MAKING IT IN AUSTRALIA Our Advanced Manufacturing Future ADVANCED MANUFACTURERS CAPTURE HIGH VALUE DRIVING COMPETITIVENESS AND EXPORTS FOREWORD The world stands on the cusp of momentous change. Technological advances of seismic proportions are creating new industries and transforming old ones.

It is in this context - as companies and governments around the world navigate these advances - that we share this series of Australian advanced manufacturing showcase stories with you. This is by no means an exhaustive record; indeed there are literally thousands of innovative manufacturers around the country tapping new areas of growth and taking their ideas to global markets. The stories in the following pages illustrate the many and varied pathways manufacturers can take on the road to success.

Formed in 2013 under the auspices of Ai Group, the Australian Advanced Manufacturing Council brings together industry leadership to drive success. Today AAMC members include some of the best known names in Australian manufacturing: enterprises like the ANCA Group, making a global name for Australian ingenuity in machine technology; aerospace and transport local heroes, Marand, and Quickstep; and Australia’s own multinationals including shipbuilder, Austal, biotech company, CSL, and medical device manufacturer, Cochlear; as well as Australian subsidiaries of global companies like Agilent Technologies, Cook Medical, Northrop Grumman, PPG Industries, GE, Boeing, and Ford, all companies with a keen focus on Australian talent and innovative capacity.

This publication is both a record of Australian achievement and an acknowledgement that the world is not standing still, and nor can we.

John Pollaers Innes Willox Chairman Chief Executive Australian Advanced Manufacturing Council Australian Industry Group

MAKING IT IN AUSTRALIA 5 AAMC MEMBERS AND CONTRIBUTORS

MAKING IT IN AUSTRALIA 7 Dear Reader At the AAMC, we have been collecting fast facts about Australia and how we compare in advanced manufacturing measures. Many of these show we have the creative talent, the problem solving capacity, and the research infrastructure to build globally competitive high-value manufacturing.

Our vision is for an Australia ranked in Australia is still a minor player in global Advanced economies around the world the world’s top advanced manufacturing production sharing, but there are early are investing in their knowledge capacity countries, rich in knowledge intensive signs of Australian manufacturing reaping – and increasing the value-density of industries that drive a diversified gains from joining these networks, their manufacturing. We are fortunate sustainable economy. specifically when companies focus on skill- in Australia to have many manufacturing intensive high value production2. companies demonstrating creative and But international competition for high value technological prowess - and business industries is intensifying, and there are The evidence also shows that Australian acumen – and taking their innovations to THINKING DIFFERENTLY gaps in Australia’s innovation ecosystem. technological capabilities are comparatively the world. A number of them share their more valuable than the global average - and inspirational stories and insights here. Significant technological developments are businesses engaging with export markets disrupting long-established characteristics are more successful. Yet, the export intensity Jennifer Conley of industry, driving convergence in some of Australian manufacturers (measured Executive Director sectors, opening new doors and closing old. as the share of total domestic value added AAMC THINKING COLLABORATIVELY produced by the manufacturing sector to More than 70 per cent of global trade is meet foreign final demand) was the lowest now in intermediate goods and services1. in the OECD in 2011 (25.6%) and lower than Production chains are spread across in 2008 (28.3%) 3. multiple countries and across multiple firms, and the income created within these There are other challenges, in particular THINKING GLOBALLY global value chains has doubled over the in skills development, education, the last 15 years. In general, the greatest value regulatory environment, and research- from providing inputs to an innovative industry collaboration. Innovation and product goes to the countries whose firms Science Australia, led by Chair, Bill Ferris, provide critical, differentiated technologies. and Chief Scientist, Alan Finkel, has been working to fully identify these challenges and propose solutions, as part of its far-reaching 2030 Strategic Plan, due for release in late 2017.

1 OECD, WTO, & World Bank Group. (2014). Global Value Chains: Challenges, Opportunities, And Implications for Policy. Report prepared for G20 Trade Ministers Meeting Sydney, Australia, July 19. 2 Australia’s share of total OECD exports of GVC products has been better than the global average, doubling over the past decade. https://www.industry.gov. au/Office-of-the-Chief-Economist/Publications/Documents/other/Global-production-sharing-and-Australian-manufacturing.pdf3 OECD & WTO. (2015). TRADE IN VALUE ADDED: AUSTRALIA. OECD: http://www.oecd.org/sti/ind/tiva/CN_2015_Australia.pdf

MAKING IT IN AUSTRALIA 9 I'VE SEEN FIRST-HAND HOW A CULTURE" OF INNOVATION AN ORGANISATION TO EMPOWERS ACHIEVE THINGS IT NEVER THOUGHT POSSIBLE. " Maureen Dougherty, President, Boeing Australia, New Zealand & South Pacific

Team members from Boeing Aerostructures Australia and Boeing Research and Technology - Australia prepare a robot specifically designed to work alongside people. James Lauritz Photography “We’re looking at the Australian model Mr Irving has 28 years’ experience in “We’re not going to be pumping out and seeing if we can implement the same the Australian defence industry, and thousands of base model components, but approach in other countries. I think it’s has been in his current role since July we can make complex subsystems where a great testament to what the defence 2013. He commended the motivation the labour isn’t such a drain on cost. So industry has done, that we as a company of multinationals to incorporate local while there is a lack of scale, it does have have picked up that model and have Australian manufacturers in their global benefits in the way these firms can be applied it elsewhere,” Mr Irving says. supply chain (GSC) process, to become flexible and agile,” he says. NORTHROP globally competitive, and give them access “I am trying to ensure that Australia is the to world markets. Northrop Grumman has a database of exemplar of our overseas markets.” around 140 local suppliers, awarding “The defence department really was a around $32 million to local small and Northrop Grumman, a leading global leader there — the government’s wisdom in medium enterprises in recent years. The security company, has a strong customer establishing the GSC program to motivate firm plans to “really focus and double base in Australia and has been supporting the larger primes to reach out to local down” on increasing the flow to key a variety of both defence and civil industry,” he said. “That’s a real bonus suppliers in Australia in the coming years. GRUMMAN programmes here for more than 20 years. for Australia. What we need to do now is leverage the new initiatives government is Still, the local firms must prove themselves As well as security, it is a key supplier in the placing through the White Paper, focusing to be globally competitive and equal to their defence, information systems, and public on innovation and the establishment of counterparts in North America and Europe. safety communications markets, providing significant local content in our defence a range of capabilities and technologies program.” “There is no charity here,” Mr Irving says. including the RAAF’s Wedgetail, F-35 and “In global markets today there are few the Super Hornet programmes. He says Australia does have the kind of boundary impediments to working in any unique expertise that can compete with, location. So Australia’s industry really needs The firm’s local annual turnover is just shy and even outperform European and to be globally competitive to be considered of $200 million, and management expects American companies in setting up some as a partner in global supply chains.” that to grow by at least the 5 per cent greenfield sites for manufacture. forecast by the Defence White Paper for the entire industry. But the government needs to back local industry and buy local when it can. This The local division has grown quickly from would deliver companies the credentials to just five staff three years ago to nearly 500 market their offerings to overseas buyers. now, partly due to the acquisitions of Qantas Australia’s defence Defence Services in 2014 and M5 Network “It is very hard to export to foreign Security in 2012, but also through organic overseas programs if you haven’t sold to global supply chain growth, and Mr Irving says the firm is your local customer. So we’re looking to initiatives are world- looking to add to its scale in coming years. the government to back industry a little leading policies that bit more to give local companies a fighting “The trajectory we are on will be chance.” other countries should maintained with some of the large look to emulate, says programs coming up. The Defence White Mr Irving notes that GSC offerings to date the head of Northrop Paper shows us that there should be plenty have mostly been at the component level, of opportunity, so coupling our portfolio and says Australian manufacturers need Grumman Australia, with local capability will be the key for our to move “up the value chain” and supply Ian Irving. future success,” he says. technology elements and unique innovation offerings into the GSC.

