Manufacturers' Monthly - September 2017

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16 Issues & Insights

28 Manufacturing Strategies

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Behind the cover

Besides streamlining costs, the shortage of a skilled workforce is a very significant factor driving companies to automate. According to local welding institutes, more welders are retiring every year, leaving manufacturers scrambling to fill the gap. Some companies in the market are considering robotic automation as a feasible option. This does not mean, however, that robots are replacing humans. A successful robotic welding process needs a human to program the robot, and that person needs to understand what the welding process is and the limitations of the welding process.

Hence there is a need for welding operators to understand that it is not about a robot that is replacing him or her. A company that embraces automation technology—and implements it correctly—will be profitable and grow. Growth means more jobs, not less. Also, a benefit of robotic automation for welders is that the additional training makes them more valuable to the company,

essentially enhancing job security.

That being said, an experienced welder is crucial for any welding process including a robotic one.

An experienced welder could potentially learn to operate a robot more effectively than an experienced computer programmer. The robot lays the bead, but it’s the operator’s skilled judgment that teaches the robot what it should do.

With the changing Australian manufacturing economy, local distributors have the chance to present robotic automation to their customers as part of their service portfolio. Those who have worked to establish trust with their customers will remain competitive and profitable by anticipating the needs of their customers and offering them a full automation solution. The distributor can make the investment and learn the technology to bring that expertise in-house and create a foundation to make it easy for the customer to grow, allowing the distributor and the customer to solidify their relationship.

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

SEPTEMBER 2017

FORGING STRONGER BONDS

INSIDE >> 13

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of information, Prime Creative Media will not accept responsibility for

Moving forward with autonomous machines

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Looking into today’s cyber threats and how to counter them

28

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Picking the right finance options in manufacturing

Manufacturers’ Monthly SEPTEMBER 2017 5

Editor’s Comment

SYED SHAH – Managing Editor, Manufacturers’ Monthly

Risky times, risky business

B

ACK at the turn of the 21st century, there was a large number of tech-themed networking fests and events all directed towards nurturing the then budding technology and telecommunications community the world seemed to be geared up for.

Stock market analysts, and even the most well reputed business publications in the world, encouraged the public to invest in these dotcom businesses, despite many of these companies’ disregard for basic financial and even legal principles.

In the beginning, this somehow worked and stock markets grew along with the large number of internet start-ups. So, along the way we got acquainted with names like Boo.com, Pets.com and Think Tools AG – the larger, better known ones.

While the mojo of the internet was strong then, these companies thrived with the notion that their fortunes would double up or more in the time to come. The risk factor was great, but it was definitely a financial thrill for investors and entrepreneurs

6 SEPTEMBER 2017 Manufacturers’ Monthly

alike. Of course, the crash happened soon afterwards and from the year 2000 there was almost no way to survive the dip in profitability of the dot-com industry, with most of these companies burning up the entirety of their venture capital.

The big question to this was: did they manage the risk of the bubble bursting well enough? The answer is obvious, because more than 90 percent of the dot-com business crashed by the year 2005 as many of them became non-profitable overnight. The lucky ones were acquired by larger conglomerates.

It is worth pointing out some of the survivors are some of the biggest businesses in the world today: Amazon and Google.

What was their strategy? While it is too simplistic to explain all of it in few paragraphs, one of the biggest factors I would dare say was having the right risk analysis and management strategies. At the supply chain Smart Conference in Sydney I attended the seminar on risk analysis and management, where well-known

local and overseas academics stressed on the need for risk management.

A local university professor specialising in economics mentioned: “Catastrophes are bound to happen.

There will be a time where the plunge in the business is inevitable.

But the key to survival is the time taken to recover and if proper strategies are in place to ensure the quick response and turnaround during the disaster period.” In other words, proper processes will ensure immediate mitigating measures to keep a business afloat, which could in turn translate into the continued confidence of investors. This would mean the continued survival of the business.

Recently, the big five accounting firms have been conducting risk-assessment practices studies to gain insight into how manufacturing companies around the globe are assessing and responding to risks, and how they plan to do so in the feature.

They surveyed respondents from large multinational corporations

who answered questions about their risk-assessment practices, the top business and information technology (IT) risks they face, and the intersection of risk management and strategic risk. The findings indicated that the most successful risk-assessment practices were: periodic presentation of specific risk topics to board committees tasked with governance, integration of risk assessments into strategic planning process with business units, leveraging on risk assessment committees with broad representation involvement of C-suite executives and modelling risk scenarios and quantification of their impacts.

I think that the strategy for survival in any high-risk situation is best summed up by the late British actor, Desmond Llewelyn, in his last portrayal of Q in a James Bond movie. Before he exits, he leaves Bond with a parting quote of wisdom: “Besides never letting them see you bleed, always have an escape plan.” Sound advice indeed.

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Comment

WADE NOONAN – Victorian Minister for Industry and Employment

Making the right choice

T

HE fight to build the Australian Army’s next batch of modern armoured fighting vehicles is a gruelling one. But it shouldn’t be.

Victoria is the natural home of vehicle manufacturing. We have the workforce, the expertise and the runs on the board. Land 400 Phase Two is a military contract worth up to $5 billion to the Victorian economy and billions more in future defence contracts.

It will see the manufacture of 225 state-of-the-art combat reconnaissance vehicles.

But it’s far from just a dollar figure – it represents thousands of jobs across local manufacturing and the defence supply chain. We’re talking about decades of work, including opportunities for workers leaving our automotive industry.

With BAE Systems announcing the former Holden site at Fishermans Bend as its preferred location to build these combat machines, we are in a fantastic position to secure this work. For this, a final decision on which state is awarded this work rests with the

8 SEPTEMBER 2017 Manufacturers’ Monthly

Turnbull Government.

The choice is clear – Victoria and BAE Systems Australia, or Queensland and the German-based Rheinmetall. Land 400 is the project Victoria deserves, and is the best decision for Australia and local jobs.

As the home of military manufacturing, Victoria is the obvious place of choice to build them. No state can rival Victoria’s track record in building the best battle vehicles for our military.

Bendigo-based Thales is already manufacturing the world-class Bushmaster and Hawkei vehicles.

We also boast a proud and highlyskilled workforce from the automotive sector – men and women who’ve dedicated decades of their working lives to build vehicles for our great state.

Many of those workers have been able to transition to supply chain businesses specialising in defence technology – and as automotive manufacturing comes to an end – thousands more would benefit from Land 400.

At the moment, Victoria’s defence industry is already thriving.

The industry is worth $8 billion to the local economy every year, and is made up of about 20,000 people and 400 businesses.

From military vehicles, to components for the world-renowned F-35 Joint Strike Fighter, we manufacture the biggest and the best.

Victoria is also the brains of our nation’s defence industry. Lockheed Martin recently chose Melbourne for its new STELaR Lab in Melbourne – the company’s first multidisciplinary research and development facility outside the United States.

The brightest research minds at STELaR Lab are looking at new technological breakthroughs in defence and finding solutions to some of the world’s biggest problems.

Modern armoured fighting vehicles are equipped with complex computerised systems, and they require the best research and development expertise to support them.

Victoria is also home to the Defence Science Institute, the Defence Materials Technology Centre and elements of the

Department of Defence’s Defence Science and Technology Group.

Scientists, engineers, IT professionals and technicians are ensuring our military is equipped with cutting-edge equipment for modern warfare.

But we’re not just fighting to make sure our military gets the best vehicles possible.

We’re fighting to build these vehicles here because it will create hundreds of jobs for Victorians and inject billions into the economy. And these aren’t just jobs for engineers and vehicle builders – they’re jobs for all Victorians, including automotive workers.

The end of auto manufacturing means the loss of thousands of jobs. Victorian workers deserve the certainty that LAND 400 would bring this great state. When it comes to building military vehicles, it makes sense to go with tried and tested expertise and experience.

So, if Malcolm Turnbull wants the best possible outcome for the Australian Army, jobs and the economy – Victoria should be the home of LAND 400.

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News@MM Saab commits to SA defence training hub ahead of jobs expansion A new Defence Institute will be established by Saab Australia in partnership with the University of South Australia (UniSA) ahead of an expected defence jobs boom.

The manufacturer has invested up to $40 million to the expansion of its Adelaide office, which aims to educate and train a future defence workforce. “[Saab] forecasts that the need for additional personnel with the right education and training will be in excess of 5,000 and about 20 per cent of those will need to be university qualified,” said Saab Australia managing director, Dean Rosenfield.

“This partnership ensures academia is in the heart of industry.

Students will learn the technological skills, the industry demands and through the practical experience element, know how to deliver projects effectively.

“We have had a long and productive association with UniSA.

This new partnership will give South Australia and Saab the edge in building defence industry capacity, delivering world-class solutions for future key projects.”

Welcoming the new academic institution, Defence Industry Minister Christopher Pyne also said it would

help provide opportunities for smaller companies in the defence supply chain.

The partnership will see UniSA researchers and Saab engineers work closely by researching new technology.

“This initiative is a fine example

Saab Australia pledges $40m to Defence training centre

of how universities and industry can work together to deliver future growth for South Australia,” said UniSA vice chancellor, Prof David Lloyd.

“Students studying engineering, IT and a variety of other STEMbased degree programs will have the opportunity to undertake real world projects at Saab or other companies in the supply chain and high performing students will be offered longer internships.

“We will be co-creating curriculum and teaching materials with Saab, ensuring they reflect current industry requirements and, at the postgraduate level, we will work with Saab to redevelop our Masters in Military Systems Integration to maintain the deep relevance of the program.

“In addition, the partnership will provide opportunities for joint research work, opening up new areas for PhD research, supporting additional innovation.”

SA to house world’s biggest solar farm and battery storage project Developer Lyon Group has confirmed plans to build a $1 billion solar farm and battery storage project in South Australia’s Riverland region, near Morgan.

