harrison says it’s not a question of the companies doing the wrong thing, but rather the definitions on the two tests that have to be met.

“The products have to be ‘substantially transformed’ in Australia; and 50% or more of the cost of producing or manufacturing that product has to be occurred in Australia. If both those boxes are ticked then you can legally describe that product, be it a car, washing machine or a block of chocolate, as made in Australia according to Australian consumer laws.

“The problem comes about when there is a significant amount of content in that product, which in food and beverage products consumers want to know more about the origin of what they are eating. We looked at the processes that don’t

Cost of using Australian Made logo now lower than ever. substantially transform a product a while ago, and while the ACCC accepts it we don’t for the purposes of the Australian Made logo.

“For example simple processing such as crumbing imported fish. As long as you incur more than 50 per cent of those transformation costs in Australia that’s deemed to be a different product and can be legally described as made in Australia. But we won’t allow them to use our logo.

“To use our logo they have to satisfy one of the other tests. Is it a product of Australia, clearly it’s not.

Is it Australian grown, clearly its not.

So they are out of the game.

“We believe that Country of Origin is an important opportunity for Australian manufacturers, processors and growers, and we should be making more of it. Not just in our domestic market but globally as well.

“We have a very good reputation overseas and locally, but branding of Australian products and produce is an under-done area of advantage.

“While the cost of using our logo is always an issue, it is now lower than it has ever been.”

For very large manufacturers the cost could be around $25,000 a year, but for SMEs it is one tenth of 1 per cent with a minimum of just $300.

‘For a brand that sits in the market with 99 per cent recognition and 87 per cent trust it’s very cost effective,” he said.

Harrison says a major breakthrough for manufacturers who export to China is that the logo has now been formally trademarked for use in China.

NOTE: More information on protecting your IP will be in the November issue of Manufacturers’ Monthly.

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Industrial label printer range INTERMECâ&#x20AC;&#x2122;S new PM43 and PM43c models are said to be the manufacturing industryâ&#x20AC;&#x2122;s fastest mid-range industrial label printers on the market to date.

Suited for harsh industrial environments including transportation, manufacturing and distribution centres, Intermecâ&#x20AC;&#x2122;s PM printers are designed to increase uptime and reduce maintenance costs.

The printers offer intuitive communication options with a full colour touch-screen, a choice of ten languages or easy to recognise universal icons, and a multi-lingual intuitive web-based user interface.

The printers can also reduce IT support needs with integrated device management, which allows the printers to be monitored from anywhere in the world via handheld computers, laptops, smart phones or tablet computers.

According to the company, the printers print small barcodes, text

The printers offer intuitive communication options with a full colour touch-screen.

and images with pinpoint accuracy to save industrial customers time and money.

The PM43 and PM43c are also said to offer the fastest deployment time in the market with innovative no-touch configuration via an option-

al embedded RFID chip. Intermec has also released the PR2/3 mobile receipt printers and the PC43d and PC43t desktop printers for light duty labelling tasks.

Intermec 02 9330 4400, www.intermec.com.au.

Renewable resin technology validated MELBOURNE-BASED Cardia Bioplastics has announced that a leading multi-national consumer goods company has commenced in-market validation of its personal care products packaging that is made from Cardiaâ&#x20AC;&#x2122;s renewable Biohybrid resin technology.

The Biohybrid packaging has progressed to in-market validation phase, which is a substantial endorsement of the unique renewable resin technology and its commercial viability. Furthermore, commercial endorsement from a major global brand owner is expected to translate into an accelerated uptake of the Biohybrid resins among other companies who are also looking to reduce their carbon footprint through sustainable packaging and plastic technologies. www.cardiabioplastics.com

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ProductFocus Sensors, Analysers, & Process Control Within both Manufacturersâ&#x20AC;&#x2122; Monthly magazine, our website manmonthly.com.au, and online product directory ferret.com.au youâ&#x20AC;&#x2122;ll find a wide selection of product information and industry contacts from Australiaâ&#x20AC;&#x2122;s leading manufacturers and suppliers to help you do your job better, safer, and more efficiently.

In this edition of Manufacturersâ&#x20AC;&#x2122; Monthly Product Focus we bring you the in latest sensors, analysers, and process control and instrumentation equipment.