MAKING IT IN AUSTRALIA 13 When Professor Graeme Clark defied Like every upgrade, the Nucleus 6 sound He believes that Australian manufacturers the naysayers to invent the first cochlear processor, which automatically adjusts to shouldn’t waste time trying to compete implant in the early `80s, he was set different environments (for example a noisy against low-cost, low technology products. to transform the lives of hundreds of restaurant), has led to an increase in demand. thousands of people. However Mr Bodkin says that Even more innovative has been the range many technology competitors have The first recipient, Melbourne man Graham of wireless accessories that Cochlear has manufacturing operations based in COCHLEAR Carrick, hadn’t been able to hear for 17 linked to the Nucleus 6, allowing the wearer North America and Europe. Australian years. When the sound processor on his to better hear family or friends, or sounds manufacturers can continue to compete on implant was switched on, nothing happened coming from their TV or smartphones. niche products by repurposing their own for 15 minutes. technology, products or skills, he says. Mr Bodkin says it’s the only true wireless Then everything changed. “I heard a ‘ding technology in the world for use with As for Cochlear, emerging markets such dong’ and I said to myself ‘bloody hell!” cochlear implants. as China and India, plus an ageing global Carrick recalled on the 30th anniversary population point to enormous potential for of the world-first surgery. “Tears ran down As an Australian manufacturer and continued growth. my face.” exporter whose products are sold in the major markets of North America, Europe, The company recently supported Australian- Many iterations of that technology later, the Middle East, Africa, and the Asia- Indian movie unINDIAN, starring cricketing Cochlear is continuing to break new Pacific, the company continues to look for great Brett Lee. The movie’s main female barriers – and its own records. Last ways to remain competitive in a global character works at Cochlear, with some of financial year, the ASX-listed company environment, says Mr Bodkin. the scenes filmed at Cochlear’s offices. posted record sales of $941 million. He says Cochlear has refined the way it “We saw it as a chance to get our brand out Headquartered in Sydney, Cochlear operates, always striving for improved there, and also to increase the awareness operates in more than 100 countries, with operating efficiencies and effectiveness. of hearing loss as an issue,’” says Mr Bodkin, 3000 employees worldwide. Applying Lean principles and automation who adds that many overseas countries still has been a big part of making the company don’t screen babies for hearing problems Senior vice president of manufacturing as competitive as possible. at birth. and logistics, Greg Bodkin, says a quest to constantly improve customer service and “There are certainly things that we would Typically, three in 1000 people in the world chase innovation has kept Cochlear ahead have done 15 years ago that we don’t do will experience a condition that makes of the curve. today,” says Mr Bodkin. them suitable for a cochlear implant, says Mr Bodkin. It now has three main worldwide While the company has moved some of its competitors, but Mr Bodkin says Cochlear non-core functions overseas, the precision Meanwhile, decades after Professor is two or three times larger than all of manufacturing work still takes place at Clarke’s original breakthrough, Cochlear’s them. Cochlear reinvests about 12 per cent three manufacturing sites across Sydney mission remains the same, even though it’s of its annual earnings into R&D to ensure and Brisbane. now carried out on a much broader scale. it has a technology advantage over its competitors, says Mr Bodkin. “The manufacturing of the implants or “Every day we give around 200 people that manufacturing of a speech processor is couldn’t hear yesterday a chance to hear,” He says Cochlear’s latest speech processor, quite difficult – it requires a lot of skill and says Mr Bodkin. the Nucleus 6, is almost unrecognisable a lot training,” says Mr Bodkin. from the technology pioneered in the `80s, which was worn on the body in a similar way to a Sony Walkman.

MAKING IT IN AUSTRALIA 15 The Industrial Internet is profoundly GE is also harnessing the power of the transforming global industry and Industrial Internet at a coal seam gas- infrastructure, connecting machines, big to-liquefied natural gas (LNG) facility run data analytics, and people. It allows you by QGC. GE has deployed a predictive GE AUSTRALIA to combine brilliant machines with best- maintenance solution to improve the in-class analytics to deliver valuable new reliability of turbomachinery equipment insights that were never before possible. through remote monitoring. By 2020, an estimated 50 billion machines will come online, boosting global GDP by As GE cements its position as a key player as much as $15 trillion by 2030 through in every LNG project underway in Australia accelerated productivity growth. While and Papua New Guinea, the potential for the Industrial Internet is predicted to productivity gains through the latest wave lead to a revolution in manufacturing, of technology is massive. another driving force for GE in Australia is advanced manufacturing, which links With 2,000 employees across the Australia, design, product engineering, manufacturing, New Zealand and Papua New Guinea region, supply chain, distribution and services spanning industries including aviation, into one cohesive, intelligent system. healthcare, power, renewable energy, oil & gas and mining, GE also continues to This is leading to more agile factories and innovate in countless other ways. supply chains that can bring products to market in half the time – and at substantial In late 2011, it established a $100 million savings. technology and learning complex in Perth to support the development of skills for the GE Australia is already working to identify oil and gas sector and provide GE’s first and address customers’ operational in-country support and maintenance centre. challenges and drive better business outcomes through data and Predix, GE’s Globally, GE is also embracing 3D printing, operating system for the Industrial Internet. allowing the company to accelerate the In 2016 GE announced the opening of its cycle of design, prototyping and production. latest digital collaboration centre with launch customer Qantas, in Austin, Texas. In February 2017, GE announced an Through the partnership, data scientists, investment of US $4.3 billion to open new engineers and software designers from factories to build next-gen jet engines with GE and Qantas will work together to 3D-printed parts and the latest composite distill some of the ten billion data points materials produced by the aviation sector annually into practical actions to help Australia’s national carrier reduce fuel costs and carbon emissions.

MAKING IT IN AUSTRALIA 17 I AM PASSIONATE ABOUT AUSTRALIA DEVELOPING OUR OWN INTELLECTUAL "CAPITAL - UNDERWATER SYSTEMS, SONARS, SECURE COMMUNICATIONS, CYBER CAPABILITIES ETC - FOR EXPORT. AT THE SAME TIME, WE CAN CONVINCE COMPANIES LIKE MINE THAT THIS IS A GOOD PLACE TO INVEST. "

Ian Irving, Chief Executive, Australia Northrop Grumman During World War I, one of the first actions In 2010, CSL announced a $257 million of the Commonwealth Serum Laboratories, expansion in Melbourne, with a new as it was then known, was to produce three manufacturing facility dedicated to million doses of a mixed bacterial vaccine producing its global immunoglobulin in an attempt to combat the Spanish product Privigen from commercially- Influenza epidemic sweeping the world. sourced plasma. Privigen is used to treat a range of conditions such as primary Research and Development is integrated immunodeficiency and the facility became with CSL’s subsidiaries, adapting existing operational and began exporting in 2016. CSL LIMITED products for new uses and developing novel breakthrough medicines for global CSL announced it would undertake a further commercialisation. CSL employs an R&D $210 million expansion at CSL Behring’s workforce of more than 1100 and has its Broadmeadows site to meet a growing global R&D headquarters in Melbourne. demand for its albumin therapy. The expansion CSL spent more than $US600 million will create 200 jobs during construction, in 2015-16 on R&D and has a rich and and another 190 manufacturing jobs once promising pipeline of new products. complete. Albumin, a protein found in human plasma, is used to restore blood After privatisation in 1994 and volume in people after trauma or major the acquisition of a number of surgery, along with patients suffering companies, CSL Limited now makes burns or serious infections. more 70 different plasma-derived and recombinant products, and last These expansions have further financial year had global revenues strengthened the role that CSL Behring’s of more than $USD6 billion. Here in Melbourne site in the company’s global Australia, it is one of the country’s manufacturing network. top 10 publicly listed companies. CSL comprises two major subsidiaries: CSL’s second major subsidiary, Seqirus, is CSL Behring and Seqirus. based in Maidenhead, UK, and is dedicated to vaccines and pharmaceuticals. Its Parkville, CSL Behring is a global leader in plasma Victoria facility plays a very important role therapeutics, with products spanning in biosecurity in Australia, as the nation’s a range of therapy areas, including the only onshore manufacturer of influenza treatment of bleeding disorders such as vaccine, and the world’s only producer of haemophilia and von Willebrand disease. uniquely Australian antivenom and Q-fever It began as a government-owned lab, set up Vital plasma products created by CSL vaccine. Seqirus exports influenza vaccine Behring are also used in situations such to the US, UK and Germany and provides in 1916 in Melbourne to service the health as trauma, emergency surgery and burns. pandemic preparedness and priority needs of a nation isolated by war. More than response to Australia. In Australia, CSL Behring works closely 100 years later it’s a global multi-billion dollar with the National Blood Authority and force employing more than 17,000 people. the Australian Red Cross Blood Service to process precious plasma donated by generous volunteers into 15 different therapies for Australian patients. CSL Behring also provides this service to governments in the Asia-Pacific region.

