Manufacturers' Monthly April 2015 by Prime Creative Media

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

Frosty Boy tastes sweet success INSIDE >> 14

IT@MM ERP in the cloud

Manufacturing for Mining Solid prospects still exist

Welding Attractions of weld management systems

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Inside

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For daily news visit manmonthly.com.au

APRIL 2015

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Publisher: Martin Sinclair martin.sinclair@cirrusmedia.com.au

6 Editorial

Managing Editor: Kevin Gomez Ph: (02) 8484 0976 Fax: (02) 8484 0722 kevin.gomez@cirrusmedia.com.au

■ ‘Fairness’ and reform can go together

Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@cirrusmedia.com.au

8 News & Analysis

Journalist: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@cirrusmedia.com.au

■ Snapshot ■ Changes come to WTIA ■ Senator creates Farming and Manufacturing Party

Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au Graphic Designer: Dave Ashley david.ashley@cirrusmedia.com.au

12 Comment

Production Co-ordinator: Mary Copland Ph: (02) 8484 0737 mary.copland@cirrusmedia.com.au

■ Can we regain an energy advantage?

NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8011 3184 anthony.head@cirrusmedia.com.au QLD Sales: Sharon Amos PO Box 3136, Bracken Ridge, QLD 4017 Ph: (07) 3261 8857 Fax: (07) 3261 8347 Mobile: 0417 072 625 sharon.amos@cirrusmedia.com.au

14 IT@MM

36 Management

■ Keeping pace with change ■ Nine steps to ERP implementation success

■ Does manufacturing have a future?

16 Endeavour Awards

NSW, SA/NT & WA Sales: Cirrus Media Ph: (02) 8484 0868 anthony.head@cirrusmedia.com.au

■ A preview of this year’s nominations

32 Made in Australia

Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: 1300 360 126

■ Frosty Boy’s future in Asia looks bright

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■ Column mounted slewing jib crane ■ Confined space lifting solution

MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

Average Net Distribution Period ending Sept ’14 18,688

58 NMW Preview ■ A roundup of what you can see at this year’s show

44 Manufacturing for Mining

61 What’s New

■ Solid prospects still exist in mining

■ Silicone tubing ■ Infrared pyrometer ■ Strain gauge measuring amplifier

48 Energy Management

62 The Last Word ■ Benchmarking ourselves against the best

Behind the cover

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■ The attractions of weld management systems ■ Portable TIG/stick welding machine ■ Air purifying respirator welding helmet

■ Chasing the tiger

■ Energy management and productivity ■ How to cut your power bills

■ Optimising crane safety and productivity MA 0 4 1 5 _ 0 0 3

38 Exporting

54 Welding

In not much over a decade, Australian dessert manufacturer Frosty Boy has increased exports from almost nothing to three-quarters of its business. What’s more, the company now sells into nearly 50 countries. Last year Frosty Boy opened a new, purpose-built factory in Yatala. The facility covers 6,000 square metres and has double the capacity of the company’s previous plant. Frosty Boy tastes The third site the company has occupied since the current owners picked up the sweet success company in 1999, its current output is the equivalent of two million serves of soft serve per day. It runs two shifts a day, five days a week. It positions Frosty Boy to increase exports even further and take full advantage of the 2 0 1 5 - 0 4 - 0 2 T1 5 : 1 0 4 0 : 2 2 9 + 1 1 : 0 0 ‘Asian Century’. INSIDE >>

Printed by Bluestar Print 83 Derby Street, Silverwater, NSW 2128 Ph: (02) 9748 3411

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IT@MM ERP in the cloud

Manufacturing for Mining Solid prospects still exist

Welding Attractions of weld management systems

Manufacturers’ Monthly APRIL 2015 5

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Comment

MATT McDONALD – Journalist

‘Fairness’ and reform can go together

NEXTISSUENEXTISSUE • Austech Preview • Heating and Air Conditioning • Automation & Robotics – Emerging Technologies • Management – Finance, Leasing & Rentals • IT@MM – Additive Manufacturing • Materials Handling – Conveyors & M A 0 4 1 5 _ 0 0 6 _ G WA 2 Loaders