Whether you are looking for fibre optic temperature sensors, circuit breaker sensors, flow meters, or portable gas detectors, ferret.com.au and Manufacturersâ&#x20AC;&#x2122; Monthly saves you time by providing you with a simple and effective way to find just what you require.

As well as supplying you with quality industry contacts for new equipment both are also consistently renewing an extensive catalogue of products to keep you up to date with the latest innovations.

Pre-engineered control METROMATICS now offers the new production wellhead solution from GE Intelligent Platforms, a pre-engineered control solution that leverages GEâ&#x20AC;&#x2122;s domain expertise.

It is designed to enable rapid implementation from discovery to start up, so operators can achieve faster production rates.

The solution leverages GE core control system technologies to ensure uptime in harsh conditions with a hardened RTU platform that can be mounted in extreme environments and plug and play, hotstandby, non-duplicative redundancy for reliability of critical operations. Advanced monitoring provides real-time data for real-time decisions to facilitate

performance metrics.

Safety diagnostics provide system validation and security, TUV SIL2 certified integrated safety and control for production wellhead ESD and F&G applications, integrated intrinsic safety for Zone 1 and Zone 2 hazardous areas eases regulatory compliance and system maintenance.

With less than five watts of power consumption per controller, the solution can reduce battery and solar panel infrastructure installation and maintenance costs by 8% or more over the lifecycle of the asset.

Metromatics 1300 589 932 www.metromatics.com.au

Designed to withstand harsh conditions.

Vibration isolation The Accurion halcyonics_i4 is a state of the art active vibration isolation system now available from Scitech, According to the company it is ideal for isolating high resolution measurement equipment from disturbing vibrations typically caused by machinery, air conditioning systems, the shaking of buildings, and vibrations. Besides the low profile carbon design, the system features straightforward handling for an easy operation. The working surface of 400 x 500 mm² has a maximum load capacity of 120 kg.

A major advantage is the lack of a low frequency resonance, which is a frequency where passive isolators amplify vibrations instead of isolating them. The control panel of the i4 is self-explanatory and the entire system is controlled by only three buttons.

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Heavy duty processes

Flow meters Has temperature ratings up to 200° C.

TRIMEC Flow Products has released the MP Series MultiPulse flow meters for volumetric flow rate measurement in flow monitoring and control applications.

The flow meters are suitable for a wide range of measuring flow of clean fluids including viscous lubricants, chemicals, adhesives, resins, paints, food bases, essences, alcohols, edible oils and non-conductive low viscosity solvents.

The products are manufactured in sizes up to 50mm and available in aluminium or stainless steel. They are suitable for flow rates up 330 LPM. The sanitary stainless steel models are suitable for pharmaceutical, cosmetics, de-ionised water, confectionary, molasses, chocolates and dairy products.

The UPVC is manufactured in the 20mm size only and is ideally suited for use with corrosive fluids, such as sodium hypochlorite, acids and photographic solutions. High pressure, sanitary and flanged models are also available.

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Operating precision DEWTRON has released the new DEWE2 series.

DEWE2 data acquisition systems set new standards in user flexibility, accuracy, ruggedness and performance. Simultaneous sampling TRION plug-in modules combine the modularity of PXI with a larger front panel capable of containing 8RJ45 connectors for strain gauge sensors, 6 or 8 IEPE sensor connectors, or 4 or 8 isolated high voltage inputs on a single TRION module.

It is distributed by Metromatics in Australia.

Metromatics, www.metromatics.com.au

MOTION Technologies is now distributing the Empire Magnetics range of products in Australia.

Empire Magnetics provides quality motor products designed to perform in environments and applications where ordinary motors are unsuitable.

Custom systems and modifications are available upon request.

The Empire Magnetics product line Cryogenic series motors. features 1.8o hybrid permanent magnet stepping motors, selected brushless servo motors and feedback devices for positioning applications that demand sealed motors for wet, dusty or hazardous environments or specialty motors for vacuum, radiation and extreme temperature operation.

Radiation hardened products in the range combine radiation resistant materials with practical commercial practices to provide products with the longest possible service life within pragmatic budgetary considerations.

Cryogenic series motors in the range feature special cryogenic dry lubrication and proprietary metal and/or metal alloy components, and custom motors wound with superconducting wire when required.

