Manufacturers’ Monthly Oct 2018

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

OCTOBER 2018

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So much more than just energy efficient compressors

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

OCTOBER 2018

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Behind the cover Recent activity in the automotive industry reflects a shift in the Australian manufacturing scene, from large-scale manufacturing towards high-tech products and services.

In August, General Motors announced plans to hire 150 more engineers at its Holden Port Melbourne facility to join the company’s global Advanced Vehicle Design (AVD) wing dedicated to the development of autonomous and electric vehicle technology.

Other car manufacturers like Ford and Toyota have also continued their presence in Australia in the form of engineering services and research and development, following the closure of their manufacturing units.

The Australian Bureau of Statistics’

quarterly national labour account in July established evidence of a migration in the workforce demand from blue-collar to white-collar professions. This has prompted many manufacturers to launch their own training and up-skilling programs to prepare the existing, as well as the future workforce for the jobs of tomorrow.

Quickstep, a leading composite manufacturer supplying to large manufacturers like Lockheed Martin and BAE Systems is collaborating with TAFE NSW to train its future employees, while Tradiebot Industries is working with universities to devise an Industry 4.0 course for people in the auto repair industry.

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Manufacturers’ Monthly OCTOBER 2018 5

Comment

SYED SHAH – Managing Editor, Manufacturers’ Monthly

Keeping it in Australia

A

CCORDING to the Office of the Chief Economist of the Department of Industry, Innovation and Science, manufacturing is the fifth largest industry in Australia. Because of this, there is much to benefit from in keeping manufacturing local.

This also indicates that there still is a large workforce in the industry.

Of course, the nature of those jobs is changing with production lines moving towards automation for better efficiency.

There are many benefits to keeping manufacturing local. These include economics, logistics, risk management and communications.

The associated economic benefits go back to the supply chain and benefit the local workforce directly and indirectly. In addition, by keeping manufacturing local, it helps local educational institutions promote the importance of science, technology, engineering and mathematics (STEM) subjects to students. This,

6 OCTOBER 2018 Manufacturers’ Monthly

in turn, facilitates the knowledge transfer within the industry and to the next generation – keeping relevant skills for the sector alive for future generations.

Although some detractors insist that manufacturing is on its way down, this is not true. A supposedly “finished” industry, the automotive sector, still has its fire burning bright. In this issue, we feature Holden, who, despite shutting its production doors, retains its design and engineering capabilities here in Australia. David Chuter, Innovative Manufacturing CRC (IMCRC) CEO and managing director, told Manufacturers’ Monthly that Australia continues to be well respected for its design and engineering capability.

In the story, he mentions the importance of adding value to the automotive industry on a global scale, from an Australian perspective. To demonstrate that jobs have been created since the

At the end of the day, it is a matter of national pride to see the “made in Australia” stamp on our manufactured equipment. closure of production facilities, since 2016, Ford Australia’s engineering, design and technician workforce has increased from 1100 to 1750.

Also, by keeping these aspects of the business local, it becomes easier to do quality control on the products and services.

In Holden’s case, even if the production facilities are overseas, the maintenance and engineering support needs to be kept local. This simply means that it cuts the time and costs for ordering spare parts, components and assembly. Also, by being closer to the customer, there is less of a hassle getting in touch with customer service.

In terms of using STEM skills

for other areas in the automotive industry, we spoke to another local manufacturer, Tradiebot, who was founded by Mario Dimovski, an automotive-based business owner with more than 25 years’ experience in the auto repair sector. He is looking to transform the automotive repair industry with robotics, Artificial Intelligence, 3D printing, augmented reality (AR) and virtual reality (VR). From his perspective, he feels that the engineering sector needs to rediscover and rebrand itself as attractive in terms of outlook and value.

Dimovski sees it as a two pronged approach – solving the skills shortage in the industry and making it more attractive for the younger generation by creating new digital career opportunities and skills.

So, local manufacturing can be mutually beneficial for customers, manufacturers and the rest of the workforce. Despite this, it is still an uphill task when comparing the initial costs presented by international manufacturers, from an Australian perspective. We do need to look at the bigger picture to understand the feasibility of keeping it in-house. This could include risks and hidden costs that are not accounted for which could come up in the production process – that could blow the final receipt out of proportion.

Plus, at the end of the day, it is a matter of national pride to see the “made in Australia” stamp on our manufactured equipment.

Local manufacturers appreciate it as much as their clients – to see something that they can place their confidence in.

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News @MM Australian Space Agency signs first international partnership The Australian Space Agency and its French counterpart have entered into a Memorandum of Understanding (MoU) that will help both nations work together to develop their respective space programs and take full advantage of the rapidly expanding global space industry.

The agreement, signed on 1 September by the head of the Australian Space Agency, Dr Megan Clark, and Centre National d’Etudes Spatiales (CNES) President, Dr Jean-Yves Le Gall, will help both countries join forces to develop their space capabilities, particularly in the areas of space operations, space science, Earth observation, positioning system and communications.

The Minister for Industry, Science and Technology, Karen Andrews,

8 OCTOBER 2018 Manufacturers’ Monthly

welcomed the agreement.

“This strategic association between the Australian and French governments’ space agencies will help our nations’ universities, research institutions, businesses and communities work together across a range of fields,” Minister Andrews said.

“It builds on an existing track record of cooperation between CNES and Australia, and allows both countries to embark on an ambitious partnership,” she said.

The first steps are already underway, with CNES partnering with UNSW Canberra Space for the development of the Australian National Concurrent Design Facility (ANCDF) for the development of world class space missions, and for studies towards the development of

CNES facility in Toulouse. satellite technologies with advanced sensors and on-board processing and intelligence.

Clark said the signing of the agreement represented the start of the Australian Space Agency’s journey with fellow spacefaring nations.

“Civil space engagement initiatives like this with the French Space Agency will explore advanced space technology and applications used in earth observation and remote sensing with high-altitude balloons and satellites, space operations and joint missions,” Clark said.

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News @MM Request for tender opens for LAND 400 Phase 3 contract The federal government has opened the request for tender for the LAND 400 Phase 3 – which will replace the Australian Defence Force’s armoured personnel carrier (APC) fleet.

The $10-$15 billion project will see the ADF’s M113 APCs replaced by fleet of up to 450 modern Infantry fighting vehicles and 17 modern infantry fighting vehicles (IFVs) and 17 manoeuvre support vehicles.

Former defence minister (now foreign affairs minister), Marise Payne, said the project would be the largest investment ever undertaken to modernise the Australian Army’s close combat capability.

“The vehicles will be equipped with high levels of protection, firepower and mobility that will enable sustained operations, varying from peacekeeping to close combat,”

Payne said.

During the tender process, the Department of Defence will work closely with industry to optimise the content provided by Australian industry.

The government’s industry capability plan, initiated in 2016, aims to enable Australian companies to compete on their merits for defence work on a value for money basis.

Defence minister Christopher Pyne encouraged Australian small and medium sized enterprises to take advantage of the opportunities opened by the project.

“Just as with the LAND 400 Phase 2 Combat Reconnaissance Vehicles, Australian industry involvement and Australian workers will be critically important to this project,” Minister Pyne said.

The ADF’s M113 APCs will be replaced through the LAND 400 program. Source: Australian Army.

A new Armoured Vehicle Division will be created to consolidate large programs like LAND 400, LAND 907 into a programmatic and

coordinated project.

Request for tender submissions for the LAND 400 Phase 3 will close on Friday 1 March 2019.

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News@MM CSIRO releases hydrogen industry roadmap The CSIRO has released a blueprint for the development of an economically and environmentallysustainable hydrogen industry in Australia that it says will enable decarbonisation across the nation’s energy and industrial sectors.

According to the CSIRO’s report, the National Hydrogen Roadmap, the ongoing maturation of hydrogen technologies – now moving from research and development to market activation – presents Australia with a new export opportunity and could also play a significant role in enabling the further uptake of renewable energy.

CSIRO chief executive Dr Larry Marshall described the roadmap as a blueprint for growing a globally competitive hydrogen industry in Australia through

coordinated investment.

“Australia has a unique and urgent opportunity to turn significant natural resources, including coal, gas, and renewables like solar and wind energy, into a low-emissions energy product and ship it around the world – in some cases literally exporting Aussie sunshine,” Marshall said.

While the report outlines several barriers to hydrogen market activation, including a lack of supporting infrastructure and the cost of hydrogen supply, it states that these barriers can be overcome via a series of strategic investments along the value chain from both the private and public sector.

Though the sector will require government assistance in its initial stages, the report finds that it can achieve long-term economic

The roadmap will enable decarbonisation across the industrial sectors.

sustainability – competing favourably on a cost basis in local applications such as transport and remote area power systems by 2025. It further indicates that the industry could become a “game changer” for the

local industry and the broader energy sector due to associated increases in scale.

The CSIRO’s report was sponsored by 21 industry and government bodies.

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Manufacturers’ Monthly OCTOBER 2018 11

News @MM New $1.6b railcar manufacturing facility to open in Perth Western Australian government has announced Bellevue, in eastern Perth, as the preferred site for the new $1.6 billion Metronet railcar manufacturing facility, returning manufacturing to the Midland area.

The proposed manufacturing facility will also be co-located with the Public Transport Authority’s next railcar depot, where Transperth will carry out maintenance of the broader train fleet.

Over the next decade, the facility will be used to assemble much of the extra 246 railcars required to service Metronet projects and replace ageing trains on the Transperth network.

Three consortia have been shortlisted to participate in a tender for the supply of the new trains, including Alstom Transport

Australia, Momentum West and EDI Rail – Bombardier Transportation.

Western Australian Premier Mark McGowan said a supplier will be selected in early 2019 and a key consideration will be their ability and commitment to manufacture or assemble at least 50 per cent of railcars locally.

“It’s exciting that we are in a position to bring trains well and truly back into the Midland precinct at a new purpose-built facility in Bellevue,” McGowan said.

“Metronet is not only a worldclass public transport system, but will create new opportunities for local workers,” he said.

The first stage of the project involves the delivery of 102 new railcars in 2021 to service the new Metronet projects as they

The proposed facility will be built at Bellevue.

come online.

The tender will also include a follow-on order for 144 railcars to

replace the ageing A-series railcars, with delivery expected to occur between 2023 and 2028.

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NEWS@MM Sonnen to manufacture home batteries at old Holden factory in Adelaide German energy storage company Sonnen will use the old Adelaide GM Holden factory to manufacture lithium-ion batteries, with the new production facility expected to be up and running within two months.

The site at Elizabeth will become Sonnen’s central shipping facility for Australia and the Asia and South Pacific region. The announcement comes after the South Australian government unveiled details regarding its $100 million Home Battery Scheme, which is to see $100 million in low interest loans for South Australia’s looking to invest in solar energy options for their homes.

Over the next five years, 50,000 energy storage systems are to be manufactured and assembled at the plant, creating approximately 430

manufacturing and installation jobs in the state.

Sonnen will eventually hope to run a “virtual power plant”, like one that they already have in Germany, where they connect thousands of households with a PV (photovoltaic) system and a storage system to form the decentralised sonnenCommunity.

Sonnen’s CEO Christoph Ostermann said the company was excited to begin manufacturing in South Australia for the Australian and export markets.

“As the sonnenBatterie can charge and discharge up to three times a day, it is ideal, once battery numbers reach a certain level, to form a ‘virtual power plant’ capable of supplying energy to the grid on days of high demand,”

Over the next five years, Sonnen plans to manufacture 50,000 energy storage at the plant.

Ostermann said.

“50,000 storage system will be able to draw down energy stored in the batteries to supply up to

150 megawatts of electricity to the grid, which is the equivalent of a gas-fired peaking power station,” he added.

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Manufacturers’ Monthly OCTOBER 2018 13

Industry FOCUS Shifting gear: Can R&D revitalise an industry in decline?

In a country where the physical production of cars has become outmoded, can continued investment in automotive R&D help establish leading roles in the manufacturing supply chains of future? David Loneragan speaks to the experts.

Holden, Ford and Toyota have a continued presence on Australia’s shores in the form of engineering services and R&D.

I

N the context of Australia’s post-mining boom transition to a more knowledge-based economy, investment in research and development (R&D) is vital in preserving and developing the skills and technologies necessary to keep up with future trends in advanced manufacturing. Can high-tech automotive R&D, in particular, help drive the creation of new valuechains in the national economy?

In August, almost a year after car manufacturing wrapped-up 14 OCTOBER 2018 Manufacturers’ Monthly

in Australia, General Motors announced plans to employ 150 more engineers at Holden’s Port Melbourne facility, where they will join the company’s global Advanced Vehicle Design (AVD) team dedicated to the development of autonomous and electric vehicle technology. The positions are expected to be filled by the end of 2019, bringing the Australian design, engineering and development team to over 500 in number.