The system will include 3.4 million solar panels and 1.1 million batteries, making it the biggest of its kind.

Construction is due to begin in the next few months, with the system expected to be operational by the end of the year.

Lyon Group partner David Green said the system “will significantly enhance the capacity available in the South Australian market”. He expects the project will enable 330MW of power generation and at least 100MW of storage.

Premier Jay Weatherill praised 10 SEPTEMBER 2017 Manufacturers’ Monthly

Construction of the solar farm is due to start in the part this year. the initiative, and said Lyon Group was among several to express interest

in building a 100MW battery as part of the SA government’s new

power plan, which will be announced this month. manmonthly.com.au

Saab Australia pledges $40m to Defence training centre

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News@MM Partnership to increase Australian products in construction A new partnership between the Australian Made Campaign and Master Builders Australia aims to boost exports and the use of locally made products by the building and construction sectors.

The initiative will encourage building and construction firms to source Australian-made goods and assist local businesses in marketing their products and services to export markets.

Australian Made Campaign chief executive, Ian Harrison, said Australian-made often translated to better quality and durability.

“Australia’s extremely stringent quality and safety manufacturing standards have helped establish our reputation for well-made products, that last,” said Harrison.

Recently released Roy Morgan research found 75 per cent of Australians prefer Australian-made building and construction goods,

making local content an important selling factor for businesses.

“Manufacturers and developers promoting goods as genuinely Australian should leverage countryof-origin branding whenever possible,” said Harrison.

“Research shows the Australian Made logo is recognised by 99 per cent of Australians, and has been found to increase sales in export markets as well, so it should form an important part of any marketing strategy. As a registered certification trademark it defends the authenticity of Australian goods.”

Master Builders Australia chief executive, Denita Wawn, said the organisation was proud to be working with the Australian Made Campaign.

“Formalising the longstanding relationship between Master Builders Australia and the Australian

Made Campaign demonstrates our commitment to local industry.

This initiative will greatly benefit Australian manufacturers and the broader building and construction industries,” said Wawn.

The Australian Made logo will be central to the branding of Master Builders Australia trade missions and exhibitions to be carried out in 2017/18.

“This year’s trade missions and exhibitions will benefit greatly from the powerful message the Australian Made logo conveys,” said Wawn.

Master Builders Australia has opened its Export Diagnostic Program to businesses keen to participate in the export promotions. The Program assists companies in determining whether they have the right tools in place to be successful overseas, and aids in the development of export

strategies.

“Leveraging Australia’s excellent reputation via events like these can help grow market share abroad, making businesses far more importresistant,” said Wawn.

The initiative will encourage building and construction firms to source Australian-made goods and assist local businesses in marketing their products and services to export markets.

Rheinmetall integrates Australia and New Zealand defence operations Defence contractor Rheinmetall has announced it is integrating its operations in Australia and New Zealand into a single operational unit.

Gary Stewart has been appointed as the managing director to lead the business, which will include the existing operations of Rheinmetall Defence Australia, Rheinmetall

MAN Military Vehicles Australia, Rheinmetall Electronic Solutions Australia and Logistic Solutions Australia.

From now on, all businesses approaching the Australian and New Zealand governments under the name “Rheinmetall” will be unified within the framework of the new Rheinmetall Defence Australia

Rheinmetall Defence Australia will consolidate its businesses in Australia and New Zealand as one operational unit in the form of Rheinmetall Defence Australia.

12 SEPTEMBER 2017 Manufacturers’ Monthly

(RDA) organization.

Stewart moves into the role following more than 12 months as CEO at RDA, reporting to Andrew Fletcher, who has stepped down after two and a half years spent establishing the company’s local footprint.

“The timing is right to pass the baton to Gary, as the company moves from an establishment phase to one of consolidation and growth,” Fletcher said.

Stewart has significant defence and industry experience that includes senior management positions at General Dynamics Land Systems in Canada and Australia, as well as delivering project management and systems engineering expertise to a range of Australian programs.

Prior to his work in industry, he served for more than a decade as

an engineering officer in the Royal Australian Air Force.

“From today, Rheinmetall Defence Australia will consolidate its businesses in Australia and New Zealand as one operational unit in the form of Rheinmetall Defence Australia,” Stewart said.

“I am proud to lead the company into this exciting phase where it operates as a regional hub for Rheinmetall, presenting one face to its customers and building on the significant progress we have made over the last 40 years.”

Fletcher’s professional association with Rheinmetall continues through his appointment as a non‐executive director of the Rheinmetall Defence Australia Supervisory Board alongside the Hon. Robert Hill AC and Lt. General John Caligari AO, DSC (retired). manmonthly.com.au

Industry FOCUS Putting autonomous technology in the driver’s seat Productivity and safety are two key targets for manufacturers seeking a high return on investment in new technology. Steven Impey investigates the role driverless vehicles are playing on the factory floor.

Automation technology product manager Christopher Probst demonstrates Omron’s Autonomous Intelligent Vehicle at foodpro

F

OR those who follow the developments and politics of autonomous science, they will know that it hasn’t been a completely smooth ride – with scenarios around where accountability would fall for road-related deaths and everyday insurance claims still to consider.

Meanwhile, artificial intelligence of this kind is already being used widely within the manufacturing and resource sectors that link Australia’s economies and industrial fortitude.

In factories across the world, autonomous guided vehicles (AGVs) have been entrusted ever since the 1950s, when primitive yet innovative operations followed wires in the

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ground and were designed to require minimal human intervention.

With the dawn of the fourth industrial revolution (Industry 4.0) and the drive for smarter technologies that can enhance speed, efficiency and safety within the workplace, some companies are already taking the next step.

Links to mining Laser technology is changing the mining industry right across the supply chain.

Whether it involves transporter trucks on the dirt, underground excavating vehicles, or even freight trains, autonomous technology now

enables machines to visualise and map their own surroundings and, essentially, make independent decisions without the help of a human hand.

Sean Carter, product manager for Sick Australia, is abetting the introduction of industry innovation including laser-guided systems in the manufacturing sector.

While mining is leading the charge for truly autonomous vehicles, he said the future of manufacturing will benefit significantly by turning manual labour into digital dynamism.

“On a daily basis, I see a lot of companies – especially in the resources sector – which are being

challenged by low commodity prices that have recovered somewhat but are still not at the top levels they were a few years ago.

“There is pressure these days for companies to automate as much as possible and that increasingly includes automated vehicles.

“Autonomous vehicles of course won’t get tired like human drivers do, which often leads to mistakes. So, we are seeing a greater drive towards automation in this area; vehicles that can operate 24 hours a day, seven days a week.”

There are some operations that do require a deft, human touch – however, for the most part, Carter Manufacturers’ Monthly SEPTEMBER 2017 13

Industry FOCUS insists autonomous vehicles will complete an operation faster and cleaner on its own than it would under human control.

At Sick, they are testing the use of LiDAR sensors (radar technology that uses laser detection rather than radio waves) in its autonomous vehicles, which seize the area in front of the sensor to map the environment around it.

“With that mapping technology, engineers are able to create guidance algorithms and all sorts of smart technology that can guide vehicles and help them operate autonomously,” Carter continued.

“AGVs in logistics companies, such as autonomous forklifts, tend to use a variation of the LiDAR sensor, but they are automated for the very same reasons: speed, efficiency and safety.”

Supporting the workforce As with any kind of automation, the question that still stings is the one of worker longevity and whether a machine, which may be able to do a human job better and more quickly, will deny people a place at the table.

While traditional manufacturers are seeking ways to implement automated technology, replacing forklift drivers and low-value material roles is seen as an opportunity to improve the

productivity of an existing workforce.

“There is a lot of fear that robots and technology will usurp jobs, taking roles away from traditional workers,” Carter added. “However, the evidence seems to suggest that those workers can be deployed into other areas where they offer more benefit and add more value to the company.”

According to the team at the industry consultant Wiley, AGVs are gaining traction across the manufacturing sector – albeit wholesale adoption is still some distance away.

The return on investment in an autonomous system is generally robust, according to Brett Wiskar, Wiley’s R&D and innovations director.

He explained that one way to assess this is to determine the cost of handling per item by simply looking at the labour, packaging and ongoing warehouse costs autonomous solutions could potentially diminish.

“Automated systems manufacturers are able to determine accurately their systems’ capacity and price per unit for handling,” he said. “This means the business case and breakeven-point are easily determined.

“It’s the larger more sophisticated operators who seem to understand the business case and the returns provided through these automated solutions.

“Smaller players are starting to

Sick Australia is testing LiDAR sensor technology in mining that could benefit other industries

move in this direction but it’s the more economically astute businesses who able spot the returns, which are clearly there but are less obvious in a smaller operation.”

Increased quality control through reduced product losses and the need for less space on the factory floor are some of the benefits introducing an autonomous system to the budget can sow.

In cold storage, the use of driverless vehicles can also lead to reduced energy costs, according to Wiskar, who explained that, by cutting the time that food products spend out

of storage, it can increase the integrity of a company’s cold supply chain.

Accountable manufacturing “Integrating both the production side of an operation and the logistics side of the business means that orders are always where they’re supposed to be when they’re supposed to be and always contain the product they’re supposed to,” Wiskar said.

“The AGV market is now mature and the means of ensuring safe operation and safe interaction with users is well advanced. With minor modifications to facility layout and

Autonomous vehicles and humans can work side by side on the factory floor

14 SEPTEMBER 2017 Manufacturers’ Monthly

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IndustryFOCUS With that mapping technology, engineers are able to create guidance algorithms and all sorts of smart technology that can guide vehicles and help them operate autonomously. workflow, safety can be engineered into facilities for staff and their interaction with these systems.”