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Process controllers AUTOMATED Control and West introduce the 6170+ valve motor drive process controller.

It incorporates advanced tuning algorithms, with selectable pre-tune and self-tuning for easy setup.

The self-tune reduces output activity to a minimum without compromising control quality, and according to the company, reduces wear and tear on mechanical components including valves, contactors and relays.

Westâ&#x20AC;&#x2122;s plug-and-play technology allows the user to add to the controllerâ&#x20AC;&#x2122;s features by installing additional plug-in

boards.

Inputs, outputs, alarms and communications are all field upgradeable.

Dual 4-digit LED displays and 1/16 DIN panel mount come as standard.

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Manufacturersâ&#x20AC;&#x2122; Monthly OCTOBER 2012 43

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Health& LIFE SCIENCE Are pharmaceuticals the future?

As the Australian medicine industry’s exports hold up against a challenging global economy will this be manufacturing’s new heart? Hetaal Badiyani reports.

One pharma manufacturer has managed to grow 850 per cent in the last three years.

A

ustralia’s pharmaceutical manufacturing looks set for a substantial growth to meet the increasing demands of Asian health-care products with exports increasing fivefold by 2020.

Asia, with its rapid urbanisation and rising living standards, has pushed pharmaceuticals to a huge extent and serves as a massive market for advanced health-care products and other medicinal drugs.

Pharmaceuticals are now firmly established as the No. 1 “substantially transformed” manufacturing export, beating the car industry in 2011-12 with $2.5 billion in exports and the wine sector with $2 billion, according to the new data published by the Australian Bureau of Statistics (ABS).

ABS figures show that the medicines industry exported more than $4 billion worth of pharmaceutical and medicines products in 2011-12, up from $3.7 billion the year before.

“These numbers underline the significant contribution Australia’s medicines industry continues to make to the economy,” Brendan Shaw, chief executive of Medicines Australia, stated.

44 OCTOBER 2012 Manufacturers’ Monthly

Shaw added “the Australian medicines industry has continued to export more goods around the world than any other hi-tech industries.

This reaffirms the pharmaceutical sector as one of the unsung heroes of Australian industry. It is a real export success story.”

According to Shaw while the majority of other manufacturers were losing ground last year, medicines industry exports actually grew by seven per cent.

“At a time when Australia is debating the future of manufacturing in this country, this data underscores the important economic contribution the Australian medicines industry is already making to the community,” Shaw said.

Even though the pharmaceutical manufacturing industry suffers from the same high-wage, high-dollar environment that affects other manufacturers, the Australian competitive advantages in skills and science are helping it resist the trend, and exports are rising.

Asia takes half of Australia’s exports and old factories slated for closure in Australia are now being left open or even expanded to supply

Asia’s voracious appetite for drugs.

Homart Pharmaceuticals, which took out Manufacturers’ Monthly’s 2012 Manufacturer of the Year award, said that Homart’s exports have been growing at a breakneck speed of 850 per cent in the last three financial years since July 2008 due to its export to Greater China Countries project, despite the GFC and high Australian dollar.

The company’s largest market is China, but it is planning to increase its presence in other countries. It currently manufactures an extensive range of products in its Sydney factory and continues to invest in research & development, launching seven to ten new products every year. The sector’s resilience shows that it should be a priority for a nation looking to replace its dying low-value manufacturing operations with higher-value ones.

For example GlaxoSmithKline Australia said it will expand its blowfill-seal manufacturing operations, which pack medicines in innovative plastic containers in Melbourne; blood products and vaccine group CSL confirmed it is building a $250 million biotechnology product

research and manufacturing facility at its Melbourne blood fraction plant; AstraZeneca Australia has an agreement to supply the Chinese market with asthma medicines manufactured at its plant in Sydney; Leo Pharma exports active ingredients for skin conditions from its manufacturing facility on the Gold Coast; IDT Limited, a Melbourne based Australian- owned company, exports active ingredients for cancer medicines to companies all over the world; and Sydney biotechnology company Pharmaxis has expanded production of its Bronchitol treatment for chronic respiratory conditions at its new 7000 square metre factory in Sydney.

Cyclopharm, a radiopharmaceutical company, also announced a three party agreement with Queensland Mater Misericordiae Health Services and Queensland X-Ray to establish a cyclotron manufacturing unit at the South Brisbane Mater Hospital by 2014.