MAKING IT IN AUSTRALIA 21 Austal is the Australian shipbuilder, The shipyard also completed a 70 metre contributing to US Navy operations around defence prime contractor and marine offshore crew transfer vessel for Caspian the world and leading the logistics for technology partner of choice – designing, Marine Services of Azerbaijan and humanitarian and disaster relief missions constructing and supporting revolutionary construction continued on two 58 metre such as ‘Continuing Promise 2017’ which defence and commercial ships for the Cape Class Patrol Boats for the Royal will bring medical services to over 15,000 world’s leading operators. Australian Navy (on schedule for delivery people in Central and South America from in the second quarter of 2017). Eight Cape January to April 2017. AUSTAL From safe, modern and efficient shipyards Class Patrol Boats are already in service operating in Australia, the USA and the with the Australian Border Force and are In the Philippines, Austal completed a 57 Philippines, Austal has successfully being maintained by Austal through service metre offshore crew transfer vessel for delivered more than 255 vessels to 100 centres in Henderson, Darwin and Cairns. Swire Pacific Offshore and commenced operators in 44 countries, since 1988. construction on 5 new commercial vessels, Austal Australia secured the $305 million for operators in the Philippines, South Austal’s focus on design innovation, modular Pacific Patrol Boat Replacement contract Korea and Germany. The design work manufacturing and customised solutions in May 2016 and recently completed the for all of these vessels will be completed for domestic and international clients has detailed design review for the nineteen in Australia, and transferred through an seen the company grow to become the 40 metre steel vessels. Construction at effective project management structure world’s largest aluminium shipbuilder and Henderson is due to commence in April and process that develops local expertise Australia’s only ASX-listed shipbuilding 2017, with the first vessels scheduled for and capability. company and defence prime contractor. delivery to 12 Pacific Island nations from late 2018. Today, Austal Australia is responding to the With over 75% of vessels produced globally Commonwealth of Australia’s A$3 billion for overseas clients, Austal is a successful Also awarded in 2016 was a A$100 million tender for the construction of twelve exporter and the company continues to contract to design and construct a 109 Offshore Patrol Vessels (OPV’s) for the deliver multiple, high-value domestic and metre vehicle- passenger ferry for Mols Royal Australian Navy, as part of the export programs from Australian, US and Linien of Denmark. The largest passenger Federal Government’s continuous naval Philippines shipyards. ferry to be built at Austal since 2011, shipbuilding plan. If successful, Austal will the project will see 100 new apprentices construct 2 OPV’s in Adelaide from 2018 2016 was very successful year, globally, recruited in the areas of fabrication, marine and then a further 10 vessels in Henderson for Austal. fitout and cabinet making. Western Australia, securing jobs for the local workforce(s) for at least 10 to 15 years. In Australia, Austal completed construction In the United States, Austal USA delivered and delivered two 72 metre High Speed two 127 metre Littoral Combat Ships (LCS Well positioned with an established, Support Vessels (HSSV’s) for the Royal 8 and LCS10) to the US Navy, launched skilled workforce, a reliable supply chain Navy of Oman, with a contract value of another (LCS14) and commenced comprising 1000 Australian businesses US$124.9million. Like the 103 metre construction on a further two LCS under and unrivalled experience in constructing Expeditionary Fast Transport (EPF) an 11 vessel contract worth approximately naval vessels (including Australia’s entire designed and constructed by Austal for US$4 billion. Also in Mobile, Alabama, border patrol capability for the past 18 the US Navy, these military catamarans Austal is delivering the 12 vessel, US$1.9 years), Austal continues to build Australia’s are redefining naval capability with an billion Expeditionary Fast Transport (EPF) sovereign shipbuilding capability, now and unrivalled capacity to transport personnel, program for the US Navy. In 2016, the well into the future. vehicles and cargo with aviation support, shipyard delivered EPF6 and EPF7, and quickly and economically. launched EPF8. The 103 metre military catamarans, designed in Australia, are

MAKING IT IN AUSTRALIA 23 Louis Vega knows a lot about moulds - ahead of the commoditization curve. As enterprises among developed nations. making them and breaking them. we invest in technology and changed our Australia has the ingredients but not culture, Dow has moved from conducting a the recipe to add true value to advanced The new President and Managing Director few thousand experiments per year to tens manufacturing. of Dow ANZ has spent almost 20 years of thousands,” Mr Vega said. at the company in various strategic “When we turn our attention to R&D, we roles, giving Mr Vega a front row seat to “The speed of R&D is just one example of believe Australia needs to be pushed out DOW manufacturing’s metamorphosis. this transformation to Industry 4.0.” of its resources-led complacency,” Mr Vega said. Mr Vega said Industry 4.0 brings together However, simply advocating for change is digital and physical technologies that will not enough. As a global leader, Dow must “Dow’s $1.5 billion global investment in transform the material science industry, and bring its experiences and learnings to the R& D allows its innovation engine to help Australia will require smart, sustainable table, to help Australia prioritise Science, customers find solutions to the challenges investment in skills and technology to be a Technology, Engineering and Math (STEM) of the new age: sustainability, efficiency and leader in advanced manufacturing. and vocational training for the economy of building a circular economy. the future. “Our industry is seeing streamlined “This investment allows us to develop operations, integrated global supply chains, “These are skills for the new age. The products like smart paints that absorb and changes to commercial chemistry that future is not about blue collar or white microbes and formaldehyde. But we still will produce the next generation specialty, collar, but as has been coined, ‘new collar’ need actual mechanisms to encourage high-value products,” Mr Vega said. - high tech manufacturing roles which Australian innovation within our borders. require advanced vocational training. Our “This transformation is more than just a emerging young talent requires investment “Changes to policy settings - such as catchy slogan, it is a globally-accepted in technical education that will provide focusing on upfront funding instead of just reality affecting our industry worldwide, them with the knowledge – and the skills tax credits, and regulatory reform to match including Dow. Our customers want – to fuel Australia’s prosperity into the the pace of change and allow efficient bespoke solutions for their end users’ future,” Mr Vega said. approval of new product innovations – are needs – and they expect them faster,” critical in encouraging companies to invest Mr Vega said. “STEM at all levels of education is a priority in Australian R&D and realising the full for Dow. Highly-educated and skilled potential of this country,” he said. “Australia has the building blocks to be a people drive the innovation and innovative global leader - a highly-skilled workforce processes that is are needed to solve the Dow’s commitment to advanced building-block natural resources, solid challenges facing humanity today. This manufacturing is the key element to R&D capabilities and strong commercial is why STEM is the centrepiece of Dow’s sustainable economic growth, meaningful governance. Now it is time invest for the commitment to investing in people to build job creation and the development of new future,” he said. the workforce of tomorrow. markets. It is part of our overall business philosophy. “Digitisation and automation are not just Dow is committed to sustaining and reshaping communications and commerce; growing its long-standing operations in Industry 4.0 demands a more efficient they are revolutionising every industry, Australia, and continuing to invest in STEM and nimble operations – for companies The rise of the fourth industrial revolution from mining to fashion to food”. and skills. and countries. If we can invest in the right will break the mould. ‘Industry 4.0’ will drive education, training and R&D, for the jobs changes equal to any seen during the peak of “To keep up and get ahead of the innovation However, none of this investment will and economy of tomorrow, we can provide curve, we have deployed fast-cycle allow Australia to reach its full potential if a sustainable future for our company, our the first industrial revolution. Will Australia be innovation to ensure we deliver customer we continue to maintain one of the lowest country and our world. able to adapt and thrive? solutions and cutting edge technologies numbers of researchers in business

MAKING IT IN AUSTRALIA 25 "ANCA IS BUILDING AUSTRALIA'S SHARE OF GLOBAL INTELLECTUAL CAPITAL THROUGH CONTINUOUS R&D. "

Grant Anderson, Group CEO, The ANCA Group In 2016, the company manufactured “We are committed to leading one of Like any manufacturer, Cook Medical more than 13,000 stent grafts for the Australia’s most successful, and highly faces challenges, with Mr Thomas noting treatment of aortic aneurysms, and more advanced medical device manufacturing Australia’s manufacturing environment as a than 920,000 needles to assist in the companies, and by doing so, to also retain key concern. reproductive health process. local manufacturing and local research and development.” Working with other industry leaders, Cook Barry Thomas, Director - Asia Pacific and Medical Australia spearheaded a campaign COOK MEDICAL Vice President - Cook Incorporated, says General Manager of Cook Medical Australia, to introduce a ‘patent box’ style tax Australia has carved out a significant global Dr Samih Nabulsi says the company is incentive for Australia. Under the model, position in medical devices, with companies dedicated to pioneering innovative medical termed the Australian Innovation and such as Cook Medical, ResMed and solutions to help patients worldwide, which Manufacturing (AIM) Incentive, qualifying Cochlear among those leading the charge. could in the future include Europe’s ageing IP profit would be taxed at the lower rate populations and Asia’s rising middle-class. with the standard corporate tax rate to He says the three companies contribute be applied to other income. This would almost 20 per cent of total inventions filed “We are always looking in the pipeline for ensure Australia benefits from investment in the medical devices field for Australia, new ideas,” he says. “We will continue to in any R&D by encouraging companies citing the latest Australian Medical Devices work with physicians, innovators, research to locate all activity associated with the Patent Analytics Report. centres, universities and anyone else who development, manufacture and exploitation is willing to back themselves with an idea of that IP within Australia. This would help Cook Medical Australia started distributing that fits within our company mould. If it to safeguard the future of manufacturing in medical device products in 1979 in Victoria doesn’t, we will try and help find someone Australia. and moved into manufacturing in 1988 that can,” said Dr Nabulsi. when the business shifted to Queensland. “Medicine and medical devices can It became one of the first businesses to As part of Cook Medical’s commitment to be a complex field, but if the correct operate from Brisbane Technology Park provide innovative solutions in advancing manufacturing and research environment where its state-of-the-art manufacturing patient care, the company is actively can be created, Australia has the and research and development (R&D) scouting for new technology throughout opportunity to become the world leader in facility, is still based. Cook Medical’s the APAC region. The Asia-Pacific New this field and the home to a new wave of Australian operations also double as the Technologies Team (ANTT), was formed innovative and progressive companies.” headquarters for the Asia Pacific (APAC) in 2014, to discover and evaluate new region. concepts and technologies from this In the meantime, Cook Medical takes a region and to channel these to appropriate straightforward approach to fostering Cook Medical Australia has become one of Despite the bulk of its customers living divisions with Cook Medical. innovation. thousands of kilometres away, Mr Queensland’s largest exporters, currently Thomas says the company is committed In 2017, the company launched the Asia- “You back the people you work with. Pretty exporting over 90 per cent of its locally to supporting and promoting local Pacific Commercialisation and Development simple, but you must not be afraid to take a manufacturing, particularly because its Centre (ACDC) in Brisbane. Collaborating risk,” says Mr Thomas. manufactured products, specialising in IVF and aortic stent grafts were developed and with the ACDC will mean innovative, endovascular repair, to 64 countries around the commercialised from Australia. late-stage research projects can be taken “Innovation means that a risk was taken to the next level so medical devices and and it paid off.” world at a value exceeding US $100 million. “We believe in keeping R&D and technologies with global market potential manufacturing together because there are can be developed. so many advantages that we can take by keeping both under the same roof,” says Mr Thomas.

