Technology opens up new manufacturing opportunities in Australia

The rise of technologies such as lightweight robots, 3D printing and power computing tools will play an important role in helping the Australian manufacturing industry through one of its most critical junctures.

Manufacturing remains one of Australia’s most valuable industries. According to the Australian Government’s Department of Industry, the sector contributes more than $100 billion to local GDP, employs around 950,000 Australians and contributes almost 25% of business expenditure on research and development.

Nonetheless it has been a sector undergoing a difficult period during the past few years. Challenges such as geographic remoteness, limited resources and rising labour costs have been exacerbated in recent years thanks to a consistently high dollar, changes to industry policy and global competition.

More recently there have been calls by the Australian Workforce and Productivity Agency for manufacturing to shift its focus from heavy industrial manufacturing to value-added, technologically advanced production¹. Last year the federal government announced a $100 million growth fund to support such manufacturing initiatives².

While this will be a massive adjustment for many businesses, it does come at a time when previously cost-prohibitive advanced technologies have become more affordable, flexible and easier to use.

Technologies such as lightweight industrial robotics, 3D printing and high-performance computing open up some interesting and significant opportunities, particularly in the area of custom manufacturing in high and low volumes.

Ironically, Australia’s geographic remoteness, one of the sector’s longstanding bugbears, could actually help drive this emerging competitive advantage. Rather than waiting months for overseas manufacturers to ship a complete product, local manufacturers using new technologies could customise a new product in weeks or even days.

Today’s emerging manufacturing technologies are extremely adaptable - both in terms of function and the way they integrate into the overall production process. The highly configurable new technologies can significantly improve throughput time - particularly in the areas of preparation and set-up, as well as reducing inspection and put-away time.

Advanced industrial robots have been designed to be easily reconfigured and deployed for any number of tasks in hours by almost any employee, instead of having to rely on costly engineers. Using a drag-and-drop interface more commonly found on consumer devices such as iPads, floor operators can now program and operate the robots themselves, saving the business time and money.

For industrial robots, the push for lightweight machines means they can be mounted on the wall or shifted from one location to another, adding flexibility to the manufacturing process; thereby saving money on valuable real estate costs. This is a significant advantage for manufacturers when they choose to expand, move or grow their production line. Also, small batch and seasonal productions are no longer stumbling blocks to businesses if the robots can be relocated with ease without the need to overhaul the floor layout.

Of course once set up, manufacturers can still take advantage of all the production benefits of a dedicated production line. Having a robot that works 24/7 can deliver significant benefits to a company’s bottom line. For example, the production process at the Lego factory in Billund, Denmark, does not cease even after the last worker knocks off for the day. The robots carry on churning out brick after brick in the darkness. This scenario speaks volumes of how critical it is for businesses to keep up or ship out.

This new opportunity also comes at a time when these technologies are now more affordable and reliable than ever. In most instances the investment in a lightweight industrial robot can be recouped in just over a year, while the total initial ownership cost with these smaller modern robots is very low compared to the traditional robots we have been accustomed to seeing in heavy manufacturing. Ease of programming, integration and after-sales maintenance means that manufacturers save a significant amount in integration costs than they would have in the past.

Importantly, by carrying out customisation and downstream manufacturing in-country, manufacturers can better ensure quality of product. Quality is everything for manufacturers and reputations that have been built over years can be tarnished permanently through sub-optimal goods.

The first golden age of manufacturing was ushered in with Henry Ford proclaiming his customers could have a car in any colour “as long as it’s black”. More recently the edict has been that the customer could have it “however you want it”. As the Australian manufacturing industry moves into this new era, the emergence of a new focus and new technologies means local customers will soon be able to have “whatever they want, however they want, whenever they  need it”.

References:

1. Australian Workforce and Productivity Agency, 2014, Manufacturing Workforce Study
2. Prime Minister of Australia, 2013, Securing Australia’s manufacturing future, http://www.pm.gov.au/media/2013-12-18/securing-australias-manufacturing-future