Manufacturers' Monthly - May 2017

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MAY 2017

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Editor’s Comment

16 Industry Focus

28 Robots & Sensors

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Comment

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32 Events

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News@MM

22 Software & Systems

34 What’s New

12 Issues & Insights

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Behind the cover Motorsports has long had its place in the hearts and minds for many generations in 20th and 21st century Australia. From the FIA Formula 1 Championships to V8 Supercar racing, the yearly fanfare of rumbling engines never ceases to capture the imagination of the nation.

However, while motorsports remains strong, the automotive industry in the country is on its last legs. Many household names like Holden pulling out of the commercial market due to the rising costs of materials and production in Australia.

Hence, the last vestiges of automotive greatness in the

country will be carried on through motorsport. And thankfully, there is a large amount of support for it with various engineering outfits who are committed to growing the industry, pushing for the extra horsepower and most importantly, maximising the safety of the rides.

Of course, to make things more exciting, race analytics with the power of the Internet of Things (IoT) will prove to be the deciding factor in these races. Engineers will tinker with the machines according to the data provided together with every revolution of the wheel. Only the fastest to adapt wins.

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Manufacturers’ Monthly MAY 2017 3

Comment

SYED SHAH – Managing Editor, Manufacturer’s Monthly

All around the world

O

VER the long Easter break, I decided to re-examine a few things going on in my refrigerator and found out that certain leftovers were well and good, while others like the dips and vegetables, had gone bad. To cut a long story short, this happened because of my negligence of my fridge’s contents which had immediate repercussions on my week’s pocket money. Then my thoughts went to how we should stop and take a look around at the rest of the global economic space. In a capitalist economy, there is hardly any business that is not directly or indirectly affected by global economic headwinds.

4 MAY 2017 Manufacturers’ Monthly

Since the first quarter of last year, there seemed to be an unending spell of bad news (economically) at every juncture. From Brexit casting its long pall on the global economy to the slowing of Asia’s number one growth engine – China, the increasing lacklustre efforts from the US economy and Australia’s flailing automotive sector; well, you get the idea.

Yet there was (and still is) a need to stay positive under these circumstances and look for opportunities for growth in that maelstrom. While I was speaking to several companies at the recent Auspack show held at Sydney

Olympic Park convention centre about innovation and staying ahead of the game, many of them noted that Australian manufacturing needs to be “on their toes”. With the factory space demanding double or triple the production from the year before, companies like SMC are saying that better parts and systems are needed to satisfy customers with quick delivery turnaround, or else, they will look for the next supplier.

They have always been constantly investing in R&D even when the economy slowed and as a result have stayed relevant and are thriving.

All this interest and developments happening during bad times over

the last decade just tells you that it takes a shrewd eye to see things from a different perspective.

Looking around the globe, businesses in the UK seems to be getting more upbeat about the future with the country looking more and more to be avoiding a recession. Latest reports by analysts have shown that its industrial production grew by over 2.1 per cent in the middle of last year for about three months – the fastest rate in 17 years.

Nearby, the Italian industrial sector spread red ink all over the spreadsheet being down four per cent at this time of the year according to data from the National Institute for Statistics, Italy (ISTAT) and goods and services with the tag “Made in Italy” experienced an alltime low in terms of international exports. However, Italy has looked to grow more of its domestic market with manufacturers seeing a five per cent growth within that same period according to the Italian machine tool association, UCIMU. Over in China, the country’s economy grew at its slowest pace in 25 years according to a South China Morning Post report in November last year. Yet, its year ending purchasing managers’ index (PMI) closed close to 52 (anything above 50 is good) with improving commodity prices and possibly, in my opinion, more state-owned companies buying stakes in large and profitable automation and technology companies.

While we do like to focus only on what matters to us here at home, sometimes, a listening ear or a discerning eye to the outside world, can make a difference and save some dollars. So, we should not be casting aside and taking for granted that certain issues that we have within the industry will work themselves out. As an example, we may be so focused on an energy issue that we completely forget to consider upgrading say, our legacy systems, for instance – and that will hurt the pockets in the long run. manmonthly.com.au

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Comment

WADE NOONAN, Minister for Industry and Employment, Victoria

Manufacturing is alive and well in Victoria

W

E have a world-class sector which contributes around $26 billion to the state’s economy each year, and employs more than 270,000 people.

In 2016, manufacturing recorded the largest increase in jobs of all Victorian industries – with more than 42,000 new positions created.

Nearly 90 per cent of those jobs were full-time roles.

As Victoria’s Minister for Industry and Employment, I want Victoria to be a leading advanced manufacturing state.

That’s why we’re continuing to support local manufacturers through the Victorian Government’s Future Industries Manufacturing Program (FIMP) – providing grants of up to $500,000 to enable businesses to expand and create new jobs.

In my regular visits to local manufacturers, I’m excited to see the resilience of manufacturing – particularly the capacity of large and small businesses to penetrate new markets and create new opportunities.

They are leveraging a great skill base which is the foundation of manufacturing in Victoria.

As we shift to an advanced manufacturing sector – it’s never been a better time to harness our capabilities and set foundations for the future.

We want to retain our skilled jobs – and support the creation of new ones.

Victoria has a broad depth of expertise spanning research and engineering through to design and production – along with world-leading capabilities in specific advanced manufacturing technologies, such as composite materials.

Victorian manufacturers are generating great ideas – and converting those ideas into something that can be exported to the world.

With Australia’s largest cluster of medtech design, engineering and prototyping companies – Melbourne is a world-leading location for the development of medical technologies.

6 MAY 2017 Manufacturers’ Monthly

The automotive industry is a good example of how Victoria is facilitating a transition from old manufacturing techniques to an advanced era.

We have the largest container port, a 24-hour curfew-free airport and a road network that provides efficient access to other states.

And when you pick through what sets Victoria aside, there are also very good collaborations and partnerships, particularly with our academic and research institutions. All this positions Victoria very well in terms of future growth.

Where innovations bears fruit I’ve seen innovation in manufacturing first-hand.

Recently I’ve visited the likes of Albins Performance Transmissions – a Ballarat based supplier of transmission components.

As local car manufacturing draws to an end, Albins is enhancing its product range and moving into defence, aerospace and rail sectors to create new investment opportunities.

Albins, a recipient of a FIMP grant, is also creating dozens of new jobs to support their expansion.

Another great example of advanced manufacturing is Bartlett’s Environmental based in Geelong.

This family-run waste management company has used industry research projects to explore new technologies and expand its investment potential.

Victoria’s thriving food and fibre sector is another area where manufacturing has a strong footprint.

I had the pleasure of recently visiting Passion Pasta in Melbourne’s west – a local supplier of fresh pasta and ready-made meals.

Thanks to a FIMP grant, this family-owned business is creating new jobs, purchasing new equipment and expanding its market reach.

These are perfect examples of

local manufacturers which are going from strength to strength.

We also have exciting manufacturing developments across Victoria’s $8 billion defence sector.

Marand Precision Engineering, based in Melbourne’s south-east, has shown its cutting edge capabilities through the manufacture and assembly of the vertical tail for the world-renowned Joint Strike Fighter.

This state-of-the-art technology was centre stage when this amazing jet fighter made its debut appearance at the recent International Airshow at Avalon.

Our local manufacturing workers are also being engaged on key Government initiatives such as the High Capacity Metro Train Project.

The trains of the future will be made in Victoria at the Newport manufacturing facility and they will be built using local workers, including apprentices, trainees and cadets – a testament to our strong TAFE system and our ongoing commitment to maintaining a skilled workforce.

Manufacturing is changing – the shift towards technologyintensive processes and design-led manufacturing sees demand for new skills.

The automotive industry is a good example of how Victoria is facilitating a transition from old manufacturing techniques to an advanced era.

The recent Automotive Supply Chain Transition Outcomes forum, which brought together almost 60 supply chain businesses in Melbourne, was an opportunity to learn just how innovative Victorian businesses have become to reshaping their operations, transitioning to other markets and developing new products.

Consider Composite Materials Engineering, located in Melbourne’s east, Australia’s leading supplier of lightweight long glass composite components for the automotive industry.

With car manufacturing closing, it has adapted and now manufactures building and construction products.

The Victorian Government is committed to building a strong and internationally competitive manufacturing industry, and supporting local companies so they can prosper.

While it’s important to recognise our strengths today, we also need to look to the future.

Our manufacturing sector must remain technologically relevant and competitive within the global supply chain.

That’s why we established an Advanced Manufacturing Advisory Council late last year.

Chaired by highly-respected industry expert Ross Pilling – and bringing together Victoria’s leaders in advanced manufacturing from industry, unions and academia – the Council is working with the Victorian Government to develop an Advanced Manufacturing Statement.

The Statement will provide a vision for Victoria’s manufacturing future, including what we can all do together to grow Victorian advanced manufacturing businesses, create new jobs and strengthen the local economy.

As part of this process, the Government recently hosted roundtables with industry stakeholders across Victoria to help us understand how we can work together to build the foundations of our manufacturing future.

I see Victoria as being a leader in advanced manufacturing.

We have the capabilities – we have the expertise – and most importantly, we have the vision.

Hon. Wade Noonan MP Victorian Minister for Industry and Employment manmonthly.com.au

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News@MM F-35 to get Australian tech BAE Systems Australia’s technology is a step closer to being used in the Joint Strike Missile (JSM) being developed for theF-35 Joint Strike Fighter aircraft, following the signing of a contract between the Federal Government and Norway’s Kongsberg Defence and Aerospace.

The contract will enable Kongsberg, which is developing the JSM, to continue the integration and qualification of BAE Systems’ passive radio frequency (RF) sensor into the system.

BAE Systems is Australia’s specialist manufacturer of missile control and guidance systems.

The company will provide a low-cost, light weight and highly

sensitive electronic support measure (ESM) receiver for incorporation on JSM which will feature an additional land attack and littoral attack capability as well as a two-way communications line for target adjustment and inflight termination.

In its work with Kongsberg, BAE Systems has delivered a pre-production passive RF sensor for the JSM program, which was used to perform fit checks, system integration and support flighttesting in a development-standard missile.

The combination of this RF sensor with Kongsberg’s existing seeker provides a significant

enhancement in operational capability.

In support of the contract, BAE Systems Australia will supply a new passive RF sensors to Kongsberg for use in its qualification activities.

This technology was developed with the support of the Australian Government’s Priority Industry Capability Innovation Program (PICIP).

Under the Defence funded program, BAE Systems Australia received a grant in 2013 to help commercialise this innovative technology.

“This is a great example of niche technology being developed through government and industry

collaboration that has the potential to provide long term sustainable exports for Australia,” said BAE Systems Australia Chief Executive, Glynn Phillips.

“There is no doubt about Australia’s ability to compete on the world stage delivering leading edge technology to the world.”