ARLIER this month, the government received some friendly fire. Nine peak business groups including representatives of the manufacturing sector released a statement expressing their concern at the slow pace of economic reform. Evoking memories of great reformers of the past, those from the Hawke/Keating years and the Howard/Costello years, they said reform is always difficult. If Australia is to maintain its high standard of living, they said, today’s leaders need to show the same sort of courage as those reformers of the past. The government promptly returned fire. Treasurer Joe Hockey responded by pointing out the obvious. Unlike business leaders, he said, the government has something called the Upper House to deal with. It did attempt to make the big changes in last year’s budget, but they didn’t get through the Senate. And this was a fair point. Will and political courage are nothing without the numbers. This brings us to the real problem the government (and others, such as manufacturers, who agree with the need for change) are facing. In their joint statement, the business groups complained about the Opposition’s continual focus on budget ‘fairness’. - What 1 2they 0 1failed 5 - 0to3 mention - 3 1 T is 1 that 4 : 4the 8 :public 1 9 +agree 1 1 : 0 0 with Labor on this one. Accurate or not, the public percep-

tion is that the less well-off are being asked to carry most of the burden of economic reform. Australians saw all the changes – GP co-payments, increased university fees, tightening of the welfare system – and judged them unfair. A lack of political courage isn’t the problem. The Government needs to recast itself as ‘fair’. It must convince voters it is not just attacking the low and middle income earners while ignoring big business and the wealthy. The above-mentioned great reformers of the past managed to do this. Yes, Hawke and Keating floated the dollar, cut tariffs, and decentralised industrial relations. But they also established the Prices and Incomes Accord – a key agreement between government and unions; and introduced compulsory superannuation. And yes, Howard and Costello reformed the waterfront, reformed IR, and introduced a GST. But they also established a broad range of family benefits to soften the effects of moving from the existing highly-progressive tax system. Of course, circumstances always change but the great reformers of the past have always managed to bring the electorate with them along the path to change. Today’s business leaders should be praying the Abbott Government can do the same. Matthew.McDonald@cirrusmedia.com.au

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© 2014 Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of Siemens AG. All other logos, trademarks or service marks used herein are the property of their respective owners.

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Answers for industry.

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SnapSHOT AS IT stands, manufacturing workers have lower education levels than the workforce as a whole. As the accompanying figures from the Australian Bureau of Statistics show, in 2013 just 17.1 per cent of workers from the manufacturing sector had attained a Bachelor Degree or higher, compared to 28.4 per cent of workers in the overall economy. But this is set to change. As we often hear, Australiaâ&#x20AC;&#x2122;s manufacturing future lies not in high volume areas but in specialised products and advanced manufacturing techniques. Testament to this change is the fact that Green Chemical Futures, a facility intended to facilitate collaboration and innovation in research and manufacturing recently opened at Monash University. We can ofM MA 0 expect 4 1 5 _to0 see 0 0more _ SU the same in coming years.

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Source: ABS survey of education and work, 2013

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News&ANALYSIS Change comes to the Welding Technology Institute of Australia IN order to better meet the needs of its members, the Welding Technology Institute of Australia (WTIA) is currently going through a significant change program which will see an improvement in the scope and quality of its services. At the centre of the program is a fundamental refocussing of the organisation’s culture to put members, individual and corporate, at the centre of all operations. In addition, after an extensive program of focus groups, the organisation has defined an overriding strategic objective: Australia First – onshoring welding and fabrication projects. As well as a new and improved range of advisory services we have initiated a number of programs to improve the flow of technical information available from our extensive database of research and consulting projects. M A 0Central 4 1 5 _to0this 0 0initiative _ T S U will be a new e-commerce platform and a

