Australian manufacturing wins as AMGC forecasts billion dollar return
The Advanced Manufacturing Growth Centre (AMGC) has analysed the completion of its first 10 industry projects together with the release of its 2020 Project Impact Report. The report provides an overview of 78 co-funded manufacturing projects and showcases the economic impact of the first 10 of these commercial opportunities.
Analysis of the 78 projects reveals significant jobs and revenue growth to be generated from these initiatives, with a forecast of $1.2 billion additional revenue and the creation of 2,361 new jobs. The return is anticipated from a combined industry and government co-funding pool of $66.8 million.
Of the 10 analysed initiatives, a total of 136 new or upskilled roles have been created while an additional $56.5 million in revenue was injected into the Australian economy. The revenue creation represents an averaged return on investment of 6:1, based on a co-funding investment of $8.05 million ($2.3 derived from Federal funding and the remainder industry).
Speaking of the milestone, AMGC Chairman, Paul Cooper commended the work of AMGC and its industry partners.
“Australia is blessed with a highly-skilled, adaptable, and enthusiastic manufacturing industry and the COVID-19 crisis has highlighted the vital importance of local manufacturing, not just during a crisis, but for the ability to trade internationally.
“Australia has considerable untapped manufacturing potential and AMGC’s projects demonstrate the significant jobs and wealth that can be generated from the industry. Manufacturing is an enabler. The industry can deliver vaccines, food or consumer goods and our continued prosperity as a nation relies on the further growth of this capability.” Cooper said.
Established as part of the Federal Government’s Industry Growth Centres initiative, AMGC is tasked with transforming and scaling Australian manufacturing into a globally competitive and thriving industry with advanced capabilities at its core.
Australian manufacturers cannot do it alone. Raising the nation’s manufacturing profile requires long-term investment from government and private sources. Multiple micro-investments matched dollar-for-dollar by industry participants allows Australia’s largely SME-based manufacturing companies to scale. Investment delivers the necessary cash flow to up-skill the existing workforce, hire new employees, advance much-needed technology, and deliver commercially successful, high-value products to domestic and international markets.
To meet this national challenge, AMGC was recently awarded a further $30 million co-funding pool to continue its industry building work under the Federal Government’s Modern Manufacturing Initiative.
AMGC’s portfolio of projects encompasses replica human cadavers produced via additive manufacturing (3D printing) to eyewear from recycled plastic, to a new way to manufacture concrete bridges and the manufacturing of algae for use in the food, pharmaceuticals and agriculture sectors, AMGC’s projects are underpinned by strong industry and research partners, with collaboration at the centre of their success. These projects serve as a guiding light to AMGC’s 2,600+ membership base, the broader industry, and state and federal governments.
Managing Director of AMGC, Dr. Jens Goennemann views this milestone as a sampler of the opportunity that exists for Australian manufacturing at large.
“Australian manufacturing is a job multiplier, providing 3.6 additional roles in complementary industries for every direct manufacturing role. State-of-the-art manufacturing creates roles that reach way beyond production. It employs designers, engineers, logistics managers, sales, marketing and support staff in addition to the equally important physical act of production.”
“Since 2015, AMGC has worked tirelessly alongside the Department of Industry, Innovation, Science, Energy and Resources (DISER) to collaborate with manufacturers, identify best practices and support those wishing to advance. AMGC has cultivated a billion-dollar catalogue of what manufacturing best practice looks like and provides a taste of what could come in the future”, said Goennemann.
“Australia has the manufacturing fundamentals in place. Now is the time to encourage more adoption of advanced technology and practices, drive change and take the formative steps to move Australia from being the lucky country to becoming the smart country – with manufacturing being our single most promising capability to do so.”
KEY FORECAST IMPACT FROM AMGC PROJECTS
- 78 co-funded industry projects
- $66.8 million in co-funding investments
- ~2,361 direct and 8,474 indirect jobs are expected to be created
- ~$1.2 billion in estimated revenues generated
- 343 nation-wide collaborations
FIRST 10 COMPLETED PROJECTS
Upon completion of a co-funded project, participants contribute to a substantive finalisation process. The data collated revealed:
- Increased revenues of $56.5 million from local and international sales
- The creation, or upskilling, of 164 direct jobs
- Average Return on Investment (ROI) ~224%
- All participants reported an increase in
- Profit – 100 per-cent of participants
- Range of products and services – 100 per-cent of participants
- Productivity – 88 per-cent of participants
- Profit Margin – 80 per-cent of participants
- The majority of project participants reported improvements at all points along the manufacturing value chain (page# 7)
- Many project participants engaged in collaborative endeavours, with:
- 88 per-cent of completed project participants rating working with research institutions as ‘positive’ or ‘very positive’
- 67 per-cent undertaking joint Research and Development (R&D)
- 44 per-cent engaged in joint manufacturing/production of goods/services
- 22 per-cent integrated their supply chain
- Of the 10 projects, 80 per-cent of participants increased activities around exports, niche or underserved markets
- All projects reported an increase in their business resiliency strategies
PROJECTS IN DETAIL
Page 10 – Dresden Eyewear. Implementing an automated system to scale-up manufacturing of mass-customised prescription eyewear, from recycled plastics, for a global consumer market
Page 12 – FormFlow. Corrugated metal sheet bending offering sealed edges for construction.
Page 14 – QuickStep. Development of a low-cost carbon fibre composite fender for the European automotive market
Page 16 – B&R Enclosures. Digitised manufacturing value chain management
Page 18 – 36T. Upscaling of manufacturing and commercialisation of a ‘multi-material’ bicycle wheel
Page 20 – ANCA. Local development of Integrated CNC robot for production
Page 22 – iOrthotics. Reinventing manufacture of customised orthotics with 3D printing
Page 24 – Davies. Commercialisation of a prototype wear plate system for the global mining industry
Page 26 – OZWall. Validation of a system for manufacturing and installing structural concrete columns in multi-storey buildings
Page 28 – Evolve Group. Intensive and fast-tracked design project with the objective of reshoring the manufacturing of their customer’s plastic injection moulded bottle range to Australia
To download a complete copy of AMGC’s 2020 Project Report visit – https://www.amgc.org.au/wp-content/uploads/2020/12/Projects_annual_Report_2020.pdf
To read more of AMGC’s research reports – www.amgc.org.au/resources/
To join, explore and learn about manufacturing and Industry 4.0 visit AMGC’s Manufacturing Academy – www.amgc.org.au/manufacturing-academy/
To learn more about the Advanced Manufacturing Growth Centre – www.amgc.org.au/our-purpose/
To access media resources visit – www.amgc.org.au/newsroom/
To explore how AMGC, in conjunction with the Department of Industry, Science, Energy and Resources, along with Australia’s manufacturing industry has responded to COVID-19 visit – www.amgc.org.au/covid-19-manufacturer-response/