INDUSTRY POLITICS
A manufacturing vision for the times
Hon Angus Taylor MP, Minister for Industry, Energy and Emissions Reduction
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he Australian Government’s vision is for Australia to be recognised as a high-quality, skilled and sustainable manufacturing nation that supports a modern economy and ensures our essential needs continue to be met. Our $1.5 billion Modern Manufacturing Strategy is at the core of this vision – it is driving investment and innovation, growing our exports and creating new jobs, including critical high-skilled jobs. The COVID-19 pandemic has underlined how important it is to develop sovereign industrial capabilities and strengthen supply chains across key sectors, including vaccine production, agriculture and defence. Businesses have shown remarkable adaptability and resilience in responding to the challenges of the pandemic. But just when the worst of the crisis seemed to be passing, the Omicron variant has put severe strains upon workforces and supply chains. Australian businesses can be assured of the Government’s ongoing support as we deal with this evolving crisis. The Australian Government is working hard to keep energy costs down, cut red tape and generally create a positive business environment. At the same time, we are increasing our investment in manufacturing.
As at 15 December 2021, the Modern Manufacturing Strategy has delivered more than $309 million for 176 Australian manufacturing projects across the National Manufacturing Priorities of Space; Medical Products; Resources Technology and Critical Minerals Processing; Food and Beverage; Defence and Recycling and Clean Energy. Recycling technology Combined, these projects are valued at $906 million which will drive new manufacturing activity, investment and create jobs. In November last year the Government provided $77 million to support 7 MMI Food and Beverage and 6 MMI Recycling and Clean Energy projects. Successful recipients include Pact Group in Victoria which was awarded $20 million to help develop its state-of-theart recycling technology to divert about 125,000 tonnes of plastic waste from landfill each year. Sabrini Foods was awarded $1.4 million in funding to become the first local manufacturer to transform Australian dairy into extended shelf-life frozen paneer, overcoming one of the constraints to export. A capable and advanced defence industry is vital to our national security and our response to natural disasters and other emergencies. The development of domestic defence industries will not only strengthen our
protection against external threats, it will also lead to innovations in other industrial areas. In December last year the Government provided $26 million in MMI grants to 3 companies in the Defence sector to help them access new local and global defence supply chains. Defence manufacturing centre This included a $16.2 million grant to Western Australian-based company Hofmann Engineering to support the establishment of an advanced sovereign defence manufacturing centre and training facility. The lessons learnt from the pandemic have provided a powerful impetus to increase our self-sufficiency and strengthen our supply chains across key sectors The $107.2 million Supply Chain Resilience Initiative will strengthen Australia’s ability to access critical products and inputs, better positioning us to respond to future supply chain disruptions Under Round one of the Initiative, 26 projects in medicines and agricultural production chemicals will share in $33 million of funding. This includes $2 million for Strike Energy to establish a largescale facility using natural gas and green hydrogen to locally produce urea for agricultural fertiliser, replacing imports and securing local jobs. Round 2 opened on 6 December and will support the critical areas of semi-
conductors and water treatment chemicals. Further demonstrating its commitment to medical manufacturing, the Australian Government recently announced its significant long term partnership with global pharmaceutical company Moderna to establish a sovereign capability for mRNA. That partnership will see Moderna build a manufacturing facility in Victoria to produce respiratory mRNA vaccines for potential future pandemics and seasonal health issues. In the event of a future pandemic the facility could provide 100 million vaccine doses per year. As part of this arrangement, Australians will have priority access to mRNA vaccines, including in the event of a pandemic, and it will also see Australia become a hub for mRNA research and development and clinical trials. COVID-19 has highlighted the importance of strengthening our sovereign manufacturing capabilities and securing reliable supply chains. These are just a few of the programs and target investments being delivered by the Government to enable this. We will continue to support manufacturers through the pandemic and into the future. Our manufacturers are leading the way, transforming the economy and putting Australia at the forefront of modern manufacturing nations. IU
Skills shortage hits manufacturing deeply
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n response to an alarming engineering skills shortage brought on by the COVID-19 pandemic, Sandvick Coromant is re-invigorating its inperson training programs at the company's specialist centres. Part of global industrial engineering group Sandvik, Sandvik Coromant is driven by manufacturing tools, machining solutions and knowledge for the metalworking industry. The company’s research confirms the manufacturing sector has been impacted by the highest skills shortage of any industry. Pandemic restrictions led to engineers missing out on more than 18 months of training and education as manufacturing facilities were forced to close to the public and site visits ground to a halt. Search Consultancy research also found that 85 percent of businesses were feeling the strain due to a lack of skilled workers. Some 40 percent of research participants believed the scarcity of qualified candidates was the main contributing factor to the skills shortage. Addressing the shortage To address the skills shortage, training on core metalworking skills is being offered at Sandvick Coromant Centres worldwide. Also available are lectures, presentations and production environment
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demonstrations that showcase the firm’s products and machining techniques. The first in the cutting tool industry to open application centres, they now operate across Europe, the Americas and Asia. While the firm switched to online training in recent times in response to COVID restrictions, it acknowledged that only so much can be achieved in the virtual world. To be proactive and take the skills gap more seriously, bringing people together to upskill was essential. However, the online training was extensive and included a webinar series, product training sessions and live product demonstrations streamed over video conference. The firm also offered monthly solid round tool knowledge sessions from January 2021 covering critical areas such as metal cutting from drilling and milling as well as more specific topics like machining aluminium for automotive components and machining composite materials. The offering was designed to deliver core application knowledge to those who lacked training capabilities in-house. In the future, the company expects to offer a blend of virtual and in-person training to emerging and established engineers to create a skilled workforce while taking steps to address future needs and the next generation of engineers.
The manufacturing sector has been impacted by the highest skills shortage of any industry.
Future engineers A 2020 report by EngineeringUK found that almost 50 percent of 11-19 year olds knew little or almost nothing about the role of engineers. Also concerning was that the pandemic had impacted when people were starting their careers. BAE Systems found that more than 40 percent of those aged 1624 surveyed in the UK are putting their career plans on hold until the pandemic is over. Meanwhile, Sandvick Coromant is involved with schools and universities to educate students on core metal cutting technologies. For example, it worked
with Rensselaer Polytechnic Institute to produce parts for race cars for a student competition. As part of the collaboration, the company advised on the appropriate tool choices for the aerospace-grade aluminium components of the race car as well as on appropriate machining techniques and general advice for material removal. The company also provides several education programmes enabling students to work at Sandvick Coromant for either two weeks, or six months, after they finish school. IU
FEBRUARY/MARCH 2022