Speaking to the media

at Holden’s Port Melbourne headquarters, GM executive vice-president of global product development, Mark Reuss, said Holden in Australia would quadruple its R&D budget from $30 to $120 million a year to provide this boost to the company’s design and engineering workforce, an important asset in its march towards developing the electric and driverless vehicles of the future.

“GM is determined to be the first company to bring safe, autonomous

vehicles to market – not within years, but in quarters,” Reuss said.

“The world-class vehicle engineering capability we have at Holden in Australia will play a significant role in GM delivering its commitment to create a world with zero crashes, zero emissions and zero congestion.”

Proving Australian R&D capability According to David Chuter, Innovation Manufacturing CRC (IMCRC) CEO and managing manmonthly.com.au

Industry FOCUS The end of automotive manufacturing in Australia was precipitated by economic trends long in the making. The soaring price of the Australian dollar in the wake of the resources boom, along with high wages and strong competition from low-cost (particularly lowlabour-cost) car-producing countries, rendered Australia an unattractive location for further long-term investment from the foreign-owned automotive subsidiary companies operating in the country. In short, automotive production closed as Australia was increasingly outpaced in a global market where scale and unit-cost are the basis of competition.

GM executive vice-president of global product development, Mark Reuss (second from right), speaking at Holden’s Port Melbourne facility.

The world-class vehicle engineering capability we have at Holden in Australia will play a significant role in GM delivering its commitment to create a world with zero crashes, zero emissions and zero congestion. director, Holden is one of many companies currently demonstrating that Australia continues to be well respected for its design and engineering capability.

“I think this is a big yes-vote for the capability we do have in Australia to design, engineer and create great products for manufacturing,” Chuter told Manufacturers’ Monthly. “While these future vehicles won’t be made in Australia, it doesn’t mean that we don’t have still a significant amount of value to add to the car industry, globally speaking,” Holden follows Ford, which, in 2016, provided $450 million – representing a 50 per cent increase – to the company’s Australian research and development budget, supporting the expansion of its engineering, manmonthly.com.au

design and technician workforce from 1100 to 1750. As with Holden, the effort is aimed at developing fully autonomous car technology for commercial vehicles by the early 2020s.

Still, according to Chuter, without the direct link between R&D and every stage of automotive production that used to exist in the country, Australia will still need have to work hard to earn in its place in the global network. He indicated that, in the face of increasing global competition in the R&D space, companies like Holden and Ford must keep pushing ahead of the curve and investing heavily R&D in Australia.

“I think the critical thing is that, regardless of what industry is carried out in Australia, it’s a sustainable business model,” Chuter said.

“And there has to be recognition, awareness and understanding that markets like China, India and others are growing their own R&D capabilities rather quickly.”

In October 2017, General Motors Holden’s manufacturing plant in Elizabeth, Adelaide, shut its gates for the last time, bringing an end to the physical production of cars in Australia and the jobs of 1,400 workers. Toyota’s Altona North factory closed earlier in the same month, while Ford had already closed its 91-year-old plant at Broadmeadows in Melbourne 12 months before, leading to the loss of thousands of jobs.

This mass culling of Australia’s automotive manufacturing workforce didn’t stop with the big three car companies. Along with those directly employed at the plant, the Holden closure meant the loss of another 1,500 to 2,000 jobs from the supply chain that provided goods and services to the company. A report from the Productivity Commission released in 2014 had predicted that up to 40,000 jobs would potentially be lost from the closure of automotive manufacturing plants across Australia by the end of 2017.

Australia’s need for “smart specialisation” Ever since the automotive plant closures, public discourse – among the media, politicians, academics and industry figures – swirled furiously and repeatedly around two topics in particular: the uncertain future for manufacturing jobs in Australia and the threat posed to the knowledge, skills and technologies necessary for future survival in high-tech, high-value, and high-skill advanced manufacturing supply-chains.

The federal government, in its 2017-18 budget, set aside $100 million to establish an Advanced Manufacturing Fund to boost innovation, skills and employment in advanced manufacturing. It is not clear, however, that enough funding and planning has gone into preserving value-adding activities within the broader manufacturing process as it moves forward into the future, particularly in product design and research and development.

Professor Roy Green, special advisor and chair for the University of Technology Sydney’s Innovation Council, told Manufacturers’ Monthly that the development of industry policy in Australia was severely lagging.

“Over the last two years, billions have been taken out of the national research and innovation system while, at the same time, other Manufacturers’ Monthly OCTOBER 2018 15

Industry FOCUS countries are pouring resources into their future research and innovation capability,” Green said. “We’re not doing that, and we have not identified where our competitive advantages lie.”

Green said that with Australia making up only two to three per cent of the world’s R&D, it was now up to governments to contribute to developing areas of “smart specialisation” in the economy, including support for R&D endeavours in the world automotive supply chain.

“The government does have its Advanced Manufacturing Fund, which was promised as part of the transition away from car assembly, the Labor opposition has its plan for a billion-dollar manufacturing future fund based on the Clean Energy Finance Corporation, and various companies are receiving grants – these are all good ideas, but they’re rather isolated and fragmented ideas,” Green said. “They need to be part of a much more coherent approach to the development of next-generation manufacturing.”

The path forward Nonetheless, recent activity from the automotive industry itself may be a sign that Australia’s situation may not be as parlous as frequently

predicted. Holden, Ford and Toyota have a continued presence on Australia’s shores in the form of engineering services and R&D. And this looks set to expand and grow going forward.

Green said that this kind of development is what many had been arguing for when the automotive assembly plants closed.

“Australia’s automotive research and development capability needs to be retained as we have a fairly high capacity in this area. To the extent that companies like Holden and Ford can feed into the global R&D network, the head offices of these companies see that as adding value to their globally-based businesses,” Green said.

According to Green, continued demonstration of high-level capability in the design and R&D space might be able to encourage further investment over time.

“We have large numbers of R&D specialists working in these facilities, and this might give us enough critical mass to stay within those major manufacturing value chains,” said Green. “That may be in auto-components – which, in the past, we should have been investing in much more than we did compared with car assembly – or it might be in new industries altogether or in new

Chuter said continued automotive R&D investment might allow Australia to keep up with the rapid pace of technological change, opening paths for advanced manufacturing – and possibly vehicle manufacturing – in the long-term. forms of car production.”

There is clearly high interest in developing electric and driverless car capability in Australia. GM Holden is preparing to lead the way through its own investments in research and development capabilities in this space.

The soon-to-be 500 strong team of engineers at its Port Melbourne facility will be working on projects that will see the creation of vehicles for both domestic and global markets.

“Make no mistake, we’re moving to a driverless future – a future of safer roads and zero crashes,” said GM’s Mark Reuss. “GM is well on its way to bringing at least 20 new allelectric models to market by 2023.”

And, while it may appear that

Australia is fated to no longer make cars, Chuter said continued automotive R&D investment might allow Australia to keep up with the rapid pace of technological change, opening paths for advanced manufacturing – and possibly vehicle manufacturing – in the longterm.

“We’re building things like battery capability, Internet of Things (IoT) capability, and it is not impossible to think that we might build human transport products in the future,” said Chuter. “If that means doing design and engineering maintains our global relevance in the automotive industry as it stands today, then that can only good for Australia in the long-term.”

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Composites MANUFACTURING

A strategic realignment paying off Tara Hamid spoke to Mark Burgess, CEO and managing director of Quickstep, about how his business realignment allowed the company to grow its revenue and ramp up production.

W

HEN Mark Burgess joined Quickstep, a composite components manufacturing company, as CEO in May last year, he had to make some difficult decisions, which at the time appeared brutal, but eventually paid off – even sooner than he had anticipated.

Having over 20 years’ experience in the global aerospace and defence industries, including a 16-year career in BAE Systems, Burgess announced a complete business realignment in August last year to help the company accelerate its profitability growth.

The realignment strategy –

18 OCTOBER 2018 Manufacturers’ Monthly

called the OneQuickstep program – involved some radical measures, including halving the number of key management personnel and the size of the board as well as closing down the group’s research and development facility in Germany.

The company also significantly reduced its research and development expenditure at its process development centre in Geelong and implemented Lean programs across its operations for cost-control measures.

“None of these were attractive decisions to be made, but they were

absolutely essential for the business to remain sustainable,” Burgess told Manufacturers’ Monthly.

“It was hard to maintain morale during this period and keep people focused. All of us had to work together to get through the period.

Being a publicly listed company also came with its own challenges. We needed to convince the stakeholders – be it creditors, investors, or customers and suppliers – that we had a sustainable business and that we were going to generate positive cash-flow,” he said.

But, the turn around came sooner

than expected and in the second half of the 2018 fiscal year, Quickstep reported a positive net profit after tax, enabling the company to re-invest in the business’ growth.

“The performance of the two halves of the year were worlds apart, so much so that we made a net profit in the second half of the year, against a significant loss in the first half of the year,” Burgess added.

Quickstep announced nearly 14 per cent growth in its overall sales for fiscal year 2018, compared to the previous year, with the second half gross margin five per cent higher than manmonthly.com.au

CompositesMANUFACTURING JSF program increased 45 per cent and Burgess is expecting the growth to exceed 40 per cent this year, and at slower pace next year.

In August, Quickstep also extended its existing contract with Lockheed Martin for an additional five-years to continue supplying wing flaps for Lockheed Martin’s commercial and military aircrafts through to 2024.

Burgess said he expects the Lean program implementation to continue to drive excess cost out of the business in the 2019 fiscal year. This, he expects, will allow the company to experience positive cash flow through all four quarters, while also making a net profit for the full year – the first time in the company’s 17-year history.

It’s symbiotic. You can’t invest in R&D if you are not making money and you can’t make money if you aren’t driving Lean manufacturing operations.

Changing the mindsets

Quickstep currently oprates out of a 16,000-square metre manufacturing plant at Bankstown Airport in southwest Sydney.

the first half.

Being the largest independent aerospace-grade advanced composite manufacturer in Australia, Quickstep has been working with some of the world’s largest aerospace/defence organisations, including Lockheed Martin, Northrop Grumman, BAE Systems, and Victorian-based Marand Precision Engineering.

Quickstep is an approved supplier for the international F-35 Lightning II Joint Strike Fighter (JSF) program – the largest military aerospace program in the world, valued in excess of US$300 billion ($420 billion) worldwide. Quickstep has also been selected by Lockheed Martin as the sole supplier of composite wing flaps for the military C-130J “Super Hercules” and the commercial LM100J transport aircraft.

In 2018, Quickstep’s production for manmonthly.com.au

So how did the company get through the difficult period and improve its profitability?

The main challenge, Burgess said, was to change the mindset in his business to focus on profitability, in addition to the company’s existing commitment to quality and on-time delivery.

“One of the main things that struck me when I first joined the company was that I thought a business that has been running for nearly 16 years and never made a profit is not a sustainable business,” Burgess said.

Burgess said the shift in mindset meant that the company had to go from spending extensively on R&D without any take-to-market plans to “invest only on programs that have a clear pathway to commercialisation.”

“It’s symbiotic. You can’t invest in R&D if you are not making money and you can’t make money if you aren’t driving Lean manufacturing operations.

“We are well on that pathway now.

And the most exciting thing from my point of view is that while delivering shareholder value is absolutely paramount to everything we do, we are creating headroom within our budget to re-invest in the business to position ourselves for the next layer of growth,” Burgess said.

Mark Burgess, CEO and managing director of Quickstep, announced a complete business realignment in August last year.

Growing the business Quickstep is already re-investing its earnings back in the business.

In August, the company announced that it had secured a new project to produce carbon fibre composite housings for an F-35 counter-measure flare for Chemring Australia.

This project is supported by funding from the F-35 Lightning II Joint Program Office through Chemring Australia and a New Air Combat Capability – Industry Support Program grant of $1 million.

This is in addition to about $2 million investment by Quickstep to establish a new advanced manufacturing centre within its existing facility in Bankstown.

Burgess said the new plant has been designed by engineers who specialise in the automotive manufacturing industry to look like

automotive manufacturing cells, with high levels of automation and involving highly optimised operations.

“Unlike the automotive sector, the defence industry is usually not accustomed to large volumes of manufacturing. But, with the growing demand – both from the Commonwealth defence expenditure as well as an unprecedented demand in the narrow body manufacturing in the commercial sector – our production volumes are increasing.

“If you look at the F-35 project, we are currently producing about 2,500 parts a year. Whereas the volumes we will be producing in the new manufacturing facility will be between 15,000 to 30,000 units per year. So, it’s a huge leap in volume,” he said.

That’s why, Burgess said, a large number of Quickstep’s current team of 246 employees come from a Manufacturers’ Monthly OCTOBER 2018 19

Composites MANUFACTURING background in the automotive sector.

“It’s a unique aspect to our business that the demise of the auto sector in Australia has actually had a beneficial effect for us, as most of our team at our R&D facility in Waurn Ponds, have a background in automotive manufacturing,” he said.

