Dorks Delivered Blog

The State of Manufacturing in Australia

The State of Manufacturing in Australia

Australian manufacturing has a storied history, but over the past few years there has been a lot of doom and gloom with the likes of Holden shutting down their local operations, but there is some good news. Adam Piper and Jimmy Eckert from Products for Industry (PFI) joined Josh to talk about the state of our manufacturing industry.

 

Is the Manufacturing Industry Dead?

Jim: I’m going to say, “No.” There’s bespoke manufacturing, and that’s where we come in. If you want a good quality product, an interface with the client, and after-sales support, you can’t get that by going overseas.

Adam: Our manufacturing industry just needs the government backing to keep it moving in the direction that it is.The Composition of the Australian Economy SNAPSHOT as of 14 January 2022The Composition of the Australian Economy SNAPSHOT as of 14 January 2022 according to Reserve Bank of Australia

The Manufacturing Industry Needs the Government’s Support

Adam: The sovereign wealth of the country is dependent on innovation and export. Export is the biggest interest we really should have because if we’re importing, we’re sending money out of Australia but if we’re exporting, we’re bringing money into the country.

Adam: The sovereign wealth of the country is dependent on innovation and export. Export is the biggest interest we really should have because if we’re importing, we’re sending money out of Australia but if we’re exporting, we’re bringing money into the country.

The reason Holden became what it did in the country was because of the government backing and support to develop that economy in the country. The government needs to get behind it. Tax incentives, tax breaks, all of these things make people want to produce more out of Australia.

Holden left the country because everything was five times more expensive. Wages, energy, cost of living, supply and transport, are five times more expensive than anywhere else in the world, so it’s not feasible for them to produce here.

We understand that Australia has a higher cost of living, and with that comes higher wages and everything that goes with it. But if that’s higher and we can’t produce in comparison to Southeast Asian countries, which can do it for a lot less, our innovation has to be up and our capability has to be more than what everyone else’s.

 

Boost your organisation’s productivity. Ask us how!

 

Manufacturing Can Benefit From Some Changes in the Schooling System

Adam: We’ve got to accommodate the technical people that we are training and developing through the universities in the country to stay within the country. A lot of people I talk to say that the best people typically go overseas. If they’re producing for other companies overseas, it’s not great for our sovereign position.

We’re seeing now that we’re not achieving multiple resumes for roles. We’re seeing a couple, and the cost of getting that person is increasing because the supply-demand ratio is just out.

 

The HAILI Rocket Program Curriculum
HAILI Rocket Program Curriculum

 

Remove repetitive tasks and have more time to work on your business. Ask us how!

 

Adam: We have a programme called Science of Rockets, which is a HAILI hybrid rocket motor. We designed and developed this, and it goes into schools as a STEM programme.

It is focused on teaching kids’ adaptable skill sets. Kids can basically tear down the rocket motor, and then they put it all back together. It’s a legit rocket motor. They live fire and everything.

The STEM Programme also teaches them about the opportunities that are out there in the manufacturing industry in Australia. You can start as a tradesman and do what I’ve done, that is, move into project management and then move into sales. You can start there and keep moving forward.

When I was at school, we didn’t even know that manufacturing existed. All I knew was construction and mining.

Jim: When I was going to school, there’s a massive push to go to university and be an engineer. I thought let’s go from the bottom up. I don’t want to be that guy that’s coming to the top and saying, do this, do this.

I was in the Navy beforehand, and I think the engineers that we had and respected the most were the ones that were sales first and then transitioned to engineers. It’s the same in our game as well. A lot of the project managers have been tradesmen beforehand, and it gives us a better understanding and an overview of how the project should go. You can relate to the trades, and you can walk in their shoes.

Adam: The future of Australia must stem from school. These STEM programme and the PFI Aerospace, which is another area of our company that’s developing incredible technology. And it’s trying to provide innovation and everything to local industry, socioeconomic division.

 

Make sure your organisation is at maximum efficiency. Fill out the form for a chance to get a free audit.

 

What’s Stopping the Progress of Manufacturing in Australia?

Adam: I would say the cost of execution—energy, labour, logistics and transport. It’s the same reason why GM pulled out. Those are the key fundamentals of any business. For you to produce competitively on the global stage, it must be at a competitive rate.

