Traditional manufacturing in Australia is under immense
pressure, caught between declining prices and the
increasing cost of labour and raw materials.
Process and supply chain enhancements and the adoption of
lean manufacturing techniques are critical to the survival of
every Australian manufacturer. But the benefits they deliver
will be insufficient to ensure sustainability and prosperity in
the current dynamic global economic environment.
The companies that thrive in the foreseeable future
will be those that, through innovation, technology and
inventiveness, eschew commoditisation in order to earn
the premium granted to those able to establish a new
manufacturing paradigm.
But the shift in thinking required to transition from
traditional to knowledge-based manufacturing is
not to be underestimated.
Knowledge-based manufacturing is defined as that
based on research and innovation. The 2004 European
Commission Report, Manufuture, described knowledgebased
as those business models characterized by:
- Close coordination between the demand and supply
sides (collaborative development)
- Systematic innovation - incorporating new technologies
in parallel to the development of new products leading
to faster time-to-market
- The sharing of knowledge within and between
organisations being the norm
- Supply chains taking the form of flexible collaborations,
networks of specialised small and medium-sized
enterprises (SMEs) and 'virtual enterprises'
- The shift to more integrated product and service offerings
Knowledge Based Manufacturing already ranks as one of
this nation's brightest and most dynamic industry sectors.
The sector includes:
- Bio-technology
- Aerospace
- Transport
- Machinery and tooling; and
- Defence industries
Collectively, these account for about 50% of Australia's
manufacturing output and remains one the fastest growing
export categories.
Australia is poised for an exciting phase of growth in the
technologically advanced manufacturing sector. With strong
Governmental support and a superbly resourced research
community, Australia's Knowledge Based Manufacturers have
the capacity to bring a large volume of high-value innovations
to market, in turn creating enduring economic benefit.
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