RESILIENCE
Advanced Manufacturing Growth Centre (AMGC)
Q&A with Dr Jens Goennemann - Managing Director the Advanced Manufacturing Growth Centre What is the largest misunderstanding about manufacturing? The prevailing view that manufacturing is comprised solely of production, or assembly, is simply not true. Manufacturing consists of seven steps across an entire value chain, of which production is just one.
For example, making a vaccine involves all seven steps of the manufacturing value chain: 1. Research and development of an effective vaccine 2. Design of the vaccine 3. Logistics for sourcing ingredients 4. Manufacture of the vaccine 5. Distribution of the vaccine 6. Selling of the vaccine 7. Servicing of the vaccine through monitoring patients
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In this example, health is the sector, and manufacturing is the enabling capability– as it is in every other sector – be it resources, food and agriculture, consumer goods, industrial applications and the list goes on. Advanced manufacturing is not about the items you make, but how you make it and is an essential capability of a competitive economy. How will Australia's Manufacturing Industry emerge from COVID-19? COVID-19 has increased the appreciation for a country to be able to make things. This presents the manufacturing industry with the opportunity to further ignite the country’s capabilities, add more value onshore, and become even more globally competitive.
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While Australia has been fortunate to escape the significant challenges others have faced as a result of COVID-19, the circumstances have proven that an advanced manufacturing industry is best placed to respond to changing needs. Whether those changing needs are due to a health crisis or not, a broad, wellestablished manufacturing industry is well placed to capitalise on any opportunities.
I also believe that imported items such as face masks can and should be manufactured in-country. In pre-COVID-19 times, the mining and construction industry used 10-20 million P2-masks per month. Given such baseload, I like to think that there is a business case for making those masks here. However, it is important that such endeavours are economically viable and not a case for subsidies.
What sectors will see increases in Australian Manufacturing following COVID-19?
How has AMGC assisted its members before and during the crisis?
Australia has already identified key areas of national competitiveness that offer comparative growth opportunities, and manufacturing is one of them. These areas of priority also extend to mining, agriculture, food and beverage, pharmaceuticals, med- and bio-tech, defence, energy, and the emerging space sector. We also need to look at waste and how we recycle it better. Manufacturing as a capability adds tremendous value to all of these sectors. It is about balancing the focus between new sectors and building upon the alreadyidentified sectors of comparative strength. The more value Australian manufacturing can add to each sector, the stronger and more globally competitive our economy will be.
AMGC commenced working to transform Australia’s manufacturing industry four years before the pandemic, encouraging manufacturers to shift their mindset to; become more resilient, collaborate, make superior goods, become more flexible and compete on value, not cost. Our long-term approach is evidenced by a portfolio of projects. To-date, AMGC has facilitated 70 projects with a total cofunding investment of $47 million. These projects are expected to create 2,100 new jobs and deliver up to $900 million in additional revenues – all are great examples of manufacturing best practice and represent a significant return on investment. Throughout COVID-19, AMGC managed over 2,500 submissions from manufacturers and others, via the COVID-19 Manufacturer
www.germany.org.au
