Manufacturing in QLD? That’s surely worth a gold medal

Manufacturing in QLD? That’s worth a gold medal!

Five years ago, the Queensland Government announced the 10-year roadmap and action plan for advanced manufacturing. Since then it has continued to invest heavily in the sector. By Craig Barry of AMTIL corporate partner William Buck Chartered Accountants and Advisors.

With manufacturing contributing over $20bn pa to the Queensland economy and employing more than 170,000 people, the Queensland Government is committed to helping foster new growth and transition existing businesses into sustainable and successful advanced manufacturers to ensure the continued growth of the industry. In the words of the Queensland Government itself, its vision for the Queensland manufacturing sector is for it to be “… international market leaders in the delivery of advanced manufacturing technologies, systems, products and services that are innovative, sustainable, and embedded in local and global supply chains” by 2026. This vision drives its strategy of supporting advanced manufacturing, which in Queensland, includes sectors such as: • Aerospace • Biofutures • Biomedical • Defence industries • Food, beverage, and beef processing • Mining equipment, technology, and services • Precision agriculture • Rail manufacturing • Renewables and hydrogen • Resource recovery High value sectors

While there are many areas in the manufacturing industry, four sectors have stood out as high-value emerging areas to watch in Queensland. These are : • Aerospace. Potential for manufacturing opportunities in areas such as large-scale alloy casting, heat treatment for avionics, along with new opportunities for advanced materials. • Biofutures. A fast-growing sector with an emphasis on manufacturing products from sustainable organic or waste resources. This is considered a sector with a high level of potential, given the future focus of renewables and sustainability in the general business environment. • Biomedical. Growing demand for medical devices and assistive technologies for the state’s growing and aging population. In addition, Queensland is well placed for export opportunities of pharmaceutical products, including the manufacture of vaccines. • Defence industries. Ongoing investment in the defence sector is creating opportunities for advanced manufacturing of heavy vehicles and new types of composites for structures and components. Why establish your business in Queensland?

Queensland Premier Annastacia Palaszczuk stated in the foreword to the advanced manufacturing roadmap: “Queensland offers a unique home for manufacturing businesses to grow and evolve into manufacturers of the future, poised for further success. Our abundance of natural resources, comprehensive transport and infrastructure networks, world-class universities and training institutes, unrivalled proximity to the high-growth markets of the Asia-Pacific, competitive business and living costs, and enviable lifestyle make Queensland an attractive place to operate.” Add to that the State’s handling of the COVID-19 pandemic, compared with other states where many businesses are struggling to operate due to the continued lockdowns. Queensland businesses can operate comparatively freely with minimal COVID-19 restrictions in place, allowing them to continue to grow and thrive during this period. Apart from the enviable lifestyle we have up here in Queensland, there are several key factors to consider when looking to establish or expand your operations: • Government grants. Queensland is committed to funding the manufacturing industry and has continued to deliver on grants to the industry, with a focus on partnering with those businesses looking to grow their Queensland operations. Successful grants include the Made in Queensland grant, which has delivered $77m to small and medium manufacturers. • Manufacturing hubs. The Government has invested over $30m into regional hubs to support the growth of regional manufacturers in locations such as Townsville, Cairns and Rockhampton. These hubs provide a place for local manufacturing businesses to receive expert advice and support to transition to advanced manufacturing. The latest hub to open was located on the Gold Coast in July 2021. • Housing affordability. With capital city prices increasing significantly over the past 12 months, the mean price of residential dwellings for Queensland is still only $586,000, compared with $1,011,000 in New South Wales, and $834,000 in Victoria. With affordability of property being a key issue for staff, Queensland represents significant value compared to other states, while still showing signs of long-term growth. • Migration to Queensland. Since the COVID-19 pandemic started, there has been a significant change in the way people live their lives and where they are choosing to live. Coupled with housing affordability, this has led the latest statistics to show a net migration to Queensland of more than 7,000 people, compared to a loss of 4,900 in Victoria and 4,500 in New South Wales. With more people moving up to the

Sunshine State, there will be greater opportunities to attract and retain staff. • Olympics 2032. Brisbane has recently been named host of the 2032 Olympics and Paralympic Games, which will be the largest event ever staged in Queensland. The Brisbane 2032

Games are forecasted to generate $8.1bn in total benefits for

Queensland.

Craig Barry is Director, Tax Services at William Buck. www.williambuck.com

STATE SPOTLIGHT

081 Elexon Electronics takes quality management and development to next level

Having passed the external ISO 9001 audit for the past 15 years, Brandale-based electronics manufacturer Elexon Electronics is set to build on that success by completing the ISO 14001 and AS 9100D certifications.

This is an exciting time for Elexon, according to CEO Frank Faller: “We’re extremely proud that for the past 15 years, Elexon has been successful in every Quality Assessment undertaken. Quality management and continuous improvement is in our DNA. It is not just a tick box, quality is what we live and breathe. “By achieving ISO 14001 and AS 9100D certifications later this year, we’ll continue to build on our reputation and deliver even greater quality to our customers from the defence, mining and other niche industries.” To help achieve this significant milestone, Elexon recently recruited Kylie Warren to the role of Quality Manager and Jordan Metlikovec as an NPI & Process Engineering Manager to oversee the development of the quality system and manufacturing process quality respectively. “The ISO 14001 and AS 9100D certifications are integral certifications for companies working in the defence sector and I’m looking forward to being a part of the Elexon team who achieves this,” said Warren. “My plan is to actively connect engineering, manufacturing and quality departments and with a hands-on approach, actively contribute towards the continuous improvement of Elexon’s processes, products and services,” added Metlikovec Elexon has set a goal to complete the next level of certification AS 9100D by the end of 2021. AS 9100D works in conjunction with ISO 9001, and represents industry standards with added requirements specific to the aerospace industry. Elexon also plans to become compliant with the Environmental Management System under ISO

Nicholas Rehfisch, John Hart’s Managing Director commented: “As a 100% Australian-owned family business, John Hart is proud to be supporting Australia’s sovereign defence manufacturing capability by providing the world’s most innovative and advanced machine tool and automation technologies.” Rheinmetall NIOA Munitions, a joint-venture between Rheinmetall Waffe Munition GmbH and NIOA, is committed to the development of Australian sovereign capability. The Maryborough facility will produce 155mm artillery shells, as well as other munitions-related products. When in full operation, it will create up to 100 jobs in the Maryborough and Fraser Coast region.

www.johnhart.com.au

14001 within the same time frame. The Quality Management System (QMS) is fundamental to Elexon’s successful reputation as a highly professional manufacturing and engineering partner. The QMS has been successfully maintained since its introduction as the company has met the three-yearly ISO 9001 audits. Implementation of such management systems has allowed Elexon to embed resilience and agility into its strategies, elevated operational efficiency, and enhanced technical analysis and document control. ISO 9001 standards were introduced as soon as the company was established in 2006. The two owners of Elexon: Pieter Kuiper and Leigh Bateman, immediately implemented an effective QMS into the company’s processes. The following year, Elexon successfully passed its first external audit, before becoming certified in 2007.

www.elexonelectronics.com

John Hart delivers major manufacturing power for Rheinmetall NIOA Munitions plant

John Hart is currently in the process of installing a full turnkey manufacturing line comprising 15 Mazak machine tools and robotic automation equipment for the Rheinmetall NIOA Munitions artillery shell forging plant in Maryborough, Queensland.

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