BAE Systems Australia’s technology could be used in the F-35’s Joint Strike Missile

Defence manufacturing will grow Australian economy, Says Pyne The defence industry will be a key player in growing Australia’s economy, according to Defence Industry Minister Christopher Pyne.

“Using the defence dollar to drive the take-up of high technology and give new impetus to our already advanced manufacturing industries is central to our vision of a resilient

future Australian economy,” said Pyne.

The minister also emphasised the importance of spreading out defence expenditure throughout the country, as opposed to localising it in one state.

Defence industry is already having a positive impact on the Australian economy, according to Pyne.

“Defence industry appeared in the national accounts last quarter as being a driver of the economy,” he said.

“This can only be built upon by strong strategic planning and government, defence, academia and industry working together in pursuit of a common outcome.

Defence industry is having a positive impact

3D printing bacteria promises new materials for manufacturing Researchers from Delft University of Technology in the Netherlands have developed an inexpensive method for 3D printing bacteria into shapes and patterns, which could lead to revolutionary new materials.

According to the researchers, the method could see applications ranging from mother-of-pearl fake teeth to powerful new microlenses that increase the effectiveness of solar panels and cameras.

The researchers are currently using the technique to 3D print plaque onto cow’s teeth as a potential 8 MAY 2017 Manufacturers’ Monthly

way of studying oral hygiene.

The technique could also be used in the bacterial production of graphene, which is being used increasingly in manufacturing as it is both the thinnest and strongest compound in existence.

Researchers have developed a method for 3D printing bacteria

“We can mix up graphene oxide with bacteria, leave it on the counter overnight, and when we come back the next day, it has made graphene by reducing the graphene oxide,” researcher Anne Meyer told Seeker.

“You don’t have to have a chemical lab to do it.”

In order to achieve 3D printing with bacteria, the researchers modified a $300 commercial 3D printer.

Over-the-counter commercial 3D printers operate by heating plastic to make it liquid enough

to be patterned by the print-head.

However, this heat kills bacteria.

Therefore, the researchers removed the heater from the printhead, and attached a computercontrolled syringe filled with liquid bacteria. In order to make the bacteria stay put, it was mixed with a polymer called alginate, which solidifies when it touches calcium ions.

Once in place, the bacteria can carry out advanced chemical reactions to create a wide range of materials. manmonthly.com.au

News@MM SA reaches 50 per cent renewable energy target eight years early South Australia has reached its renewable energy target of 50 per cent almost eight years ahead of schedule.

The state has already surpassed its target of 50 per cent renewable energy by 2025, reaching 53 per cent from 2016-2017. In 2014, this figure was 36 per cent.

“I am pleased that South Australia is leading the nation,” SA energy minister Tom Koutsantonis told the ABC. “I am pleased that we’re getting most of that renewable investment here in South Australia, it’s doing great things.”

SA sources the majority of its renewable energy from solar and

wind technologies. Last month it was announced that the state will house the world’s biggest solar farm and battery project.

Australia as a whole generates 14 per cent of its energy from renewable sources, according to figures released by the Climate Council last month.

While Victoria and New South Wales were once considered leaders in adopting renewable technologies, the states have been found to be lagging behind in recent years.

Tasmania now leads the nation in renewable energy generation, having achieved 100 per cent renewable energy at times over the past few years. SA follows as a leader in renewable energy.

SA sources the majority of its renewable energy from solar and wind technologies

Australian manufacturers in $8b business black hole Manufacturers are among hundreds of mid-sized Australian businesses swimming in $8 billion worth of debt to their suppliers According to new research, $2 billion is currently overdue while manufacturing companies in Australia owe an average $111,000.

An American Express survey of 355 manufacturing CFOs has found that companies worth between $2 million and $300 million struggle most with delayed or late payments of suppliers compared with other sectors.

Around a quarter (39 per cent) were found to be unable to reconcile invoices at least every other month, compared with the mid-market business average of 30 per cent.

Of the outstanding supplier payments in the manufacturing industry, 25 per cent are overdue.

This research comes as a nationwide inquiry commissioned by The Australian Small Business and Family Enterprise Ombudsman is due to release recommendations on possible solutions aimed at resolving the ongoing issue of late-payments for small and mid-sized businesses. manmonthly.com.au

It is widely acknowledged that outstanding payments can cause significant cash flow problems for suppliers, many of whom are small or mid-sized businesses, and leave them unable to balance monthly income with outgoings.

Martin Seward, vice president for Small and Medium Enterprises at American Express Australia, said that the issue of delayed or late payments was not only impacting suppliers, but could also be costing mid-sized Australian businesses, including the construction industry, billions of dollars every year.

“There is no doubt that suppliers rely on timely payment, with many going as far as to offer financial incentives for early payment,” Seward said.

“Around two thirds (66 per cent) of mid-sized construction businesses last year secured early supplier payment discounts, at an average value of $32,000, leaving them open to extra cash flow to reinvest back into the business for research and development or something as simple as staff recognition programs.

“It’s encouraging to see that

businesses and their suppliers can both benefit from preferential payment arrangements, but concerning that not all Australian mid-sized manufacturing businesses recognise the value of timely payment – both to their suppliers and their own business.”

Almost all manufacturing industry CFOs surveyed said they would value the opportunity to pay suppliers on time, however cash flow pressures were cited as a key factor when deciding how to pay suppliers.

Given the opportunity to extend cash flow for up to 50 days, around one third of manufacturing CFOs (31 per cent) said they would prioritise faster payment of suppliers.

“We have seen CFOs who deploy credit as part of their cash flow management toolbox and benefited from the flexibility to pay suppliers early, while keeping capital in their business for longer. Using credit can also offer other benefits, such as reward schemes,” Seward said.

“Despite a positive outlook for mid-sized organisations, with 65 per cent of businesses forecasting growth in 2017, cash flow pressures still constrain mid-sized businesses from achieving their full growth potential.

“In an increasingly competitive economy, today’s CFO will not want to miss out on opportunities offered by effective and efficient cash flow management.”

Survey shows some manufacturers struggling with late payments

Manufacturers’ Monthly MAY 2017 9

News@MM Energy costs threaten Australia’s biggest manufacturing industry Rising energy costs and lack of reliable supply are threatening to push Australia’s red meat processing offshore.

The Australian Meat Industry Council (AMIC) is currently conducting a survey of its members to determine the scale of the problem and help create an energy policy for the industry.

According to AMIC’s Robert Barker, affordable and reliable energy supply is crucial for Australia’s meat processing sector. Gas in particular

is important as a source of reliable energy to maintain the baseload, and for direct input in plant operation.

Early results of AMIC’s survey have showed that energy costs were up an average of 30 per cent in 2016 when compared with 2010.

Some of the larger meat processors reported additional energy costs of $20 million in the past 12 to 24 months.

“The red meat processing industry in Australia is the largest manufacturer in Australia, supporting over 130,000 jobs, most based in regional areas,”

said Northern Cooperative Meat Company chief executive Simon Stahl.

“If Australia wants to stop this industry moving offshore, urgent attention to the cost of manufacturing is required at all levels of government,” he told Fairfax Media.

“Energy is at that critical stage, not only in terms of cost but also continuity of supply. Urgent action is required and serious consideration should be given to taking export exposed meat processing plants off the grid.”

Increasing cost of energy threatening domestic meat market

Medical sector to inject new jobs and $18b into Australian market Medical technologies and pharmaceuticals (MTP) could add $18 billion to the Australian economy and create up to 28,000 new jobs within eight years, according to research.

CSIRO has revealed the Medical Technologies and Pharmaceuticals Roadmap, which sets out a path for how Australia could become an important player in the MTP sector, which is expected to grow to almost $3 trillion globally by 2025.

The roadmap was written in collaboration with industry,

government and researchers.

“Our Strategy 2020 sets out a vision to be Australia’s Innovation Catalyst and created our new OneHealth group,” CSIRO’s CEO Dr Larry Marshall said.

“The Medical Technologies and Pharmaceuticals Roadmap is part of that vision and the guidepost that will help the MTP sector to become a key pillar of our economy, creating jobs and growth for Australia.

“The symbiosis of digital with physical creates new individualised

medtech solutions, from 3D printed replacement body parts to personalised brain cancer treatments, growing this sector will save lives in Australia and around the world.”

With Australia’s spending on healthcare expected to almost double to 16 per cent of GDP by 2040, a renewed focus on the successful translation of excellent science to cheaper and more effective health and medical solutions is a national priority.

“The Medical Technologies and

Pharmaceuticals Roadmap shows how Australia can use excellent science to effectively navigate the challenges associated with an ageing population, while also capitalising on global opportunities,” Dr Marshall added.

The MTP sector has the potential to be a key sector in Australia’s economy.

Fears for Australia’s shipbuilding industry Shipbuilders have expressed fears that Australia will have minimal involvement in the building and maintenance of the nation’s future submarines and warships.

South Australia should expect to see only a fraction of the benefits from the $89 billion Future Submarines and shipbuilding defence construction, according to Defence SA. The organisation claims there is a “false perception” that SA will be receiving a large proportion of the 10 MAY 2017 Manufacturers’ Monthly

plan’s benefits, which include billions of dollars in industry investment and thousands of jobs.

The plan comprises 12 Future Submarines, nine Future Frigates, and 12 Offshore Patrol Vessels.

According to the Federal Government, the submarines, frigates, and the first two Offshore Patrol Vessels will be built in South Australia, and the majority of the sub servicing will be done in Australia.

However, Defence SA believes the state may get as little as 10 per

cent of the overall work.

This sentiment has been echoed

by Victorian Labour Senator Kim Carr, who said the latest proposals from the DCNS seem to show that much of the work will be done in France as opposed to Australia.

Defence Industries Minister Christopher Pyne has accused Defence SA and others in South Australia of “scaremongering”.

“Defence SA quite frankly wouldn’t know because Defence SA is not involved in building the

submarines,” he told ABC radio.

Meanwhile, the West Australian government intends to campaign for more work, but Pyne has warned their efforts will be futile.

According to Pyne, the WA government can “wish all they like”, but the work will be centred in SA. “There are some businesses around Australia of course that will make things for the subs as they will for the frigates and the offshore patrol vessels,” he told The Australian. manmonthly.com.au

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Issues&INSIGHTS

The machine tool sector predicts less human intervention in the future of manufacturing.

Weathering the winds of change With the move towards newer technologies for increased productivity and sustainability, the Australian industrial sector has lots of catching up to do with Tier 1 manufacturing countries. Steven Impey speaks to several key manufacturers for their thoughts.

W

HAT is next for Australia’s machine tool makers?

For several millennia, materials have been dug up and turned into instruments which have played a part in industrial and social change.

From the early hunters to the modern-day earthmovers, the country’s technology has evolved quickly through three phases of the Industrial Revolution which saw manufacturers hit heady heights.

12 MAY 2017 Manufacturers’ Monthly

As the 21st century progresses, Australia’s manufacturing technologies are trying to keep up in a faster, advanced era of Industry 4.0.