In the factory, the role of an AGV is essentially to transport raw or manufactured materials from one place to another – however, more often than not, they are restricted to fixed paths, which require a rigid design that may be difficult to adjust during changes to a factory layout in the future.

As an industry automation specialist, Omron Australia has been demonstrating their latest technology that is shaping a new path for autonomous material transportation.

manmonthly.com.au

Speaking with Manufacturers’ Monthly at this year’s foodpro convention in Sydney, automation technology product manager Christopher Probst introduced Omron’s Autonomous Intelligent Vehicle (AIV), which is expected to add value to the traditional AGV. “Driverless transport systems have been around for decades now and the ones you particularly see in the manufacturing environment is the AGV,” Probst said.

“There is a fair bit of infrastructure that is required to fit the facility out so that your AGV can run through your building. The problem you have is that AGVs don’t have obstacle avoidance.”

For example, if someone drops a pallet in the path of the AGV, the vehicle has to stop in the middle of a task, therefore breaking down the operation’s workflow.

“AIVs aren’t there to replace AGVs,” Probst explained, “however they handle smaller payloads more quickly and much more effectively.

“If its path is blocked, the AIV will automatically calculate a new route.

With workers who may not be paying attention, even they can see how an AIV travels around you.”

The technology’s Natural Feature Navigation (NFN) creates a virtual map, which aids to strategically position pick-up and drop-off points for material around the workplace.

“In a sense, it offers an adaptable conveyor model, which is very useful where you need flexible manufacturing and multiple pick-up and drop-off points,” Probst said.

“Wherever people are manually pushing carts around, the AIV does the job a lot better and has a lot of advantages as well. They are

deterministic, meaning they will always go where they need to go irrespective of whether something or someone is blocking its path.”

What that means for manufacturing is that a business can own consistent and efficient production lines, he explained – without disrupting human workloads.

In a typical workplace, workers who do manual handling typically carry out tasks such as parts picking, inspection and placement, loading up boxes and trays.

However, in a workplace with AIVs, there is an opportunity to free up more time for staff to carry out highervalue tasks.

“One of the things that drives the industry is the cost of production,” Probst continued.

“If you can move your parts through the workplace more quickly, efficiently and with traceability, you become more competitive.

“This is the advantage of overall equipment effectiveness to have a competitive advantage.”

Manufacturers’ Monthly SEPTEMBER 2017 15

Issues &INSIGHTS What it means to be a mid-market manufacturer Getting a commercial idea off the ground takes fiscal brawn as well as a bright spark – but some claim there isn’t enough being done to encourage investment in Australia’s midmarket. Steven Impey investigates.

Redarc places a huge emphasis on its R&D division which it says has been the central contributor to its growth.

S

PENDING some time in the company of industry thinkers, you start to gain a wider perspective of the world and where Australia sits in it.

The majority of interviewees in these pages can usually vouch that manufacturing is treading transitional waters – backed up by the reduction in its workforce and the offshoring of Australian businesses.

What isn’t always consistent, however, is the story of how exactly the 16 SEPTEMBER 2017 Manufacturers’ Monthly

industry can reverse the fortunes of its manufacturers, who are adapting to a global trade race that will leave them eating dust if they fail to keep pace.

Traditionally, innovation in Australia has been led by the large corporates and has been followed by a flurry of interest in the start-up sector, which represents a big portion of the country’s workforce. According to the Australian Bureau of Statistics (ABS), the nation’s largest companies of more than 200 employees contribute to 43

per cent of the industry added value.

Meanwhile, there is room to improve investment in the mid-market (23 per cent), according to Professor Roy Green, dean of UTS Business School at the University of Technology Sydney, who described it as the “real engine-room for Australian jobs”.

A risk-averse culture Green argues that Australia has developed a risk-averse culture, strung along by actively unhelpful

public policy concocted by governments which have not taken advantage of the potential for smart specialisation in global markets and value chains.

There is a sense in economic orthodoxy that ‘collaboration’ somehow equates to ‘collusion’,” he told Manufacturers’ Monthly, “missing the point that companies starting up, particularly when they are in a position to scale up, simply require interconnections manmonthly.com.au

Issues&INSIGHTS and relationships to build up their capabilities and potential.”

The result, he explained, is ambitious Australian entrepreneurs over recent years moving their intellectual property overseas where they might have a fighter’s chance to market their product.

“However, there is now a desire to overcome some of these barriers and an appetite to invest in Australian knowledge based industries,” Green continued. “We will see some

changes begin to happen, but it is a very slow process and requires an understanding of where our strengths lie as a nation and where we see ourselves in the future marketplace.”

Commercial opportunity hinges immensely on financial firepower and, as a new player in the game, it is often difficult to keep your place without lucrative backing.

Recognising the power of collaboration is a key first step, Green said – opening up prospects

We will see some changes begin to happen, but it is a very slow process and requires an understanding of where our strengths lie as a nation and where we see ourselves in the future marketplace.

Redarc Electronics managing director Anthony Kittel

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Manufacturers’ Monthly SEPTEMBER 2017 17

Issues &INSIGHTS for building industrial clusters and innovation districts, which can offer Australia a footing on the world stage.

Recent research carried out by the Organisation for Economic Co-operation and Development (OECD) has shown that, across developed economies, it is not the large corporate whales nor the start-ups that are accounting for jobs growth – but rather the midmarket particularly where the small and medium enterprises (SMEs) are participating in global value chains.

Rebuilding the mid-market Nixon Apple, who worked for three decades as an economic advisor and researcher for the Australian Manufacturing Workers Union (AMWU) and the Australian Council of Trade Unions (ACTU), says he has seen first-hand how collaboration can begin to rebuild the mid-market.

“There are two challenges that the Australian manufacturing industry and the other sectors will continue to face a decade or more from now,” said Apple, who is now a member of the Australian Super investment committee.

“In terms of commercialisation, there is the question of why we aren’t doing as much as we would like to do with our inventions, ideas and intellectual property.

“And the second is that we haven’t done very well in building a strong mid-market sector.”

Furthermore, he goes on to explain that there is a very small pipeline of new entrants into the mid-market in Australia and fewer graduating at the other end.

“While there is no holy grail for how you address those problems, one thing that collaboration can do is to throw up some ideas and examples of the things that are working,” Apple said.

“In terms of collaboration beginning to rebuild the mid-market, we are at least seeing some runs on the board.”

Abroad – and particularly in Europe – some clever public policy combines foreign-direct investment in technology companies and the growth of domestic supply chains through collaborative relationships.

18 SEPTEMBER 2017 Manufacturers’ Monthly

Professor Roy Green, dean of UTS Business School The Australian Government assists businesses to overcome potential pitfalls through the Accelerating Commercialisation program, which provides matching grants of up to $1 million and access to expert commercialisation advisers.

Collaborative concepts “A key barrier limiting the commercialisation of new-to-market innovations is the phenomenon commonly referred to as the ‘Valleyof-Death’,” said David Wilson, general manager of the Department of Industry’s Commercialisation Policy Branch. “[That is] where a business may have a proof-of-concept or working prototype, but is not yet generating revenue. To successfully traverse this, a business needs significant time, connections and financial outlay.”

New-to-market innovation is linked significantly with export activity, market share and average annual sales and employment.

There are around 1,500 to 2,000 businesses that make up a “very dispersed Mittelstand” of the Australian economy, Green says.

“This is an area that we haven’t done so well with in Australia,”

he said, “this notion of industrial clustering, especially in conjunction with our universities.

“Given that this is the case, the question is how do we re-energise and re-focus our interest on the mid-market sector, which seems to operate largely under the radar.”

One example is the Medical Research Commercialisation Fund (MRCF), which encompasses members throughout the Australian medical industry who work closely to see that marketable drugs and medical technology isn’t overlooked.

Unlike mainstream investment, members of the board have an obligation to offer their intellectual property to a nominated venture capital manager.

“This obviously gives an advantage to the manager, who has this great wealth of ideas that they can go through,” Apple explained.

“Members also have great opportunity too, working with a manager who has up to $400 million worth of funds to invest in new ideas.”

This helps by placing intellectual property, which may have previously slipped through the net, on a clinical trial for approval testing, therefore

giving it a better chance to reach the consumer.

In turn, while there may be more risk of smaller returns, it is considered a beneficial investment for the financer who has exclusive rights over which products to move forward on.

It also puts some of the best manufacturing minds across the medical sector in the same room, working side by side for a mutual cause.

“You can already see the benefits for some companies who are graduating out of the commercialisation phase and hopefully, in a few years time, into the mid-market,” Apple said.

In Australia, Green said there are “embryonic clusters to build on” but they desperately need the kind of government support that doesn’t take the shape of handouts – but, instead, an infrastructure that promotes collaboration, skills and knowledge exchange.

“What characterises Australia’s successful companies is that they are the best in their class,” Green said.

“However, being a very specialised company doesn’t necessarily make them a household name.”

To do that, Green encourages businesses to discover their competitive edge – not only in the price of their product, but also in its quality, design and innovation, which requires significant investment in research and development (R&D).

At Adelaide-based Redarc Electronics, owner and managing director Anthony Kittel makes a point of looking after his R&D division, which has grown from the ground up.

“To wind the clock back, we didn’t employ an engineer in the business until around the new millennium,” explained Kittel, who bought the business in 1997.

“We now have 30 full-time engineers at the company working for Redarc Technologies, which is an R&D arm of Redarc Electronics.”

Rallying R&D On average, R&D equates to 5 – 7 per cent of Australian industry investment, Kittle said. At Redarc, manmonthly.com.au

Issues&INSIGHTS Kittel re-invests up to three times that percentage into its R&D team.

“Effectively, any product that we design today has to be designed with the view of being successful on the global stage,” Kittel said.

“If you asked me the same question 15 years ago, we would have been happy simply to be part of the South Australian market.