MAKING IT IN AUSTRALIA 29 The best problem a business can have: The company was the first to design and emphasis on training. Facing a potential a product range so popular that you’re manufacture an Australian CNC, and found shortage in the niche skills needed to forced to pull out all stops to keep up with a niche in sophisticated tool grinding manufacture its machines, ANCA started its global demand. machines, which ANCA eventually took to own apprentice training centre, in affiliation Germany, a country that was considered with the Australian Industry Group Training That’s the challenge for Melbourne- the centre of elite tool grinding technology. Services. based manufacturer ANCA, whose latest ANCA innovative offering – cost-effective tool Fast-forward a few decades, and ANCA “Finding the staff with the specialist skills grinding technology that is easy for is now a world-leading designer and required to build CNC machines, or the operators to use – is selling quicker than manufacturer of high-precision grinding mechatronic, software and other engineers the company can make it. machines, software and automation also needed is a constant challenge”, says accessories. human resources manager Wayne Young. Over the last 30 years ANCA has had an average growth of 17 per cent annually. In The tool grinders ANCA produces are “The apprentice training centre has been 2016 the company was inducted into the widely used by companies involved in very successful. We currently have 12 Australian Export Awards Hall of Fame, creating components used in medical, apprentices and some who have finished the eleventh company ever to achieve this automotive, defence, aerospace, and are working in the factory, or overseas. honour. ANCA exports 99 percent of its pharmaceutical and manufacturing sectors products and achieves an annual revenue with customers including Boeing, GE, Rolls “We also hire many Industry Based of approximately $200 million. Royce and Johnson & Johnson. Learning (IBL) students from universities and have a very multicultural workforce. The company was founded in 1974 by Its global headquarters in Bayswater North, This is because there is movement between two passionate engineers, Pat McCluskey Melbourne, has about 400 staff, including the global offices and because the industry and Pat Boland. Their early focus was 100 engineers and a dedicated R&D team. is a global one, so we look globally for the on developing world class Computer ANCA has another manufacturing site right skillsets.” Numerical Controls (CNC). At the forefront in Thailand and offices in the UK, Japan, of this technology, the early ANCA work Taiwan, Brazil and India. Mr Boland said: “The ANCA philosophy is to involved retrofitting old machines from push in two different directions, one being manual to CNC. In 2016 ANCA opened its refurbished engineering excellence, with 25 PhDs working European headquarters in Germany and, in our R&D centre and close co-operation “Even before we started ANCA, Pat and I in 2017, ANCA is expanding its US and with universities around the world. have always been driven simply by wanting Chinese facilities by 50 per cent to grow to get machines to do things better,” capacity and add a customer focus and The other crucial part of the company’s explains co-owner Pat McCluskey. training centre. success was “practical trade skills,” he said. “Machine tools need to be rugged, reliable “The FX Linear is a perfect example of that “When you are talking about the high and easy to use for the tradespeople philosophy. The significant new technology impact, high technology items that are around the world that operate them. I think development is producing the sort of used in our machines, we produce those that push from an academic sense and a results that our customers are after. in Australia because they are critical to the trade sense has been one of our important outcomes of the machines,” ANCA Chief cultural features.” “We developed the first cylindrical linear Executive Grant Anderson says. motors for tool grinders for this range and in conjunction with other features, such as Aside from an ongoing push to innovate – a new control system, the resulting superior 9 per cent of turnover is funnelled back into tool finish has made this a popular machine.” R&D – the company also places a heavy

MAKING IT IN AUSTRALIA 31 PPG INDUSTRIES Look around you. There is something “Australia has some of the harshest The company is a lead participant in a in your vicinity that PPG Industries has conditions in the world,” says Mr Welsh. new industry initiative to keep paint out of helped produce. “We love our steel roofing here. The landfill, to be known as “Paintback”. The coatings we produce for Colorbond, for scheme will make it easy for paint users PPG Industries supplies durable, innovative BlueScope Steel, are not only light, but – DIY and professional painters alike – to and specialty coatings for everything from durable. They have a performance that dispose of paint responsibly. cars, houses, stadiums, soft drink cans, to go beyond 30 years so they are capable of bridges and aeroplanes. withstanding extreme climate conditions. Predominantly a paint business, PPG is also involved in flat glass and specialty It may not be a household name but with “Innovative companies are continually chemicals. “We believe that we can meet $16 billion in worldwide revenue and 50,000 developing new sustainable technologies the needs of all markets and all customers staff, the company is no less a major global and constantly looking to a horizon 10 to 15 because of our diversity and our global – and Australian – success. years out,” he said. capabilities.”

Represented in 60 countries, the company Tim Welsh, along with his role on the AAMC PPG manufactures protective marine employs 1000 in Australia, including Leaders Group, is also Chair of the Chemicals coatings for large ships, stadiums, bridges; scientists and researchers, in a centre and Plastics Innovation Network, a new wood coatings for kitchen cabinetry and located in Melbourne – and is one of industry-research collaboration based at furniture; and durable coatings for the the leading developers of so-called Monash University and funded with support motor vehicle industry and the aviation and “intelligent” coatings worldwide. These from the Victorian Government. aerospace industry. include construction coatings that reduce harmful airborne pollutants from building Many of PPG Australia’s R&D projects The company’s motto, not surprisingly, is: materials, carpets or fabrics, for example, focus on adding value to their protective “If it moves, we paint it. If it doesn’t move, by converting them into water molecules products. These are often active “smart” we paint it.” and harmless inert gas. coatings that not only look good, but are able to reflect heat, self-sanitise, self-clean. Vice President ANZ and General Manager Architectural Coatings ANZ, Tim Welsh, PPG is also bringing innovation to Australia says what is critical to the company’s through technological advancements in present global success and future growth sustainable chemicals such as BPA-NI is research, development and innovation. technology for use in consumer food and And Australia is home to the company’s beverage packaging. centre of excellence for research into coatings for harsh conditions.

MAKING IT IN AUSTRALIA 33 AUSTAL IS THE ONLY FOREIGN "COMPANY IN THE WORLD TO PRIME CONTRACT SHIPS FOR THE UNITED STATES NAVY. WHY? BECAUSE CONSTANT INNOVATION HAS MEANT WE ARE NOW A WORLD LEADER. "