While the current contract with Chemring Australia is focused on designing and preparing the facilities for the project, Quickstep is expecting to start its new production line in Bankstown within the next 12 months.

Investing in people Quickstep has also been increasingly investing in its people, creating career development programs for employees and setting targets for diversity and inclusiveness within the team.

The measures, according to Burgess, are aimed towards placing the company as an employer of choice in the advance manufacturing industry in Western Sydney.

“It’s a war for talent out there,” Burgess said. “So, a part of how we are driving our business forward is a real bias towards investment in people. That’s not something that we’ve done very well in the past. Of course, we’ve always been a responsible employer, but we somehow left the career development of employees as an afterthought.”

An employer of choice, according to Burgess, is a company that embraces diversity, offers flexible working conditions, and provides people with competitive remuneration – with the opportunity to increase their earnings based on their performance.

“But that’s only what gets people through the door. What motivates them when they are here, is investing in employee welfare programs, like a decent dining area, giving them training and development, investing in them as individuals and collectively as a team, and most importantly, giving them sight of what career progression lies ahead for

them.”

Quickstep is currently partnering with TAFE NSW-Padstow on the development and implementation of a comprehensive composite manufacturing training program for all of the new employees starting at the company’s manufacturing facility in Bankstown.

Burgess said the TAFE training program was designed to significantly reduce the time it takes to train the employees in composite and additive manufacturing.

“It removes the burden from our people and places that responsibility on TAFE. We are very fortunate that Padstow TAFE, because of its proximity and engagement with Bankstown airport, have lots of aerospace and aviation experience.

They even have their own small autoclave, which means they can, not just lay up, but also cure composite parts,” he said.

Quickstep’s educational programs are not exclusive to TAFE. “The model we are moving towards

is a career-long learning model, wherein the employees, at all levels, have access to internal and external training and development programs provided either by TAFE or other external organisations,” Burgess said.

Since last year, Quickstep has also implemented a diversity and inclusion strategy, detailing the company’s commitment to gender, ethnicity and age diversity within the workplace, as well as its commitments for workplace culture.

To deliver on those commitments, Burgess said it was important to keep the communication channels with employees open and to allow them to understand their role in the business.

“Everybody wants to feel valued, but they also want to feel that what they do is meaningful and to know why it is meaningful. So we are investing more in conveying that to the people, using a performance review process, as well as a cascade of management systems from the board through the various tiers of leadership,” Burgess concluded.

Quickstep is the sole supplier of composite wing flaps for Lockheed Martin’s C-130J and LM-100J aircrafts.

20 OCTOBER 2018 Manufacturers’ Monthly

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Industrial AUTOMATION Embracing the power of digital transformation Tradiebot Industries has set out to transform the automotive repair industry through robotics and digitisation. Tara Hamid looks at the company’s journey so far and the lessons for other industries.

The automotive repair industry, like many other sectors, is struggling with a shortage of skilled workforce.

T

HE future smash repair workshops could look very different from what we have grown accustomed to, thanks to the robotic platforms being developed

by Tradiebot Industries for vehicle collision repair.

The automotive repair industry, like many other sectors, is struggling with a shortage of skilled workforce, both in Australia and globally.

The Department of Jobs and Small Business’s employment projections to 2022 show that for the vehicle spray painting alone, as many as 3,243 vacancies will be created in the coming years.

Meanwhile, PwC’s Industry Forecast in May 2017 reported that workforce shortages in the vehicle body repair and refinishing sectors are likely to persist over the medium to long- term.

The skills shortage is not limited

22 OCTOBER 2018 Manufacturers’ Monthly

to Australia. IBIS Global Report 2018 shows that around the world, there is a growing shortage of qualified technicians in the auto body repair industry.

Mario Dimovski, an automotivebased business owner with more than 25 years’ experience in the auto repair sector, decided to seek the answer in robotics and digital tools. Thus was born Tradiebot Industries, or Tradiebot for short.

Dimovski founded Tradiebot in 2017 to develop solutions that can transform the automotive repair industry with the help of new technologies, such as robotics, Artificial Intelligence, 3D printing, augmented reality (AR) and virtual reality (VR).

“We are not really re-inventing anything. We are simply fast following what other industries are doing,” Dimovski told

We are creating multiple layers of value with Tradiebot: we are filling a void in our industry, we are helping solve the problems faced in the sector, and we are up-skilling the current industry.

Manufacturers’ Monthly.

Dimovski sees automation not as a means to replace human with robots, but as a way to address the current shortage of workers in his sector, as well as a way to attract millennials.

“We are creating multiple layers of value with Tradiebot: we are filling a void in our industry, we are helping solve the problems faced in

the sector, and we are up-skilling the current industry, which hopefully then will make it more attractive for the younger generation by creating new digital career opportunities and skills.

“By automating the panel-repair process, we shorten the repair process and the time required to train people to carry out the tasks.

This also helps to attract the young manmonthly.com.au

Industrial AUTOMATION

AMGC state director Michael Sharpe (left), Tradiebot chief creator Mario Dimovski (centre) and PPG Industries Australia marketing director Kevin Woolerton (right) at the project signing ceremony in UNSW-Sydney.

generation to the sector, because they will now have the opportunity to work with robots and manage automated systems, rather than doing so much hands-on tasks, which is so much more attractive as a career choice,” Dimovski said.

Working with OEMs Dimovski believes that collaboration is the strongest aspect of Tradiebot. He is currently working on a number of parallel projects with universities and partner industries, including PPG Industries, AMA/ Gemini Group and Capital SMART, to better develop smart solutions for automotive repair.

Tradiebot is also planning to work closely with original equipment manufacturers (OEMs) to establish a digital catalogue comprising of computer-aided design (CAD) files for vehicle panels and parts, to guide the company’s automated repair systems or for additive manufacturing purposes – such as on-demand 3D printing of auto parts.

Dimovski says a big challenge for him is to change the mind-set of some OEMs to convince them about the industry’s shift towards digitalisation and the collaborative opportunities that will ultimately benefit the repair shops.

“Our research shows that the manmonthly.com.au

repair processes on the shop floor can be reduced by up to 50 per cent through the use of digital tools and providing the technician with upto-date repair criteria. The digital parts’ database will also create new revenue streams as the digital files can be sold via certified OEM

partners,” he said.

A collaborative project between Tradiebot and Swinburne University – called Repair Bot – looks into using 3D printing technologies and robotics along with novel plastic materials to enable an automated rapid repair service for plastic

car parts.

The project is co-funded by the Innovative Manufacturing Cooperative Research Centre (IMCRC) and Tradiebot has partnered with leading automotive collision repairer AMA/Gemini Group to collaborate and validate the processes.

“Working with leading names in the repair industry, including PPG Capital SMART and AMA/Gemini Group helps us understand the current needs and to develop our solutions around the real problems that the industry is facing,” Dimovski said.

Another project, co-funded

by Tradiebot and the Advanced Manufacturing Growth Centre (AMGC) and supported by the University of New South Wales’ ARC Training Centre for Automated Manufacture of Advanced Composites (AMAC), focuses on digitalising the process of repairing damaged vehicle panels.

The project – called Prep Bot – is focused on developing an integrated solution that uses sensors, 3D scanners and image processing tools

The Tradiebot Industries’ team exhibited the company’s virtual/augmented reality training and services solutions at the Skills Show Australia 2018.

Manufacturers’ Monthly OCTOBER 2018 23

Industrial AUTOMATION Tradiebot founder, Mario Dimovski, tries out the latest in smart glasses during his visit to Trumpf Smart Factory in the US.

to develop virtual models of vehicle panels. These help assess the extent of the damage and then uses a robot control system that can conduct physical repairs, including sanding, painting and polishing.

Apart from providing an internal solution for the automotive repair sector, Dimovski believes the project could also lead to creating new manufacturing jobs in Australia as the technology sets to disrupt the global automotive industry.

Upon successful validation of the project, Tradiebot plans to export the technology through PPG as its global value chain partner.

“We are currently developing the algorithms and the cloud-based

24 OCTOBER 2018 Manufacturers’ Monthly

systems using artificial intelligence and various other data. Those will be driven by hardware, which includes the scanners and robots and systems that we need to put together. So there’ll be a large proportion of manufacturing involved on our projects, be it assembling existing parts, or manufacturing them from scratch,” he said.

Embracing transformation Dimovski’s message to business owners and the industry is to embrace the digital transformation and not be afraid of it.

“We have all of the tools available to transform the auto repair industry. We have some of

The aim of the course is to educate the whole industry, from the technicians working on the shop floor to the business owners, to understand what’s available and what each technology does. the most talented skills in our universities and these technologies are already being applied in other sectors,” he said.

Tradiebot is in the process of developing an Industry 4.0 course, in collaboration with one of the leading Australian universities.

Dimovski said the company intends to prepare people involved in the auto repair sector to embrace the new technologies and attract a new generation of digital technicians.

“The aim of the course is to educate the whole industry, from the technicians working on the shop floor to the business owners, to understand what’s available and what each technology does.

Because they are the ones that will ultimately be using it and they can hopefully give us feedback to either develop more solutions or tweak the existing ones,” he said.

To attract the new generation to the auto repair industry, Tradiebot is also involved in a collaborative research project with Deakin University that explores the use of virtual and augmented reality technologies to develop a new Industry 4.0 training and digital planning system for the automotive collision repair and service industry. A version of the VR simulator, which trains the users in auto body painting, has already received great interest from schools and educators.

Dimovski said Tradiebot plans to offer the simulation software as a downloadable version, so the schools can use it for their students that he hopes will create interest in the profession.

Let’s Collaborate Dimovski is a strong believer in keeping his business open to new ideas and collaboration opportunities.

“At Tradiebot, our strongest aspect is that we collaborate. We share and we are open. Many people ask us: why do you disclose so much?

But that’s our motto. We have no problem saying this is what we are doing, because by sharing it, we also invite people to come forward and make new propositions.

“So far, it has worked to our favour. We are getting a lot of interest from all over the world and have some of the industry-leading companies as close collaborators and partners that we aim to work closely and transform the collision industry as we know it in the near future.

“Another exciting part about being transparent about our developments is the amount of interest we are receiving from other industries outside automotive,” Dimovski said.

Defence is one industry where Dimovski has already started the talks. “Defence is a sector we have been moving towards and exploring in recent times as we align our solutions with their needs. We have identified many similarities in what our solutions offer around automotive that fit the defence industry needs.

“Conversations have started with leading Australian companies in this space on how Tradiebot can offer its services and technologies, with the assistance of AMGC, helping connect companies together,” he added.

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Events @MM CSIRO promotes closer collaboration with manufacturers CSIRO’s Lindfield site in Sydney hosted manufacturers in an event aimed at introducing collaborative growth opportunities. Manufacturers’ Monthly reports.

Katie Green, CSIRO’s operations manager at the Lindfield Collaboration Hub, guided the attendees on a tour of the facility.

B

RINGING together scientific research and industry was the purpose of a recent event hosted at the CSIRO’s Lindfield site in northern Sydney, with highlights including a speech from the organisation’s chief scientist, Cathy Foley, and a tour of the facility.

Organised by the CSIRO in collaboration with the Cumberland Manufacturing Centre and the Advanced Manufacturing Growth Centre (AMGC), the late August event was well-attended by representatives from Australian manufacturing companies seeking to learn more about the ways cuttingedge science could be used for industrial purposes.

26 OCTOBER 2018 Manufacturers’ Monthly

One of the CSIRO’s largest research centres, the Lindfield site is home to the Lindfield Collaboration Hub, where tenant startups and SMEs use the available facilities to work on innovative projects aimed at developing new products for commercial markets.

Katie Green, CSIRO’s operations manager at the Lindfield Collaboration Hub, said that it was important for scientists to encourage manufacturers to think differently about the way they do business.

“CSIRO is trying to engage more actively with industry and today is an opportunity to bring together a group of manufacturers to see what facilities and capabilities the

Lindfield site has to offer and to complement this with the knowledge and expertise of the staff,” Green said.

“We are hoping that people walk away with something tangible to help their business go forward and to learn about the opportunities for them to change the way they are operating.”

Also in attendance was the deputy and science director of CSIRO’s manufacturing business unit, Dr Cathy Foley, who was recently appointed as the research body’s chief scientist. In her speech to the gathered attendees, Foley made a pitch for closer collaboration with manufacturers.

“The manufacturing sector has been on an upward slope for the past couple of quarters and we would like to think that you as manufacturers can come to CSIRO and find help to build your businesses,” Foley said.

She gave the example of Medical Developments International (MDI), an Australian medical company that manufactures Penthrox, commonly known as the “green whistle”. Once a small company worth around $3 million, Foley said CSIRO helped them scale up to become a globally competitive company currently valued at over $300 million.