“However, in today’s market we cannot think like that anymore – we have to come up with ideas that are going to be the best that we can offer.”

Redarc has changed dramatically over the past two decades – growing from a small fish in a big pond into a global trader.

“We want to provide a close relationship with all of the universities in South Australia and to fund research that will create

opportunities for young people we work with to learn how to commercialise their ideas,” Kittel continued.

“By doing this, we are also developing our supply chain. So, by bringing other, smaller businesses – just as we were once upon a time – on our journey, it is good for the industry in Australia.”

The federal government is currently considering a response to consultation over an R&D Tax Incentive Review, which the Turnbull

Government launched in September last year.

As part of a broader National Innovation and Science Agenda, the review is said to focus on identifying opportunities to improve the effectiveness and integrity of the program, which provides a tax offset of up to 43.5 per cent for companies undertaking eligible R&D activities.

The latest OECD figures from 2010 show that, while Australia generally has more researchers per 1,000 employed (8.9) than the global

average, the nation’s R&D represents a below-par percentage of the world’s total GDP (2.1 per cent).

“I don’t think Australia performs that well in terms of our innovation and R&D,” Kittel said. “As a country, we are way down the food chain.

“However, I have always had the belief that we needed to make R&D part of its culture at Redarc.

When you look at the small and mid markets, you have to ask the question whether Australia is really doing that.”

We want to provide a close relationship with all of the universities in South Australia and to fund research that will create opportunities for young people we work with to learn how to commercialise their ideas.

Redarc Electronics has changed over the past two decades from a small fish in a big pond into a global trader.

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Manufacturers’ Monthly SEPTEMBER 2017 19

Energy MANAGMENT Rewarding the consumer who shares the load Flow Power is backing customer-reward schemes such as the AEMO RERT Panel, which actively funds projects that help bring down the cost of power. Managing director Matthew van der Linden explains why this could lead to a more stable electricity market.

P

OWER security schemes such as those created by the Australian Energy Market Operator (AEMO) and Australian Renewable Energy Agency (ARENA) are vital to changing the way consumers think about their energy consumption.

That is the message from Matthew van der Linden, managing director for the Australian-owned wholesale electricity retailer Flow Power, who believes incentivising customers to offload surplus energy would help greatly to stabilise a “volatile market”.

To do this, Flow Power is seeking to alter the way businesses buy power, van der Linden said. As long as there is a disconnect between the demand for electricity and the price industry players pay to keep their lights on, there will continue to be volatility and price rises.

“Demand-response is really about connecting customers to energy generation and creating that link,”

Flow Power is seeking different ways for Australian businesses to buy power.

20 SEPTEMBER 2017 Manufacturers’ Monthly

van der Linden said. “Wholesale purchasing is the ultimate way of doing that.”

Demand Response programs, such as the AEMO RERT Panel, are all about rewarding customers for contributing to system stability.

Run over summer, customers sign up to reduce their demand on the system during peak periods in return for a payment. In the case of the AEMO RERT Panel, this can be up to $10,000 per MWh. “These programs mean the lights stay on without the need to build extra infrastructure, and in the long term helps keep costs down for everyone,” van der Linden explained.

“ARENA is also offering funding to help businesses get involved in the program through technology and system funding.”

The market itself hasn’t really taken full advantage of demand-response, he explained – so, the creation of projects that incentivise customers to power

down or reduce demand on the system through local generation (including non-critical loads) or to turn to renewable resources, is deemed a step in the right direction.

“It’s about creating more awareness that something like this is possible.

Bringing the wholesale market and the big users together on the same page, they are going to become more capable of purchasing at wholesale prices,” said van der Linden.

“At Flow Power, we believe giving customers access to the wholesale market means they will benefit by managing their own energy load.”

Initiatives like AEMO and ARENA’s aim to sustain supply during unplanned outages by creating opportunities for customers to cut costs via demand-response, and rewarding participants who reduce their energy consumption for short periods.

Amid Australia’s ongoing energy crisis, companies are paying up to

two or even three times the price they were last time their fixed rate contracts were renewed, van der Linden estimates.

By not opening the wholesale market, he suggested that customers are heading to 18 cents per kWh for their fixed retail rates, despite the average wholesale market rate being closer to nine cents per kWh. “We are now working with large-scale renewable developers so customers can buy power even cheaper – between five to six cents per kWh,” van der Linden said. “We can show people there is a lot they can do to manage their energy and that it is worth it.

“Furthermore, they will begin to see that buying wholesale and participating in demand response programs, can become a permanent fixture for their company. Meaning energy management can become an income stream that will help reduce their costs into the future.”

There are significant variables that will force the price of energy to spike drastically – and one of the most prominent is that the wholesale market is misunderstood, according to van der Linden.

“We are talking to 300 to 400 businesses a week, explaining to them how the market works,” he said.

“The market has come from a place where there the norm is to have a fixed rate contract, so, when the customer thinks about their energy, they just try to get the best price over the next three to four years.

“What they haven’t yet realised is there is a lot more to it than that. And, because there is a lack of awareness of that extra detail, it means the market doesn’t respond to its own constraints and, inevitably, fixed contract rates ramp up.”

As customers start to understand what drives prices skyward, a manmonthly.com.au

Demand-response programs like AEMO and ARENA reward customers for contributing to system stability. backlash from the consumer could see more businesses open up to alternative options.

“If you look at how the market works, it is completely interconnected and amazingly dynamic,” van der Linden said. “But the current structure of the market doesn’t really make sense – it should be dynamic right across the board, but unfortunately you have a completely disconnected customer base.

“With the rate that technology is changing, a dramatic shift over the next five to 10 years will see the market become more integrated and much more responsive.

“Renewable energy is coming alive and becoming very cheap – we can’t just keep on going the way we are; the system will break down.”

As part of their efforts to change perceptions of the wholesale market, Flow Power is also marketing its kWatch Intelligent Controller, which works autonomously to generate onsite signals that informs the company when it can save energy cost by doing simple tasks such as turning on a generator or even shedding load.

“It is very logical for customers to get those price signals because they are the only ones who can really do something about it. So, once you have that exposure to price signals, customers can look very hard at what it is worth to shift load,” van der Linden explained.

“We can solve that with our kWatch system, which basically helps

monitor critical load and in turn helps customers realise they can find ways to save with a 10 per cent load variation, which alone is a significant component to the market.

“If everybody did that, it would dramatically shift the market.”

As it stands, however, customers who are sitting on heavy loads simply don’t have the motivation to shift it, according to van der Linden.

By introducing projects such as ARENA – which demonstrate the link between energy price and load to the consumer – he said he hopes it will motivate customers to think for themselves, and see a reward for changing “the way we have always done it”.

Set up in 2009, Flow Power has doubled its client base during the past year and van der Linden is optimistic that they will continue to trend up over the next 12 months.

He estimated at least 20 per cent of the business market can buy wholesale, and it will only take a handful of years to get there.

“The market has to shift and become more open about how to do things, because there is nothing like an increase in prices that will motivate customers to lead the charge,” van der Linden said.

“Ultimately, the market will shift, but it will only happen when customers start searching for alternative solutions. When that happens, competition will eventually bring the others on board as well.”

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Manufacturers’ Monthly SEPTEMBER 2017 21 1469430421_Manufacturers Monthly advert.indd 1

16/08/2016 2:22:46 PM

IT @MM

Forming a united front against cyber attacks As we enter a more interconnected world, the danger of a cyber attack increases exponentially. Manufacturer’s Monthly investigates.

I

N May this year, a global ransomware attack, Wannacry, targeted more than 200,000 computers in more than 150 countries.

Businesses’ computers were taken hostage by the ransomware, which would not allow them to access their files unless they paid $300 in bitcoin within three days, or $600 in seven days. As of 14 June 2017, a total of 327 payments totalling XBT$130,634 had been transferred, and the hackers have possibly made more since then.

Not only did businesses lose money through the ransom, but they lost even more money through disrupted operations. At least 16 hospitals in Britain were affected, with some forced to halt urgent surgeries as patients’ scans could not be accessed.

Spanish telco company Telefonica and US delivery service FedEx also admitted to being targeted. Countless other companies were affected, with Russia, Ukraine and Taiwan suffering the most, according to cyber security firm Avast. At least one Australian 22 SEPTEMBER 2017 Manufacturers’ Monthly

company admitted to being affected, although others may have concealed their involvement due for fear of losing consumer confidence.

The Wannacry attack would have been nowhere near as prolific had businesses run the updates provided

by Microsoft in March, according to University of Melbourne cyber security expert Dr Suelette Dreyfus.

“This attack is a powerful reminder that information technology basics like keeping computers current and patched are a high responsibility for everyone, and it’s something every top executive should support,” said Brad Smith, president and chief legal officer at Microsoft.

While the Wannacry attack should have served as a call to action for businesses to update their cyber security solutions, it is clear that this was not the case for many. Just one month after the Wannacry attack, another global ransomware attack, dubbed Petya, disrupted businesses across the world, including

Australia’s own Tasmanian Cadbury Chocolate Factory.

The factory was forced to halt production when its computer system was struck by the attack. Just like in the Wannacry attack, the factory was unable to access its computer files unless it paid a ransom of $300 in bitcoin. As a result, hundreds of staff could not carry out their daily work.

It took over a week to get production up and running again, according to industry sources.

Food and beverage company Mondelez International was also among the businesses affected, with the attack causing disruption to its shipping and invoicing. The attack also managed to stall the company’s deal with Bega, whereby the company would be acquiring Modelez’s grocery and cheese business, which included the iconic Vegemite brand, as well as ZoOSh salad dressings and beef extract Bonox, among others.

As a result of the attack, Mondelez has estimated that its second-quarter

revenue growth will be down three per cent, not to mention other additional costs related to attack that the company will need to pay in the second and third quarter of 2017.