David Singleton, CEO Austal The vibrant history of Boeing in Australia The company continues to invest in its continues to be written today. With commercial airplane manufacturing approximately 3500 employees, the capabilities at Boeing Aerostructures Australian operation is Boeing’s largest Australia (BAA). Co-located with a team operational footprint outside the of Boeing research and development United States. engineers, BAA also works with universities including RMIT, local industry, and BOEING And in recognition of its enduring community organisations, in order to drive contribution to the Australian economy, innovation and the next generation of Boeing last year became the first engineering talent into the site. international company to be acknowledged at the Australian Export Awards. Today, BAA designs, tests, certifies and produces world class advanced structures “I was honoured to accept the inaugural including part of the trailing edge of the Investment Award on behalf of our employees most technically advanced commercial in Australia and around the world,” said aircraft in the world – the Boeing 787 Maureen Dougherty, President of Boeing Dreamliner. In addition to work on the 787 Australia, New Zealand and South Pacific. moveable trailing edge, BAA is also the sole source producer of 737 ailerons, 747 The Minister for Trade, Tourism and moveable leading edges and 777 cove lip Investment, the Hon. Steven Ciobo MP, in doors, elevators and rudders. presenting the award, acknowledged Boeing’s efforts to support the expansion of Australian Once complete, all parts produced at BAA industry within global supply chains. are shipped to the US for final assembly at Boeing’s factories in South Carolina and “The $1 billion Boeing has invested in Washington state. Australia … is creating opportunities for engineering and machining companies Boeing’s collaboration with local industry to diversify and win new markets in the including small and medium-sized international aerospace market,” said enterprises, government and academia, Minister Ciobo. help ensure it continues to stay at the forefront of Australian aerospace. Its long- “In 2015 alone, more than 1,000 Australian term partnership with Australian research companies were suppliers in Boeing’s organisation CSIRO has sparked a number Boeing’s Australian global supply chain. That year, Boeing of significant advances. roots go back 90 spent approximately A$400 million on its Australia suppliers,” he said. Boeing is an integral part of the aerospace years, and the heritage and defence fabric of Australia, offering companies that form In the midst of a challenging global long-term partnerships based on trust aerospace environment, Boeing in Australia and performance. Boeing is unique in the part of its legacy has developed a winning formula for an Australian aerospace industry based on manufactured some advanced manufacturing ecosystem based its history, presence, mix of commercial at its Fishermans Bend, Melbourne, site. and defence business, original research of this country’s most and development activities, and supplier iconic aircraft. network – all with connectivity back to the largest aerospace company in the world: The Boeing Company.

MAKING IT IN AUSTRALIA 37 Ten years ago, about 90 per cent of Thanks to its involvement in the Marand is also an enabler for other Marand’s workload revolved around international project, Marand will build one advanced manufacturers providing them MARAND the automotive industry. But while the of Australia’s largest aerospace machining with production technology and equipment, fortunes of Australian car manufacturers and component assembly workshops. bespoke machines and automation to assist have faded, Marand has managed to customers delivering advanced technology adapt and prosper, with one major project Mr Stocker said Marand had focused on to market. Boeing’s advanced 787 putting more than $1.3 billion on the table diversifying over the past 15 years, and composite production in Melbourne is one over the next 10 to 15 years. was well prepared for the drop-off in work such example where Marand has provided in the automotive industry. tens of millions of dollars in automated In fact, while the automotive industry equipment solutions. now comprises less than half a per cent “It’s been about distilling the underlying of Marand’s workload, the Victorian capabilities and transferring those skills In Australia, Atlas Rail supplies and manufacturer has shown consistent into other industries,” Mr Stocker said. sustains rail maintenance equipment and growth. CEO Rohan Stocker says the advanced automated turnkey maintenance company’s revenue this year is 10 times Marand has focused on its capabilities facilities to major companies including BHP that of 2001. in engineering and design, and invests and Rio Tinto. heavily in graduate engineers, software, The Moorabbin-based company is the engineering processes and advanced Mr Stocker believes the future success of major Australian player involved in the manufacturing technologies. Australian manufacturing is dependent on manufacture of aerostructures, ground people with the right skills collaborating. support equipment and production tooling Its customer base is mostly blue-chip Marand has forged strong links with of the F-35A Lightning II aircraft, a fifth organisations in sectors including mining, several universities, CSIRO and other large generation air combat jet that will be used rail, aerospace, defence and general companies with research and development by the Royal Australian Air Force and other manufacturing. Its rail division, Atlas Rail, divisions. military in 12 countries including the USA, is also a key part of the business, supplying UK, Italy, Netherlands, Turkey and Israel. and servicing automated rail maintenance Australia will eventually buy 100 of the equipment used to maintain rolling stock in Marand is among a breed aircraft. countries around the world including USA, of innovative Australian U.K, India and Saudi Arabia. With over $200 million of JSF work manufacturers harnessing already completed since 2002 on the existing talents of staff to production tooling and ground support equipment for the planes, Stocker says pave a new road to success. the largest element is yet to come with the manufacturing of vertical tails for the F-35, which including the tooling and ground support equipment, should net the company more than $1.3 billion.

MAKING IT IN AUSTRALIA 39 It counts the US Department of Defense, State One Stockbroking forecasts revenue “The challenge for Australian manufacturers major car manufacturers, aerospace majors growth of 8 percent in FY17E to $54 million, is the size of the market and the dispersed and many other institutions and commercial followed by accelerated sales growth of nature of it versus the likes of Europe and organisations among its customers. 42 percent in fiscal 2018 and 58 percent in the US. The big challenge is the global fiscal 2019 as increasing joint strike fighter supply chain and how to get into that global Quickstep has an aerospace-grade parts sales are augmented by a ramp-up in supply chain. manufacturing facility at Bankstown automotive exports and other revenues. Airport, a new technology site at Deakin “Scale is fundamental. The transition from QUICKSTEP University, Waurn Ponds Campus, Geelong Quickstep’s patented Qure process, innovation to commercialization relies on and a sales and technical operation in formerly known as the Quickstep process, this scale to support ongoing investment. Munich, Germany. was developed by Perth’s Graham family It’s a critical consideration. and was born out of a need for lower The firm is successfully countering capital investment. The key breakthrough Mr Marino says you need to have Australia’s much-lamented tendency to is the transfer of heat via fluid rather than something unique, and recommends finding Quickstep is proof of an Australian send raw material offshore only to “buy it air as done in standard technologies using the right collaboration model and accepting can-do attitude, and ability to back at three times the price converted.” autoclave. that you can’t do it all on your own. solve complex problems. ASX- “Manufacturing in Australia is changing The process is cheaper and more energy “Global competition is hard. But innovative listed in 2005, Quickstep is at and repositioning from the old type of high efficient, and emission-regulation friendly. Australian companies have got a lot to sell volume manufacturing to a new high tech in the world market,“ the forefront of advanced carbon high automation which fundamentally “It is not easy for someone to just come in composite parts manufacturing means the skill types and where you are and pick it up and replicate it tomorrow. Quickstep is branching out into marine investing needs to change,” says Chief Knowhow is difficult. Knowledge of with work related to the government’s for the global aerospace, defence Executive, David Marino (2015-2017). the design, material science, and the submarine program, and anticipates and automotive industries. processing approach is very, very complex. demand from the energy sector, “It is something we should embrace. I don’t We are 15 years into the journey,” Mr particularly wind turbines. think it is something we should be afraid of. Marino says. It is different but it’s not less activity if done “Manufacturing is not for the feint hearted. well. It is just different types of activity.” Quickstep spent around eight years on But don’t undervalue that we have got technology investment before it became a lot to sell in the world market. We are Demand for advanced composite materials a manufacturer, and it is still undertaking extremely innovative in this country is forecast to grow from 43,000 tonnes that technology investment. and we need to make sure that we keep in 2010 to 340,000 tonnes by 2020, and manufacturing as a priority activity. It is the more tonnage demanded the faster it “It takes time, you’ve got to be determined. fundamental to the value add.” will need to be cured. Quickstep’s unique, You’ve got to stay the course and you need to patented technology offers cost savings find smart ways to support your investment.” and importantly reduced manufacturing or curing times to meet these future demands. Mr Marino concedes that one of the biggest challenges in Australian manufacturing is that we don’t have the big global Original Equipment Manufacturers (OEMs) demand firms in the industry. But he says there are lots of global arenas where Australian innovation can be put to good use.

MAKING IT IN AUSTRALIA 41 THE SUCCESSFUL TRANSITION OF MARAND FROM AUTOMOTIVE TO AEROSPACE AND " DEFENCE CARRIES A MESSAGE OF HOPE FOR MANUFACTURING. IT'S BEEN ABOUT DISTILLING THE UNDERLYING CAPABILITIES AND TRANSFERRING THOSE SKILLS INTO OTHER INDUSTRIES. "