Mining still spearheads Australia’s exporters. Yet, it remains a requirement to adapt with firms seeking to use machines to make tools previously made by hand.

Foreign policy is said to have altered the dynamic of domestic production and, while working within a changing global economy, experts

are collaborating to find newer ways to give factories a leg up into the unknown.

Adapting to change The Australian Government has spoken with Manufacturers’ Monthly about the pressures placed on the shoulders of communities amid significant change in the country’s manufacturing sector.

Job losses across the ailing automotive industry and those

following the closure of Victoria’s Hazelwood Power Station are said to be the result of “difficult market conditions” and “global and domestic economic and social changes”.

There are, however, moves to secure jobs at the Alcoa Portland Aluminium Smelter, which received $30 million in federal funding as part of a larger rescue package.

In light of change, the government insists that “existing workforces will have to reskill continuously” while manmonthly.com.au

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Issues&INSIGHTS they share a responsibility with businesses “to this next industrial revolution”.

“Over the next 10 to 20 years, Australia’s economy will continue to transform, as it has over the last 10 to 20 years, in response to global and domestic economic and social changes,” a spokesperson from the Department of Innovation, Industry and Science said.

According to the department, Australia’s manufacturing will also transform. Driving the transformation are globalisation, disruptive technologies such as the industrial internet, new consumer demands, Asia’s economic development and other uncertainties.

It also said that Australian manufacturing will continue to be “agile and flexible”, delivering market-appealing products and related services that compete on value rather than price alone. This,

according to them, will provide high skill jobs and prosperity to all Australians.

The benefits of automation Advances in automation technology are already affecting the mining industry. For example, Rio Tinto’s operations centre in Perth is a state-of-the-art facility that enables its mines, ports and rail systems to operate from one location.

Automated vehicle technologies are also used in the agriculture sector, supporting precision agriculture to make farming “more efficient, more productive and less labour intensive”.

“With new technology evolving all the time, it is helping the economy by having the need for less human intervention,” explained Prashant Gokhale, CNC machine tools manager at Applied Machines, based in Victoria.

“The biggest problem we have in Australia, I think, is labour cost; the more material is handled, the more it adds to its production value, making it more expensive and less valuable [to export].

“We need to be flexible with change and that means the less human intervention the better.

People won’t like to hear it but one of the things we must do is look at the cost of labour.

“Unfortunately, the mindset of some companies needs to change first. While they are still not using the latest technologies, those who have it are proving more productive and competitive on a global scale.”

Labour cost isn’t the only challenge however. While a further decline registered by Australia’s machine and tool makers at the end of last year saw more than a seven per cent drop, according to the Australian Bureau of Statistics

other labour-intensive sectors – including food processing plants – are offsetting the manufacturing industry with promising growth.

Mark Dobrich, general manager of John Hart’s machine and tools division in Sydney, says the industry’s success stories are being told by those open to change and believes the introduction of advanced manufacturing technologies is offering a brighter future than we have been led to believe.

“There is no doubt that manufacturing has changed over the past 20 years, particularly with the reduction [of Australian car assemblers] in the automotive sector,” he said. “But I do feel there has been some narrow reporting around the impact it has had.

“While more engine parts are being imported during a changing economy, there are still companies out there who are making machine

The mindset of companies towards automation in Australia needs to change.

14 MAY 2017 Manufacturers’ Monthly

manmonthly.com.au

Issues&INSIGHTS components that are being exported to Japan and Europe.

“They are still doing well both in the domestic and export arenas including those in the aerospace and defence sectors, as well as the medical, construction and transport industries.”

One of those companies is Melbourne-based Tomcar Australia, specialists in all terrain vehicles (ATV) vehicles for the agricultural, mining and defence industries, and is still manufacturing in a country which has seen three of its major car manufacturers on the brink of closure.

Elsewhere, the Carbon Revolution is making carbon fibre car wheels for partners overseas.

Quickstep is contributing composite materials for defence, automotive and other global applications and Marand, a defence manufacturer, is working into global supply chains.

The government to play a crucial role In other fields, industry experts are also championing growth in the biomedical sector, which they claim is the result of a more research-led business models.

Examples include 3D-printed devices for sleep apnoea and human implantations being produced by firms including Oventus and Anatomics respectively.

Dr Phillip Toner is an honorary research fellow in the University of Sydney’s department of political economy and spoke about the challenges currently facing Australia’s manufacturers within a “volatile economy”.

While the industry does not give to the economy as it did during the height of the 1960s, he believes more “R&D intensity” could better link profit from the country’s “temporary” mining and LNG

projects to other industries.

“A lot of money is being paid into the resources sector but there are very few linkages back to the rest of the economy,” he said of the slow-down.

“I think there has been an absence of support to the local industry – the exception is across the defence sector which is due to Government policies and decisions to shut down the car industry.

“I therefore see absolutely nothing wrong with a publiccritical analysis of what is actively happening with money spent on our free trade agreements to see what the benefits really are. That would be interesting.”

Among five industry Growth Centres set up to “improve the industrial ecosystem”, one has been tasked by the Federal Government with “developing an internationally competitive, dynamic and

thriving Australian advanced manufacturing sector”.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) are also contributing to the project alongside Deakin University (in advanced fibre materials) and Swinburne University (around Industry 4.0).

“Manufacturing is all pervasive in our economy, with technological and servitisation opportunities in the food, chemical, metals, oil and gas and minerals sectors amongst others,” said Dr Keith McLean, CSIRO’s manufacturing director.

“The demise of the automotive industry will result in the loss of highly skilled jobs across the sector.

The challenge for us as a country is how we seek to redeploy these skills in new advanced manufacturing opportunities or retrain these people to provide new opportunities.”

More intensity into Australia’s R&D for manufaturing is needed, according to local experts.

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Manufacturers’ Monthly MAY 2017 15

IndustryFOCUS Can elite motorsport hand Australia’s automotive industry a new gear?

At a time when the Australian car industry is on its knees, manufacturers are using links in the motorsports industry to drive automotive technology in a new direction. Steven Impey discusses opportunities the race world is offering innovators on the factory floor.

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UTTING a car on the racetrack takes patience and precision while maintaining neck-break speeds requires some of the most innovative automobile technology.

Going from 0 to 100 km/h in a matter of seconds involves abnormal levels of power and is in debt to an engine capable of enduring heavy turns and extreme changes in pace on a regular basis.

The best times in all motorsports follow rigorous testing and endless tinkering to give fearless drivers the smoothest rides.

And before this all comes to fruition on race day, the team’s

mechanics and technicians would have gone above and beyond to make sure everything is in tune to avoid seeing their car’s chances go up in flames.

Acknowledging the roots of success Mark Dutton is the Red Bull Holden team manager and has credited the Australian manufacturing industry for its contribution to the sport.

“Any race team – no matter the size or category – relies on some level of input from outside suppliers,” he told Manufacturers’ Monthly. “At Triple Eight, we produce so many of our components

in-house that the number of suppliers of major components in particular is very small.

“However, while the number of these suppliers is small, their importance is not. A perfect example of this is PWR, who are world leaders in automotive coolers, radiators, intercoolers, oil coolers – you name it, they do it better than most, if not all, anywhere in the world.

“Proof of this is in the number and pedigree of the Formula 1 teams that use their products. PWR are race bread. They previously had their own racing team, so this racing mentality can easily be seen how they are constantly developing,

looking to improve, and doing so to crazy deadlines that don’t move.”

As Australia’s leading manufacturers in the motorsport industry, PWR’s base in Queensland is home to a state-of-the-art wind tunnel which enables its engineers to measure its cooling components in real-time.

The team carries out its testing in-house and makes a case of not patenting its designs so to avoid revealing their trade secrets.

While their expertise have been called upon by some of the fastest in the motorsport business, it is far and away from the sport, however, where their research is making new strides

Motorsport remains a mainstay in the Australian sporting calendar.

16 MAY 2017 Manufacturers’ Monthly

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Any race team – no matter the size or category – relies on some level of input from outside suppliers. in the automotive industry.

“Motorsport has driven PWR’s growth and has always been an important part of our business,” said the company’s general manager, Marshall Vann. “By the nature of the sport, engineers are always searching for that last ‘enth’ degree of performance.

“It’s where PWR came from and what we have found, if we take a look at Formula 1 for example, our research and technology can be used in other industry’s that we serve.

“Most of our work is driven by the clients’ needs. Every time a vehicle moves from natural-aspirated

to turbo-charged engines, it heats up the engine intake air so more cooling is required to improve engine performance.”

To achieve those standards in the cooling units, fabrication specialists like Welding Industries of Australia (WIA) and Nevco Engineering, both based in New South Wales, also contribute to motorsport by providing maintenance equipment for the industry.

With the great amount of risks involved in races, only the strongest components and best fabrication tools are acceptable. In this instance, PWR utilises a suite of WIA welding

“ Installation in record time – for optimal performance in your plant.”

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Only the best quality machining for coolants will do for motorsport.

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Manufacturers’ Monthly MAY 2017 17

IndustryFOCUS

PWR’s wind tunnel testing and validation facility.

products like their Miller Dynasty gas tungsten arc welding (TIG) series to work on critical race vehicle parts like intercooling units.

Exploring newer markets and revisiting old ones Motorsports is a niche market and requires special expertise and, above all, client demand. However, PWR are also seeing growth in other markets including mining and the military as well as parts for mainstream motoring, but they attribute these newer opportunities to their success from motorsports.

“The connection from motorsports to mining and military is a bit harder to trace as often the specs required are quite dissimilar.

“However, there is no doubt that our track records in the highest level of motorsports gets a foot in the door in other sectors,” Vann said.

18 MAY 2017 Manufacturers’ Monthly

In addition, their research in testing supercars is making its way into the automotive sector and, although Australia’s domestic car constructors are a dying breed, the science behind motorsport is proving one way to stay in touch.

The Nissan Patrol GU is a good example of how PWR’s cooling technology in elite engines is filtering into road cars and, in doing so, has opened a new market.

In 2016, the company exceeded its expectations in the “automotive aftermarket” despite a stronger Australian dollar (it recorded revenue of $47.7 million) and has strengthened links with leading parts retailers in the United States.

“If you look at most cars, they now have turbo-charged engines because it creates better fuel efficiency and/or more power,” Vann continued.

“When you start an engine, it heats up. So, by having a mechanism to cool it like what we make for Formula 1, it gives the car more power.

“That is a very common theme in the race world. And, when Formula 1 moved to turbo-charged engines, a lot of the cars started to adopt our cooling radiators and, particularly in motorsport, new technology has filtered into the mainstream and is used in normal cars too.

In the context of Australia, 85 per cent of their sales are exported and, with what’s happening in the auto industry here, by and large it hasn’t had a significant impact on the business.

“Globally, the Australian influence in the auto industry is moving away from building cars but rather researching and building components to put in them.

“We have developed cold plates

in a variety of applications and it is this kind of research which is moving the industry forward. There is a very symbiotic relationship between motorsports and automotive EOM .