For the most part, Australian businesses were not majorly targeted in the Wannacry and Petya attacks. But there were several large businesses that were forced to halt operations, and experts have expressed fears that these cyber-attacks (which have managed to reach hundreds of thousands of computers) are just the beginning.

The same experts believe Australian businesses are highly vulnerable, yet many are still failing to undertake urgently required remediation.

Experts at a recent round table event in Sydney agreed that urgent action is required in Australian businesses of all sizes.

“Business owners are understandably focused on the dayto-day challenges of running their business,” said David Cohen, founder and managing director of SystemNet. manmonthly.com.au

IT@MM

\ Top 10 cyber threats facing manufacturers (per cent of respond

23% 24%

34% 32%

25%

28%

25%

\

26%

The Wannacry attack would have been nowhere near as prolific had businesses run their required software updates.

hreats facing manufacturers (per cent of respondents) 27%

28%

Top 10 cyber threats facing manufacturers (per cent of respondents)

23% 24%

Theft of intellectual property

34%

Phishing, pharming and other related variants Increasing sophistication and proliferation of threats

32%

25%

28%

25% 26% manmonthly.com.au

27%

28%

Security breaches involving third parties Social engineering Employee errors and omissions External financial fraud involving information systems Employee abuse of IT systems and information Mobile device (eg. smartphones, tablets) Attacks exploiting mobile network vulnerabilities Manufacturers’ Monthly SEPTEMBER 2017 23

IT@MM “But unfortunately, this means they are not paying sufficient attention to cyber security. Many might be aware of the risks, but have not considered the impact a ransomware attack could have on their operations. Effects could range from mild inconvenience to a data loss so significant it puts them out of business.”

Monica Schlesinger, principal of Advisory Boards Group International, said the situation is not confined to small businesses, with many large organisations also vulnerable to attack. She added that traditionally, boards don’t understand IT challenges, however in the current environment senior management need to oversee.

“It needs to be seen as special risk,” said Schlesinger. “When you suffer an attack, it can happen very quickly and can destroy your company.

It’s not a case of ‘if’ an attack will happen but ‘when’ and the board needs to be sure all required steps have been taken.”

While Australia is at the forefront of the Asia-Pacific region in terms of ICT industry development, poor cooperation dragged down its overall score in the 2017 ITU Global Cybersecurity Index, according to the International Telecommunications Union (ITU).

Of the ITU’s 193 member states, Australia ranked seventh overall because it scored just 0.44 on the cooperation ranking, putting it well behind countries like France (0.61), Georgia (0.70), the United States (0.73), Oman (0.75), and table leaders Singapore and Malaysia (which both scored 0.87).

The report described Australia’s score as a “massive disparity” and a “significant blow for Australia”, which compared well with other leading nations in the four other categories – legal, technical, organisational, and capacity building.

“The overall picture shows improvement and strengthening of all five elements of the cyber security agenda in various countries in all regions,” reads the report.

“However, there is space for further improvement in cooperation at all levels, capacity building and organisational measures.”

Cooperation, which the ITU said is “measured on the existence of 24 SEPTEMBER 2017 Manufacturers’ Monthly

partnerships, cooperative frameworks and information sharing networks”, has been a key part of the Turnbull Government’s cyber security policy.

But, experts say the ITU’s assessment suggests Australia’s private-public initiatives are failing to gain traction.

It has also been suggested by some analysts that the establishment of “centres of excellence” is not doing enough to foster cyber security.

However, some experts are pleased with the introduction of the Notifiable Data Breaches Bill, which will come into effect in February 2018. The bill requires companies to report security breaches where there has been unauthorised access, disclosure or loss of personal information held by a company that is likely to result in “serious harm to any of the individuals to whom the information relates”.

“This means the impact of attacks can no longer be swept under the carpet,” said David Higgins, ANZ country manager at Watchguard Technologies. “Senior management has to be aware of its responsibilities and realise that security can no longer simply be left to the IT team. They have to take a top-down approach.”

Education critical to understanding risks.

“There is also a need for ongoing education of staff around IT best practices,” said Systemnet’s Cohen.

“They must be aware of the risks associated with opening emails from unknown parties, visiting suspect websites and installing software from unknown sources.”

Higgins agreed, saying IT security is the responsibility of everyone in a business and all have a part to play in ensuring defences are as robust and effective as possible.

“Awareness and action has to extend from the managing director or board through to the most junior staff member,” he said.

“By taking a holistic approach, businesses can ensure they have both the tools and behaviours in place that are needed to counter the threat.”

“Cyber-attacks are going to become more sophisticated and, unfortunately, more effective,” said Higgins.

CYBER THREAT TRENDS AND HOW TO COUNTER THEM While ransomware has captured the bulk of attention when it comes to cybercrime, experts have advised that there are other trends that should also be on the radar screens of Australian businesses. These include: • Evolving attacks: Attackers do not remain stagnant and, as new technologies emerge, they evolve their tactics to be more effective. Ensuring robust security will involve monitoring a shifting target.

• Authentication: One of the foremost tenants of security is trust, and trust is based on authentication. Unfortunately, the primary mechanism used for authentication – passwords – is no longer sufficient. New methods must be quickly found and put into use.

• Everyone is a target: There is a misconception among small and mid-sized businesses that, because they don’t have huge amounts of intellectual property, they won’t be attacked, but that’s a fallacy. Hackers don’t always want to steal data, and in the case of a ransomware attack, they don’t want the data at all – they just want the victim to want it badly enough to pay to get it back.

Manufacturers are particularly vulnerable, due to large scale investments in intellectual property and exponential technologies, exploration of Industry 4.0 digital manufacturing opportunities, and increased interconnectivity of the industrial ecosystem. Based on its Cyber Risk in Advanced Manufacturing study, Deloitte has put forward the following advice for manufacturers: • Be secure: Take a measured, risk-based approach to what is secured and how to secure it. This includes managing cyber risks as a team and increase preparedness by building cyber risk management strategies into the enterprise and emerging technologies as they are deployed.

• Be vigilant: Monitor systems, applications, people, and the outside environment to detect incidents more effectively. This includes developing situational awareness and threat intelligence to understand harmful behaviour and top risks to the organisations and actively monitoring the dynamic threat landscape.

• Be resilient: Be prepared for incidents and decrease their business impact by improving organisational preparedness to address cyber incidents before they escalate. This also includes capturing lessons learned, improving security controls, and returning to business as usual as quickly as possible.

The overall message from all of these sources however, is that all Australian businesses, including manufacturers, need to evaluate their security systems.

Simply having virus software is not enough. Updates need to be regularly undertaken and cyber security should be a priority for all members of the company, who will need to act as a united front against cyber-attacks.

Manufacturers are particularly vulnerable due to large scale investments in intellectual property and exponential technologies.

manmonthly.com.au

ENERGY MANAGEMENT SOLUTIONS IN MANUFACTURING operational input cost that can be managed to save money, while also improving a company’s environmental footprint. Rising energy costs in Australia makes this topic a big talking point in business and politics.

Manufacturing companies routinely use energy management solutions to help them manage energy across their operations.

In this issue, we talk to companies who provide innovative solutions suites to reduce energy costs through the use of automation and process management.

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SEPTEMBER 2017

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Moving forward with autonomous machines

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Looking into today’s cyber threats and how to counter them

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Picking the right finance options in manufacturing

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CAD/CAM Leading the road to tomorrow Manufacturers’ Monthly speaks to Rod Hunt, sales manager for Autodesk ANZ about their latest announcements, their ANZ roadshow and the upcoming Autodesk University event this coming October.

W

ITH more disruptive technologies coming along, and a challenging time ahead for Australian manufacturing, it is essential that local manufacturers are equipped with the right tools to handle this disruptive phase. Recently announced on the 8th of August, Autodesk extended the access of their product offerings to help existing customers to expand their manufacturing capabilities.

Customers can now have extended access of more Autodesk products.

With the new subscription model, customers now have added. .manufacturing capabilities if they so desire.

CAD/CAM has gone from a good-to-have to a must-have tool for manufacturers.

26 SEPTEMBER 2017 Manufacturers’ Monthly

“Autodesk has extended the access number of our CAD products to people who have subscribed to our existing product design collection which includes access to five-axis machining programs via our HSM software.

“This also extends to our Finite Elements Analysis (FEA) tools Nastran In-CAD software that delivers high-end simulation technology in a value-enhanced, CAD-embedded workflow so engineers and analysts can make great products,” said Rod Hunt, sales manager for Autodesk ANZ. Hunt mentioned that the idea is that customers are now getting a better Inventor that allows them to access five-axis machining – if they are thinking of adding that dimension to their manufacturing capabilities.

“In this case, we are giving our customers the ability to better analyse and machine what they are doing. To this end, we are seeing the trend of pushbutton manufacturing happening eventually and by offering an extension of our existing subscription, we are helping guide our users to achieve that end by giving them greater accessibility to more tools,” Hunt added.

Why the change in the model?

Hunt mentioned that with the recent changes in the manufacturing scene, we have had to re-look at where manufacturing is going in Australia.

“Two to three years ago, it was alright for an organisation to just have a few people making decisions or using these products.

But as things evolve and looking forward to the future, having a suite of CAD/CAM tools becomes an essential.

“With Australia moving on from automotive manufacturing into more niche manufacturing markets, manufacturers have to decide how are they going to stay competitive and having a good CAD and CAM product becomes a must have,” Hunt said.

With the global market headed towards more advanced manufacturing, these are the tools that the local manufacturers need if they are going to be exploring new types and styles of production.

“We (Autodesk) have the full range of offerings ready to serve this new market demands to produce the very best products that they can. So, giving immediate access to a broader suite of CAD/ CAM offerings is what I call a ‘natural’ progression from being a good-to-have to a must-have,” said Hunt.

