"If Australia is to remain a viable manufacturing nation it is critical that it moves from its current reliance on traditional manufacturing to value added, knowledge-based advanced manufacturing," says Brad Dunstan, VCAMM CEO.
The Victorian Government today announced an initial grant of $4 million to assist Victoria’s manufacturing industry in accessing research and development.
The grant to be paid over four years to the Victorian Centre for Advanced Materials Manufacturing (VCAMM) will consolidate the state’s position as Australia’s leading provider of research and development services for small to medium enterprises (SMEs) working in the advanced manufacturing sector.
Brad Dunstan, CEO of VCAMM, says the funding will help to turn around the attitude of SMEs from a continual cost-reduction philosophy to one of knowledge-based manufacturing, where value-adding will cement their place in the global marketplace.
"Not only will this help to keep the ‘family farm’ in Australian hands, but its workers as well," Mr Dunstan said.
The grant will make it easier for SMEs to bolster their existing research and development budgets. Under the arrangement, VCAMM could match their contribution up to dollar for dollar, then apply to the Federal Government-funded Advanced Manufacturing Cooperative Research Centre for an additional grant equal to the combined amount.
VCAMM’s key stakeholders – including major universities and the CSIRO – will match this with an additional amount of in-kind R & D support. Effectively, SMEs could leverage their own contribution by over 400%.
Mr Dunstan said the Victorian Government’s commitment was courageous and timely, and he called on other State Governments to follow Victoria’s lead.
He said the manufacturing industry has emerged as a significant contributor to the Victorian and Australian economies. Manufacturing exports are $87 billion and the industry employs 1.1 million people. About 30% of that activity is in Victoria.
"Australia’s manufacturing industry is heavily exposed to global trade and is forced to compete with imports and with products of other manufacturing nations in its increasingly important export markets," Mr Dunstan said.
"In order for the industry to survive and prosper, given the highly competitive environment it faces, it requires a focused effort to grow exports by establishing and maintaining competitive advantages."
Mr Dunstan said the world’s manufacturing is centralised around China and other nations where the cost of labour is significantly cheaper than in Australia. He believes Australia needs to reassess its strategy and focus on areas of manufacturing that are not easily translated to these low labour cost environments.
"The harsh facts are these: in Australia the sector’s growth is around 2 to 3 percent per annum which is well below average for OECD countries," he said.
"If Australia is to remain a viable manufacturing nation it is critical that it moves from its current reliance on traditional manufacturing to value added, knowledge-based advanced manufacturing.
"VCAMM will be pursuing emerging opportunities with Victorian manufacturers in key sectors, including automotive, aviation, biomedical, defence and energy, connecting them to resources to enable them to take their ideas and inventions to new markets."
In addition to funding support, VCAMM plays an important role in mentoring companies to ensure that their research is focused, relevant and cost-effective. It currently has more than $20 million of projects under management, which is likely to increase significantly as a result of the grant.
Since its creation in 2002, VCAMM’s support has been directly responsible for the growth of more than $30 million of SMEs including MicroHeat Technologies Pty. Ltd., Cytomatrix Pty. Ltd. and HARD Technologies Pty. Ltd. The return to the Australian economy far outweighs VCAMM’s investment.
Its funding has been responsible for the creation of more than 20 PhD scholarships at Victorian universities, and more than 75 highly-skilled positions in industry. It has also contributed more than $7 million towards equipment for its research providers, including Direct Metal Deposition technology at Swinburne University of Technology, Quickstep composite process forming at Deakin University, and a suite of advanced X-ray source and analysis equipment at La Trobe University, Monash University and the CSIRO.
Mr Dunstan paid tribute to the Hon. Theo Theophanous, Minister for Industry and Trade, and the Hon. Joe Helper, Minister for Small Business, and the Department of Innovation, Industry and Regional Development.
"The Victorian Government’s support has been long-standing and critical to the success of our advanced manufacturing industry," he said.
Published Date: 23/9/2008
 |