“It proves that, by looking at what works well in motorsports, you can improve the products that go in cars we drive on the road,” said Vann.

Subaru Australia has also seen innovations on the rally car circuit influence some the group’s newest brands and is backed up by corporate affairs manager David Rowley who notes some of the “leading-edge” turbo-charged technology is finding its way into their commercial cars.

“While Subaru Australia does not manufacture in Australia, Subaru Tecnica International (STi) has long associations with motorsport manmonthly.com.au

IndustryFOCUS Cooling solutions for Formula 1 cars are essential for sustained performance on track.

including the former Subaru World Rally Team programme and current GT300 series in the Japanese domestic market,” Rowley said.

He also mentioned that some of the leading-edge technological innovations from such programmes do filter down into production cars over time.

“Examples include aspects of the turbo-charged engine that features in every WRX STI car and has its origins in rallying.

“The ring-changed reinforcement structure of every Subaru passenger cabin was also partly pioneered in the unforgiving motorsport landscape,” Rowley explained.

The future of the market In light of the influence from Japan, the question is whether the Australia market can adapt. Can its research and development in the

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automotive industry be recalibrated to serve more clients?

Dutton says that partnering with a company that is constantly pushing boundaries and developing allows the engineers to keep evolving the car throughout the season.

“Their products directly and indirectly help our cars go faster and it is as simple as that,” said Dutton.

“Managing temperatures on any vehicle is critical and, on our supercars, we focus on having the latest, most efficient engine water radiators, engine and transmission oil coolers.

“However, it is really the work that companies like PWR do with F1 that will not only enable those teams to move forward but allow that technology to filter down to road cars and trucks, which benefits everyone.”

Manufacturers’ Monthly MAY 2017 19

Cybersecurity@MM Manufacturers across the globe are at constant risk of hackers attempting to steal their valuable intellectual property.

Why manufacturing in Australia is in the cyber cross-hairs of hackers With the number of large scale cyber-attacks on the rise around the world, Australia could be next and the manufacturing sector is at risk. Tim Wellsmore, director of threat intelligence and consulting for Mandiant at FireEye shares his thoughts on this issue.

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T is no secret that Australia’s cyber-security environment is seriously wanting. The recent 2016 Threat Report from the Australian Cyber Security Centre shone the light on critical gaps in Australia’s cyber defences – the breach of the Bureau of Meteorology highlighting just one prominent example – and it may surprise you to learn that manufacturing is not immune to these vulnerabilities.

Manufacturers across the globe are at constant risk of hackers attempting to steal their valuable intellectual property. This is not to mention the level of weaknesses in critical infrastructure that have

20 MAY 2017 Manufacturers’ Monthly

nothing to do with manufacturing per se, but which the industry cannot survive without: electricity grids, water supplies, technology infrastructure and even the ability to attack production lines has been increasing alarmingly over the past six years.

To their credit, manufacturers don’t necessarily have their heads in the sand regarding the threats to the industry. Per the IDC Worldwide Semiannual Security Spending Guide, IDC expects banking to make the most investment in security technology this year at US$8.6 billion (A$11.4 billion) – with discrete manufacturing, federal and

central government and process manufacturing next in line. In total, these four verticals will represented 37 per cent of global security revenue for 2016 and will also be the topspending verticals until 2020, the analyst firm predicts.

The expected investments are much needed, because the consequences of not investing in cyber defences are immense. Take out an electrical grid and industry grinds to a halt. Take out the internet and you cripple the information transfer of most organisations. Hack a manufacturer, and years of R&D investment and IP can be stolen, potentially causing an entire industry

to be replaced by those in countries with much cheaper cost bases.

Recently, Chinese and Russian hackers reportedly attempted to access details about Australia’s next generation submarines. The attempts were reportedly aimed at the submarine builders in Germany, France and Japan bidding for the $20 billion contract to build the new fleet. The bidders were holding highly sensitive information about the Royal Australian Navy’s technical requirements for its next-generation submarines.

Perhaps even closer to home, Donald McGurk, chief executive of Adelaide-based communications, manmonthly.com.au

Cybersecurity@MM Manufacturers across the globe are at constant risk of hackers attempting to steal their valuable intellectual property.

Manufacturers that have ICS assets should prepare their security teams with an accurate understanding of control system assets, locations and functions. metal detection and mining technology firm Codan, said he watched sales and prices of his firm’s metal detectors collapse after Chinese hackers stole the company’s designs and began selling cheap knock-offs into Africa. How did they come by the designs? An employee’s laptop was reportedly compromised on a trip to China.

These are just two prominent examples, and we know these are just the surface of the real events impacting business and manufacturers across Australia. Now, an awareness is emerging of the real risk of Industrial Control System (ICS) vulnerabilities that has been observed since 2010 – the year the Stuxnet virus that took down an Iranian uranium enrichment plant was disclosed.

Ninety per cent of the known vulnerabilities to these systems are from after 2010, and that’s a number we only expect to grow: we’re seeing strong demand by the active cyber threat groups for ICS systems across the globe. Further, more than half of the vulnerabilities since 2013 deal with “Level 2” compromises— the systems that allow operators to supervise and control physical processes, such as opening valves or modifying machines. manmonthly.com.au

Meanwhile, the patching of vulnerabilities is a still substantial problem in ICS environments. Of the nearly 1,600 total vulnerability disclosures that has been examined, one-third are zero-days – a hole in software that is unknown to the vendor – and which have no vendor fixes, which present significant opportunities for adversaries to get into systems. And at least five ICS-specific vulnerabilities have been exploited in the wild, a rate we anticipate will increase in the future.

This is not to mention the rise of ransomware attacks on companies and individuals – wherein attackers will lock up infrastructure assets and only release them once the company pays a ransom. Additionally, the threat from massive denial of service attacks – such as the one seen recently which slowed or knocked out sites such as Twitter and Reddit – is increasing at a scale never seen before, powered by the rise of the Internet of Things (IoT).

Unfortunately, security personnel from manufacturing, energy, water and other industries are all too frequently unaware of their own control system assets, let alone of the vulnerabilities that affect them. Organisations operating these systems are simply missing the

warnings and leaving their industrial environments exposed – the hacking of Ukraine’s power grid is the most famous example of this.

This may sound bleak. But with the right approach, there are ways to combat the growing threat of cyberattacks in the manufacturing space.

For one, the expected investments into cyber defence highlighted earlier will help by shoring up the defences for security teams in the ICS space. It shows not only an acknowledgement of the issue but a proactive approach to countering it.

Additionally, it’s important for business owners and executives to understand the realities of the threat from credible sources of threat intelligence, translated into understandable and actionable business risks. Also, manufacturers that have ICS assets should prepare their security teams with an accurate understanding of control system assets, locations and functions. They should be aware of the changing threat environment, what that means for their day to day operations, and continue to maintain vigilance. This involves: • Obtaining structured vulnerability and patch feeds that cover a wide variety of sources;

• Match reported and confirmed vulnerability disclosures and patch announcements against their asset inventory in their industrial environments; and • Prioritise vulnerability remediation efforts by considering ICS architecture location, the simplicity of exploitation, and the possible impact on the controlled industrial process.

Make no mistake: cyber-attacks are going to happen, and happen frequently. It is the age we’re in now and there is still too much benefit to hackers to want, or need, to stop. It will be relentless and the methods of attack will evolve to counter most of the defences we create to halt them.

It’s imperative that investment is forthcoming from industry and government alike to ensure Australia’s interests, and its IP, are protected. But more importantly, recognising that cyber-attacks aren’t just reserved for acts of cyberwarfare or opposing governments is paramount for manufacturers and businesses to truly understand the level of vigilance required. Manufacturing is the beating heart of any modern nation, and it should be protected accordingly.

Manufacturers’ Monthly MAY 2017 21

Software AND SYSTEMS Plant operations for the modern manufacturer The advent of the Internet of Things will result in a complete overhaul of industrial operations, according to Richard Ronc, product sales manager at Advantech Australia.

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HILE the concept of smart machines is not exactly new, never has there been such a widespread movement to create large networks of connected machines. This is so much so that entire cities are inundating their streets with sensors in order to join the growing list of “smart cities”.

Industrial sectors have seen the same movement, with plants racing to implement smart devices that will communicate real-time information

22 MAY 2017 Manufacturers’ Monthly

to other connected devices and systems, resulting in increased transparency and efficiency, and lower costs.

However, in the rush to digitise industrial processes and reach the coveted “Industry 4.0”, many people are missing the point. There is a lot of confusion around the Internet of Things (IoT) and what it actually means. Some people think of IoT as a “product” that they need to buy in order to remain competitive. Others

are confused about the difference between IoT and machine-tomachine (M2M), with 45 per cent of respondents in Gemalto’s IoT Outlook 2016 report considering the two to be exactly the same. And then there are those that don’t mention IoT in their projects at all, with some businesses hoping to solve problems completely within their own organisation.

The official definition of IoT is a network or networks encompassing the use of standard Internet Protocol

(IP) technologies to connect people, processes and things to enable new cyber-physical systems. This concept transcends individual organisations, which end up serving as independent “data collectors” that communicate information to other organisations to solve a bigger problem. For example, in order to communicate available parking spots to Google Maps users, individual carparks send data to Google, which is then collated and programmed into Maps to be made

manmonthly.com.au

SoftwareAND SYSTEMS available to drivers. This “horizontal” data-sharing is a key component of the IoT, and applies not just to the consumer world, but to industrial operations as well.

The Industrial IoT (IIoT) can be seen as a subset of the IoT, where wireless connections exist to produce goods for the marketplace and monitor the processes involved. The horizontal flow of data is enabling the IIoT to revolutionise industrial processes in many ways.

In manufacturing for example, the Purdue model of Computer Integrated Manufacturing (CIM) has dominated the operation of manufacturing systems for the past 20 years or so. The Purdue CIM model is hierarchical in

nature, involving the upward flow of information in a pyramid-like structure from the shop floor to highlevel enterprise systems. Essentially, sensing systems like PLCs, sensors, motors and drives are at the bottom of the pyramid, feeding information to control and device networks like SCADA, which then travels up to the Manufacturing Execution System (MES), and then finally to the Enterprise Resource Planning (ERP) system, which acts as a catch-all for the business’s data.

The problem with relying on ERP systems in today’s modern manufacturing landscape is that instead of delivering cost reductions, business agility and performance improvements, ERP systems can

The official definition of IoT is a network or networks encompassing the use of standard Internet Protocol (IP) technologies to connect people, processes and things to enable new cyber-physical systems.

Instead of delivering cost reductions, business agility and performance improvements, ERP systems can create complexity, poor customer service, and a lack of visibility into the business.” create complexity, poor customer service, and a lack of visibility into the business. This is because legacy ERP systems (which many of today’s manufacturers are still using), are rigid and inflexible.