“Being chief scientist at CSIRO is a dream job for me, because it allows me to engage with all parts of manmonthly.com.au

Events@MM

AMGC’s NSW and ACT director, Michael Sharpe (left), Chair and CEO of Cumberland Manufacturing Centre, John Wayland (centre) and CSIRO chief scientist, Dr Cathy Foley (right) at the event.

the sector in Australia,” Foley told the gathered manufacturers and researchers. “The thing that I really like about it is the idea of being able to connect people together.”

A further focus of the event was putting promoting opportunities for

Australian manufacturers in India.

A former Indian Army commander, Lt. General Arun Sahni, was in attendance at the invitation of John Wayland, chair and CEO of the Cumberland Manufacturing Centre.

Foley said that CSIRO was a

globally-focussed organisation that recognised the need to link with international collaborators. “We only do a small part of the global research and a small part of Australia’s research,” she said. “So, we need to collaborate nationally and internationally to be able to find the best solutions and do the best work.

I’m looking forward to engaging with the general and I hope to reciprocate the visit and visit them in India.”

Foley also promoted the activities of AMGC, a governmentfunded body that promotes and supports innovation in Australian manufacturing. Earlier in the afternoon, participants in the event were able to attend a presentation

by AMGC’s NSW and ACT director, Michael Sharpe, who spoke about how the nation’s manufacturing focus was transitioning from traditional production-centred processes to pre- and post-production processes such as research and development and services.

Sharpe also sought to dispel the widely-held notion that manufacturing is “dying” in Australia, reminding those assembled that the sector had been undergoing 22 consecutive months growth.

An exciting feature of the event were tours through the CSIRO’s physics and chemical laboratories, guided by researchers directly involved in cutting-edge projects. Representatives from the manufacturing industry were able to view examples of how the latest scientific work could lead the way to the development of new products and new markets. One of the laboratories has developed a chemiresistor sensor array, which detects and quantifies organic chemicals in water using the high sensitivity and tuneable selectivity of gold nanoparticle films. Applications of the technology include real-time, on-field environmental monitoring, and for medical testing processes.

OPPORTUNITIES TO PROMOTE YOUR BUSINESS AS AN INDUSTRY LEADER ARE NOW AVAILABLE FOR 2019 WOMENININDUSTRY.COM.AU P R O U D LY P R E S E N T E D B Y

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Manufacturers’ Monthly OCTOBER 2018 27

Manufacturing STRATEGIES Investing in “Made in Australia” Manufacturers’ Monthly caught up with Bruce, Iain and Andrew Turner from Wynstan, a family-owned custom windows and doors business, to find out more about their efforts to keep manufacturing local.

Wynstan managing director, Bruce Turner, and his sons Iain and Andrew take pride in keeping the majority of their manufacturing in Australia.

W

HEN you look at aluminium doors or windows on buildings and homes, there is a very good chance that many of them come from Australia’s oldest manufacturer of custom windows and door fashions, Wynstan.

The company started out as a small lock business in Burwood with just two people – Charles Turner and his son Bruce Turner in 1968.

Wynstan now manufactures from a Western Sydney facility that is over 22,000 square metres large and employs over 400 staff and contractors. The business has evolved over time to add a wide range of customised shutters, blinds, doors and awnings.

“When the business first started, my father (Charles) and I worked on security systems. Later on, we ventured into home improvement and manufacturing doors. From making fly-screen doors nearly 55 years ago, we now manufacture very sophisticated security doors, Crimsafe, that require licenced technicians to install them,” said Bruce Turner,

28 OCTOBER 2018 Manufacturers’ Monthly

managing director, Wynstan.

From opening its first showroom in 1991, the company has expanded to 23 showrooms in Australia and three in the US. They are looking at opening their 24th showroom in Sydney soon.

Wynstan prides itself on having managed to keep manufacturing in Australia and a strong familyfirst culture.

“Our strength lies in the 400 odd people who stand behind us, that have made growth possible. We understand that we need to take care of them and support them,” said Iain Turner, sales and marketing director of Wynstan.

Keeping manufacturing in Australia Despite the temptation to move offshore, Wynstan has managed to keep the majority of its manufacturing in Australia.

“We will have the ability to have 100 per cent of our products manufactured here (in Australia) soon because we now have the space to do so,” said Iain.

Currently, Wynstan’s products

reach as far as the US market.

According to Iain, not many people are bringing manufacturing back to Australia and it’s worth keeping their processes in Australia because the company can better control the process.

“Our product is customised.

Because we are not making thousands of the same shape and size, we need to adjust the dimensions every time.

Manufacturing here gives us the ability to deliver our products quickly to the customer. We even deliver to the US market in a maximum time of seven days from the order,” said Iain.

To produce quality products, Iain said the team needs quality staff.

Recently, Wynstan has invested $350,000 towards a training area in their new facility.

The training helps new staff learn the combination of traditional manufacturing processes and automation tools that Andrew Turner, operations director of Wynstan told Manufacturers’ Monthly is the secret to Wynstan’s sustained growth. The process is designed to be efficient

and deliver their customised products in a short amount of time and to a high quality.

The company has recently developed a customised robot that automatically drives the screws in the Crimsafe doors. This innovation helps Wynstan meet growing demand, as well as improve the quality of its product.

Other processes like sewing and connecting the blinds are also automated to the extent that an unskilled workforce can quickly learn the process. According to Andrew, automation has helped the company overcome a shortage of skilled workers, while enabling growth.

“It’s not easy to find highly-trained staff who are willing to work in the manufacturing sector. The reality is that manufacturing jobs are not sexy and the wages are the minimum in the market,” he said. “Through automating our processes, we are not killing jobs. We are merely trying to survive in the highly competitive market. And, it is also enabling us to grow and create more jobs as a result.”

Investing in the future of Australian manufacturing With the Wynstan’s product output and portfolio growing year on year since the 1990s and to ensure the sustainability of the evolving business model, the company needed a good financial solution and consultancy support. However, the path to finding the right partner that understood a manufacturing business’s needs was challenging, until recently, Bruce told Manufacturers’ Monthly.

“We were looking for a bank that we could work with. From the very beginning, many of the financial institutions that we approached came up with disappointing proposals,” he said. “It was not only about money. We needed a bank that would understand our work and that shared our vision manmonthly.com.au

ManufacturingSTRATEGIES for keeping manufacturing local.”

That was when Wynstan came to learn about St.George Bank and its focus on growing Australian manufacturers.

Andrew said that what makes St.George so unique is that the bank seemed to understand the manufacturing process. Most importantly, they are actively looking to invest in the future of manufacturing in Australia.

“If the banks here are not willing to invest in manufacturing, then it will be difficult to keep manufacturing local. That’s why so much of the manufacturing goes overseas,” said Andrew.

He said that, in the manufacturing industry, investment is always about technology and how the processes can be more efficient, while maintaining labour rather than reducing it.

“This is especially important in a custom-made environment like our business, where each and every product is different. Under that nature, we have to be investing in technologies to improve. If you don’t have a partner that’s willing to invest, that’s when manufacturing starts to shift out of the country,” said Andrew.

Andrew said St.George was willing to invest in Wynstan’s automation efforts, despite the potential risks involved.

“It’s easy to find investors for tried

and tested technologies. It is much harder to convince someone that an investment is worthy when you are still in the development stage,” he said.

Matthew Kelly, head of manufacturing and wholesale for St.George’s NSW division, said St.George understood where Wynstan was heading and was willing to support them on that journey.

“What makes St.George’s model different is that our specialists understand the industry they serve inside and out. We talk the language of the industry and we use our experience to help customers like Wynstan grow,” he said.

Kelly added that St.George has already been linking Wynstan with some industry partners and universities to help them with their automation plans. St.George has also been showcasing Wynstan in networking events, that have helped create more recognition for the company.

“We have strong industry connections and we are willing to use our connections to help Wynstan grow and prosper,” he said.

A strong partnership The partnership between Wynstan and St.George been going on for almost three months now and both are satisfied with what has been

Andrew Turner demonstrates the sewing machine he has modified to make blind production more efficient.

achieved in such short time.

“The fact is that St.George’s model is very unique. While most banks today only give you one point of contact to be dealing with, we can easily reach out to St.George and they

understand us very well,” said Bruce.

“We were looking for a bank that respects our business and we have found St.George to be just that.

Within just three months, we feel like we have become part of their family,” he said.

Peter Crabtree, senior manager – industry banking, St.George, said that they have built a good rapport with Wynstan, which is based on honesty.

“Bruce tells us everything, which is important. We interact a lot as we work through the first 3 – 6 months of our partnership. Having this sort of open and honest relationship helps us to assess the risk and then provide additional facilities in terms of asset and equipment finance or raising capital to grow the business,” said Crabtree.

Company: Wynstan Web: www.wynstan.com.au

Wynstan manufactures from a Western Sydney facility and employs over 400 staff and contractors.

manmonthly.com.au

St.George Web: www.stgeorge.com.au/manufacturing

Manufacturers’ Monthly OCTOBER 2018 29

Research&DEVELOPMENT

Pursuing the possibilities of tyre-derived manufactures Tyre Stewardship Australia discusses its efforts to promote and support the development of new products made from the nation’s burgeoning supply of used tyres.

T

HE equivalent of 56 million tyres are replaced every year in Australia, the majority of which are currently disposed of in landfill, exported for re-use, turned into fuel, illegally dumped, or lying idle in stockpiles. With an expanding population requiring ever more road vehicles, this national waste problem is set to grow. By 2024, over 63.3 million tyres will need to be disposed of. Today, only 10 per cent of end-oflife tyres are recycled locally.

But what if more used tyres could be transformed from waste into useful products, not only reducing harmful environmental impacts, but also potentially creating new industries and employment opportunities?

This is the aim of the Tyre Product Stewardship Scheme, a governmentsupported, ACCC- authorised industry framework formed in 2014 and administered by Tyre Stewardship Australia (TSA).

“From the perspective of TSA, the reason we want to talk to the manufacturers is because we want to work collaboratively with industry partners to increase the uptake of Australian tyre-derived product,” said Liam O’Keefe, TSA’s market development manager. “Tyre-derived

30 OCTOBER 2018 Manufacturers’ Monthly

product is a secondary resource that is high volume, that can be utilised as a raw material into new products.”

Since 2015, TSA’s Tyre Stewardship Research Fund – raised via a levy on voluntary participant tyre companies – has committed over $3 million towards research and development (R&D) projects exploring applications for tyre-derived product (TDP) across different industries.

O’Keefe said that, initially, from its inception, the Fund was focused on early stage research activities and had invested in research and development projects. “That means through R&D, we were creating potential markets. This meant we weren’t creating the immediate demand and positive impact on existing commercial entities to the extent that we would have liked,” he said.

As part of the ACCC’s reauthorisation of the Scheme, the structure of TSA’s funds program has been granted greater flexibility, allowing a broader scope to support projects that can demonstrate commercially viable uses of tyrederived product.

“Now we’ve changed the parameters of the fund to be less R&D oriented and to be more

direct,” O’Keefe said. “We want to talk to industry, we want to talk to manufacturers, and we want to fund demonstration projects and infrastructure projects that can definitively and directly increase the consumption of Australia’s tyrederived product to create a direct benefit to the resource recovery and recycling markets.”

The roads market, to date, has shown the greatest potential for the up-take of TDPs. Moreover, TSA considers this a vital development, considering the expanding production and disposal of tyres.

“As a nation, we use so many tyres, we drive on the roads, and we’re building more and more roads for more and more cars, so there’s an imperative there that TSA wants to address in conjunction with the roads sector,” O’Keefe said.

“Rubberised roads perform better than standard asphalt roads.

So not only is it beneficial from an environmental perspective, it’s beneficial from an engineering perspective too.”

In this area, TSA has co-funded projects alongside Sustainability Victoria, VicRoads, Main Roads WA, The Department of Environment and Heritage Protection and Queensland

Transport and Main Roads, the Australian Roads Research Board and the Australian Asphalt and Pavement Association exploring ways to remove barriers to the further uptake of tyre-derived rubber as a modifier in bitumen binders.

O’Keefe explained that the production of these kind of mixes may require separate handling equipment to process the rubberised content, as otherwise residual rubber can impact on conventional mixes being produced on the same equipment. “For the manufacturer of that type of product, we would look to enable them to get specific equipment for the handling and utilization of that rubberised binder.”

TSA is currently working with Polymeric Powders, a small Geelongbased company, which is taking tyre-derived rubber and treating it chemically and mechanically to increase its surface area, before mixing it with polyolefin plastics to manufacture composite materials which have the beneficial properties of rubber and plastic – flexibility and durability. In the long- term, the company is looking towards carrying out large-scale manufacturing of flexible pipes, but O’Keefe said the processes employed can extrude manmonthly.com.au

Research&DEVELOPMENT The equivalent of 56 million tyres are replaced every year across Australia.