The road to the 2020 vision The Autodesk roadshow has attracted a lot of attention throughout the various legs throughout ANZ. The aim of the roadshow was to share the Autodesk 2020 vision with the industry.

The purpose of the roadshow was to inform the industry about the business transition from Autodesk – the move from subscriptions and ability of the customers to switch from a maintenance to a subscription offering.

“Throughout the roadshow, we are helping our customers look at the future of design, disruptive trends around manufacturing and the available tools that will allow them to compete effectively,” said Hunt.

“It is not so much just manufacturing but around the whole business – the conversion of the manufacturing, architectural and engineering construction environment,” Hunt continued.

Customers from the building space are looking to have something constructive on the block of land within a short period of time.

“Buildings are being manufactured more than they are being built so we’re are starting to see the ramping up of pre-fab,” Hunt added.

Hunt believes that somewhere down the road, there will definitely be more exciting new product offerings being announced but right now, it is all about giving everybody within the manufacturing space a chance to access a range of powerful tools for the products that they produce.

“Price wise, what was previously available at $12,000 for paid access for different software, is now all rolled into this new subscription model that we have renamed the Product & Design Manufacturing Collection,” said Hunt.

The road to Autodesk University 2017 Sydney “The purpose of the Autodesk University is to educate the manufacturing space what it takes to be a manufacturer of the future and how to overcome disruptive trends and make the most out of it,” said Hunt. He explained that during the Australian leg of Autodesk University, things like today’s dominant technology trends that are driving businesses and consumers alike to explore new ways to design, make, and use things will be covered.

“There will be masterclasses and keynotes by industry experts on how those disruptive trends look like in the coming years,” said Hunt. During the seminar, attendees can look forward to learning about the technologies like cloud computing and generative design that will impact businesses of the future. manmonthly.com.au

Pumps & COMPRESSORS Taking on unchartered territory Seeing an opportunity in the market creates the foundations for a successful manufacturer yet it sometimes takes a leap of faith to help the business thrive. At Inoxpa, a small team in Victoria is taking its specialist food and dairy technology to a new stage.

Inoxpa’s pharmaceutical liquid mix of low viscous products.

F

OR a manufacturer that already adds value to the food and dairy industries in Australia, the pumps and valves specialist Inoxpa has a business model it can count on.

The company’s general manager, John Fois, would be forgiven for resting on his laurels, especially when they have been delivering precision technology to help the market search ways to be more efficient for 20 years.

On the contrary, the company is ready to take on a different market in the manufacturing arena – a move to expand into the pharmaceutical sector in Australia where John Fois sees a wealth of opportunity.

“We deal a lot in the food, wine and dairy industries and they seem to be happy with our equipment and what we do,” John Fois said, speaking from Inoxpa’s Australian division in Mornington, Victoria.

“The pharmaceutical sector is an area we would like to look at more, however.

“It is going to take big investment and we are probably going to cop some losses but they are the sorts of

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risks any company needs to take if they want to move forward and try to achieve bigger things.”

Inoxpa already owns items that are certified by the European Hygienic Engineering and Design Group (EHEDG), which works to ensure safe food processing.

Their stainless steel pumps are used Australia wide, and can be found on the factory floors at food processing companies such as Mondelez, Palmer Technologies and Fonterra.

Its RV-65 pump, designed and manufactured at Inoxpa’s global headquarters based near Girona, in northern Spain, is one of the industry’s more efficient technologies.

The design of the impeller on the machine’s centrifugal pump is designed in such a way that, while it is more expensive, it is more productive and, in turn, saves on energy.

To move into unchartered territory, John Fois is confident the company can eat into a different sector and help smaller pharmaceutical and cosmetics processors, which he believes have the capacity to invest in a motivated market.

“I would like to see pharmaceuticals become at least 30 per cent of our business here in Australia,” John Fois said of Inoxpa’s ambition.

“The equipment we are building helps companies to work more efficiently, which means you are saving on the cost of energy.

“What we are finding is that a lot of people are using our pumps and designs because they are more efficient and energy friendly.”

However, to get the right people on board, the business is seeking investment from its umbrella company, the Italian giant Interpump, to build a new showroom in Victoria to host prospective customers.

“Businesses will usually commit to our products if they can see it in operation and know that it actually works, which is quite difficult to do

here in Australia because the product is made in Europe,” John Fois said.

“Therefore, what we are trying to do ¬– and it is going to take some time – is to expand and bring some of the equipment over here into a new showroom and send invitations out to clients across Australia.

“The more people are aware of what you do, the more interested they are going to be in our products.”

And to do that, John Fois wants to market more than the company’s pumps and valves – and will introduce its skid technology, which has been adapted to create mixtures for anything from soaps and toothpastes to face creams and lipsticks.

The technology is also used to process milk and make cheeses – but it’s their ability to adapt that John Fois hopes will open new doors.

“We could have said no to all of that and continued quite happily by increasing our sales in the food sector,” he continued, “but I think we need to take the next step and this will hopefully take us to another level.”

And, like the company’s founder, the late Candi Granés, John Fois isn’t thinking small – he would like to see the company expand further still, with branches in Western Australia and Queensland in the pipeline, where he admits they have struggled to capitalise on a hungry market.

“We will also start to exhibit at events such as foodpro,” John Fois continued. “Our distributers are the ones who have been active mainly but the next step is for us to promote our own image and have a bigger presence.

“Mr Granés had a dream to expand the company all over the world because he wasn’t going to rely on his own economy.

“He was prepared to cut costs to keep people working. In Australia, we have three people on the team at the moment but, with new offices around the country, it will enable us to grow the workforce.

“There is a huge market out there and, by expanding into a new area of processing, we will soon reap the rewards for taking that leap.”

Inoxpa champions its counter rotating propeller.

Manufacturers’ Monthly SEPTEMBER 2017 27

ManufacturingSTRATEGIES Tailored banking solutions are helping Weathertex lead the way Looking for the right financial partner for manufacturing businesses can be tricky as local timber cladding manufacturer Weathertex found out until it found the perfect match.

T

HE only Australian owned and run timber-cladding manufacturer, Weathertex, has been operating in New South Wales since 1939, producing one of a kind timber cladding that contains no artificial glues or binders. Weathertex delivers its long-lasting, eco- friendly timber cladding to a range of customers including distributors, builders and homeowners across the globe.

Weathertex chairman Paul Michael bought the business 20 years ago, successfully navigating it through the meshing of old and new technology while playing an important role in improving the sustainability of Australian building products and practices.

Calling on the dragon In 2003 Michael needed financial advice and approached a number of banks for help. But their lack of understanding of the needs of a manufacturing company quickly became an issue.

Instead, Michael turned to St.George Bank; attracted by its industry specialists within manufacturing, who have a strong understanding of the whole supply chain and the need to stay at the forefront of innovation. The bank drove out to the plant to take a tour and better understand the business needs of Weathertex. They came onboard that day.

“St.George understands us, and what we are about as a business,”

said Michael. “Our experience with other banks is that some don’t appear to understand the mechanics of a manufacturing business… if you’ve got a bank that understands what you are trying to do, it makes a huge difference.”

It would be two years before the timber company needed further help from the bank, and that help came at a pivotal moment. In addition to Weathertex, Michael owned a number of other companies, but in the unsteady economic environment of 2005 he decided to sell off these businesses in order to strategically focus his efforts on Weathertex.

“We went along to St.George and

explained what we wanted to do and they were able to help us because they understood the direction we wanted to take and knew our industry, which made all the difference.…Weathertex has just grown from there,” said Michael.

The evolution of Weathertex Over the last 12 years, the business has evolved in a number of ways. While much of the original factory built in 1939 is still in use today, Weathertex had to keep its factory processes relevant and efficient enough to continue to be economically and environmentally viable.

The evolution of the factory has included the installation of

Weathertex had to keep its factory processes relevant and efficient enough to continue to be economically viable.

28 SEPTEMBER 2017 Manufacturers’ Monthly

manmonthly.com.au

ManufacturingSTRATEGIES a Supervisory Control and Data Acquisition (SCADA) system that delivers real-time information, diagnosis and control of the factory processes, and a modernisation of the gas boiler used to make Weathertex products.

The business has also adopted a sales and marketing model; meaning it now controls both the manufacturing process and the way the brand is marketed to direct and indirect customers. Part of this strategy has seen Weathertex better promote the sustainability prowess of its products.

It is the first manufactured product globally to achieve Platinum GreenTag Certification for its Natural range, and also the first to earn a GreenTag Product Health Declaration.

Recently it was voted the number one trusted brand in the building industry

by Architecture & Design.

and its partner came in with their expertise and we got them to do a report on it. Sure, there is a lot more work to be done if we go ahead with installing the boiler, but they got us to the point where I now have a proposal; I know how much it is going to cost and what size it is going to be.”

Connecting the different businesses it works with is an area of focus for St.George, as it looks

to innovative new ways to grow its customers, explained Matthew Kelly, Head of Manufacturing and Wholesale at St.George Bank.

“We work with our customers to add value outside core banking products. Manufacturing is an innovative industry and we strive to be innovative ourselves.

“We are building on this connectivity piece and it’s about

using our industry expertise to bring market leading specialists in the industry and connecting people as part of that - to assist them in growing their business.”

Weathertex www.weathertex.com.au St.George www.stgeorge.com.au/manufacturing

With St.George’s help, Weathertex has full control over its manufacturing options and marketing processes.

Future proofing with St.George The future looks extremely promising for Weathertex. The business is growing at a rate of 10-15 per cent year-on-year and it is enjoying the increased customer appetite of wanting more eco-friendly products.

But the company wants to do more, and recently turned to St.George to help it explore how it can become more energy efficient.