The manufacturing industry faces constantly changing business processes and data which these systems simply cannot keep up with.

Some “red flags” that an ERP system is putting a business at risk include: • Data is “locked up” in the system and cannot be easily accessed • Different data is separated into “silos” of information that exist independently of each other • Maintenance and changes to the system are costly and timeconsuming • Data cannot be accessed on-the-go • Trading partners (such as suppliers) cannot easily interact with the system • New employees need time to learn the system • Globalisation is difficult, requiring different versions for different countries Use of vertical data flows alone (such as the system mentioned above) no longer makes sense. This is because in order to fully exploit the potential of the IoT, data must be free to flow wherever in the system it can add value. This is the difference between M2M and Enterprise IoT systems. With M2M, there are vertical silos of data that do not add value beyond a specific sub-system. In an Enterprise IoT system however, everything is interconnected and the right data flows to the right place at the right time, allowing better insight into industrial processes. In this modern, interconnected system, it is

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important that data flows are both vertical and horizontal, intersecting at key points.

Indeed, by connecting machines to machines, people to machines and machines and people to a more expanded system of systems, manufacturers can create intelligent networks and factory systems along the entire value chain. This will lead to factory systems that communicate and control each other simultaneously with significantly reduced operator intervention. For example, the supplier of a specific product may be able to “see” a factory’s stock levels and take action to prevent the factory from running out (with permission of course).

This is just one example of how industrial operations can be further streamlined with use of the IIoT. While transitioning to an Enterprise IoT system poses many challenges to industrial plants, the benefits of this new, highly connected system will far outweigh these challenges.

Harnessing the IoT will also become increasingly important for companies to remain competitive as the industrial landscape continues to change.

Richard Ronc is an IIoT business development manager at Advantech Australia with a background in electrical engineering. With almost ten years of experience in the industry and within Advantech, he is an expert on industrial hardware and customised HMI solutions. He possesses key insights and knowledge in the IIoT market and its products with adept understanding of IIoT applications.

Advantech Australia 1300 308 531 www.advantech.net.au Manufacturers’ Monthly MAY 2017 23

Sustainability@MM Making the sustainable accessible The concept of sustainability needs to be taken more seriously. Thomas Strang, CEO of Javelin Power shares his thoughts about a suitable alternative – bio energy – that could potentially provide long term power and save Australia a lot of money.

Wind energy is so cheap to generate and distribute that the windfarms have pulled the floor out from under the coal-fired power stations.

24 MAY 2017 Manufacturers’ Monthly

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BAC Modular Workplace and Drawer Storage Systems

I

N Australia, the explosion in reporting on the paralysis in the Australian gas market is highly conspicuous – and with good reason, too.

The soaring cost of energy in Australia might be the greatest challenge for Australian industry since the 1973 oil crisis. With our geographical location and the distances between our logistical nodes representing a huge burden for industry to bear, the one thing we always had going for us was cheap energy.

An abundance, indeed an excess, of cheap, high-quality coal meant that our electricity was inexpensive even when transported over thousands of kilometres, and oceans of gas, locked safely into our shores, meant that manufacturing had access to all the thermal energy they could want at worlds-lowest cost. Of course, we’re talking about the past, here.

Donald Horne coined the term “the Lucky Country” to describe Australia, however he was not being laudatory.

What he actually said, in full, is, “Australia is a lucky country, run by second-rate people who share its luck.”

That was written 53 years ago: but can a better explanation be found for how our political class has managed the Australian energy market over the past 10 years? The logical and inevitable transition to renewable energy sources of electricity has been so badly

mismanaged that the very success of the initiative is undermining the stability of the entire electricity market.

Wind energy is so cheap to generate and distribute that the windfarms have pulled the floor out from under the coal-fired power stations. These ancient facilities were already more expensive than wind for generating electricity, and are so old that they are in a constant state of (very expensive) repair.

In an even more impressive act of self-sabotage, the Federal and Queensland Governments have between them managed to destroy Australia’s competitive advantage in the natural gas sector by bungling every stage of the decision to build liquefaction and export terminals for Australian natural gas at Gladstone.

The saga of how this came to pass has been reported at length elsewhere and is too convoluted to go into here.

But one thing that is clear: whereas Australia had some of the cheapest gas in the world five years ago, we now have some of the most expensive.

Furthermore, despite the pleading of industry commentators for somebody to fix the situation, the reality is that this horse has well and truly bolted already.

We will never go back to $5/GJ natural gas. Not only is that gas sold out for the next 20 years, the only options being put forward will only serve to allow the LNG terminals

Solid fuel bio-energy boilers are used at an industrial scale in every part of Europe and Asia in direct competition with the cost of natural gas.

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Manufacturers’ Monthly MAY 2017 25

Sustainability@MM to fulfill their existing supply commitments. More gas generation in Australia will simply mean more gas being exported. The price Australian industry will pay will remain at the new, higher levels because we’re always going to be paying the netback export price.

Why would the gas companies sell gas into Australia at anything less than they can get for selling it into Japan?

Speaking to the owner of an agricultural processor earlier this year about gas prices, and after bemoaning his situation, he ended saying: “We just have to ride this out until the government does something.” But what can they do now? Let’s look at the options being floated:

1. Open up more gas reserves: All that drilling more gas wells will accomplish is allow the gas companies to fulfill their existing gas supply contracts. The Australian Competition and Consumer

Commission’s (ACCC) 2016 Enquiry into the East Coast Gas markets found that even with all reserves activated there will still barely be enough gas to cover domestic and export markets. There is no surplus that will work to push Australian prices down.

2. Implement a reservation system for the domestic market: Apart from the fact that the gas companies will fight (and litigate) this decision for years, a reservation system has already been tried in Western Australia with no real benefit. Or, as the Grattan Institute reported it: “…such a reservation scheme [is] “blatant, inefficient and inequitable”.

Indeed, the [Western Australian] government recently concluded that domestic gas reservation policy “is not required; indeed, the policy is likely to inhibit development of the Western Australian gas market in the long term.”

3. Subsidise the cost of gas in Australia: This would simply be too expensive for a government to contemplate to any effectual level. And at a time where Parliament is turning every stone to find ways of saving money, a massively expensive new program like this would be a non-starter.

The reality of this situation we now find ourselves in as a country is that it has been a long time coming, and is now a fact of life that Australian industry must now manage as best as it can.

This leaves the Australian manufacturing sector two choices: 1) Re-invest heavily in new, higher efficiency gas systems to somehow wear the cost of the new–normal higher gas prices, or; 2) Find a way of generating the heat they need from another source.

It seems that the consensus within the Australian manufacturing sector indicates that there is an extremely

A unit of heat can be generated at a massive discount from a bio-energy boiler compared to what generating the same unit of heat costs from a natural gas boiler (let alone an LPG boiler).

26 MAY 2017 Manufacturers’ Monthly

small resource for new capital expenses. Indeed, the opposite seems to be true: the trend now is to lower cost rather than to spend on upgrades.

So that leaves finding another way to generate your process heat and fortunately, one is at hand.

Solid fuel bio-energy boilers are used at an industrial scale in every part of Europe and Asia in direct competition with the cost of natural gas. The technology is decades old and as reliable as a diesel engine.

They generate the same quality and quantity of heat as a natural gas or LPG-fired boiler, with one significant difference.

A unit of heat can be generated at a massive discount from a bio-energy boiler compared to what generating the same unit of heat costs from a natural gas boiler (let alone an LPG boiler). We are usually able to reduce the cost of heat by more than 50 per cent against a natural gas boiler, and up to 90 per cent against an LPG boiler.

The boiler life is 25-plus years, and the systems are fully automated and integrated with their fuel handling systems, meaning there is next to no human involvement required in their running. Moreover, Australia has an abundance of biofuel resources found basically everywhere that there is industry in Australia. Javelin is already working with large consumers of natural gas and LPG to transition them to this new fuel source.

And while this might be new for Australia, it’s hardly a revolutionary concept for the rest of the world: while Australia was safely protected by our oceans from the rising global cost of energy, the rest of the world was forced to innovate to survive.

As a result, bio-energy systems are a natural part of the energy mix in practically every region of the world except Australia.

Does bio-energy represent a silver bullet to save every part of Australian industry? No, of course not. But can it play a powerful, ongoing role in saving some of those companies that want to be saved? Absolutely.

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AutomationROBOTS & SENSORS

Digital transformation changing the face of manufacturing Countries looking to keep up with demands for quicker production systems and services are adopting IIoT in their processes at a quicker pace. Writes Dick Slansky, senior analyst, ARC Advisory Group.

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ANUFACTURING is rapidly moving into an era in which emerging Industrial Internet of Things (IIoT) based technologies, new materials, advanced fabrication approaches, and digitalisation are converging to change the face of production systems, manufacturing processes, supply chains, and even the workforce.

Digital transformation affects all stages of the product lifecycle; from design, simulation, production, maintenance, to service in the field.

At a recent ARC Industry Forum in Orlando, Florida, the theme, “Industry in Transition: Realising the Digital Enterprise,” was very evident in the Advanced Manufacturing

28 MAY 2017 Manufacturers’ Monthly

Technology for the Factory of the Future session. This session featured a presentation by an automotive company with radical new designs, a new manufacturing model, and new go-to-market strategy; plus a call to develop the next generation of manufacturing workers by the Advanced Robotics Manufacturing Institute (ARM).

The session examined emerging manufacturing technologies like additive manufacturing and hybrid machine tools, applied materials science, advanced predictive and prescriptive analytics for manufacturing that use machine learning, operational intelligence, cloud-based connectivity for

production equipment, IIoT, the digital twin, virtual reality and augmented reality, advanced simulation solutions, and more.

Advanced manufacturing technology is bringing significant changes and improvements to production systems and services. It is also bringing about the complete rethinking of new business models based on IIoT, the digital twin, and factory/supply chain ecosystems.

Leading PLM and other design/ build solution suppliers, along with production automation and controls suppliers, are working closely with manufacturing technology adoption leaders to lead the way for the industry as a whole.

Breaking all the rules David Woessner, general manager at Local Motors, a US based company, presented a look at the future of automotive manufacturing. While the company manufactures vehicles for the automotive market, any resemblance to other automotive industry participants stops there because the company represents a true disruption to the vast global automotive market that mass produces millions of vehicles per year.

To start with, the company manufactures custom vehicles, with the vehicle body and other components 3D printed from composite polymers. These bodies are then fitted with electric drive trains. manmonthly.com.au

AutomationROBOTS & SENSORS

The pace of technology change and potential associated advantage gained by the early adopters creates an ever-widening gap between early and late adopters.

Vehicles can roll off the company’s geographically distributed “micro” factories in anywhere from 18 to 24 hours to three to four days from start to finish, depending on the design configuration.

The company’s factories are easily set up within a matter of weeks to months (as opposed to years for conventional automotive assembly plants). Seven are up and operating already, with more planned in the US and Europe.