A road constructed using tyre-derived rubber products. the composite material into most conventional plastic product applications.

Another area where TSA sees potential uptake of tyre-derived product is in the rail industry.

The research undertaken to date has involved the University of Wollongong, exploring sub- ballast vibration attenuation applications, one of which is a proprietary product from a company called Ecoflex. The company is producing a rubber-based energy absorbing layer (REAL) that can serve as capping stratum beneath the ballast to minimise railway track degradation. Whole tyres with a sidewall cut off are filled with an aggregate before being installed as a layer underneath the ballast.

O’Keefe said the research indicated that this method can absorb vibration to enhance rail ballast performance and longevity.

“It means less of a ballast sub-base is required, and the rubber acts to reduce the vibrations,” he explained.

“And it saves money, because you don’t have to dig as deep for the subballast and, because of the reduced vibration, there’s less maintenance, and trains can travel faster.”

Additional projects in the rail sector include projects look at the manmonthly.com.au

use of rubber mats manufactured using tyre rubber that can improve rail ballast performance and replace costlier, imported geo-synthetic materials.

The 56 million tyres that expire every year form a vast resource that could be used for productive outcomes. While, previously, the emphasis of the TSA was on promoting recycling and collection, it is now focusing heavily on market development. There is, O’Keefe said, an oversupply of collected used-tyres that now needs to be matched with a steady demand in the form of product development.

“At the moment, that’s the missing link,” O’Keefe said. “In manufacturing and consuming that material, it means that the processors have a market, they’re more viable and sustainable. It’s probably one of the biggest inhibitors to a coherent,

strong and fully functioning waste market – across all waste streams.”

From TSA’s perspective, research is an output to deliver an outcome, with that outcome being the increased consumption of tyre-derived product. That means initiatives must demonstrate commercial viability.

“What we’re looking for is articulation through a research programme of a potential benefit, and then correlating that potential benefit to a commercial entity that would be looking to capitalise on that through investment,” O’Keefe said.

“If there are manufacturers looking to utilise that resource, what we at TSA

would say is that we’d be willing to fund research and development and demonstration projects, and we’re also willing to fund infrastructure if you can establish that you can increase the consumption of Australian tyre-derived product through those various stages.”

A flexible pipe produced by Polymeric Powders using tyrederived composite material.

Manufacturers’ Monthly OCTOBER 2018 31

IndustralSOFTWARE Augmented reality software for instant diagnosis and contactless maintenance Schneider Electric has introduced its latest augmented reality industrial software, which provides access to real-time information for operation and maintenance applications.

Using the AR technology in the field or the plant helps operators reduce down-time.

E

NGINEERS and plant operators working on transformers that distribute electricity often need to spend a lot of time searching for technical data stored in different software, databases, activity logs and filing cabinets.

Augmented reality (AR) can help save the engineers valuable time by super-imposing the data, in real time, where and when it is needed.

Schneider Electric recently launched EcoStruxure Augmented Operator Advisor, an AR software that superimposes real-time data and virtual objects on to electrical cabinets, machines, or other items of plant, providing operators and technicians immediate access to relevant information.

Using the AR technology in the 32 OCTOBER 2018 Manufacturers’ Monthly

field or the plant helps operators reduce down-time, as they can open the electrical cabinet doors virtually to visualise their inside or access some hidden parts of machines.

Another benefit is in seeding up operation and maintenance.

Technicians can find information faster, with immediate access in the field to user manuals, instructions, diagrams, etc.

The risk of human error is also reduced significantly. Using EcoStruxure Augmented Operator Advisor, the operators can locate the right equipment and have access to a step-by-step guide to complete maintenance procedures.

“When employing traditional approaches, maintenance personnel spend 50 per cent of their time during

a maintenance call researching information required to fix the issue.

Consequently, they devote only 50 per cent of their time to actually working on the equipment,” Neil Smith, Schneider Electric’s vice president (industry Pacific) said.

“EcoStruxure Augmented Operator Advisor, an augmented reality system, gives engineers instant access to the information they seek,” he said.

EcoStruxure Augmented Operator Advisor uses image recognition and tracking technology in a variety of environments, including: • In front of a machine: It offers immediate access to relevant information in the field in real time; • In front of an electrical cabinet: It can “open” electrical cabinet

doors virtually; • I nside and outside an industrial site: It delivers simultaneous views of reality and data to mobile devices.

Once engineered and deployed, the Ecostruxture Augmented Operator Advisor App can be downloaded on tablets and provide access to information like labels, process variables, SQL database, open documents, open electrical diagrams, open web pages, instructions, notes, and play videos.

By providing immediate availability to important and relevant information in the field, EcoStruxure Augmented Operator Advisor increases efficiency while reducing time and cost of operations and optimising maintenance. manmonthly.com.au

PrecisionTOOLS The science of precision New Silver Depressed Centre Grinding Wheels from 3M are the first in a series of value-priced products to offer premium performance by including 3M PrecisionShaped Grain technology.

T

HE metal worker working in a steel fabrication shop or the operator working in a car smash repair workshop both have one thing in common: they both rely on high-performance and durable tools to help them deliver their best.

3M prides itself on offering abrasive products that combine high performance and value, helping operators carry out their day to day tasks faster and better.

The company has recently introduced a new product, the 3M Silver Depressed Centre Grinding Wheel, that offers competitive benefits such as a significantly longer life and faster cutting action than that of conventional ceramic, aluminium oxide and alumina zirconia wheels – and at a comparable price.

The 3M Silver Depressed Centre Grinding Wheel features 3M’s pioneering technology called “precision-shaped grain” under the 3M Cubitron II brand.

3M precision-shaped grain The technology, first introduced by 3M in 2009, uses 3M micro-replication technology to form sharp peaks that “slice” through metal, rather than “ploughing” through the metal, as

3M prides itself on offering abrasive products that combine high performance and value.

manmonthly.com.au

the conventional ceramic abrasive grains do.

Precision-shaped grain is designed with sharp, angular structures that continuously fracture to form sharp points. These clean, sharp points mean an abrasive that slices faster, runs cooler, and lasts much longer than conventional abrasives, which generate excessive heat buildup and have a shorter life.

Since launching the technology, 3M has continued to research new ways to adapt precision-shaped grain technology to meet specific customer needs.

Over the years, the company has introduced a range of belts, cut and grind wheels, fibre discs, flap discs, and sanding discs in the 3M Cubitron II product range, all featuring the precision-shaped grain technology.

The 3M Silver Depressed Centre Grinding Wheel is the latest addition to the family of products and features precision-shaped ceramic grain for premium grinding performance.

An unbeatable combination of performance and value 3M identified a growing demand from welders and metalworkers looking for improved grinding productivity, while

The 3M Silver Depressed Centre Grinding Wheel incorporates 3M’s precision-shaped grain technaology in a value-priced design.

simultaneously looking for ways to reduce their overall abrasive spend.

To meet these demands, 3M researchers developed a new family of abrasive products incorporating precision-shaped grain in a valuepriced construction designed for everyday use.

Operators have reported that by using 3M Silver wheels, they have had better cutting performance and didn’t have to change wheels as often, helping them to reduce their overall abrasive costs.

The 3M Silver Depressed Centre Grinding Wheel is a heavy-duty wheel designed for use in aggressive grinding applications like bevelling, slag removal, weld grinding and edge work on a variety of metals.

Grinding wheels are found in a wide range of industries, including

agricultural, industrial and construction machinery, general metal fabrication, oil and gas infrastructure, rail, shipbuilding, stainless steel fabrication, structural steel, tank and vessels repairs.

For weld grinding on mild steel, one customer reports that 3M Silver Depressed Centre Grinding Wheels delivered 95 per cent less wear and a 28 per cent faster cut than their current aluminium oxide wheel.

When removing laser slag from Hardox 960 stainless steel, 3M Silver Depressed Centre Grinding Wheels lasted twice as long and required less operator pressure than conventional aluminium oxide wheel.

The 3M Silver Depressed Centre Grinding Wheel is a type 27 wheel and is available in diameters ranging from 100 mm to 230 mm (4 to 9 inches).

Manufacturers’ Monthly OCTOBER 2018 33

MaterialHANDLING A flexible lifting solution How MHE-Demag delivered a customised and flexible KBK light crane system in record time, thanks to working closely with the customer.

W

HEN a plastic moulding company decided to extend its production facility, it required an ergonomic material handling solution to allow production changes and maintenance on their latest investment of new injection moulding equipment.

The basic requirement was to determine a light crane lifting solution to provide coverage above the production equipment.

Delving into the details of the application, three challenges came to light: integration, flexibility and time frame. Firstly, the existing roof beams were not compatible with the positioning of the injection moulding equipment – which meant that the crane system could not be suspended from the roof (a typical method for suspending KBK Systems) and had to be mounted on a free-standing structure instead.

The solution identified by MHEDemag’s engineering team was a set of lamp-posts that allow the KBK system to be free-standing.

Additionally the posts were designed in a way that allow seamless expansions of the light crane system, once the production line is – once again – in need for flexibility.

MHE-Demag’s managing director, Vince DiCostanzo told Manufacturers’ Monthly that the team worked closely with the client to identify the most suitable configuration to not only cover all of the client’s current lifting requirements, but also provide room for future expansions.

“The project was turned around in just two weeks from confirmation of technical requirements to commissioning. While the initial proposal was to suspend the cranes from the existing roof beams, we 34 OCTOBER 2018 Manufacturers’ Monthly

changed the design to suit the changes in the client’s machinery layout, process flow requirements whilst still respecting the building constraints,” DiCostanzo said.

“Another challenge was finding a way of positioning the posts so that it works for the client and did not interfere with their operations,” he explained.

The final configuration is a two-bridge system each 800 kg in capacity, five meters wide and 26.5 meters long, featuring eight lamp-posts and four-tee posts. The use of the tee shaped posts enables the client to extend the system for future expansion purposes. MHEDemag specified and configured the KBK Systems and designed and manufactured all of the supporting posts in-house.

Managing efficiency Apart from being a highly flexible solution, DiCostanzo said energy efficiency is another strength of the KBK light crane system.

“With unique design of the KBK crane system, operators can easily move the crane side to side, forward and backward manually and with very little effort. This makes the system highly efficient, since electrical power is only needed for the lifting operation.” he said.

Moreover, DiCostanzo said, the crane system is “virtually maintenance-free.”

“Apart from the routine inspections to lubricate and to check for wear or damage there is very little maintenance required for these units for up to 10 years,” DiCostanzo said.

MHE-Demag also prides itself of offering crane systems that have a long life-span. MHE-Demag’s KBK light cranes have been present in the

MHE-Demag delivered a customised and flexible KBK light crane system to the client within two weeks.

Australian market for over 50 years, serving multiple industrial sectors.

“Some of our customers have KBK light crane systems which have been successfully operational for 30 plus years,” DiCostanzo said.

The design process To arrive at a tailor-made solution, DiCostanzo said MHEDemag’s engineering team go through an iterative process with the client to identify their all their requirements.

“The process usually begins with our engineers visiting and analysing the site together with the client to understand their materials handling challenges and the requirements of their business. During this stage, we gather key information about the product or process flow and determine the fine detail of load movement including pick and place locations, trajectory and orientation of the load, obstructions and personnel interaction along with the usual dimensions and

weight spectrum. Then we produce a preliminary design around those requirements and meet with the customer again” he explained.

“Following feedback from the client, we fine-tune it, to demonstrate and ensure the design meets all their expectations. We often see a process of going back and forth several times until all details are agreed on. It is through this process that our customers come to understand how customisable our KBK solutions are and how committed MHE-Demag is in providing the best solution for their business. Once the design is finalised, we move on to the manufacturing and installation phase,” DiCostanzo said.

“Quite often the first KBK system is not the last. Once the customer experiences the efficiency and ease of operation, they wonder how they ever did without it and in many cases look to extend, expand, duplicate or find more applications for KBK.” manmonthly.com.au

Safety@MM Monitoring danger zones with 2D laser scanners Pilz PSENscan 2D laser scanners monitor danger zones in engineering, packaging, automotive, metalworking and logistics industries to keep both workers and machinery safe.

I

N situations where man and machine work together, it is critical to maintain a safe work environment for everyone. The task is made easier using Pilz’s PSENscan 2D laser scanners.

When a person enters a configured warning field or protected field, the PSENscan 2D laser scanner detects that action. If the person is in the warning field of vision, the movement of machinery can be subjected to controlled braking. If the person then moves into the protected field, the machinery movement is quickly shut down.

These protected fields and warning fields can be configured with flexibility and adapted to suit individual conditions.

Monitoring increases productivity PSENscan monitors up to three separate zones simultaneously and up to 70 switchable configurations can be set up, making the application more productive.