As part of the banking group’s industry model – one that sees it deploy a skilled team of specialist bankers across a variety of industries including manufacturing, wholesaling, and property – St.George adds value to its clients by partnering them with other businesses.

To help Weathertex, the bank introduced it to an energy services company that designs and delivers energy solutions to protect against growing costs. Together, the businesses are exploring the future opportunity of installing a biomass boiler that will be fuelled by the 6000 tonnes of sawdust Weathertex produces each year.

“The biomass boiler is something that we knew we wanted to do but we hadn’t done the engineering on it,” explained Michael. “So St.George manmonthly.com.au

Manufacturers’ Monthly SEPTEMBER 2017 29

Events Speaking up for a future worth fighting for

Sponsored by

Women In Industry Mentor of the Year award-winner Penelope Twemlow speaks candidly about life as a successful CEO, managing mental health issues, and fighting a gender divide in the workplace.

P

ENELOPE Twemlow is a manager, mentor and motivational speaker. In her day job, she says surrounding herself with people she can trust to be honest is one of the main drivers for her success as a CEO. Under the surface and polished exterior, the 34-year-old advocate for gender equality also speaks openly about her battle with mental health issues, which stem back to her time working in the defence sector addressing the realities men and women face on the frontline.

Rather than locking these demons away, she explains why – as an awardwinning mentor – her experience working for the welfare of Australia’s armed forces personnel for more than a decade has driven her to succeed as a businesswoman.

“I talk with a lot of my mentees about how to build emotional resilience and how to make your mark on a career,” she told

Penelope Twemlow, CEO for Energy Skills Queensland (right), receiving the Mentor of the Year Award

30 SEPTEMBER 2017 Manufacturers’ Monthly

Manufacturers’ Monthly.

“For me, there are several stories while working with the military that have stuck with me and still affect me today – particularly around deaths in the industry.

“In my position, it is about understanding what my trigger points are and how to deal with them properly, so that it doesn’t affect either my professional or personal lives.”

Twemlow was named Mentor of the Year at this year’s Women In Industry awards, held in Melbourne.

Since June 2015, she has been the CEO for Energy Skills Queensland (ESQ), based in Brisbane – a move that followed a massive learning experience working closely with her mentor and mother for the family business, a consultancy firm called General Manager Pty. “I know they say never go into business with family but my story is a positive one,” she said. “My

mother was the one who coached and mentored me and I can safely say I am the person I am today because of the way my parents raised me.

“I have been mentoring and coaching for nearly 10 years, so to be recognised for the work I do was great. For me, the most important part of mentoring anyone is being able to give a little back.

“I certainly wouldn’t be where I am today without the people who mentored me and, likewise, it is my job to ensure that we pass on that expertise and experience to improve and advance our future workforce.”

Before joining ESQ, there were options to work overseas, she explains – to gain more international experience and enhance her depth of vision, but she opted for a role closer to home.

“One of the things that I speak with my mentees about is to get across the point that, if you don’t keep up with the industry, you are

already behind the eight ball,” she continued.

“It’s about understanding what’s going on in the era of digital and disruptive technology.

“Once you understand how to leverage these technologies, that’s when you can become a bigger and better version of yourself. It is therefore vital, if you want to raise a successful person, to have people around you who can relate to you both professionally and personally.”

At ESQ, Twemlow explains why a frank and honest culture has been one of its pillars. To be able to look to a peer, whether on a professional or personal level, she wants to know that her colleagues work in a safe space, where speaking openly is a core value.

“From a personal perspective, there needs to be people who can challenge your ideas and give blunt advice – so I can then put myself in their position and understand the situation.”

In addition to her role skilling Australia’s energy sector, she has also made it her duty to raise awareness around gender inequality, and is one of the reasons why she felt honoured to be part of an award ceremony that champions women in the workplace Having founded the non-for-profit Women in Power in September 2015, the group has worked to empower and advance women in industry by helping them to achieve personal and professional goals.

“From a management point of view, roughly 25 per cent of boards around the world have a female voice, which means the decisions that are made in the majority of businesses lead to gender inequality when it comes to wages and pay growth,” she said.

“These awards assist and recognise the achievements of phenomenal women across the spectrum.” manmonthly.com.au

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Promotional Feature - WELDING Raising the standards of Australian welding Australia’s welding community has diminished as a result of offshored infrastructure projects, according the WTIA’s Geoff Crittenden. The man in charge discusses the implications.

WTIA is seeking to enhance welding standards in Australia with a new certification network

T

HE statistics tell a story.

In just over a decade, the volume of imported fabricated steel into Australia has risen from just over five per cent to almost 30 per cent.

Offshoring of business to steel shops across Asia means Australia has seen the size of its welding industry slide at a similar rate.

While investment in state infrastructure will provide opportunities, there is also fret that the skillset among Australia’s welding community could become stale, leading to a dispersal of disconnected expertise.

“When you add the dramatic slow-down of work in the oil and gas industry and the mining industry, there has been a significant downturn in the amount of welding that goes on in Australia,” said Geoff Crittenden, CEO for the Welding Technology Institute of Australia (WTIA).

32 SEPTEMBER 2017 Manufacturers’ Monthly

“Considering there is something like three billion tons of steel infrastructure in our country, it is therefore very important that we maintain a strong welding industry.”

There is a disparity between the state and federal governments’ goals, Crittenden continued.

Where the latter is creating an industry to encourage innovation through its defence program, Crittenden said there is generally less emphasis to advance industry at a local level.

“We would welcome the same concept for the rail-rolling stock, which will be built over the next 30 years,” he said. “Why don’t we create the same environment where we can focus on using investment in developing Australian industry rather than sending it overseas?”

Within the next two decades, Crittenden expects Australia to

move away from what he calls a “harsh economic rationalism”, which will see domestic industry thrive again around the concept of Australian-made.

“Although Australia has been lagging behind the introduction of new technology, there are some fabulous new companies that are adopting robotic technology and things like 3D laser imaging that are making us internationally competitive,” he explained.

“As welding becomes more complicated and there is more programming involved, there is an increase in interest from women to pursue welding – however, there is still a shortage of skilled labour across the board.”

To combat a potential leak, WTIA has introduced the Australian Welders Certification Network, which Crittenden helped launch to improve the quality of welders

in Australia and “drive industry training out of the dark ages” towards international standards.

Working with four state governments, WTIA is also planning to introduce advanced welder training centres based on the use of modern welding machines and simulators to train welders to the standard required to be globally competitive.

“By promoting flexibility in the workforce and creating a career structure for welders where they are able to demonstrate competency at various levels of welding, it in turn enables the industry to grow,” Crittenden said.

“That would be of enormous benefit to both the individual and the industry. It helps to improve the quality of welders in Australia and, secondly, puts in place a sensible training program to raise the overall standard.” manmonthly.com.au

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Find out more at www.wtia.com.au/membership A WORD FROM OUR CORPORATE MEMBERS “The most valuable aspect of our membership is the fact that we have built relationships with, and are now able to call on, the WTIA’s various technical officers.” ~ Adam Poole, K-TIG “The WTIA has assisted in the international accreditation of our welding processes and procedures on the Collins Class submarines and in the development and certification of our welders to ISO 9606. This has put us in good stead as we move onto fabricating the submarines.” ~ Daniel Miller, ASC “Our membership has afforded us a level of industry awareness and exposure that would not otherwise have been possible.” ~ Justin Suwart, Bisalloy

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INVEST IN THE FUTURE OF YOUR BUSINESS Welding Technology Institute of Australia

www.wtia.com.au | info@wtia.com.au | +61 (0)2 8748 0100 | Building 3, Level 3, 20 Bridge Street, Pymble NSW 2073

Promotional Feature - WELDING Finding the right fit Manufacturers’ Monthly spoke to John Brem, director of Tacron Industries about the essentials of plastic welding and Tacron’s expansion in Australia.

A

FTER re-locating from Melbourne in 1980 to the Gold Coast in Queensland as a custom plastic injection moulding business, Tacron Industries decided to extend and modify their product offerings into different markets.

“We found it difficult to be competitive with our customers

in Melbourne because of high transport cost, so we started to develop our own patented products for the plumbing industry,” said John Brem, director and owner of Tacron Industries.

Due to the rising costs and competitive nature of the market, Tacron moved to developing underwater housing for cameras for

Ultrasonic welding (USW) was also used to assemble some of Tacron’s plumbing fittings to replace the solvent welding method and this was done using ultrasonic welders.

We aspire to keep the costs of the equipment to our customers low for our Australian customers because we believe in ensuring they get the best quality equipment at the most reasonable costs. the Australian markets and exports to South Africa, the Philippines and the USA. “We developed the underwater cameras (Camerashild) which were packed in blister packs and had to be sealed with ultrasonic welders.

Ultrasonic welding (USW) was also used to assemble some of Tacron’s plumbing fittings to replace the solvent welding method and this was done using ultrasonic welders.

Brem explained that ultrasonic welding of plastic materials creates a molecular bond within the weld seam. Longitudinal vibrations in frequencies of 20 kHz, 30 kHz, and 35 kHz with tool amplitudes between 5 μm and 50 μm are introduced into the plastic materials under the action of force.

“Ultrasonic vibrations are focused by means of special design of the components or tools.

This specific geometry within a component is referred to as the ‘energy director’,” said Brem. He added that the contact points in the joining area are actively moulded by means of energy input to achieve elastic deformation. In this case, friction occurring between the contact surfaces and within the molecule chains generates heat that causes the material to melt.

Finding the right welding solution Brem said that earlier in the year they had been looking for a replacement supplier for ultrasonic welding in Australia and found that 34 SEPTEMBER 2017 Manufacturers’ Monthly

they were not cost effective.

“We did some research overseas for plastic machinery – something which offered the same quality but at a more affordable price. After several months of research, we came across a manufacturer of ultrasonic equipment in China based on German Technology,” said Brem.