Beyond disrupting the entire automotive industry, the company has an even larger vision/mission: to create a better world through hardware. This involves using new materials, design methods, and advanced manufacturing processes to create technology forward products that inspire, empower, and nurture humanity.

At the same time, it is also “breaking the mould” when it comes to product design. Rather than design its vehicles with an established inhouse engineering organisation, the company has adopted a co-creation design approach. This is based on the concept of a design community.

A vehicle design can represent the combined effort of a global community of designers, with many engineers from both inside and outside the company. Once their designs have been accepted, designers are compensated based on a percentage of royalties paid on vehicles produced. In some cases, the manmonthly.com.au

company holds design competitions, with the best design selected for production.

The company’s manufacturing and business model can significantly reduce the development time for a new vehicle from an industry average of around four to five years, to one to two years, and shrinking.

The company aims to design and make cars in drastically less time, with less capital and investment, in smaller production facilities, using the combined design talent of a lot more people.

The new workforce for the factory of the future

Increasing pace of technology advancement

During the event, Jacob Goodwin, chief membership officer for ARM, presented a look at the current state of robotics in manufacturing, manufacturing jobs, and the outlook for the future.

The ARM Institute represents a collaboration between government, education, and industry to fund research, identify manufacturing requirements, and use resources offered by universities for researching and developing robotics and other advanced manufacturing technologies.

The institute looks to assess the current status of the country’s manufacturing relative to the use of robotics and to research and develop new classes of robotics for manufacturing. One goal is to place these more collaborative (working side-by-side with humans), next generation robots into small to medium manufacturers (SMEs) to help them become more efficient, productive, and competitive. Here, robots would not replace workers; but instead increase a company’s production volumes and quality, creating more work downstream for appropriately skilled people.

The emerging technologies that will drive tomorrow’s advanced manufacturing are already upon us. Companies competing for new business will increasingly depend on these technologies to bring new and innovative products to the market and improve their production operations to achieve new levels of efficiency and productivity.

As in the past, it will be the early adopters that will lead. The more cautious and conservative companies will typically wait for new technologies and processes to become mainstream before adopting them.

While, on the surface, this prudent approach appears to make business sense, the pace of technology change and potential associated advantage gained by the early adopters creates an ever-widening gap that is putting some companies in almost permanent leadership positions; with others relegated to follower status.

Manufacturers need to be constantly aware of the increasing pace of technology advancement and develop business strategies to adopt technologies that will offer them the most opportunities to improve competitiveness.

The pace of technology change and potential associated advantage gained by the early adopters creates an ever-widening gap between early and late adopters.

Manufacturers’ Monthly MAY 2017 29

AutomationROBOTS & SENSORS How manufacturers can save power and earn money at the same time The sector consumes large amounts of electricity and costs business owners thousands of dollars a year. However, a new competitor on the scene is about to take on the big players.

Mike Wheeler explains.

A

USTRALIA’S manufacturing sector accounts for just over 19 per cent of the country’s electricity consumption, according to the 2016 Department of Industry, Innovation and Science Australian Energy Update statistics. The residential market consumes only seven per cent of the market, which puts into context just how much energy manufacturers need to keep their businesses running and the associated costs the come with it.

It was knowing this that got Matthew van der Linden thinking “there must be a better way” for manufacturers to manage their power consumption. Thus, Flow Power was born and it operates on a model that gives companies access to wholesale prices that are usually the purview of retail energy suppliers.

“We recognised early on that a great way to save customers money was to open up customers to the wholesale electricity market,” managing director van der Linden said. “But to really scale it up, we had to create a retailer.”

Being at the mercy of market forces and nature is no way for manufacturing companies to reach their potential. Manufacturers need an assured, constant power supply to

30 MAY 2017 Manufacturers’ Monthly

keep their businesses on track. Power is also a high fixed cost that eats into the bottom line of profitability.

Flow Power allows businesses to access the wholesale market with all the benefits that entails. The company offers two solutions for consumers – the Freedom package or Mastery.

Freedom is a spot market price that can save manufacturers tens of thousands of dollars over a four- or five-hour period every year.

“The average price for electricity is around about eight cents a kilowatt at the moment,” van der Linden said.

“Very rarely, for short stints it can go up to $14 a kilowatt an hour. This can be avoided with smart technologies and missing them reduces the overall costs. When you convert that $14 a kilowatt hour to an operation that is running megawatts per hour, you’re talking tens of thousands of dollars in savings over that small period of time.”

Flow Power helps operators spot those times so they can then adjust their energy needs. For example, this might entail a manufacturer to shut down a high-energy use plant over those short periods of time.

Alternatively, they can shift to local generation sources, like a generator

or battery storage. It’s been a challenging project, van der Linden explains, but the company has put a lot of effort into making the process easy to follow.

“There were regulatory issues and billing issues and also technology issues,” van der Linden said. “We’ve actually put a huge effort into developing our kWatch Intelligent Controllers that can go onsite and provide signals about when to pump, or when to start the generator, or when to shut down, or when to shed load.”

Companies can cash in on the high prices, too. If you have a generator, you can make money during those high-use times by generating electricity and putting it back onto the grid.

“If you’re generating power and putting it back into the grid then you will be earning $14 kilowatts an hour,” van der Linden said. “It is a very good market for anybody who has a generator.”

Van der Linden said another benefit of the spot market is that it can help alleviate outages similar to those have occurred in South Australia. “The power market is one of those markets where you have to generate enough power to meet consumer needs,” he said.

“The mechanism the market has designed to fix that was to allow the price to go through the roof for very short periods of time. This is done to encourage consumers to reduce their load. However, traditional retailers have shielded consumers from this

manmonthly.com.au

AutomationROBOTS & SENSORS price signal. [Consumers] don’t see it. You sign up a fixed contract and nobody cares what’s going on.

Essentially what happens is SA gets blacked out. Fixed price electricity means inefficiency in the market and they stop it working effectively.

What we are doing is creating a Managing director of Flow Power, Matthew van der Linden.

kWatch Intelligent Controller can be onsite and provide signals for the operations.

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connection between the two.”

He goes one step further to reiterate the point, using the South Australian blackout as an example.

“In February, the AEMO intervened and cut power to homes,” he said. “We estimated that if there were 500 industrial customers responding to market signals at that point in time there would have been no shedding. It would have enabled the system to cope more easily. We did have customers in South Australia at the time, but not enough to make a difference. The [types of companies that could make a difference] are relatively small industrial customers who spend about $100,000 per year on electricity.”

Then there is the Mastery package. This follows the more traditional route taken by business. “[Mastery] is more like what most people are used to. It puts a ceiling on the price you can be charged but means you get access to the low points of the market,” van der Linden said. “You have some enterprises out there that have to have assurance about their energy supply.”

However, van der Linden reiterated that both products are popular with industries. “Historically, most are on the Freedom product,” he said. “It really is industry specific.

In most industries you will have a mixture of both. They actually work very well together. You might even have some sites that need Mastery and some sites that need Freedom.

We can do both without any issues at all. You can come up with a solution easily. It depends on the customer.”

With energy costs hitting new highs as time goes by, the company seeks to find new ways for customers to reduce their energy costs. It is giving customers direct access to power from solar plants through solar power purchase agreements (PPAs). It makes sense with Australia being one of the sunniest places in the world. This model offers not only fixed prices but fixed contract lengths, too. And it is the length of the contracts that might surprise some consumers.

“If you put solar panels on your land or roof, it can be complicated

and expensive,” van der Linden said.

“Alternatively, the solar plants can be built where the sun shines best and any commercial customer in that state can sign up. Because it’s a large solar farm, it is quite cost effective. It fully competes with onsite solar as far as price. You sign a 10-year contract and you get your energy fixed for 10 years. This allows companies to budget accordingly.”

However, consumers have to realise that solar will only cover part of a company’s energy requirements.

“Solar doesn’t cover all needs,” van der Linden said. “If you are a 24hour operation like some companies are, you’ll still need to deal with the other methods.”

Van der Linden is adamant that Flow Power is on the right track and using the right formulas to make sure Australia’s energy needs are not only streamlined and dependable, but transparent to the consumer. He doesn’t expect to make too many friends in the energy market, but has no regrets about Flow Power’s approach. To him, Australia’s manufacturing and energy sectors can have a complementary relationship – one that has been a long time coming.

With energy costs hitting new highs, Flow Power seeks to find new ways for customers to reduce costs.

Manufacturers’ Monthly MAY 2017 31

Eventsfoodpro 2017 foodpro announces 2017 show is sold out With more trends, techniques and offerings than any previous edition, foodpro 2017 is looking to set the standards for the food processing market this year.

2017 marks the 50th year for the iconic food processing event.

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OODPRO 2017 has announced in advance that the show has completely sold out in terms of exhibition floor space – demonstrating its ongoing relevance to the industry. foodpro has been a onestop destination for technology and solutions to all businesses in the food processing and manufacturing industry. This year is an auspicious occasion, marking the 50th anniversary of the iconic food-manufacturing event. Five decades on, foodpro 2017 continues to serve all aspects of the food manufacturing industry through valuable and unrivalled opportunities to connect, network and do business.

Industry experts will gather at the show to provide valuable insight to businesses on risk mitigation, trends, and techniques to stay profitable.

Beyond the latest equipment and technology, adherence to the laws of food labeling and compliance are paramount to a successful business.

Through seminars such as the Food Authority of NSW’s “Labelling and the Law”, visitors will receive access to accurate information and technical knowledge in addition to the expansive range of equipment on show.

32 APRIL 2017 Manufacturers’ Monthly

A number of exhibitors will also launch new products at foodpro: Gelita will debut their newest collagen peptide study on Bodybalance, a unique collagen protein said to aid as a food supplement to increase lean body mass and muscle strength – all while decreasing fat mass. With ingestible beauty products gaining momentum across the food industry, innovations such as Bodybalance are increasingly making their way into food manufacturing and create a previously untapped facet of the industry.

Munters will also launch new products at foodpro including the brand new ML/MX dehumidifier range, a flexible system that allows food manufacturers to solve humidity and temperature control requirements.

Unitherm Systems will present their recently patented process technology: a process for producing precooked bacon slices in a spiral oven.

The concern of waste management is a growing one for many businesses, regardless of their size, which is why foodpro 2017 will feature manufacturing technologies that work on smaller scales. These products, like the Armfield modular miniature scale UHT/HTST process systems, allow a reduction in the amount of raw materials and

resources used in the process of developing new products, opening up possibilities while reducing waste for many smaller businesses. Also suited to smaller scale enterprises, the Security Chain Integrity

Zone is a brand new initiative showcasing companies that offer traceability solutions specifically for smaller manufacturers, supported by the Food Innovation Australia Ltd (FIAL). In addition, this Zone will also host a series of relevant seminars.

