An expert in quality management is
forecasting a significant increase in components and machinery made locally
after the Government’s $1.5bn investment into its Modern Manufacturing
Strategy. The change will result in improved availability and safety of consumer
goods in Australia.
The Federal Government made its
investment available to two of the six priority manufacturing sectors, as of
this month. Manufacturers can apply for a grant to help them strengthen their
local supply chain, handle mass production, upskill employees, scale up and
improve competitiveness.[1]
Saeid Nikdel is
quality management expert at SAI Global (saiassurance.com.au), which has helped hundreds of manufacturers in Australia manage their
risk through standards, assurance and training. He says: “Restrictions enforced across
the world have resulted in a lack of availability, or delivery delays, of
goods, due to parts and components held up in international supply chains. The slowing of production lines has
led a flow-on effect to Australians wanting to access goods. The problem
has highlighted our manufacturing sector’s deepest vulnerability: its
dependence on overseas markets for the supply of machinery, tools, parts and
product components. Most of the machinery that we bring into Australia comes
from the US and Europe, while product components and parts mostly come from
China.”
Saeid says that in the last 12
months, local manufacturers, assemblers and distributors have faced delays
almost twice as long as in 2019. “These have impacted their ability to produce
local goods. Numerous manufacturers have also struggled to scale up operations
to meet the increase in demand. It has been a wake-up call for our
manufacturers, who now realise they must strengthen their supply chains. A
number of our manufacturing clients have revealed to us they are now looking to
produce their own product components in Australia. The growth and strengthening
of Australia’s manufacturing sector is dependent on this happening and the
Government investment is timely.”
Nearly nine in 10 Australians
believe we should produce a higher proportion of essential products locally,
and 82 per cent think our infrastructure projects use of Australian-made
products whenever possible, even if it costs more.[2]
While, most evidently, the growth in
production and manufacturing on our shores will benefit our economy, consumers
will also see a significant shift towards quality through supply chains, not
just improved availability.
“We have higher standards and product
statutory and regulatory requirements than other countries, benefitting the end
user with superior-quality products with safer design considerations. Safer
products will result in minimal incident risks or product recalls, increasing
customer satisfaction. Our high safety legislations, codes of practice, and
quality standards are the reasons why Australian-made products are so popular
in international markets. As our manufacturers start to produce more locally,
they can place a stronger focus on providing quality and safety products and
services by certifiying to Quality Management System ISO 9001 and OHS
Management System ISO 45001,” Saeid says.
Saeid is optimistic that the $1.5
billion Government investment will improve its target markets of space, resources
technology, critical minerals processing, food and beverage, medical products,
recycling and clean energy, and defence sectors. “As demand for Australian
suppliers increases, our local manufacturers will also need to boost their
workforce and facilities to scale-up their operations. Right now, the
manufacturing sector has a shortage of skilled machinery operators. The
Government’s direct funding of the sector will not only result in new
manufacturing areas, but also an increase in skilled workers and manufacturing
facilities.”
[1] Australian
Government – Department of Industry,
Science, Energy and Resources, 2020, https://www.industry.gov.au/news/manufacturing-a-new-future-for-australia
[2] The Australian Workers’ Union, 2020, https://www.awu.net.au/news/2020/06/12112/australians-overwhelmingly-back-australian-made-campaign/
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