“In addition, the equipment had standard approvals from CE, IAF and ISO9001. Now as you can see on our website, we are now the official Australian agent for all Bradson Ultrasonics products like welders and food cutters,” Brem said.

Brem added that Bradson offered design services and manufacturing of special ultrasonic welding accessories like transducers and booster horns. “They can even manufacture special purpose ultrasonic welders for plastics and metal, food cutters, sewing and quilting machines, and cater to the design of special requirement for ultrasonic welders and equipment for the Australian Manufacturers.

To keep costs low, Brem said that some items will be kept in stock while others will be shipped directly to their customers in Australia to keep shipping costs to a minimum.

“We aspire to keep the costs of the equipment to our customers low for our Australian customers because we believe in ensuring they get the best quality equipment at the most reasonable costs,” he concluded.

Tacron Industries 0451998419 www.plumbdinger.com.au manmonthly.com.au

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Storage @MM Bringing service and quality together From humble beginnings to a now world-class competitor, storage specialist Shuter rose to success listening to the voice of the customer. Manufacturers’ Monthly finds out more.

Wu Yira, managing director of Shuter Enterprise.

S

TORAGE solutions specialists Shuter Enterprise was established in 1969 in Taiwan, starting out from a parking lot in Taiwan. Today it is a a globalised world-class pioneering storage company. Currently, Shuter’s product line includes industrial sorting containers, household containers, office furniture and cabinets and stationery organisers. Shuter attributes their success through the quality service that they deliver to their customers. Currently, it is headed by managing director, Wu Yira, a visionary who sees great value in not just producing quality products but also quality service. “Shuter has always listened to the voice of our customers. And that makes all the difference in this business,” says Yira.

“We design products from the customers’ point of view, by finding the simplest way to build an ideal 36 SEPTEMBER 2017 Manufacturers’ Monthly

home for objects. We also redefine the appearance and ergonomics of traditional cabinet systems and balance people’s life with both beauty while retaining the human element,” Yira says.

According to Yira, Shuter practices the best management policies while employing a highly professional research and development team.

It also adheres to high standards in production and procedures on the factory floor. “We have good experience in designing industrial sorting containers for more than 48 years. For production, we only use first-class materials which can extend product life cycle with grease-proof durability,” said Yira. Altogether, the company offers 27 kinds of drawers and more than 100 cabinets to meet the needs of any client.

Sharing a little bit about its success Yira told Manufacturers’

in the world. We also believe that Monthly that it develops its highgiving back to the community and quality products with a unique environment is the right thing to do combination and use of plastic as that is part of our corporate social and metal. responsibilities,” says Yira.

For example, Shuter’s ST professional steel cabinet series Shuter Enterprise Co., Ltd are constructed using high-quality Tel: +886-4-2335-8800 galvanised steel, high impact www.shuter.co polypropylene (PP) or Acrylonitrile butadiene styrene (ABS) drawers, along with innovative multi-material combinations.

All of their parts are specialised to carry heavy-duty repair tools or auto parts. Lockable casters make transportation safe and easy. Cabinets can be stacked up with cabinets or Shuter filing cabinets of the same width to help customers efficiently manage their workspace.

The company works to give back to the community and environment.

Since 2004, Shuter has worked to become a “corporate citizen” in Taiwan. “We sponsor various charities that implement and promote environmental protection preserving natural resources, to integrate our The Shuter ST professional steel cabinet series effort in protecting the earth,” are constructed using high-quality materials. said Yira.

“Shuter has a common vision which is: Stand out, represent Taiwan and be one of the top 100 brands

The company possesses solid experience designing industrial sorting containers for over 48 years.

manmonthly.com.au

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Plastics machining and plastics equipment product range Allplastics Engineering offers an extensive range of CNC equipment and CNC services utilising their fully equipped machine shop including: CNC Tuning and CNC Routing, milling, drilling, threading, manual turning of plastics and polyurethanes, diamond edge polishing, moulding, buffing, gluing, bending and welding, and Cut to Size service.

Allplastics Engineering www.allplastics.com.au 02 9417 6111

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When the MVE is switched on a sinusoidal centrifugal force is provided by rotation of the eccentric weights. With only one MVE fitted on a vibrating machine a rotating force is provided resulting in a circular movement of the machine. Two counter-rotating MVE fitted in parallel on the same machine provide a linear force resulting in a linear movement of the machine. The requirement of circular or linear movement depends on the application.

It features vacuum-impregnated windings using Class F insulating

Backplane Systems Technology Releases Neousys Technology’s Nuvo-6108GC THE NUVO-6018GC is world’s first industrial-grade GPU computer supporting high-end graphics cards. It is designed to fuel emerging GPU-accelerated applications, such as artificial intelligence, virtual reality, autonomous driving and CUDA computing, by accommodating NVIDIA GTX 1080 or TITAN X GPU. Leveraging from the Intel C236 chipset, the Nuvo-6018GC supports Xeon E3 v5 and 6th-Gen Core i7/i5 CPU with up to 32 GB ECC/ non-ECC DDR4 memory. It incorporates standard computer I/Os such as Gigabit Ethernet, USB 3.0 and serial ports. In addition to the x16 PCIe port for GPU installation, the Nuvo-6108GC further provides two x8 PCIe slots allowing for additional devices for information collection and communication.

The Nuvo-6108GC is equipped with sophisticated power design to handle heavy power consumption and power transients of a 250W GPU. Furthermore, to have reliable GPU performance for industrial environments, the Nuvo-6018GC inherits Neousys’ patented design*, a tuned cold air intake to effectively dissipate the heat generated by GPU. This unique design guarantees operation at 60°C with 100% GPU loading and makes Nuvo-6018GC extremely reliable for demanding field usage.

Company: Backplane Systems Technology Phone: 02 9457 6400 Web: www.backplane.com.au

manmonthly.com.au

Manufacturers’ Monthly SEPTEMBER 2017 37

The Last WORD Growing opportunities for Australian manufacturers in Industry 4.0 Innes Willox, Ai Group chief executive highlights the many benefits of having advanced technologies in their businesses.

T

HE threat of digital disruption, and the rise of the machines – automation, robots, drones and artificial intelligence – is often discussed in the context of taking over people’s jobs in the fourth industrial revolution (otherwise referred to as Industry 4.0). No doubt you have heard these concerns expressed over the last few years as technologies evolve at an exponential rate..

Looking beyond the hype, Ai Group’s report on Australian business readiness for the fourth industrial revolution suggests that local manufacturers’ investment in and use of digital technologies is still maturing.

Each year, CEOs tell us that weak customer demand is their most common business concern.

Manufacturers are typically earning an increasing proportion of their revenue from services associated with the goods they make. Digitalisation will be a key enabler of this trend.

It is therefore encouraging to find in our surveys that improved customer

38 SEPTEMBER 2017 Manufacturers’ Monthly

service is the most popular driver for digital investment. However, there still appears to be a disconnect between business strategy and investment in digitalisation to improve online presence and capabilities, as well as other broader business growth objectives.

This does present a real opportunity for manufacturers to embrace digital technologies even more to help their business become more competitive and sustainable.

Since our report, we have received a lot of valuable feedback from businesses about why Industry 4.0 challenges them. The most common responses include: • We don’t know where to start.

• We don’t have the time or resources to assess every technology to know what is relevant to us.

• We would like to know what others are doing to help us understand what is relevant and set the benchmark for our industry or business.

• Things are moving so quickly this

time around (compared to in the past) that it is hard to keep up, adapt and know what is relevant to us and when to jump in.

We have heard from both sides – technology suppliers and end users – that while there may be interest from businesses in the Internet of Things (IoT) or digital in general, the challenge for these businesses is the implementation and development of a real business case for investment.

The jobs of the future, the industries that provide them and the communities they sustain are increasingly going to rely on the development, understanding and use of new technologies like embedded sensors, robotics, automation and data analytics. The more we understand, the more we can all be part of the inevitable change and use it to shape our economy, workforce and community in our interests.

At industry level, there is much going on behind the scenes to support the capacity of Australian manufacturing to successfully exploit the fourth industrial revolution.

Of critical importance is the ability of the skills and training system to prepare workers for Industry 4.0. The Industry 4.0 higher apprenticeships project – a partnership between Siemens, Swinburne and Ai Group –utilises an apprenticeship framework to deliver a new Diploma and Associate Degree in Applied Technologies.

It focuses on Industry 4.0 and IoT, IT Disruptive Technologies, Engineering, Design and Business.

The pilot combines the best of university and vocational learning models to improve applied Science, Technology, Engineering and Maths (STEM) skills. Moves are underway to ensure the new qualifications are recognised by industrial awards.

As part of the work of the Prime

Minister’s Industry 4.0 Taskforce, we welcome a report by Swinburne on Industry 4.0 Testlabs in Australia.

The purpose of the Testlabs is to enable SMEs, students and the workforce to embrace industry transformation and learn about Industry 4.0 within cooperative environments including showcases, test beds and networks. The Testlabs are a crucial part of developing our knowledge about the challenges and opportunities of these technology frontiers.

Complementing this, the Innovative Manufacturing Cooperative Research Centre (IMCRC) was formally launched in July. The IMCRC provides a collaborative forum for manufacturing businesses of all sizes, research organisations, industry associations and government, investing significantly in partnerships that support innovation in processes, products or business models.

For its part, Ai Group is running peer-to-peer forums to help manufacturers take the next step into Industry 4.0 and the Industrial Internet through exposure to expert insights and case studies.

Our most recent event was held at GE’s Generator innovation hub in Redfern in July. Whether you are already investigating the possibilities, or do not know where to start, we encourage you to attend one of our free events in the future.

A Melbourne forum follows on 18 October.

Innes Willox, Chief Executive Australian Industry Group

manmonthly.com.au

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