The event is also co-locating with AIFST’s annual convention, where over 600 delegates are expected to attend the two day convention on the topic of The Future of Food. With so much on offer, it’s no surprise that foodpro 2017 will have the largest floor space ever in the history of the event - taking over 23,500 sqm of the newly built Sydney International Convention Centre’s exhibition building in Darling Harbour. foodpro 2017 will undoubtedly be the most important event in the food processing industry’s calendar this year.

The latest technology and services will be on display at foodpro 2017.

When: 16 – 19 July 2017 Opening Hours: Sun: 11am - 5pm; Mon & Tue: 10am - 5pm; Wed: 10am-3pm Where: Sydney International Convention Centre Exhibition Building Darling Harbour Registration: Register online for free entry at www.foodproexh.com foodpro is strictly a trade only event.

For more information, visit: http://www.foodproexh.com/

manmonthly.com.au

Events WOMEN IN INDUSTRY AWARDS Breaking down the barriers The 2017 Women in Industry Awards will once again recognise the best among women leaders who continue to play an integral role to the growth of Australia’s industrial sectors.

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or the fourth year running, Australian Mining, PACE, Manufacturers’ Monthly, Logistics and Materials Handling, Prime Mover, Trailer and Diesel are partnering to acknowledge the invaluable contributions of women in Australia who have achieved success through their leadership, innovation and commitment to the various STEM driven industries.

The Women in Industry Awards recognise and reward the women in Australian businesses who are driving change across the industry.

These may be women you work with, women whose achievements are inspiring you from afar, or women who are providing invaluable guidance and support.

For the first time this year, the annual awards will be accompanied

The Women in Industry Conference and Awards kick off on June 22.

by a one-day conference designed for women in the mining, manufacturing, engineering and road transport industries. The conference will feature a range of industry leaders and previous award winners discussing success in the industry, trends both past and foreseeable, and support, both what’s currently available and what may be required looking towards the future, for women across the sectors.

Prime Creative Media has long recognised the significance that women can bring to adding life to the Australian economy. The Department of the Prime Minister and Cabinet’s 2014 study on the Australian women’s labour force has indicated that there has been an increased participation of women over the past decade (from 62 per cent to 65 per cent of the

population aged 20-74 years). This demonstrates that the gap between men’s and women’s participation rates in the work force has narrowed and in the coming years, it will be more evened out.

In comparison to its first world counterparts, Australia’s experience is similar (in particular, to the United Kingdom), where according to the same report, the number of women in self-employment has been increasing at a faster rate than the number of men. The report also found that there is an increasing number of employed Australian women that are almost half as likely to be employers (4.5 per cent compared with 8.1 per cent of employed Australian men), and twothirds as likely to be sole operators (six per cent compared with nine per

cent of employed Australian men).

In addition, the Peterson Institute for International Economics and multinational professional services firm, EY (the former Ernst & Young), have also reported in a 2016 jointstudy that having women leaders within a company is more likely to boost the business value of that company. The report shows results from 21,980 global, publicly traded companies, in 91 countries from various industries and sectors that having at least 30 per cent of women in leadership positions, especially in the C–Suite, adds up to six per cent to net profit margin.

We believe the dedication and exceptionalism of women should be celebrated.

More importantly, the Women in Industry Awards seek to continue to break down the gender barriers and stereotypes around STEMrelated businesses, and create new possibilities for the next generation and beyond.

This year’s Awards is sponsored

by MMD, Natroad, Cummins, BOC, ABB, CSR Lightweight Systems and Atlas Copco.

Tickets for both the Women in Industry Awards and conference are available now at www.womeninindustry.com.au.

Women in Industry Conference When: 9am-5pm Thursday 22 June 2017 Where: Melbourne Convention Centre Women in Industry Awards When: 6:30pm, thursday 22 june 2017 Where: Peninsula, Central Pier Shed 14, Docklands Dress code: cocktail/lounge suit

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Manufacturers’ Monthly MAY 2017 33

What’sNew VegaPuls 64 Radar sensor for continuous level measurement of liquids THE VegaPuls 64 is the first radar level sensor on the market for liquids that measures at a frequency of 80 GHz. The radar level sensor VegaPuls 64 is not only ideal for wide use in the chemical industry, but also in the pharmaceutical and food industries, because of its hygienic materials and design.

The VegaPuls 64 is a sensor for continuous level measurement of liquids. With small tanks or in case of narrow space, the small process fittings offer special advantages. Firstly, the very good signal focusing enables use in vessels with many installations such as stirrers and heating spirals. The VegaPuls 64 also produces exact measuring results, independent of process conditions.

The VegaPuls 64’s measure ranges up to 30 metres, and temperatures up to 200°C. Vega Australia 02 9542 6662 www.vega.com

MHE Demag Gator series MHE Demag introduces the Gator series. The Gator series are among the toughest and safest dock levellers in the industry. With a heavy-duty nine milimetre diamond deck, I-beam underdeck support and auto-tilt technology, the Gator is built to absorb immense structural forces with ease.

It also comes with a host of features to enhance safety during operation and servicing.

The Gator series is ideal for heavy-duty usage in the loading bay, enhancing speed and ease of goods flow for logistics operations.

Easy access, via remote control and a maintenance strut with retrieval hook, allows maintenance by a single person.

MHE Demag 1300 336 241 www.demag.com.au

34 MAY 2017 Manufacturers’ Monthly

Rail safety devices SAFEMASTER offers the unique Connect2 Horizontal Liferail system to provide a secure and rigid connection for fall arrest, abseiling, including the connection of building maintenance units. The product has many unique features and can be used in many different commercial and industrial applications.

The Connect2 Horizontal Liferail can be used in a variety of settings. For instance, it can be used at the top of buildings or under the soffit of high rise buildings for ease of façade maintenance, used inside buildings in atriums to provide suitable abseil access for maintenance and cleaning, providing a gantry support system for a building maintenance unit.

Inside large maintenance sheds, it can also provide a rigid rail for retractable fall arresters to provide safe access to the top of machinery and large vehicles. It also can be used above truck loading bays, providing a rigid rail for retractable fall arresters to provide safe access to the back and sides of the trucks.

The Connect2 Horizontal Liferail system is many features and benefits. For one, it is designed to be lightweight, have low maintenance, attractive, adaptable and able to span up to eight metres in a single span, illuminating the need for additional structural elements in most situations. In addition, the rail construction is marine grade corrosion resistant aluminium, alloy extruded curved section and as such is self-cleaning and thereby does not require any surface coatings. Last but not least, it can take up to 1000kgs, depending on the configuration.

Safemaster Height Safety Solutions Tel: 1300 773733 http://www.safemasterhs.net.au

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Cordless hydraulic pump for load testing tools ENERPAC has released the XC-Series cordless hydraulic pump to increase the safety and flexibility of load testing tools.

The company provided turnkey engineering specialists Mr Lift It the solution for its load testing tool, which is used to test eye bolts, pad eyes, roof bolts and anchor points up to 12 tonnes.

The load testing device uses the hydraulic pump fitted with a V-66 load holding valve and connected to a stainless steel control panel. A variable load can be gradually applied using an Enerpac V-152 relief valve.

The pumps actuate hydraulic tools as fast as a basic electric powered pump and create up to 700 bar (10,000 psi) of pressure; making them up to five times faster than manual hydraulic pumps and up to two times faster than popular pneumatic powered pumps.

Designed to provide optimal safety to operators, the XC-Series offers several safety features, including zero trip hazards through cordless design, overload protection circuitry from excessive amp draw or temperatures, and a trigger lock-off mechanism to protect against unintended operation during transport.

Engineered as a long-lasting pump

that can be used in hard-to-access areas, the pumps are constructed of lightweight materials, featuring a 28-volt, Lithium-Ion battery technology.

With its bladder reservoir, the cordless pumps eliminate venting and offer leak-free operation in any orientation. In addition, the overall body, handle and trigger have been ergonomically engineered to maximise ease-of-use and portability.

XC-Series cordless pumps deliver oil flow of 2.05 litres per minute at its low-pressure setting and 0.25 litres per minute when operating at full pressure, up to 700 bar.

Additionally, the lithium-ion technology ensures XC-Series pumps provide end users with the battery runtime necessary to accommodate demanding application requirements.

Enerpac www.enerpac.com/en-au

Transparent material sensor with RFID THE SICK RFU65x RFID sensor saves space, time and money in applications for identifying vehicles and vehicle parts. As well as cutting costs, the RFU65x also simplifies and accelerates application processes in logistics and the automotive industry.

It detects tags at long range, recording the direction in which objects are moving at the same time. The associated user data can be sent directly to an ERP or MES system.

The operating range of the sensor covers an angle of +/- 45° with a typical sensing range of up to five metres. Although objects with tags that are located in the immediate vicinity are identified, they are filtered out as “static” tags and only used if required for diagnostic purposes.

Furthermore, the product family provides system integrators with the ability to install additional application software directly within variants of the RFU6xx. The user can develop and manage device-specific application software through the SICK development environment, and even transfer this to other devices. This can be facilitated via a range of programming techniques, including JAVA, LUA, and C++ (in the planning stages). The platform therefore offers maximum flexibility to support solutions for the IT tasks of the future.

SICK 1800 334 802 www.sick.com

Chlorine analyser for water monitoring ELECTRO-CHEMICAL Devices has released the plug-and-play TC-80 Total Chlorine Analyser, for simplified water monitoring and treatment processes, easy installation and less maintenance for lower ownership costs.

The analyser monitors total chlorine in drinking water, rinse water, cooling water or other fresh water samples from 0.05-20ppm chlorine as the standard range or 0.0052.000ppm with the low range sensor. Its plug-nplay design installs quickly right out of the box.

It has an advanced panel mount design includes built-in flow control, which eliminates the need for complicated pressure regulators and rotameters. Built-in automatic pH compensation also eliminates the need for expensive reagents to reduce maintenance and life-cycle costs.

manmonthly.com.au

The analyser features a panel mount design that incorporates a constant head flow control device, a pH sensor, a chlorine sensor and ECD’s T80 analyser/transmitter conveniently mounted on a PVC panel. Connect the sample and drain lines, next connect the power and outputs, and the TC-80 is ready to use. It is calibrated at the factory before shipment, which is accomplished

by DPD comparison.

It is available with either 110-240VAC or 24VDC power and graphically displays both the Total Chlorine and pH allowing for easy trend analysis. The standard configuration has two 4-20mA outputs and three alarm relays.

As for cleaning, the analyser is available with an Auto Clean option that includes a solenoid actuated spray cleaner using either

30psi process water or air. An easily adjusted timer controls the period and duration of the cleaning cycle.

AMS Instrumentation & Calibration (03) 9017 8225 www.ams.ic.com.au

Manufacturers’ Monthly MAY 2017 35

What’sNew Miniature torque screwdriver FUTEK’S Miniature Reaction Torque Screwdriver (TAT200) from Metromatics allows operators the ability to monitor the torque applied during the assembly of more delicate products.