According to Cyclopharm “the deal will ensure Australia’s growth in the pharmaceutical manufacturing sector as a leading provider of FDG and emerging PET radiopharmaceuticals”.

Tim Oldham, president of Hospira Asia Pacific and representing Australia’s Generic Medicines Industry Association said Australia’s pharmaceutical industry is a high value-add sector and one which other countries look to for its high production standards, innovation and quality assurance.

“We are way ahead in terms of being the leading exporter of elaborately transformed goods but we can’t be complacent with intense competition coming from countries such as India, which can produce the same medicines for less,” explained Oldham.

He continued to say that “we need to focus on the innovative manufacturing sectors such as pharmaceuticals in order to be less buffeted by the two speed economy”. manmonthly.com.au

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SYDNEY MATERIALS HANDLING TRADE SHOW: 23-25 OCTOBER 2012

The Sydney Safety Show Australia’s top safety equipment exhibition will hit Sydney this month.

T

he approaching Safety Show Sydney and Sydney Materials Handling Trade Shows will once again demonstrate what an exciting and integral part technology plays in making the manufacturing workplace safer and more productive.

To be held concurrently under the same roof 23-25 October at the Sydney Showground, Sydney Olympic Park, the two complementing Trade Shows provide a convenient opportunity to investigate suitable applications at close quarters.

A valuable adjunct to the Trade Shows will be interactive live demonstrations and a series of free industry seminars, to help visitors update themselves about ways to improve workplace performance and productivity, and about new OHS laws and their impacts.

Visitors can avail themselves of these educative sessions and see what innovations are making news.

For example, Hasemer Materials Handling will show Eco-pick, a unique assisted lift device that allows the operator to grip a box, carton or bag with the hands and have 80 per cent of the lifting done for them. No specialised grippers are required.

Nichiyu Forklifts Australia are now officially the national distributors for the Aisle-Master VNA articulated forklift, the most versatile lift truck, which will be on display at the Aisle-Master stand.

It works in narrow aisles as small as 1.9 metres and lift heights up to 12.4 metres, single or double deep, maximising warehouse space. It does not need wire or rail guidance like other narrow aisle products. It can be used inside and outside unloading and loading trucks or containers on uneven surfaces and is capable of doing the job of a reach/turret and counter balance truck.

Workwear, including safety glasses will continue to be a highlight.

Huski has increased its ladies workwear/safety range to cater to increased demand by women for well-made and properly fitting safety

46 OCTOBER 2012 Manufacturers’ Monthly

The show promotes safer work. garments. It will show the Kimberly soft-shell, designed by women for real working women, with fabric as comfortable and warm as a traditional fleece but with the waterproofness and breathability of a technical rain jacket.

OPSM makes the point that up to 50,000 eye injuries occur each year translating to around $60 million in medical costs, and that appropriate vision correction reduces error and increases productivity by around 25 per cent.

The OPSM stand will show a comprehensive range of high technology prescription safety glasses.

Safety glasses, depending on style and fit, often have a gap between the frame and the wearer’s temple, cheeks and/or forehead that can result in injury from swarf, dust and other flying particles.

Australian Supreme Import will showcase Fugitive safety glasses that use a positive seal to protect from such flying debris. Also on display will be the Hornet Mesh and Fortress mesh goggles, providing protection where fogging of the lens is an issue, such as in high humidity areas.

Specsavers is to exhibit a new

Body protection will play a major part of the exhibition. range of certified prescription safety eyewear with robust frames available in a variety of practical styles, while Vision Safe will show the recently released UVeto Australia range of Safety Sunglasses, featuring an anti-fog and scratch resistant lens

coating. The stand will also feature sun protective hats and clothing, hand and body protections and safety lights.

Cut-resistant glove RCR International will introduce a manmonthly.com.au

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ucts and dispensers for all types of workplace and public environments.

The skin care products are designed to protect, cleanse, sanitise and restore.

new cut-resistant glove, the DX5 that provides a cutting index performance Level 5, the highest rating when tested under EN388 standards.

The gloves are ideal for metal industries, warehouse and picking lines, automotive industry as well as glass, plastics and general manufacturing.

HR3 is to display its latest generation workplace health & safety management software.