Rohan Stocker, CEO, Marand AGILENT

It’s half a world away from its parent development and global communications is becoming easier in today’s connected company’s global headquarters in infrastructure for the Australian-based world - the race is now all about how California, but the Melbourne arm of team. Vice President and Managing quickly you can commercialise it.” Agilent Technologies is a world-beater in Director of Agilent Technologies Australia, its own right. Philip Binns, says the new building has Two major products have already been helped lay the foundations for the next 20 developed and released to global markets In the past 40 years, Agilent’s Australian years of operations. from the new centre. team has recorded many grand achievements, including turning a single The Melbourne site – the global Mr Binns believes collaboration within invention devised in Melbourne into six headquarters of Agilent’s spectroscopy and external to the company will be one unique platform technologies, winning business – is part of a huge growth of the keys to Agilent’s continued success. many Australian export awards, and spurt for the multinational’s Australian “Providing our customers solutions to generating more than $3 billion worth of operations, which doubled in size when increasingly complex problems often products sold around the globe. Agilent acquired scientific equipment requires expertise we do not have access maker, Varian, in 2010. to inside our own walls. Collaborating Back in the 1950s, a team of Australian with other parts of our global organisation chemists led by Sir Alan Walsh at the Mr Binns says the new facility has led to and with partners outside our company is CSIRO devised a technique to determine improvements in how Agilent teams work, becoming a critically important skill moving the concentration of elements in many and the way in which they bring products forward,” he says. substances, known as atomic absorption to the market. More than 10 per cent of spectroscopy, said to be one of the most revenue is invested back into research and Competition emerging from countries significant advances in chemical analysis in development. such as China and India will also play an the 20th century. increasing role in the future. Global communication systems in the new Agilent Technologies has since building have also reduced the time to However, with double-digit growth, Agilent commercialised that technology to create market for Agilent’s products, with staff in is continuing to march forward in a tough measurement tools that can be used to Melbourne now connected in a live setting manufacturing environment, setting its measure the quality of air, food and water, to project teams and collaborators in sights on high potential growth areas for along with medicines, mining samples and facilities around the world. scientific measurement tools including food countless other materials. Many of the safety, pharmaceuticals and biotechnology, products emanating from the Melbourne “The key for us is staying connected with and developing global markets for advanced site hold leadership positions in their global our global customers whilst continually materials and energy related industries. markets today. improving our ability to develop new products and services, and get them to Recently the company opened a new market quickly,” Mr Binns says. “Staying $25 million, state-of-the art facility in ahead of the competition is always a Melbourne, providing world-class research, challenge. Accessing intellectual property

MAKING IT IN AUSTRALIA 45 Ford’s shift in thinking towards mobility Aided by an investment of nearly $2 billion As the world changes, so is the way we solutions began more than a decade ago. in local research and development since move. Ford is challenging itself to better From a global standpoint, the key turning 2009, our Australian team has already led understand how people live, work, and point came when Bill Ford recruited Alan the innovation of popular vehicles such as move in urban areas and how they will do Mulally to become Ford’s CEO in 2006. the Ranger pick-up and Everest SUV.” so in the future. FORD At that time, Bill and Alan confronted the situation and knew they had to prepare These vehicles are loaded with advanced “As a company renowned for democratising for an economic downturn, which turned driver assist technologies which help the car, we are excited to be playing a out to be the Global Financial Crisis. To customers drive more confidently and lead role in transforming mobility for all transform the company, Bill and Alan safely. It is also those very same driver in the future, both through our work on rekindled the company’s innovation assist technologies that are the building autonomous vehicles globally, and some mindset to become a leader rather than a blocks for autonomous cars in the future. unique thinking around mobility solutions fast follower within the industry. This is an example of the forward-thinking more broadly,” Mr Whickman said. mind-set underpinning Ford’s vision of the “Together, we will celebrate future thinking In Australia, Ford confronted the reality that future. as our country realises that change is auto-manufacturing was no longer viable not only inevitable but critical as we head locally, and knew as a company, they had “We’re investing in our people, as well towards an innovation led economy.” to refocus their efforts and invest heavily in as our facilities, by spending more on innovation. research and development than any other automotive company in the country, Mr Australia’s knack for innovation, honed over Whickman continues. the past decades, has set Ford Australia up as one of only three Product Development “In 2017 alone, we’ll invest $450 million hubs around the Ford world. into research and development in Australia. That’s a 50 per cent increase on 2016. We’ll “We’re proud to be one of the top-ranking also spend an additional $50 million on companies for patent submissions worldwide, new and upgraded Product Development having lodged 3,200 patents globally in 2016 facilities. alone,” commented Graeme Whickman, President and CEO, Ford Australia. “Our ongoing commitment to high-value R&D is attracting the very best minds in the So, in 2014, Ford charted a completely new business, with 1750 of the most innovative Both in Australia and course to transform into an innovation led designers, engineers and technicians in company, with research, development and a the country now working at Ford Australia. globally, Ford is taking customer focus at the core of their strategy. Our commitment to high-value R&D means the initiative and “This coincided with a global push to that Ford Australia will continue to pursue pursue opportunities, including driving for innovation and cutting edge technology, not transforming from being leadership in connectivity, mobility, and only for the benefit of our customers, but an automotive company, autonomous vehicles,” Mr Whickman said. for Australia more broadly.” to an automotive and “As we look to the future, our team here in Australia will play an important role in the mobility company. innovation happening across the company.

MAKING IT IN AUSTRALIA 47 SIEMENS Engineering powerhouse Siemens says Siemens has a long history of connecting engage in global supply chains and even now is the time for local companies to Australia, tracing its local roots back to create digital twins to bring products embrace advanced technologies and carve 1872 and the construction of the Overland to market faster and cheaper. Even the out a place in the global supply chain. Telegraph from Darwin to Adelaide, Australian Institute of Marine Sciences are which paved the way for communications using Siemens automation to simulate and Siemens Australia CEO Jeff Connolly says throughout the country and with the rest help protect the Great Barrier Reef. “ the challenge for Australia is to be ready of the world. In 1956, Siemens provided as the world enters the fourth industrial the hardware for the first television He says these are just some of the revolution – the merging of the cyber and transmission to Australian homes. examples of Siemens’ expertise in physical worlds. digitalisation and automation being used to Today, Siemens has about 2000 employees create a true vision of sustainability – both “Also known as Industry 4.0, the fourth in Australia, designing and maintaining the in environmental and economic terms. industrial revolution represents a world technology that helps local business stay at where everything imaginable is connected the cutting edge. Mr Connolly said that companies sharing to a network,” says Mr Connolly, Chairman Siemens’ vision of investing in future of the Prime Minister’s Industry 4.0 Partnerships are a key element not only technologies such as energy efficiencies, Taskforce. “It’s an exciting time where new to Siemens’ success, but the industries it or enterprise strategies such as product production environments will emerge as teams up with. Around Australia, Siemens’ lifecycle management, were reaping the information generated in the virtual world technology helps pave the future in rewards of a forward-thinking philosophy. will flow into the manufacturing world.” industries ranging from medical imaging to mining, power to processing, and electric “There are a host of technologies available He says all the information from this trains to electricity transmission. today that would allow Australian industry connected world can be stored, transferred, to find its place in the global supply chain analysed and acted upon in new and All those industries are recognising the and take advantage of massive growth usually automated ways via network critical role digitalisation will play in their opportunities,” he says. connections with everything else. future development and success and its potential for future efficiencies. “We need to constantly increase the level “It’s a new way of working and thinking and of collaboration between companies, will make competition global rather than “For example, new rail infrastructure governments, industry and educators. We local. It means that people from almost throughout Australia will use advanced consider the world to be our laboratory anywhere can participate in the relevant signalling technologies to generate and regard collaborative networks as the global supply chain – if you’re good enough.” efficiencies and get more out of existing breeding ground for innovation.” and new rail networks to cope with growing Australia, with its abundance of resources, populations. Our wind farms are using Siemens has long-standing partnerships skilled workforce and talented engineers, is hundreds of sensors to capture data with leading research facilities around the perfectly positioned to become a key player and combine with advanced algorithms globe, and invests around $7.5 billion each in the future global manufacturing system. for predictive maintenance. And key year into R&D. It is also participating in manufacturing sites are using digitalisation ventures such as the Tonsley innovation technologies such as PLM software to hub being developed in Adelaide.

MAKING IT IN AUSTRALIA 49 INNOVATIVE COMPANIES ARE CONTINUALLY" DEVELOPING NEW SUSTAINABLE TECHNOLOGIES AND LOOKING TO A HORIZON 15 YEARS OUT. "

Tim Welsh, Vice President ANZ and General Manager Architectural Coatings ANZ, PPG Industries WORKING WITH INDUSTRY Picture this: a small Australian At the same time, the organisation GLOBAL NETWORK manufacturer has a promising innovation, collaborates with 3,000 customers each CSIRO’s network of industry and research CSIRO but not enough funds to develop it. The year, including Australian federal, state partners covers the globe. This can attract company can’t invest millions in new and local government bodies; small, new research or commercialisation laboratories or build a large research medium and large businesses; the majority partners, or find applications for an team to drive a capital intensive, multi- of Research Development Corporations, innovation in a field that the client company year project. Cooperative Research Centres and might not have considered. Australian universities; and more than 150 It needs investment. It needs a proven, international partners. PRAGMATISM flexible research capacity. It also needs a CSIRO Manufacturing’s assistance doesn’t partner with proven experience in business Companies gain access to world-class end at the lab door. The organisation development, commercialisation strategies facilities, internationally recognised helps companies with growth strategies, and IP. researchers, as well as business networks IP development and patent applications, as and a multi-disciplinary approach. well as advice around technology spinoffs. That’s where CSIRO Manufacturing comes CSIRO’s SME Connect can also help SMEs in. Australia has great ideas, a strong R&D From additive manufacturing to flow find researchers within and outside the culture and lots of talented people. As chemistry, flexible electronics to cutting organisation, define the project, find the part of Australia’s national science agency, edge protein science, CSIRO Manufacturing right capability, assist with contracting and CSIRO Manufacturing aims to harness has proved it has the know-how, providing provide information on grants. that innovation and help turn it into new world-leading expertise, ranging from products, companies and opportunities. molecular biologists to physicists and COLLABORATION chemists. CSIRO plays an important role as a CSIRO manufacturing director Keith Collaboration Hub for the research sector, McLean believes the future possibilities for Some CSIRO Manufacturing projects last industry and government, and works with Australia are exciting if the right settings for months, another has lasted 28 years hundreds of businesses a year, as well as are in place. and is still going strong. The enduring universities across the country. relationships are thanks to a very flexible “What we’re really trying to do is create the approach to sharing risks and rewards with “Our Lindfield site plays host to start-ups jobs and the technologies of the future, and partners. It’s not always about the IP; indeed, like Baraja and medical device incubator create exports for Australia,” he says. the organisation has participated in a wide Fledge, with more on their way as part of range of other co-investment options. the Lindfield Collaboration Hub,” says Mr CSIRO is among Australia’s top designers McLean. “Our Clayton site plays host to and inventors of Australia’s ever-increasing Oventus, and in Geelong we work alongside wealth of intellectual property – a vast Carbon Revolution; Carbon Nexus and source of commercial opportunity – and Quickstep.” has spun off more than 150 companies.