We’re also hindered by the Australian dollar versus the US dollar. We prefer to work in the local market. We support Australia.

Before COVID, we had been solely 100% Australian-designed, built and delivered. When COVID happened, everyone stopped but we grew 40%.

For a long time, we weren’t winning decent projects because of the cost of manufacturing in the country. We were honest and we’ll walk into a meeting saying we’re not going to be the cheapest but we’re going to be the best solution. I can commit that we will be the best and you’ll never have anything but support from us. You can go for a cheaper price, but that’s a one-time transaction and the ongoing cost of that will hinder you in the future.

We can’t compete with the cost point of overseas manufacturing and we’ve got to be realistic about it. Sometimes, we don’t engage when we’re asked to quote on something that’s not bespoke, it’s very straightforward; anyone can send that to Thailand or China and have it done a lot cheaper. We focus on the in-between.

There’s a company that sells a case packer. They sell a mincing machine here from Italy and a case packer from France. But no one provides that solution in between to get that whole thing to work because every site, every product, every skewline has a different arrangement to what it needs to finalise that manufacturing.

Jim: We can go in there and look at a project and do the design, the layout, the electrical automation, the whole installation, and then the after safety.

Adam: You can weigh up the pros and cons, and sometimes it’s about a price point. Sometimes you don’t compete. If it comes in a catalogue, I don’t want to look at it. I’m not going to compete with a catalogue. If it’s in a catalogue, it’s also in ten other catalogues, and we don’t have one in ours because we don’t have a catalogue. We’re going to design it from scratch. We’re going to do all the R&D, which comes at a cost, especially with the engineers that we have. They’re incredible.

 

Get a fresh pair of eyes to look at your business and see where it’s best to optimize and automate.

 

Innovation and Manufacturing

Manufacturing Smile Curve Digital technologies can help companies gear towards high value-add manufacturing through custom solutions and more efficient production. The Department of Industry, Science, Energy and Resources shares this figure of ‘smile curve’ that Australian manufacturers can capture by adopting technology and strategically shifting their market focus. 

 

Adam: If you can’t produce at a good margin, then you have to innovate in a great way to have something that nobody else has that stops manufacturing cost from being a problem. If you have innovation that’s world-class, you don’t have that competition.

Innovation is what we have to focus on as a business. Everyone else is building conveyors so how can we design them better back right at our stage? How can we engineer them to lower their cost? What do you need to be addressing when you engage with every client? What are they looking for?

Adam: When people say automation and robots, the general public in most cases just think it’s a loss of jobs. But before there were excavators and diggers, everyone dug with shovels, and we all moved on after an excavator and digger were invented.

Adam: It gives opportunities like Jim and me to progress into project management, sales, and all these other fields. We get to learn about them. The whole team is full of tradesmen, not high-level university-qualified guys.

For example, with the CNC machinery, it doesn’t mean that we don’t have 15 guys on the press. But why should we put a very good and very confident mid-40-year-old fitter and turner to do 12,000 stainless steel bosses on a lathe? That’s not right for that man’s mental health. A CNC has its place, and so does a manual.


Share the Post:

Subscribe to our Newsletter

Subscribe to our newsletter for regular IT news, tips, tricks, jokes, podcasts and other interesting stuff. It’s a hoot!

We take your privacy very seriously solemnly promise not to SPAM you.