The integrated system gives OHS practitioners and business managers instant access to statistical information graphically and in the more traditional report formats.

Seconds Count is dedicated to saving lives and property by raising the general awareness of effective emergency management and evacuation procedures in the workplace.

The stand will show flexible and dynamic e-learning programs accessible and cost effective for training any employee, in any business, in any location, at any time.

Woven strapping Narrowtex, manufacturer and supplier of high quality polyester woven strapping and lashing products will show its wide product range and variety of uses, including for lifting, restraints, harnesses and tape.

The strapping, which is as strong as steel, can be colourised and printed with company logos and names, accoring to the company.

Paramedical Services, a private ambulance company established in

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Trauma Terry

Lifting equipment will be on show.

1991, will show how it manages worker injuries with its Worker Injury Response Service (WIRS) a 24-hour, 7 days a week triage and ambulance response service.

Enware will introduce new ranges of emergency eyewash products – including a self-contained safety shower and eyewash featuring solar battery charging for remote locations – at its stand.

The focus will be on industrial worksites where serious injury can

occur if eye and skin accidents are not treated within seconds.

Quik Lok will demonstrate a world first improvement to current compressed air connection systems that eliminates the risk of injuries from hose whip, incorrect connections or inability to release trapped pressure, lack of safety clips and shortcuts to the correct operating procedures.

Deb Australia will showcase its Global range of hand hygiene prod-

Think you know first aid? Premium Health’s newest recruit, Trauma Terry, a training dummy, will put visitors to the test to see if they know what to do in an emergency.

Premium Health offers a range of nationally recognised, Workcover approved, first aid training courses delivered in a flexible format with one day and online options.

Flowcrete Australia will be showcasing its Flowfast range of fastcuring resin flooring materials for commercial or industrial environments.

The Flowfast resin floor system is ready to receive foot traffic in just two hours, minimising disruption to working environments during installation or repair.

At its stand, Backjoy Australia will demonstrate a sitting orthotic that helps people sit better in the best possible posture by simply cupping the pelvis to promote an S-curve spine as opposed to a slouched C-curve that is often the cause of back pain.

Co-located with The Safety Show Sydney will be Sydney Materials Handling will be CleanScene, a Trade Show focussing on cleaning and hygiene products and services.

Manufacturers’ Monthly OCTOBER 2012 47

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Australia’sMANUFACTURING FUTURE Still alive and kicking Despite many media claims, manufacturing isn’t over in Australia, Brent Balinski writes.

A

ustralian Manufacturing isn’t dead: it just needs to get smarter. This was the verdict of the non-government members from an expert panel of eight business leaders, six unionists and eight federal MPs put together by the Prime Minister late last year. Their job was to work out what needs to be done to kickstart an industry badly knocked about by the familiar issues: the high dollar, the mining boom, and overseas competition.

“Manufacturing still employs just on 950 000 people directly, and they are the people who are skilled at the basic trades, at one level, and then it’s highly-skilled, technically leading skills at the other level,” Innes Willox, head of the Australian Industry Group and a taskforce member, pointed out.

The numbers aren’t small, but they don’t go anywhere near describing what else is at stake.

“What we’re seeing is some transfer of skills going on between manufacturing and other sectors, particularly the resources sector at the moment, but without that grounding and that training and the development of those skills in the manufacturing sector, the economy as a whole would lose them.”

Last year’s string of steel industry job losses – 100 000-odd jobs shed over the past four years – and conditions in the industry described by AWU boss Paul Howes as the worst since the Great Depression, led Prime Minister Gillard to assemble a team of experts to come up with ways to arrest the decline.

And why should the country – and not just those involved in manufacturing – care? Australia just celebrated 21 years of continuous GDP growth, after all. Surely this is a sign that the economy is in good health.

Professor Roy Green, dean of the Business School at University of Technology Sydney and a nongovernment taskforce member, contends that relying on the mining boom is irresponsible and unsustainable. “The terms of trade boost that mining has given us is about to 48 OCTOBER 2012 Manufacturers’ Monthly

Manufacturing needs to get smarter.

dissipate and this is the boost that is provided by high commodity prices,” he told Manufacturers’ Monthly.