MAKING IT IN AUSTRALIA 53 “It is a translational research program, so “The work that we have been doing “They know how to bring the new SWINBURNE we are involved in taking our research to leading the charge in this space has been technologies and products to the the commercialisation of new technology,” really critically important for Australia. world market, and we are supporting says Professor Subic, who is on the Prime It means that we are holding our own technologically and scientifically that SWINBURNE Minister’s Industry 4.0 Taskforce. internationally,” Professor Fox says. capability so that they actually can have something that is impactful and meaningful “That is where the impact will happen — “It doesn’t matter if you are making a soft to develop their business models,” says FORGES NEW when these products get out there in the drink or a stem cell, the challenges are Professor Subic. real world and hit the market, rather than absolutely identical -- creating all this data, FRONTIERS just remaining in the labs.” monitoring the process, working out how to The faculties offer research in a spectrum of actually feed that back into the process to advanced technologies, including automation, Bronwyn Fox, Director of Swinburne’s improve it, and how to implement the new composites, nano fabrication and graphene, IN ADVANCED Factory of the Future, says at least one technologies,” she adds. fuelling new companies and products. company each week approaches the team, wanting to know how to implement In achieving its success, Swinburne drew Swinburne partnered with Canadian MANUFACTURING strategy around Industry 4.0, and what on existing partnerships with Universities auto components and systems maker that might mean for performance and in Shandong, Coventry and Stuttgart, as well Multimatic, pulling off a world first by Swinburne University of Technology’s productivity. as CSIRO, Siemens, Daimler, Boeing, Ford curing a carbon composite in just minutes. groundbreaking collaborations with and Marand amongst others, and has been industry have been so successful the team “They see it as an opportunity but they building new strategic international links. In another project, new patent-pending is now busy exporting the model offshore, don’t know where to start. That’s quite technology developed by Swinburne starting in China’s Shandong Economic common -- the companies that we speak to “We are making a real impact out there by overcomes energy density limitations with Development zone. can see that the world is changing, the way driving the development of new industries supercapacitors, achieving ten times better that we manufacture products is changing, and helping transform existing companies density than competing devices. “We are going to really push this type of and they want to keep ahead of that and that have the potential to integrate in the approach, this type of strategy of research- ensure that they can be competitive. global value chain,” says Professor Subic. “That’s amazing stuff,” says Professor engagement in the region, rather than just Subic, adding that the collaboration model thinking locally,” says Professor Aleksandar “We work with companies to identify initial “Advanced manufacturing is evolving offers “a meeting of minds, a meeting of Subic, Swinburne’s Deputy Vice-Chancellor small steps where research will provide through integration of new generation needs, a meeting of interests. Like-minded (Research and Development.) immediate outcomes.” automaton technologies coupled with the people who can work together.” Internet of Things which is really pushing Swinburne’s $100 million Advanced Swinburne is in partnership with Asahi the frontiers.” Professor Subic is also optimistic about Manufacturing and Design Centre, launched Beverages to help develop and implement Australia’s broader manufacturing future, at the Hawthorn campus, is a state-of-the- its Industry 4.0 strategy. Decades of relationship-building and noting a strong foundation of exceptional art facility offering the latest manufacturing demonstrated success in choice research is research and innovation. and design techniques. The “Factory of Swinburne also partnered with Imagine behind Swinburne gaining the confidence of the Future” centre supports advanced Intelligent Materials to develop products the likes of Boeing and Siemens and majors “The appetite and desire is there. We will manufacturing by fostering research-driven from graphene, a remarkable material in marine, defence and food. see a transformation of the industry, and it innovation and development of high value- predicted to transform advanced will be much more rapid than we think.” add products and processes. manufacturing.

MAKING IT IN AUSTRALIA 55 THE WORLD'S BIGGEST "CHALLENGES WILL BE FIXED BY

SCIENCE NOT BY OPINIONS. "

Max York, Managing Director, GE Aviation Australia, New Zealand, Indonesia & South Pacific

PPG Ad_v1 04-21-17.indd 1 4/21/17 11:45 AM BRESEIGHT GROUP TOMCAR

A ground-breaking system that The team at Melbourne-based uses 3D modelling of a patient’s firm Tomcar is at the forefront of facial bones to help guide a new era in Australian vehicle surgeons during risky dental manufacturing. With the first implant procedures has thrown electric car to be fully produced in a Sydney manufacturer into the Australia, Tomcar is dreaming big world spotlight. – and succeeding.

Breseight Group, achieving more than Founded by Bob Cullen and Kevin Rix, the Mr Cullen says the company made a Tomcar teamed with innovative Tomcar has been manufacturing its non- “Yes, wages are expensive here, but you 90 per cent growth in its advanced company was bought by their sons Kevin conscious decision to be in the business of technology developers Energetique and electric models for just over two years and get some of the world’s best engineers manufacturing arm in 2016, has launched Cullen and Tracy Rix in 1994. development – and the positive company local manufacturer MtM to produce the has sold largely to clients in the mining and employees. We can lead the world in in Europe a flagship home grown culture has led to major innovations across prototype Tomcar LV1, being trialed and agriculture sectors, including five of mining, agriculture, tourism, renewable Australian medical product, “ImplaNav”, By 2005, the Australian manufacturing the business. Breseight in early 2017 at blue-chip mining firms in Australia. the top ten pastoral companies in Australia. energy, renewable resources – things we an image-guided surgery system focused industry had been contracting for about 25 automated their 3D printers, likely the first The car is initially intended for the Among the car’s selling points is its very are good at. These are the industries where on dental implantology. years, and Mr Cullen said something had in Australia to do so. underground hard rock-mining industry, low centre of gravity, matching that of a the growth will come from,” he says. to give. with a consumer version in planning. Porsche. Breseight managing director Kevin Cullen “The margins are higher in the development says the company designed the image- So he and Rix began making small, area rather than being at the end of a mature “We have very big dreams and ambitions in The company is “ruthless” with its supply guided software system – which helps progressive changes to transform much aged product,” he says. regard to the car,” says Tomcar Australia’s chain, but one of the keys to Tomcar’s reduce human error, improves patient of Breseight’s focus towards advanced co-founder and CEO, David Brim. “It’s a very success has been manufacturing locally. care, and dramatically reduces costs – in manufacturing, investing millions in cutting- robust electrical vehicle using world’s best Locating production close to the research conjunction with surgeons. edge 3D printing machines and staff training. practice, and it’s designed to live in a very and development has been vital for harsh environment. innovation, says Mr Brim. The breakthrough is just the latest innovation from a company that has transformed itself from its 1984 beginnings as a toolmaking “job shop”.