Up to four safety laser scanners can be connected in series in accordance with the master-slave principle, considerably reducing the cabling and set-up work.* When combined with PNOZmulti configurable small controllers or the controllers in Pilz’s PSS 4000 automation system, you have a complete, economical solution.

Also, with a protected field range of 3 to 5.5 metres for the safety zone, even large areas can be covered with just one device. The warning zone covers up to 20 metres and enables a person to be warned, by an audible signal for example, or enables a machine reaction such as deceleration to be triggered.

This protects the application from manmonthly.com.au

standstill and, at the same time, increases safety and productivity.

PSENscan safety laser scanners offer two-dimensional area monitoring with a large opening angle of 275°. This means that fewer devices are required where several adjoining sides of a machine or Automated Ground Vehicle (AGV) are to be monitored. That reduces capital expenditure and increases the cost-effectiveness of the application.

Flexibility is also a key feature of PSENscan, as safety zones and warning zones of various sizes can be defined for set-up and production mode, or zones, can be adapted to suit the workpiece that is being processed. The ability to adapt simply and flexibly saves time and effort during the set-up mode. As a result, these laser scanners can be easily integrated into diverse applications.

In areas where visibility is poor, and where robots are used, it is important to protect the personnel against encroachment from behind or from the side. A robot, though predicable in its movements, is not aware of its surroundings. Pilz 2D laser scanners can detect when a person is present inside the danger zone.

Material feeds Pilz PSENscan is also suited to applications where material is being fed in and out simultaneously, such as in logistics areas or where materials are moved from one place to another. Sensors can distinguish between humans and materials. If the approved material is detected, the material can pass.

Should a person enter the protected field, access remains closed. The hazardous movement comes to a standstill.

PSENscan safety laser scanners offer two-dimensional area monitoring with a large opening angle of 275°.

The ability to adapt simply and flexibly saves time and effort during set-up mode. As a result, these laser scanners can be easily integrated into diverse applications.

Easy configuration and a great memory Pilz’s PSENscan Configurator is used to set-up PSENscan. An ethernet port is used to connect PSENscan to the configuration computer, enabling the operator to easily set up the safety and warning zones, in addition to other settings.

The safety laser scanner uses a teach-in mode to record fixed obstacles in its environment, which can then be excluded from the monitoring zones from the outset.

That simplifies set-up and reduces commissioning times.*

As the complete configuration can be stored on an exchangeable memory module, if you need to swap a device, the new scanner can be simply fitted with the existing memory module – without the need to repeat the configuration.

PSENscan safety scanner was designed to protection type IP65 but that’s not all as the device has been optimised so that errors triggered by dust particles are detected and avoided. It also shows status information or error messages, such as a cleaning prompt. *Functionality available in the Advanced version of the PSENscan.

Manufacturers’ Monthly OCTOBER 2018 35

Women IN INDUSTRY 2018 WINNERS Social Leader of the Year: A rewarding career April Whittam, Aurizon brand and sponsorships manager and the winner of the prestigious Social Leader of the Year award at the Women in Industry Awards, spoke to Manufacturers’ Monthly about why she loves going to work every day.

W

HEN April Whittam was announced as the winner of the Social Leader of the Year award at this year’s Women in Industry Awards in mid June, she told the audience how lucky she felt going to work every day.

Looking at her accomplishments in assisting community programs and philanthropic causes, it is easy to see why she finds her job so rewarding.

In her current role as the national brand and sponsorship manager for Australia’s largest rail freight operator, Aurizon, she looks after the company’s brand image, sponsorship programs, community investments and events.

Whittam regards as one of her greatest career accomplishments, an initiative that she launched very early in her career in Aurizon – which now spans more than eight years.

In 2011, shortly after joining Aurizon, she created and implemented the company’s flagship corporate social responsibility program, the Aurizon Community Giving Fund. The program grants funding to charities or community groups working in areas of health and wellbeing, community safety, environment and education.

While she has been involved in the community investment sector for nearly 20 years, Whittam said the opportunity to develop a community program from the ground up was a unique experience for her.

“Having an opportunity to reflect and learn from those who pioneered community investment and developing a greenfield program of work is a true privilege. I developed a program of work that has grown very strong today,” Whittam told Manufacturers’ Monthly.

To date, the program has been distributed to over 300 charities nationally ranging from skin cancer checks for a range of communities in Western Australia to first aid 36 OCTOBER 2018 Manufacturers’ Monthly

training for surf lifesavers in regional North Queensland. The fund has also been recognised internationally, with Whittam winning the Charities Aid Foundation Award in 2012 for her commitment to strategic Australian philanthropy.

Impacts to communities The most rewarding aspect of her job, Whittam said, is seeing the impacts that the program has on our communities.

“The days when we have our broader community giving fund review committees are an opportunity to review the performance of the charities and determine our future support. It allows us to see the positive aspect of what we do as a company every day.

“Regularly reviewing the charities performance through their acquittal reports, we can see what impact the programs are having on communities.

It’s rich and fulfilling in terms of professional and personal reflection,” she said.

Having a passion for philanthropic activities, Whittam is always looking for ways to invest more in communities and charitable initiatives. This is not an easy task, particularly during times when the transport and logistics industry is going through downturns as a result of external economic forces.

“A constant challenge for me is to find ways to give more. It’s a positive challenge though. It means that I always need to look for better ways to either revitalise existing programs or to target a different area in order to have better outcomes,” she said.

Overcoming the barriers Apart from her role within Aurizon, Whittam also acts as a director and company secretary for the Queensland division of Suited to Success Limited – a volunteer-driven organisation

Aurizon brand and sponsorships manager, April Whittam (left) was announced Social Leader of the Year at the Women in Industry Awards 2018. that concentrates on overcoming the barriers to employment, for both mean and women seeking jobs.

“Research done by the organisation indicates that by improving a person’s self-confidence, their chance of getting the job they are interviewing for improves.

So, the main vision of Suited for Success is to help job seekers build their confidence by giving them the support and tools that they need.

These range from offering styling advice to mentoring the candidates and supporting them in writing their curriculum vitae (CV),” she said.

Whittam believes events such as the Women in Industry Awards play a positive role in breaking down the barriers for women – mainly those working in male-dominated sectors like manufacturing, logistics and material handling and mining.

“Gender inequalities still exist in many work environments. I’m fortunate that I work with Aurizon, where the gender pay gap is currently at its lowest. But, events like the

Women in Industry Awards are pivotal in bringing more equality to the industry in terms of the jobs that are traditionally performed by men,” she said.

In winning the Social Leader of the Year award, Whittam was up against strong competition from the other finalists – all successful women who have made positive changes within their respective industries.

“The night of the awards was such an encouraging evening to be amongst women that supported women. The other finalists in my category were all astounding and I never expected to win, given the calibre of the other finalists and their contribution to the community.

“It goes to show that you should never underestimate yourself. I recommend every woman working in sectors such as manufacturing, transport, logistics or mining to look as these awards and similar programs as a way to giving a voice, both internally and externally, to women in non-traditional roles,” she said. manmonthly.com.au

OperationalPROFITABILITY Operational profitability: Getting the most out of technology Plant managers can future-proof their businesses and drive sustainable value by taking a holistic approach to automation and its varied applications. Brad Yager, director of process automation and software, Schneider Electric, explains.

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HE future of manufacturing – indeed the future of most industries – is becoming increasingly automated. Many rote tasks are now being performed by machines and artificial intelligence (AI) with human oversight, and many of the applications that will be needed to manage production in the future have not yet been developed or even imagined.

Operations and plant managers, when thinking about making efficiencies and chasing profitability, would do well to consider the bigger picture and make strategic decisions that could futureproof the entire organisation instead of fixing short-term problems. Ultimately, this will lead to a streamlined, more profitable business.

This holistic approach can take many forms – it goes far beyond merely upgrading existing technology and instead identifies and implements new sources of automation-enabled, sustainable business value. It is essentially cost-effective modernisation – in addition to boosting revenue through improved execution of business strategy, it can reduce overall modernisation costs by up to 10 percent over haphazard piecemeal approaches.

Below are some examples of the types of applications that can make the process plant of the future available – and affordable – today: • Server virtualisation, which allows the user to consolidate many PCs and servers into a high-availability

Operations and plant managers should make strategic decisions that could future-proof the entire organisation instead of fixing short-term problems.

manmonthly.com.au

virtual host server, reducing heat load, weight, and power consumption, as well as improving maintenance efficiency and hence reducing total cost of ownership associated with maintaining many computers.

• Workflow automation software, which, for example, might store and enforce a sequence of proven procedures by which a plant worker might respond to an alarmed incident or event, notifying all affected parties of status and progress in real time.

• Real-time energy management systems, in which profitability based on consumption in energyintensive operations is monitored in real time, in the context of dynamic energy markets.

By thinking ahead and planning for more automation, plant managers can make the most of technological upgrades and improvements to make their organisation more profitable.

• Real-time online modelling, in which, for example, every bit of raw material that comes into a process is tracked, measured, and compared to output with analysis of variance pointing to process variances.

• 3D virtual reality simulation systems, in which, for example, workers can train on handling hazardous situations in a realistic virtual situation much like a pilot trains with a flight simulator.

• Controlled combustion, where advanced process control software monitors the firing of boilers and other equipment, and adjusts in real time to minimise excess O2, CO, and NOx emissions.

It’s not always possible to predict the challenges or the demands of the workplaces of the future, but change and development is a certainty. By thinking ahead and planning for more automation, plant managers can make the most of technological upgrades and improvements to make their organisation more profitable.

Manufacturers’ Monthly OCTOBER 2018 37

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Hydraulics &FITTINGS Bringing innovation to hydraulic products and services With years of experience in manufacturing hydraulic hoses and couplings, Gates Australia prides itself of continuously developing innovative products and solutions.

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HERE aren’t many hydraulic product specialists with the history and experience to rival Gates. In fact, if you ask your grandfather, he can probably recall using Gates products when he was a young whippersnapper.

Gates has been one of the world’s most recognisable names in rubber for over 100 years and has evolved from a single-town operation to become a global leader in hydraulics, automotive and industrial hoses, belts and other components.

The company’s reputation, built up over more than a century, is synonymous with quality and reliability. Gates has a history of pushing the boundaries and continuously innovating, creating hydraulic hoses and couplings that are built to withstand the high pressures, extreme temperatures and tough conditions of hydraulic systems and equipment.

Background and reach Hydraulic systems are subject to some of the most demanding environments. For decades, Gates has been investing in research and development to find better ways of delivering fluid power. This has resulted in the development of innovations like the LifeGuard Lineof-Sight Sleeving System – which can contain bursts up to 10,000 psi and pinhole leaks up to 5,000 psi at 100°C for up to five minutes.

Gates follows a manufacturing strategy that the company calls “in-region, for-region.” The company has a strong understanding of the current trends, challenges and opportunities that businesses are facing in every region where it operates.

For example, in the East manmonthly.com.au

Asia and India region, which includes Australia, Gates’ has a strong presence through seven manufacturing facilities, seventeen sales offices, three warehouses, two major research and development centers and two oil and gas service centers. Together, these facilities mean customers can count on speedy service and reliable access to products and information.

The regional footprint also enables local commercial teams to establish close, long-term relationships with customers to ensure that hydraulic systems are implemented successfully.

From the factory to the field, Gates fluid power products enable ease and efficiency and power manufacturing and automation that is ahead of the curve – driving the plant’s performance with total confidence.

Extensive knowledge Gates specialises in the design and manufacture of hydraulic hoses, couplings and associated equipment, including crimpers, for both stationary and mobile applications.

Gates’ fluid power products offer numerous advantages – resulting from years of experience and extensive development.

Gates’ multi-purpose hoses reduce inventory needs, save space and provide users with application flexibility. These hoses are abrasion resistant, outperforming their counterparts by up to 300 times.

Depending on the application, hose covers are resistant to potential threats such as oil, chemicals and mildew. Gates’ premium hoses are engineered for greater flexibility, with up to one-third the standard bend radius, while proprietary

Gates Australia offers the MegaSys range of hoses, couplings and crimps.

reinforcement technologies reduce the weight by 26 per cent with half the bend radius.

Gates’ hose and coupling solutions are designed to be leakfree and durable. TuffCoat Xtreme coatings offer red-rust corrosion resistance to couplings, exceeding 1,000 hours resistance – as compared to the standard of 144 hours set by the Society of Automotive Engineers (SAE).

The hydraulic couplings offered

by Gates are also innovative. These include Quick-Lok Push-to-Connect couplings, which eliminate leaks and require no torqueing. The patented MegaCrimp couplings set a new standard for hydraulic couplings and provide a leak-proof seal. Gates has a solution for every application.

Product innovations like the LifeGuard Sleeving System add to the safety of Gates’ products.