During the assembly of delicate products, operators may be required to use a torque screwdriver to monitor the torque applied to nuts and/or bolts. Futek’s screwdriver lends itself as a suitable auditing tool to monitor such torsional measurements.

Pairing this screwdriver with the company’s USB Solutions and SENSIT Software creates a suitable laboratory platform for data logging and live graphing measurements straight onto that operator’s computer screen as depicted in the conceptual diagram. Pairing it with the company’s IHH500 Handheld Digital Display also enables the tool to be used in the application of more industrial uses as a production device.

Metromatics www.metromatics.com.au 07 3868 4255

Software-free code scanner THE new Wenglor series C5KC and C5PC 1D/2D stationary code scanners from Treotham Automation eliminate time-consuming software installation and configuration. The auto-setup, auto-focus and newly developed decoding algorithms provide outstanding reading performance against almost any background, according to the company.

Scan settings can be accessed via the company’s WebLink user interface for optimised reading of damaged and highresolution codes. The scanners offer the smallest available format for 1D/2D code scanners, making them ideal for use in extremely compact machines and, thanks to a reading speed of 60 scans per second, they’re suitable for applications with high throughput rates too.

36 MAY 2017 Manufacturers’ Monthly

The code scanners are suitable for a large range of applications including product identification and traceability, checking for completeness and quality inspection of 1D/2D barcodes and reading of all common 1D/2D codes, as well as scanning of 1D/2D barcodes on all surfaces such as PCBs, metal and pallets. Even laser printed and needle punched data-matrix codes are no problem for the new scanner series, according to the company.

The scanners are suited to the automotive, pharmaceutical and food industries, as well as the packaging and electronics industries where numerous track and trace tasks are required daily.

Treotham Automation www.treotham.com.au 02 9907 1788

Parameterisable power supply device PHOENIX Contact has released a parameterisable power supply with the launch of its fourth generation Quint device. The Quint Power IV offers all the power supply capability found in the Quint III generation but includes a host of added features that allow the user to tailor the Quint IV to suit their required output behaviour and preventative function monitoring.

The device ensures the supply of continuous power to suit the exact needs of users because it is fully configurable. For example, its output characteristics (signalling and voltage) can be easily adjusted to the user’s exact requirements.

Components such as the output characteristic curve can be individually altered due to parameterisation via the integrated NFC interface using a smartphone.

Furthermore, the integrated Selective Fuse Breaking (SFB) technology delivers six times the nominal current in up to 15 milliseconds and thereby selectively trips standard circuit breakers safely and quickly, according to the company.

The device also has comprehensive diagnostics that constantly monitor systemspecific, critical operating states and report errors before faults occur. In addition to providing no-load losses, the device can be switched to an energy-saving sleep mode via the integrated remote input, saving both energy and money.

Compact and easy to configure, the device is available in single and three-phase models and is designed for usage in the process industry, machine building, and energy and water industries.

Phoenix Contact 1300 786 411 www.phoenixcontact.com

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Rugged Windows tablet BACKPLANE Systems Technology has released Winmate’s M101B 10.1-inch High Brightness Rugged Windows Tablet.

The tablet uses the latest Intel Celeron N2930 1.83GHz quad-core Bay Trail processor that allows high performance and low power consumption, equipped with a 10.1-inch high resolution 1920 x 1200 IPS LED display that is 700nits sunlight readable, making it suitable for most industrial applications.

It features a rugged design with full IP65 rating that enables it to withstand temperatures from -20 to 60 deg C (AC mode) to -10 to 50 deg C (battery mode). It is also resistant to shock, vibration and dropping, making the unit robust and tough.

According to the company, one of the unique features of the M101B is that it has a hot-swappable 5300mAh battery, which allows the user to swap out the battery when needed, reducing down time and the need to keep recharging the system.

Backplane Systems Technology 02 9457 6400 www.backplane.com.au

Chicago Pneumatic adds two models to its mid-size plate compactor range INTERNATIONAL construction equipment manufacturer Chicago Pneumatic has expanded its mid-size light compaction range with the addition of two new reversible plate compactors. Designed primarily for compaction of granular soils, the new MV164 and MV174 models are suitable for operation in confined areas and trenching duties, either to complement or provide an alternative to drum roller machines.

The company’s spokesperson for light compaction equipment, Andrzej Mrozinski, said the two additions were developed with maximum productivity and user-friendly operation in mind. They provide reliable compaction power and speed in either direction.

To aid productivity on site, operators can back out of a trench while still compacting. They can also change operation direction using the vibration dampened handle.

Both models offer power and reliability from their manual start engine units. The MV164 features a 3.6 kW Honda GX 160 petrol engine, while the MV174 is powered by a Hatz 1B20 diesel engine that produces 3.1 kW. Both machines can achieve a maximum forward speed of 22 m/min.

The compactors’ durability is enhanced by a 450 mm wide bottom plate made from Hardox 400 steel, designed for intensive usage and extremely resistant to wear and tear. In addition, the new design incorporates a hinged protective hood that provides easy access to the fuel tank. The hood also incorporates a foldable lifting eye to aid movement both on and between work sites.

The hydraulic pump is strategically located to reduce the risk of impact damage and accessories for the compactors include a wheeled transport device and block paving kit.

Chicago Pneumatic www.cp.com manmonthly.com.au

Plastic fabrication and thermoforming FABRICATED acrylic can be used for many applications. Allplastics Engineering offers customised plastic fabrication solutions to suit customer requirements including display systems, furniture, covers, lighting, window and door panels, shop fittings, bathroom fixtures, machine guards, insulators, laboratory equipment, museum showcases, lecterns, plinths, easels and optical displays.

Allplastics Engineering are specialists in custom plastic fabrication and plastic thermoforming. From food displays to moulding and forming services, Allplastics Engineering has the right fabrication solution.

Their experienced fabricators use materials such as acrylic Perspex Frost Plexiglas, Makrolon Multiwall, Lexan and many others. An authorised distributor of the Perspex brand in New South Wales, Allplastics Engineering will provide quality in plastics engineering and solutions.

In addition, plastic fabrication and thermoforming services include cutting to size (sheet, rod, and tube), welding, slumping, diamond edge polishing, buffing, drilling, CNC Routing and others.

Allplastics Engineering www.allplastics.com.au 02 94176111 Manufacturers’ Monthly MAY 2017 37

The LastWORD Adapting to change In a recent address to the National Press Club in Canberra, Innes Willox spoke about the implications of existing US policies on Australian manufacturing.

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ONALD Trump was elected because on the back of China and the GFC, enough Americans, particularly in the industrial north, felt their economic model was broken.

His focus on rebuilding a manufacturing base – the “Make it in America” mantra – was paramount in his election.

This fact alone should add urgency to those considering the energy security and affordability questions that are hanging like the sword of Damocles over key parts of our own manufacturing sector.

The new President now has a little over 18 months until the next mid-term elections to make a serious change or the caravan may well shift allegiances.

The President knows it and the business community knows it. That explains why he ditched health care reform so quickly and moved to tax reform – an area where if he achieves success will have profound implications for Australia.

The fundamental question for any business observer is to ask whether President Trump is a disrupter or a transformer or eventually neither: a disrupter throws the current system up in the air; a transformer makes fundamental changes.

His legacy will be as one or the other or, if it all turns to custard, as a complete failure. I don’t think that Donald Trump is someone who countenances failure.

So what will be the impacts on Australia?

It is worth reminding ourselves that the US is our most important economic partner. We hear a lot about China being our largest trading partner. That is true, but US companies account for the largest share of foreign investment in Australia – more than ten times as much as China’s direct 38 MAY 2017 Manufacturers’ Monthly

investments here. And the US is the leading destination for Australian investment abroad. There is a lot at stake.

The President has committed to reduce the US federal corporate tax rate. He has also indicated a strong interest in the idea that a destination-based cash flow tax could replace the current business income tax.

On the lowering of the US company tax rate, on one level if it were to occur it would be part of a well-established trend across the OECD. Trump, at one point, proposed a reduction in the US federal company rate from its present level of 35 per cent to 15 per cent.

This would see the US go from the highest rate in the OECD to one of the lowest.

A reduction of this size would be more than part of the OECD-wide trend. It would be more like turning the US into a tax haven.

Whether to 15 per cent or a lesser change, there would be two impacts on Australia: • First, if a lower US tax rate increased total investment in the US by more than the amount diverted from other countries, it would underwrite a higher productivity, higher growth path both for the US and the global economy than would otherwise occur. In itself, that would be beneficial for trading nations like Australia.

• But investment would also be diverted to the US from other countries.

Following the recent developments in our Senate, there would be less of an impact for companies with turnover of under $50 million, but in general it would make Australia less competitive in

after-tax terms than the US. Multinational companies that invest in both Australia and the US would be more inclined to locate their next investments in the US rather than in Australia.

This includes US, Australian and multinationals from other countries.

We are not talking small beer.

The US accounts for 28 per cent of all our foreign direct investment – that’s about $860 billion dollars.

And Australian direct investment in the US is not small either.

In 2013 Australia had 116 direct affiliates of Australian companies operating in the US employing nearly 100,000 people. Interestingly, manufacturers make up 43 per cent of the Australian companies operating in the US. The overall outcome for Australia would depend very much on the extent of US rate reductions. It would also depend on any responses in other countries. We could expect that pressure would build around the world for tax cuts in response.

There would be further pressure for an Australian response and we have seen over the past year the difficulties we, as a nation, have in dealing with this.

Perhaps an even bigger shake up would come from an introduction in the US of a destination-based cash flow tax. This idea has been debated in the US for many years and has a strong academic pedigree.

The infamous Henry Review also injected the idea into Australia’s now barely-alive national tax conversation.

At first glance the cash flow tax is beguilingly simple. The tax base for a purely domestic business would be its sales revenue less its expenses – including its capital expenses.

That’s it! No depreciation schedules. No distinction between capital and recurrent expenditure.

No distinction between income from the sale of capital assets and other sales revenue. Just cash in less cash out. Not unlike a GST really.

And like a GST, there would be border adjustments. Export revenue would be exempt but imports would be included in the tax base.

That is, sales revenue from exports would be exempt and business expenditure on imports would not be deductible.

Interest expenses would not be deductible and profits earned abroad would not be taxed in the US. Clearly this approach to business tax is a major departure from existing practice. Whatever else, it would disrupt the global taxation of business income. It is a contingency that Australia should do much more preparation for: including by readying for the difficult public policy debate that would be involved.

More than ever, Australia needs an economically strong and open US to allow us to grow. But we also need to adapt to the challenges that change there produces.

We must be open to new ideas such as around the Trump tax agenda to both compete and complement the US. After last month’s gyrations over small business tax cuts here, Australia’s challenge is not just to lag behind or to try to keep up, but rather to stay ahead of the game to remain relevant and competitive.

Otherwise, Australia risks being drowned in Trump’s promised tsunami of tax relief and reform.

Innes Willox, Chief Executive Australian Industry Group manmonthly.com.au

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