Related Posts

5.0
Based on 51 reviews
powered by Google
Kennard
02:22 28 Nov 24
I am very Satisfied with the services provided by Dorks; the teams are highly responsive and supportive.
Eleanor Swanepoel
08:38 19 Nov 24
The Dorks got me into my system after it was locked out and the device destined for landfill. Having worked with the Dorks team for 4 years, I have always found them responsive, helpful and diligent. Thoroughly recommend!
Trent Marshall
03:33 15 Nov 24
Josh and the entire Dorks team could not be any more professional, helpful, friendly and knowledgeable if they tried. Time and time again they were patient and went above and beyond to resolve numerous complicated IT issues for myself and my team, at all hours of the day and night. I recommend them to all size and scale of businesses, as no problem is too large for the Dorks! Thanks again Josh and I wish you and the team every success in work and in life.
Meg Dennis
21:27 08 Nov 24
There are very few organisations that have a service culture of going above and beyond. Josh Lewis, Dorks founder did that this week with myself and several peers, helping us through a difficult IT situation. Dorks Managed IT Services are relationship grounded, solution oriented and outcomes based. They are outstanding in their sector.
Meenakshi Vivek
06:46 08 Nov 24
I had the pleasure of speaking with Joshua from Dorks on an IT issue outside of their scope, and I couldn't be more impressed. He went above and beyond to not only resolve my problem quickly on late Friday afternoon but also was very friendly and supportive. His dedication to ensuring everything was working perfectly, truly stood out. Highly recommend Joshua Lewis @Dorks for anyone needing reliable and expert IT assistance!Thank you so much Josh!
Mark Mathews
02:16 15 Aug 24
I've been a client of Dorks Delivered for many years and for good reason! They are so easy to deal with, value for money, host and manage my website, provide office software at discounted rates, easily fix website issues etc. A seamless and easy IT company to deal and communicate with that I highly recommend for all your IT needs.
john aguiflor
03:59 05 Dec 23
Definitely a dream work place!
The Irrigation Shop
02:52 28 Nov 23
These Dorks are fantastic. Always ready to solve any problem we have. Cyber-security, hardware, even tips on marketing. Josh is always approachable and friendly, and the team are top-notch!
Rob Swanson
21:25 27 Nov 23
Dorks has helped get our company IT needs on track and streamlined. They are easily contactable when problems occur and are quick to get you back up and running!
Rimas Veselis
16:55 27 Nov 23
Always extremely helpful!
Mark Ong
02:00 27 Nov 23
The best organisation I've work with so far. All staff are hands-on and they will understand your business in order to support you the best way possible. They are the partners you need for any kind of tech solutions. I love that they are open to two-way feedback and will let you know if something is realistic or not and what is the best solution to move forward given the circumstances. It is no surprise that they come highly recommended for me.
Ben Rayner
01:28 27 Nov 23
Very happy to recommend Dorks Delivered with Teck support etc, we worked together for over 10 years and have all issues resolved promptly.Thanks Team Dorks
Tim Nelson
01:04 20 Nov 23
A refreshing company to manage my IT requirements. Over and above service, and always coming to me with new ideas and concepts
Louise Bedford
03:10 28 Aug 23
Joshua Lewis is a super star. Generous of spirit, skilled as an interviewer, and gifted with the ability to see exactly what people need - I'm sure you'll enjoy dealing with Dorks Delivered.
Dave Abbot
09:08 09 Aug 23
Absolute guns in the industry. Trustworthy reliable and brutally honest.
Tanner Anderson
07:24 04 Aug 23
Working with the team at Dorks is always a pleasure!
Bryan Nillos
00:21 03 Aug 23
Great place and great people to work with. The best MSP, value for money!
Kubrador
04:28 02 Aug 23
I strongly endorse Dorks Delivered for their outstanding Managed IT Services! With a proactive and reliable team, they provide round-the-clock support and top-notch cybersecurity, making them an invaluable partner for achieving business success.
Mark Pope
05:26 06 Jul 23
Definitely talk to Josh Lewis and the Dorks about your managed IT needs. Apart from being smart and having a great team, I have found him to be genuinely concerned about his clients, coming up with the best advice that suits their needs.
Cameron Quin
03:52 05 Jul 23
Honestly, our business wouldn't survive without them. Josh and his team just know everything and I have peace of mind when it comes to the uptime. Of my business. And they give awesome little freebies!!
Adrian Peterson
23:49 25 Apr 23
We recently transferred our I.T. needs to Dorks Delivered and they have been fantastic. The response times, ease of accessibility to them and their understanding of our needs have been brilliant. It's been a complete 180 degree shift from our previous vendor Mercury I.T. We are so pleased with the change and would happily recommend Dorks Delivered to other businesses.
js_loader

Give our IT support team a try...for FREE!

Your first IT support task is FREE (Normally $199) – Yep, absolutely free (up to 4 hours)! Experience how our team can help your business today.

Click here or ring 07 3166 5465 to claim your FREE IT Support Task!

Want to rub shoulders with the greats? We work with the best…