Adding value to hydraulic systems Apart from offering these products, Gates prides itself of having solid industry knowledge, which the company channels to customers through additional value-adding resources like the “Safe Hydraulics”

training program. The program, developed by Gates application engineers and delivered by trained Gates professionals, provides a thorough short-course on hydraulic preventative maintenance. The participants in the program gain up-to-date knowledge of safe hydraulic practices and a better understanding of the importance of preventive maintenance in ensuring the efficiency and safety of their systems.

Gates also backs its fluid power solutions with application engineering support, using knowledge built on decades of experience. This results in peace of mind for clients about their processes and systems.

Gates offers hydraulic systems with increased productivity, less inventory space, no leaks and heightened safety.

Gates hydraulic products can be purchased from the company’s nation-wide network of distributors.

Gates Australia Phone: +61 3 9797 9688 Email: southpacsales@gates.com Web: www.gatesaustralia.com.au /fluidpower Manufacturers’ Monthly OCTOBER 2018 39

Hydraulics &FITTING The art of staying resilient Radcoflex director, Mat Carroll, says working closely with customers to develop products suitable or their needs has helped the company remain resilient and survive market fluctuations.

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ITH the ever-changing and evolving market demands, allowing market demand to drive new product development has helped Radcoflex, an industrial hose and expansion joints manufacturer, avoid downturns and grow its customer base.

For over 60 years, the Australianowned business has manufactured and supplied a selection of metal and non-metal expansion joints and flexible hoses for industries ranging from chemical and construction, automotive and roads, to the mining and food industries.

During this period, director Mat Carroll says developing new products and modifying existing ones has helped the company cater to a range of industries, from mining to food and beverage.

“Our products are not limited to one specific industrial sector and that’s one of our key strengths.

Having such a broad range of products allows us to protect ourselves against individual industrial market fluctuations. For example if the transport industry has a downturn, we have market premiums in the mining, oil and gas or food and beverage industries,”

Carroll told Manufacturers’ Monthly.

Radcoflex has grown its product portfolio in an organic way, through engaging with the clients and understanding their specific needs.

“We are always looking at how we can change and adapt our products, or some components of them, to suit new and emerging industries.

We either adjust our manufacturing process or the material that is used in that process to create subtle variation within the product based on the customer demands,” Carroll said.

“It allows us to provide quality solutions that are specific to each customer,” he added.

Innovation driving efficiency An example is the Radcoflex’s Stripwound product line – which are flexible metal hoses produced by roll forming a profile into a metal strip and helically winding the strip over a mandrel.

Radcoflex has manufactured multiple versions of the Stripwound hoses, with varying pressure capabilities for different applications.

Radcoflex recently designed a specific version of the Stripwound hoses with a smooth interior, called Smooth Line, which is intended

Radcoflex’s Smooth Line hoses have an enhanced flow rate compared to the company’s traditional Stripwound hoses.

40 OCTOBER 2018 Manufacturers’ Monthly

for one of our existing products or a stand-alone product,” he explained.

Working together

Radcoflex, an industrial hose and expansion joints manufacturer, has grown its product portfolio over the years through research and innovation.

particularly for the transport and bulk freight industry.

“The Smooth Line hoses have an enhanced flow rate compared to the traditional Stripwound hoses. This helps our customers improve their material handling turnaround time – in some cases by up to half an hour,” Carroll said.

The company also engages research agencies to gather data on the products’ performance and efficiency complimenting their own internal testing processes.

“We are working to determine the flow rates for various commodities such as cement, grain, plastic, etc. using Smooth Line hoses and how it enhances efficiency and improves turnaround time for the end-users comparative to our other Stripwound products,” Carroll said.

This constant growth and modification of the existing products has helped Radcoflex create new areas of business, while maintaining its existing client base.

For example, Carroll said, Radcoflex is currently working on developing a secondary barrier containment solution by modifying one of the existing products.

“It helps us broaden our market presence within our existing clients.

We might introduce the new product either as a supplementary commodity

The ability to engage with customers and understand their challenges to design tailor-made solutions is what Carroll believes sets Radcoflex apart from its counterparts.

“For example, one of our customers approached us because their existing hoses had failed and they knew we had more than six decades of experience in this market.

We sat with them to understand their requirements and then worked with them to produce a hose that was a variation of one of our existing products and it proved to be a suitable solution for them,” he explained.

Of course, developing new products is a two-way process and requires close collaboration between the two parties.

“There is an understanding from the end-user that developing a new solution takes some time and involves some level of iteration before the final product is ready. But, even if it doesn’t work the first time, we go back to the drawing table and test the product until we have an effective solution for the customer,” Carroll said.

Tractability is another important factor that helps the customer trust a brand, Carroll said.

“If the client wants to ensure that any of our products is genuine, they can simply go to our website which will enable them to link with our customer engagement team to verify that. This is particularly important as we have a global market, which makes it more difficult to monitor the market. So, the best way to ensure that a product is Radcoflex Australia’s genuine product is through our website and direct engagement with our team,” Carroll said. manmonthly.com.au

EndeavourAWARDS 2018 Exporter of the Year: REDARC Electronics Anthony Kittel, managing director of REDARC Electronics, spoke to Manufacturers’ Monthly about the importance of research and development investment in the company’s success in the export market. with new products, and to generate good growth in that area.”

Another pillar of REDARC’s forward strategy is its diversification into the defence market, which has seen the company become a preferred partner with Rheinmetall on the LAND 400 contract, as well as a preferred partner with BAE Systems on the SEA5000 Future Frigates project. REDARC is now currently bidding on work with Naval Group in the submarine space.

“We’ve been investing heavily over the last 24 to 36 months on a definitive defence strategy targeting land vehicles, frigates, submarines and light commercial vehicle activity in the defence sector,” Kittel said.

Anthony Kittel, Redarc’s managing director, received the Exporter of the Year award on behalf of the company.

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EDARC Electronics, based in Lonsdale, South Australia, took out the Exporter of the Year award at this year’s Endeavour Awards, which recognises Australian manufacturing excellence. Having won two of these awards in different categories in previous years – including the prestigous Manufacturer of the Year in 2017 – REDARC’s managing director, Anthony Kittel, is proud of the strides the company has been making in the export sphere over recent years.

“For us the award was great recognition, given that export is one of the key pillars of our overall strategy to 2020,” Kittel said. “For the last couple of years we’ve been devoting a lot of resources to growing our export channel and we’ve had some good success, particularly in the last three years, in setting up international distribution.”

The company is aiming for 20 per cent of its revenue to come from exports by 2020, predominately in Europe, North America, New Zealand

manmonthly.com.au

and South Korea.

In June this year, REDARC appointed its first full-time sales executive in the United States, and has also signed the biggest RV parts wholesaler in the world as its United States distributor. Plans are in place to establish an office there in the next 12 months.

“We’ve also got an excellent e-channel partner, whose core business revolves around the trailer business – one of our key markets in the US,” Kittel said. “It’s nice to see the plan come together and generate sales revenue.”

Kittel said the company’s heavy investment in research and development was central to its success and to its overall growth strategy – which is to invest 15 per cent of its revenue in this area every year.

“And that’s been very successful.

The financial year ended in June was our fifteenth year averaging 21 per cent growth,” Kittel said. “Continued investment in R&D is therefore one of our key pillars – to keep coming up

Investment in research The foundation of REDARC’s continued success as an Australian manufacturer, Kittel said, is its continued investment in research and development, investment in the latest electronics manufacturing equipment – including high-end test equipment that it is entering into in the defence and export spheres – and a commitment to adopting Industry 4.0 principles.

“We keep pushing ourselves because we have to be globally competitive. To manufacture products in Australia, we need to be using the latest technology and the latest techniques, otherwise our products will be too expensive,” Kittel explained.

“We know we’re operating in a country with one of the highest labour costs in the world, so we’ve got to do things smarter. We’ve got some really tough targets for ourselves in terms of productivity and we need to use the latest technologies and manufacturing designs to help us acieve those productivity targets.”

REDARC will begin using “cobots” – robots working with humans – in early 2019. Moreover,

virtual reality will be used to enable machine operators see how products work together in real-time situations.

“It also helps with traceability: as all our machines are connected, the product can be traced through different machines all the way back to the source.

“If there is any issue, we can determine what parts were affected and how they can be isolated,” Kittel said.

Quality, flexibility and agility Keeping ahead in an export market, Kittel said, requires quality, flexibility and agility, and an ongoing ability to change production lines quickly from a low-volume to a medium-volume product.

“We pride ourselves on being able to have that advantage over our low-cost competitors. We are highly agile and flexible in terms of product mix. It’s about choosing the right machinery, training our staff, and making sure that changeovers are as short as possible,” Kittel said.

“We are always coming up with new products and innovative features to differentiate our products. Indeed, having this diversification means that we are not dependent on any particular market, and we are able to be more robust and better able to ride the ups and downs of economic cycles.”

Kittel said that, in the end, it was always important to focus on people. “We are really close with our customers, so we are able to take on that customer feedback and then add it back into our engineering system and make changes really flexibly.

“And we fund all of the training of our staff, whether it be apprenticeships, diplomas, degrees, MBA courses or even PhD educatoin.

This means we can attract and retain the best calibre people. And that’s a fundamental part of what REDARC is about.”

Manufacturers’ Monthly OCTOBER 2018 41

DECEMBER 2018 – INDUSTRIAL CLEANING As the industries expand their portfolio to keep up with the rapidly changing market demands, new needs are emerging within all sectors for high-efficiency, reliable cleaning equipment. These range from steamers to pressure air and pressure water cleaning equipment, as well as floor sweepers and centralised cleaning systems.

In every edition of Manufacturers’ Monthly, we’re proud to work with our commercial partners on content that helps connect you with your future customers.

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PROMO FEATURE INDUSTRIAL LIGHTING From ocean to warehouse: Aqualuma’s illuminating LEDs Carl Amor, director ofAqualuma LED Lighting spoke to Manufacturers’ Monthly about how experience in underwater LED lighting helped his company succeed in the industrial and commercial lighting markets.

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ASED in Helensvale on Queensland’s Gold Coast, Aqualuma has been in the lighting business since 2005, quickly establishing itself as a leader in the marine LED lighting market.

The company’s success in this sphere has led to it exporting its products for motoryachts, superyachts, sportsfishers and marinas to 56 countries around the world.

During the Global Financial Crisis (GFC) ten years ago, however, Aqualuma’s co-founding directors, brothers Carl and Grant Amor, saw the need to expand the company’s reach and focus, as sales for luxury goods such as boats sank.

“When the GFC hit, nobody was buying boats,” Carl Amor said. “They certainly didn’t need lights for the boats they weren’t buying. So, we looked at what else we could do, how we could move forward with another product.”

In 2011, the Amors saw the potential of moving forward producing high bay lights for warehouses, factories and other industrial and commercial operations, and spent 18 months developing their first light in this area.

Amor said it was initially a challenge to get the word out that Aqualuma was more than just a marine lighting company.

“Name-change was one of the things that was brought up. But when we got KPMG to do a study on Aqualuma, they came back to us and said: don’t change your name, you’ve got a fantastic name around the world, and changing the name would be a mistake.

“So one of the challenges was convincing people that Aqualuma doesn’t just focus on underwater manmonthly.com.au

Aqualuma produces high bay lights for warehouses and factories.

lighting anymore,” Amor said.

But this challenge was overcome soon enough. Amor said the company’s wealth of experience in the marine lighting sector gave Aqualuma an edge over its competitors, and eased the difficulties of moving into producing LED high bay lighting solutions.

“We were coming from building lights for the world’s harshest environment,” Amor said.

“We have kept that mentality going as a high bays manufacturer: our lights are water-proof, dust-proof and corrosion-proof. They can be hung outside, or even hung next to a saltwater environment.”

For Aqualuma, success in the commercial and industrial LED market meant aspiring to be the best in the field from the very beginning.

With seven years in the commercial lighting market, Aqualuma now exports to Europe, New Zealand, Canada, the US, Taiwan and Hong Kong. The company is also toplisted in the in DLC (Design Light Consortium) in the US.

Staying competitive as an Australian manufacturer is a challenge that Amor said Aqualuma is well equipped for. A slim, lean company, with 19 staff in total, all Aqualuma’s design work is carried out in-house. Most of its manufacturing processes are carried out at its Helensvale site, with some components subcontracted to other Australian companies – its die-casting work, for instance, is carried out by Melbourne-based company and plastic components in Burleigh Heads on the Gold Coast.

Amor said maintaining flexibility, diversity and quality in its product range was key to Aqualuma’s success.

“One of the things we have had to do is make sure we are the best, because we can’t be the cheapest,” he said. “It’s about quality. We offer free lighting plans to anybody that wants to put our lights into their facility: we do the lighting plan, we give recommendations and we try to use the minimum number of lights for each facility to minimise power consumption. We also have a wide

range of products, from movement sensor lights to aisle optics, petrol station lights and food grade lights for food preparation areas.”

