CEO Insights: Wayne Driver

What do you see as the biggest challenges that will face your industry in 2017?

As the largest pneumatic and electropneumatic supplier to the manufacturing industry in the ANZ region and globally, SMC works closely with customers in the area of factory automation to determine their current and future needs in terms of product development and associated technology.

It is a challenge for people and companies to keep up with changes in technology, so it is important to take the time to understand what the customer really needs. There has been a significant expansion in the field of mechatronics, and the once big divide between mechanical versus electronic and electrical engineering is narrowing. The manufacturing facility of today is a fusion of various fields of technology and communication protocols, and products need to fit into this fusion effortlessly.

Product developments need to be able to work with old and new technologies as production lines change and transition into more efficient and cost-effective systems. As a result they need to be mechanical and electronic ‘friendly’. Products need to be smaller, lightweight, energy efficient and easy to install, and adaptable for the demands of the modern world. The emphasis on R&D and working closely with suppliers is becoming more and more important for business sustainability.

What new technologies are you seeing gain traction in Australian industry?

With the demand for flexibility, customers need to be able to change, and adapt to changing production requirements. With the speed of technological advances, robots are becoming a common sight in manufacturing, and the need for smaller lightweight components for robotic heads is a must. The cost of energy is a major input expense to industry, so products and technologies offering energy savings are an important consideration in order to remain competitive.

Various communication protocols and ‘smart’ devices are gaining traction, allowing the customer faster turnaround time, increased productivity and a more efficient operation. Flexible automation plays an important role.

How should Australian industry respond to global challenges and competition?

We have all witnessed the ongoing decline in the manufacturing base across Australia in recent years due to a number of factors, some which we have control over, while others, such as exchange rate fluctuations, we do not. It is difficult to compete globally purely on price, so we need to be more ‘input cost efficient’ and innovative locally at the point of manufacture, while ensuring product quality to compete globally. It is important that companies focus on reducing non-productive time in manufacturing and other processes, and automation can benefit in this area.

What can Australian industry offer that overseas suppliers cannot?

I think Australian industry knows how to be adaptable. With the economic changes we encounter, with certain industries expanding while others contract or even disappear — notably mining and automotive — Australia has no option but to be innovative and adapt.

We see it in the production lines of our customers. OEM companies will often build one machine with the capability to process and pack a range of different products. They know they need to design and build for every eventuality and be adaptable for future changes. Our population doesn’t lend itself to mass production for the local market, so in many cases Australian industry needs to target niche markets where they can respond quite quickly to changing demands. Successful Australian manufacturers are able to offer clients flexibility and adaptability for their future needs.

What can industry do to support both very young and new workers and those at the end of their careers?

It can be a vicious circle being young and seeking sustainable employment, only to face the question, “So you have the qualifications, but what experience do you have?” Many employers want both, but without having both, many potential candidates won’t even get the opportunity for an interview. More employers need to review their approach and consider a candidate’s attitude, enthusiasm, their desire to learn and develop a career, and their fit for the company culture. We call it managing talent. One of the strengths of SMC is our diverse workforce, a mix of young, keen and energetic new blood with the long tenured experience there to work alongside and support their new colleagues. For those nearing the end of their careers it is important they have the opportunity to transition to retirement by going from a full week and gradually cutting down to four days, three days etc while still being on hand to nurture the next generation coming through. With cost constraints and other pressures, it is all too easy to simply consider the bottom line, but the sustainable success of a company rests with the people and not just the product or service supplied. It is an old cliché — but also a truth — that our talent pool is our most important asset.

Wayne Driver is the Managing Director of the SMC ANZ Group Companies consisting of SMC Pneumatics (Australia) Pty Ltd, SMC Pneumatics (N.Z.) Limited and SMC Manufacturing (Australia) Pty Ltd. Having completed a business degree, Wayne joined SMC in 1990 and spent two years with SMC Corporation Japan on a management trainee program. He worked with the New Zealand operation for seven years in the roles of General Manager and later Managing Director, before returning to Australia to head up all three companies.