MAKING IT IN AUSTRALIA 59 KORVEST LTD ANATOMICS

Since 1970, Korvest Ltd has grown By continuously pursuing new product employees are empowered to constantly to become one of the Pacific’s largest development, EzyStrut has produced a look at improvements that can be made manufacturers and suppliers of cable number of industry firsts, such as being in the factory and throughout any of the A pioneer of CT scan-derived and pipe support systems, galvanising the first company to produce a range of processes. He says excellent people are services and access systems for large AS3013:2005 compliant fire rated products, one of three key factors needed to operate surgical implant technology, mobile equipment. and they maintain the most extensive a successful company – together with Anatomics is not your usual range to this day. Korvest understands the providing a product that people need, and Through its four specialist divisions - needs of installers for projects requiring efficient, effective processes. manufacturer. Operating out EzyStrut, Korvest Galvanisers, Power reliability, effortless installation, options for of a dedicated manufacturing Step and Titan Technologies the company different loads and spans, and assurance While the manufacturing plant and national produces a range of standard, customised of compliance with the most stringent of distribution centre are in Adelaide, Korvest laboratory in the heart of St. Kilda and innovative products. Korvest invests standards. has sales offices and warehouses in in Melbourne, this global medical heavily in research and development, with Adelaide, Melbourne, Sydney, Brisbane device company uses advanced a current focus on potential export markets Korvest’s workforce of around 175 and Perth, and distributors in Darwin, such as Singapore, the Middle East, employees is multi-skilled, and led by Townsville, Hobart and New Zealand. technologies to produce life- Indonesia and Malaysia. a central management team. Managing changing surgical products that Director Alexander Kachellek says are sold to 24 countries worldwide. TEXTOR

Textor Technologies grew out of the major investment was in 2002 when the Textor has changed its strategy from Anatomics manufactures surgical implants Anatomics manufactures a variety of The advanced manufacturer maintains clothing and automotive industries. It was company began supplying Kimberly-Clark supplying a large number of companies, to from a variety of materials: including patient specific products for medical global competitiveness through ardent purchased in 2000 from its English parent Australia with fluid transfer fabrics. The supplying only a handful – including major titanium, acrylic, and porous polyethylene, use, including cranial, facial, chest, and research, development and commercial and converted into a hygiene fabrics success of that project led to requests from client Kimberly-Clark, which uses Textor’s a material developed as part of an orthopaedic implants and other skeletal partnerships. operation. The business is family owned other Kimberly-Clark Asian businesses to fabrics. The goal has been is to be the Anatomics-CSIRO collaboration. Anatomics and soft tissue parts. Anatomics has also and operated with its production facilities supply into the region. The company was best in the world in a chosen field and the continues to collaborate with CSIRO to developed a range of innovative software Anatomics has successfully carved out a in Tullamarine. The transformation developing a reputation for both reliability company has convincingly achieved this. create 3D printed titanium implants. products to aid surgeons and healthcare niche for itself in business and medical journey has now been over 16 years. and innovation. professionals in planning surgery. innovations, having combined science, Andy says Textor continues to see the value Anatomics’ highly skilled specialists technology and medicine to save lives and Andy Butler, now Managing Director, says In 2009 Textor was awarded a business of tapping into science, describing the produce BioModel anatomical replicas and Founded in 1996 by neurosurgeon increase Australia’s global competitiveness. that for the first few years after 2000, Textor research scholarship, which enabled Textor CSIRO as “a massive intellectual database. implant prototypes working closely with Paul D’Urso and healthcare expert was in a loss-making position. Seeing to employ a CSIRO scientist to help develop It’s an enormous resource for Australian surgeons and healthcare professionals, Robert Thompson, Anatomics was born the decline of the automotive industry state-of-the-art fabrics. The transformation manufacturing.” using cutting edge 3D-printing technologies out of ground breaking research and approaching, Textor was steering itself out has been successful with Textor now and computer assisted design. development in the early days of 3D of the sector to focus more on developing exporting to 13 countries around the world. printing that now has real-world impacts. materials for the hygiene industry. The first

MAKING IT IN AUSTRALIA 61 ACKNOWLEDGEMENTS

The AAMC wishes to thank the following people and organisations for their enormous support and valuable insights. We are grateful also to the many who have participated in our outreach program to increase understanding of Australia’s high value manufacturing among senior Federal Government officials at The Treasury and the Department of Industry, Innovation and Science.

Jeff Abell L3 Micreo Emilia Fulton Northrop Grumman Jeff Phillips Varley Jo Barron Boeing Australia, New Zealand Sharon Gough The ANCA Group Larry Platt Advitech & South Pacific Tom Harley Dragoman Andrew Price ResMed Christian Bennett GE Australia and New Rod Henderson Ampcontrol Tennant Reed Ai Group Zealand & Papua New Guinea Erich J. Hofmann Hofmann Engineering Anna Schulze CSL Chris Bishop IntelliDesign Rachael Iannello Cochlear Paul Schwarz Seeley International Victoria Bowen Quickstep Shane Infanti AMTIL Chris Still CSIRO Manufacturing David Brim TomCar Sarah Irwin Marand Michelle Symss Agilent Technologies Peter Burn Ai Group Alexander Kachellek Korvest Robert Thompson Anatomics Darren Burrowes BlueZone Group Anthony Kittel Redarc Electronics Gael Vanderven CSIRO Manufacturing Phillip Butler Textor Technologies Heidi Krebs Cablex Chandran Vigneswaran BAE Systems Roy Coates Ausdrill Andrew Liveris Dow Chemical Company Australia Jeff Connolly Siemens David Marino Quickstep Technologies Alex Vincan Matrix Composites & Geoff Culbert GE Australia and New Donald McGurk Codan Engineering Zealand & Papua New Guinea Sharon McHale CSL Denise Wallace Cook Medical Mike Edwards Boeing Research & Anthony Melville Ai Group Des Watkins Watkins Steel Technology Australia Gordon Naylor CSL Carolyn Watts GE Aviation, Australia, New Lynda Fong PPG Industries Australia Johnno O’Callaghan Ai Group Zealand, Indonesia & South Pacific Tony Frencham Dow Chemical Australia Evie Owens Swinburne University of Pip Winwood Ai Group Technology

MAKING IT IN AUSTRALIA 63 JOHN POLLAERS MAUREEN DOUGHERTY DAVYD THOMAS AO

Chairman President, Boeing Australia Vice President Defence AAMC and South Pacific Austal Boeing Australia GRANT ANDERSON TIM WELSH IAN IRVING Group CEO Vice President ANZ and General Manager The ANCA Group Chief Executive, Australia Architectural Coatings ANZ Northrop Grumman PPG Industries Australia PHILIP BINNS DAVID LAMONT GRAEME WHICKMAN VP and General Manager, Spectroscopy Solutions Division Chief Financial Officer President and CEO Agilent Technologies Australia CSL Ford Australia

GREG BODKIN KEITH MCLEAN INNES WILLOX

Senior Vice President, Manufacturing Flagship Director Chief Executive Manufacturing and Logistics CSIRO Australian Industry Group Cochlear MARK MULLER MAX YORK MARK BURGESS AAMC LEADERS Director of Finance, Asia Pacific Managing Director Chief Executive Officer Cook Medical GE Aviation Australia, New Zealand, Quickstep Technologies Indonesia and South Pacific ROHAN STOCKER JENNIFER CONLEY Chief Executive Officer Executive Director Marand AAMC ALEKSANDAR SUBIC KEVIN CULLEN Deputy Vice-Chancellor Chief Executive Officer (Research and Development) Breseight Group Swinburne University of Technology

MAKING IT IN AUSTRALIA 65 ABOUT THE

Edited by Third party copyright Jennifer Conley and Caroline Hartnett AAMC has made all reasonable efforts to: label material where the copyright is owned by Contributors a third party; ensure that the third party has Miranda Maxwell, Zoe Willox, Larissa Ham consented to this material being presented in The Australian Advanced Manufacturing Council (AAMC) is a CEO-led private sector this publication. initiative pursuing Australian success in advanced manufacturing. The AAMC brings Publisher together industry leadership to drive innovation success and resilience in the Australian Australian Advanced Manufacturing Council Permission may need to be obtained from third economy. AAMC members represent the creative and driving energy behind successful Ian Wark Laboratory parties to re-use their material. transformations of Australian brands and companies, large and small, as well as global Bayview Avenue, Clayton VIC 3168 multinationals with a strong interest in Australia’s future. Australia Attribution For more, go to www.aamc.org.au The CC BY licence is a standard form licence First published 2017 agreement that allows you to copy and redistribute the material in any medium or Design by format, as well as remix, transform, and build Dylan Conley Graphic Design upon the material, on the condition that you provide a link to the licence, you indicate if ISBN changes were made, and you attribute the 978-0-6480780-1-2 material as follows: Making It In Australia: Our Advanced Manufacturing Future, by the This publication, Making It In Australia: Our Australian Advanced Manufacturing Council, Advanced Manufacturing Future, has been is licensed under CC BY 4.0 made possible through the support of Northrop Grumman, Dow Chemical and PPG Industries. Contact us (www.aamc.org.au) if you have The Australian Industry Group (Ai Group) is Australia’s peak industry association. Acting any enquiries about the use of material in this on behalf of business for more than 140 years, we are the country’s only truly national Copyright publication: [email protected] employers’ organisation. Ai Group represents the interests of more than 60,000 businesses All content in this publication is provided under a employing more than 1 million staff. Our longstanding involvement with diverse industry Creative Commons Attribution 4.0 International Disclaimer sectors including manufacturing, construction, transport, labour hire, mining services, (CC BY 4.0) licence. http://creativecommons.org/ The information contained in this book is defence, airlines and ICT means we are genuinely representative of Australian industry licenses/by/4.0/ with the exception of: provided for general information only and • Corporate logos should not be relied upon for the purposes of For more, go to www.aigroup.com.au • Content provided by third parties – any particular matter. including photographs, logos, drawings.

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