Green also pointed out that the industry is critical for its contributions to R&D and its role in generating skills required for infrastructure development saying its “therefore no surprise that those economies which have emerged most strongly from the GFC [a few years] ago were those with competitive manufacturing sectors, like Germany, Switzerland and the Nordic countries”.

The non-government taskforce members’ report, Smarter Manufacturing for a Smarter Australia, did not include the carbon tax or industrial relations system in its terms of reference, as critics have pointed out. Instead its 41 suggestions centred on boosting skills and training, changes to government procurement, fostering greater collaboration between industry, government and academia, and improving taxation and regulation conditions.

“This is the Gillard government out-sourcing their very basic responsibility of making policy,” criticised Sophie Mirabella, the opposition

spokeswoman on industry, innovation and science.

“The first and most obvious thing the government could do is make Australian manufacturing that bit more competitive by abolishing the reverse tariff of the Carbon Tax.” Others, such as Manufacturing Australia boss Dick Warburton, have criticised the tax’s effect on the industry as well as the current IR regime. Willox stated that industry is very concerned about both, but “we wouldn’t have got the report written” if IR was considered.

As well as thinking about what can be done to “save” manufacturing, part of the taskforce’s remit included identifying what opportunities could be latched onto in the future, such as the growing Asian middle class.

“There is no doubt the growth of Asia presents significant opportunity for Australian business across an entire array of industries,” Greg Combet, federal minister for industry and innovation, said.

“It has already created enormous demand for Australia’s resources commodities,” he told Manufacturers’ Monthly, “and will also transfer into agricultural, manufacturing, and

services exports, as well as food, high-tech medical and healthcare products, education, and research services.”

Food is singled out in the report as an example where “Australia has an outstanding opportunity to leverage its comparative advantage” in agriculture.

“If we can’t do that, well, what can we do?” asked Green.

The report suggests that the government provide capital for a Smarter Australia hub for that industry segment, where researchers and industry collaborate to develop value-added products catering to the tastes of the export market.

Wherever manufacturing is headed in the future, Green, Willox and others agree that Australian manufacturing – especially with the current high-cost environment – cannot compete on price alone.

Innovation and high value-added products are things we can do well, as successful Australian companies like ResMed, Cochlear and Ferra engineering have shown.

“We have to have a high-quality product and a highly-skilled and engineered product to compete.” manmonthly.com.au

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AustralianMADE Australian made, Chinese bought Recognition of the Australian Made logo in China is aiding exporting manufacturers.

I

n last month’s edition of Manufacturers’ Monthly we discussed what set Australian made goods apart from the majority of Chinese made goods.

The focus on quality, and the assurance that you get what you pay for was one of the main factors in Australian manufactured goods’ continued success overseas.

This was especially the case in China, where many ex-pats and Chinese people bought Australian made products as their quality was assured.

And after the well publicised many scares caused by Chinese made goods contaminated with pollutants such as lead, cadmium, and melamine, the stature of Australian made goods rose.

Now manufacturers have taken a major step forward, with the

Australian Made, Australian Grown logo now formally trademarked and recognised in China.

“This means that for the first time ever, Australian exporters have a symbol which can be used on their Australia-made or grown exports in China, that both establishes their products as genuinely Australia and is legally protected under Chinese law,” Australian Made chief Ian Harrison said.

He explained that “historically, China has been a challenging environment for the protection of intellectual property.

“The logo’s formal registration in China as a country of origin symbol for Australia now provides an essential legal framework which exporters can rely upon in the event that the logo is copied or used without proper authority.”

The registration protects Australian manufacturers if their product is illegally copied in China.

The announcement was welcomed by federal trade minister Craig Emerson.

The recognition of the symbol will “benefit our exporters,” he said.

This registration covers a wide range of goods, including class 5 -

which is pharmaceutical products such as dressings, disinfectants and medical goods; class 20 - which is furniture, picture frames, wooden pieces, and plastic goods; and 29 to 33 - which cover the wide range of food and beverages such as meat, fish, poultry, dairy products, coffee, tea, sugar, condiments, agricultural and horticultural products, seeds, fruits and vegetables, beers, fruit drinks and syrups, and alcoholic beverages; and as well as a wide range of other products.

However an application for another class of goods, class 25 - which includes footwear and clothing, is still pending.

This latest formal recognition follows the registration of the Australian Made logo in the USA, although registration is still pending in South Korea.

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