Being approachable Approachability and dedication to high-quality customer service has also been essential, Amor said. He and his brother Grant have their phones on all the time. Amor said that it was important that, as the company directors and decision makers, they were readily accessible to their clients.

“We are a 24/7 company. We’re the farthest thing from anonymous you can get. My mobile phone number has been the same for 28 years.”

Proud of its status as an Australian manufacturer with a high-quality product range, Aqualuma has no intention of moving offshore.

“We want to remain an Australian company and to continue supporting Australian companies with our subcontracting,” Amor said. “And we just hope that Australian companies will keep supporting us.”

Manufacturers’ Monthly OCTOBER 2018 43

What’sNew Accurate measurement with ST75 gas flow meter The ST75 series air/gas flow meter from Fluid Components International (FCI) offers flow measurement solution to engineers in a wide range of industries responsible for gas dosing and gas injection in small line batch and continuous processes.

All gas dosing and injection processes have one thing in common: the gas flow rate and the totalised flow of gas must be measured with high accuracy and repeatability for quality control and low cost operational efficiency.

The precision ST75 flow meter features a solid-state thermal dispersion mass flow-sensing element with platinum RTD’s (Resistance Temperature Detectors) in equal mass thermowells for accurate, trouble-free service. It measures virtually any gas or gas mixture. It can be calibrated to measure gases over a flow range from 0.07 to 950 NCMH, depending on line size, which is useful in low-flow applications requiring small doses.

For variable demand cycles due to small batch or other continuous process production requirements, the ST75 flow meter is factory preset to 100:1 turndowns. It features highly dependable accuracy to ±1 per cent of reading with ±0.5 per cent repeatability in line sizes from 6 to 51 mm. Engineers can depend on it for precise flow control of gases to ensure high quality end-products from batch or continuous processes.

The Model ST75 series flow meters are designed with a choice of mounting configurations. They feature a full digital display and are also available with optional transmitter remote mounting capabilities for hazardous plant environments.

The remote transmitter can be mounted up to 30 meters away from its thermal mass flow sensor in piping or ductwork and connected via two 0.5-inch (1.27 cm) FNPT or M conduit connections.

Where crowded equipment layouts exist and compromise straight pipe runs for accurate flow measurement with other technologies, the Model ST75AV meter features a built-in Vortab flow conditioner. Nearby pumps and valves that affect the accuracy of other meter technologies are no problem with the ST75 meter’s built-in Vortab flow conditioners, which create a regular smooth flow profile in the pipe for dependable flow measurement.

The ST75 flow meter’s fully scalable dual 4-20mA standard outputs are user assignable to flow rate and/or temperature and a 0-1kHz pulse output of total flow. Two-way HART bus communications are available with the Models ST75A and ST75AV. The ST75 Flow Meter withstands process temperatures from -18 to 121°C. It operates at pressures up to 16.5 bar (g) with a standard t-fitting (NPT female) process connection. With a tube process connection, the meter withstands 41 bar (g).

The ST75 series electronics are housed in rugged, IP67 rated enclosure with dual conduit ports in either NPT or M20 threading. The models ST75A and ST75AV include HART as well as NAMUR compliant 4-20 mA outputs and SIL compliance rating. The complete instrument carries global Ex agency approvals for Division l/ Zone 1 installations.

Company: AMS Instrumentation and Calibration Phone: (03) 9017 8225 Web: www.ams-ic.com.au

Extended temperature single board computers Backplane Systems Technology has released iBASE Technology’s new IBR115 and IBR117 extended temperature single board computers (SBC’s), powered by the NXP i.MX 6Dual Cortex-A9 processor.

Both SBC’s are powered by NXP i.MX 6Dual Cortex-A9 1.0GHz, a high performance processor. The IBR115 2.5-inch SBC and the IBR117 3.5-inch SBC are designed for use in applications for the automation, smart building, transportation, medical industries or any other industry requiring high performance.

With the embedded systems industry currently undergoing a fast transformation that requires developers to build faster and less power-consuming systems, the IBR115 and IBR117 support high performance processing with the lowest power consumption and compelling graphics.

IBR115 and IBR117 are highly scalable SBC’s with extended operating temperature of -40°C to +85°C and come with optional heat sink. This series of boards support 1GB DDR3 of on board memory and have a number of interfaces for HDMI and single LVDS display interface, 4GB eMMC, Micro SD (IBR115), SD (IBR117) COM, GPIO, USB, USB-OTG, Gigabit Ethernet and a M.2 Key-E interface.

These embedded I/O’s provide connection to peripherals such as WiFi, Bluetooth, GPS, storage, displays, and camera sensors for use in a variety of application environment while consuming levels of power far lower than industry expectations.

Key features: • NXP Cortex-A9, i.MX 6Dual-Lite (IBR115) / i.MX 6Dual (IBR117) 1GHz processor • HDMI and Dual-Channel LVDS Interface • 1GB DDR3, 4GB eMMC and Micro SD (IBR115) / SD (IBR117) socket for expansion • Embedded I/O as COM, GPIO, USB, USB-OTG, audio and Ethernet • M.2 Key-E (2230) and Mini PCI-E w/ SIM socket (IBR117) for wireless connectivity • OpenGL ES 2.0 for 3D BitBlt for 2D and OpenVG 1.1 • Wide-range operating temperature from -40°C to +85°C

44 OCTOBER 2018 Manufacturers’ Monthly

Company: Backplane Systems Technology Phone: (02) 9457 6400 Website: www.backplane.com.au

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Brought to you by

Flexible filling and dosing machine for food manufacturers

New DRPC-130-AL Can-Bus Fanless DIN-Rail Embedded System

Jet Technologies has launched a new high productivity rotary filling machine for Australian and New Zealand food manufacturers.

The Ilpra Fill Seal R12/4 Tronic delivers food manufacturers a fast and efficient way of getting their dairy, dips, desserts, soups, condiment sauces and yoghurt products ready for market.

“Supermarkets are demanding new products each and every year, and food manufacturers now need to find ways to innovate. However, with a fixed production profile, this can be difficult,” said Daniel Malki, general manager, Jet Technologies. “The Ilpra R12 filling machine is the next step towards acheiving a flexible future-proofed technology with the speed to produce efficiently.”

The Ilpra Fill Seal R12 is a high speed rotary filler and sealer with up to 12 stations, which offers food manufacturers the flexibility to use each station for different purposes. The machine is designed to very precisely fill denestable cups.

“The 12 station filler, with the speed and flexibility of 9,000 cups per hour, allows food manufacturers to create their product their own way with a modular design,” added Daniel. “It is completely customisable to each food manufacturer’s requirements, such as dosing location(s) in the filler and type of doser, filling volumes and speeds.”

The machine is designed for a practical and very easy operation with a touch screen panel.

Its sturdy structure and the high quality servo-driven components provides a filling accuracy of +/- 1 per cent, combined with industry-leading fill speeds. This gives food manufacturers an efficient machine, no matter the environment.

“Ilpra has a strong reputation for cup fill seal supply in Australia through Jet Technologies, and this new machine is the strongest offering for the local market to date,” added Daniel. “Jet Technologies has high expectations that this machine will allow food manufacturers to build solutions to meet the rapidly changing tastes of Australian consumers,” Malki said.

ICP Australia has introduced iEi Integration’s new DRPC-130-AL CAN-Bus Fanless DIN-Rail Embedded System, powered by the Intel Atom x5-E3930 processor.

The DRPC-130-AL is the latest in small form factor embedded PC’s from iEi Integration. This system is powered by Intel’s x5-E3930 1.8GHz Dual Core Atom CPU and supports up to 8GB of DDR3L RAM, making it a very powerful and versatile system for its size.

What sets the DRPC-130-AL apart from other systems is that it supports CAN Bus, allowing communication between the unit and a vehicle. Its small form factor and CAN Bus support makes it perfect for deployment in most vehicle applications.

The Fanless Embedded System is rich in I/O and supports four USB 3.0 ports, two Gigabit Ethernet ports, four RS-232/422/485 COM ports, eight bit Digital input/output and CAN Bus port and comes equipped with two HDMI ports, has room for storage featuring a 2.5” HHD or SSD bay, one full size mini PCIe slot that can accommodate an mSATA SSD and also features one half-size mini PCIe slot that can support a WIFI card for wireless network access.

Key features: • Intel Atom x5-E3930 1.3GHz (up to 1.8 GHz) • DDR3L 1.35V SO-DIMM supported • Serial, CAN Bus and Digital I/O Interface • Operating Temperature -20°C to +50°C with air flow (SSD)

Company: ICP Electronics Austral Phone: (02) 94576444 Web: www.icp-australia.com.au

Company: Jet Technologies Phone: (02) 8399 4999 Web: www.jet-ap.com

manmonthly.com.au

Manufacturers’ Monthly OCTOBER 2018 45

TheLastWORD

INNES WILLOX – Chief Executive, Ai Group

Maximising the benefits of digital economy Ai Group Chief Executive, Innes Willox shares key findings from the 2018 Workforce Development Needs Survey on the pressure points in the manufacturing sector.

T

HE pace of change in digital technologies continues to increase across the globe, creating digitally-enabled environments that will affect every manufacturing company. Education and training has been identified as one of the most critical factors shaping workforce outcomes that lead to future-focused companies.

New approaches to education, training and re-skilling must be implemented to maximise the benefits of the digital economy. Change is progressing in our education and training systems – but are they keeping up with the rapid pace?

The Australian Industry Group’s 2018 Workforce Development Needs Survey, “Skilling: A National Imperative,” suggests that in many areas this is not the case. The survey, which provides an important gauge of employer sentiment around skill needs and training practices at a critical time for industry transformation, has found major skills pressures facing employers. Without an education and training sector that can adapt quickly to the needs of the digital economy, Australia’s business sector will suffer competitively into the future.

As businesses adapt to new technologies and the changed conditions under which business is done, they are facing new demands on their workforce capabilities and cultures. Imperatives include higher level skills, advanced technical and soft skills, digital literacy and changed management capabilities to effectively negotiate autonomous work roles and partner with machines.

Frequent re-skilling is becoming a constant.

The major pressure points identified in our survey include: Skills shortages: It is apparent that skills for both current and futureoriented occupations are not meeting demand. Among our respondents, 75 per cent report skills shortages, most often in the technician and trades

46 OCTOBER 2018 Manufacturers’ Monthly

New approaches to education, training and re-skilling must be implemented to maximise the benefits of digital economy.

worker category. Difficulties remain with the recruitment of employees with STEM skills. For the first time in this annual survey, skills shortages were reported for those with skills in business automation, Big Data and artificial intelligence solutions.

Digital skills: The rapid changes through digitalisation are requiring a number of occupational categories to be prioritised for digital technology training and changes anticipated or caused by its rollout. Managers require significant capability improvements in technology/ digitalisation, with employers prioritising them (33 per cent), over technicians/trades workers and administration staff (both 18 per cent), followed by professionals (16 per cent). In the age of digitalisation all workers will need digital skills at various levels.

Literacy and numeracy: With the workforce increasingly requiring foundation skills that include not only literacy and numeracy but digital literacy and advanced soft skills, it is disturbing that 99 per cent of employers are affected in some way by low levels of literacy and numeracy in their workforce. They are dissatisfied with the basic numeracy and literacy levels of over one-fifth

of school leaver entrants. It is also a concern that dissatisfaction levels are high for the self-management, planning and organising, problem solving, initiative and enterprise skills of school leavers.

Leadership and management: The digital economy requires a major change in the way work is done and managed as entire business processes and organisational cultures are upended. Being aware of the activities that are most likely to change from a technical perspective allows managers to rethink how workers engage with their jobs and how digital platforms can better connect workplaces.

The survey found that 62 per cent of employers believe a lack of leadership and management skills is having a high impact on the business – an increase on 2016.

They report the most significant capability improvements required by managers are in technology/ digitalisation, resulting in managers being prioritised for this training.

Reflecting the need for managers to navigate constant change, employers said their capabilities must also improve for problem solving, initiative and enterprise.

Employer actions: Employers are active in implementing strategies

to alleviate some of these skills pressures. A greater percentage of employers intend to increase expenditure on training in 2018: the highest level since we began the survey in 2012. There has been an increase in the percentage of employers engaging apprentices/ trainees, with a substantial proportion being of mature age (42.9 per cent).

Employers report a significant increase in their internal company training and support from supervisors and mentors to boost literacy and numeracy skills. And companies have steadily increased their links with education and training sectors since 2014 – a vital strategy in the faster moving economy.

As Australian industry transforms through digitalisation it requires the necessary skills to adapt. This in turn will increase the number of people able to be involved in the digital economy. Change is happening at a frightening pace and our education and training systems need to renew at this same pace. These new survey findings provide rich data important in the development of education and training policy, systems and approaches that enable an effective workforce for the future. manmonthly.com.au

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