10 APRIL 2015 Manufacturers’ Monthly

WTIA wants to put its members first. projects. From trains, cars and bridges ‘Wikiwelding’ repository for technito LNG gas plants, mines and power cal data. generators welding plays a critical Welding technology touches many role in the Australian economy. parts of the manufacturing industry However, 1and2is0often 1 5 -the 0 unsung 3 - 2 6hero T 1 of 4 :some 0 3 : 3 3 + 1 1 : 0 the 0 current trend to send major construction fabrication offof our largest and most successful

shore is devastating our industry. No blame can be attached to asset owners and prime contractors who must find the best value they can. However, they must compare competitive tenders on an equal basis in order to make a fair comparison. In response Australian companies must invest in plant, people, technology and systems to ensure they are internationally competitive. We have some of the most talented welders, technologist and engineers in the world but without the work they will quickly dissipate around the world. WTIA is committed to reversing this trend, growing our welding capability and ensuring we are globally competitive. [John Burnett is WTIA President] WTIA 02 8748 0100 www.wtia.com.au

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In brief... Govt releases Energy White Paper Releasing the Government’s Energy White Paper, Industry Minister Ian Macfarlane said the government wants to ensure Australians receive competitively priced and reliable energy supplies into the future. He said this can be best achieved by promoting competition in energy markets, increasing energy productivity and facilitating investment in energy resources development.

Popularity of Aussie food up The proportion of Australians over 14 who are more likely to buy food labelled ‘Made in Australia’ has risen to 88 per cent from 85 per cent two years ago, according to Roy Morgan Research. The survey also found that 6 per cent of Australians over 14 prefer food marked ‘Made in China’, compared to 5 per cent two years ago.

Pharmaceutical sector wants help The pharmaceutical industry will require government support if it is to recover from its recent poor performance and compete globally, according to Medicines Australia CEO Tim James. Latest figures from the ABS show Australian pharmaceutical exports declined by 18 per cent to $2.9 billion in 2014. Since 2012, when they peaked at around $4.3 billion, Australian pharmaceutical exports have declined by more than 30 per cent.

Old factory in Taree to re-open The former UGL factory in Taree will re-open. According to the Greater Taree City Council’s general manager Ron Posselt, this will create as many as 400 jobs. He added that the new owner is a global business and the currently mothballed factory would be used for “heavy niche manufacturing”.

New facility opens at Monash Uni Green Chemical Futures, a facility intended to facilitate collaboration and innovation in research and manufacturing has opened at Monash University. Opening the building, Senator Scott Ryan, Parliamentary Secretary to the Minister for Education and Training, said the multilevel facility will enhance Australia’s research capabilities within the chemicals and plastics sector.

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Senator creates Manufacturing and Farming Party INDEPENDENT Senator John Madigan has applied to register a new political party, citing a current lack of focus on the importance of manufacturing and farming in the national economy. Madigan, who quit the DLP last September, said he was sick and tired of the major parties’ “spin and bullshit.” The name of his new party, said Madigan, reflected his major concerns since joining the Senate. “Australia must again recognise that our farmers and manufacturers are the backbone of our economy,” The Australian reported him as saying. “Without these two sectors, this country would grind to a halt.” According to the application Madigan lodged with the Australian Electoral Commission, his party will focus on issues including truth in labelling and faulty/ non-compliant imported building products. “People are frustrated about what’s going on in Canberra,” Madigan said. “They are frustrated about the lack of focus and the leadership arguments and the sense of unreality that exists in Parliament. They are frustrated by the spin and bullshit.” Madigan, a former blacksmith and boilermaker, is now the third cross-bencher since December to

Senator John Madigan defected from the DLP last September. (Image: DLP) announce they will form their own party, following Jacqui Lambie and Nick Xenophon. The Victorian Senator was also one of the Senators behind the Australian Manufacturing and Farming Program. His maiden speech included the claim that, “A country is what a country makes. The great economies of the world have strong manufacturing sectors.”

What members of our manufacturing community thought about Johan Madigan’s move... ‘Ron’ Good on you, John. The Liberals, Labor and Greens have all ignored (or are ignorant of) the value of manufacturing in maintaining a prosperous country. Australia has been lucky because we’re selling our resource-rich dirt, which will only leave us with thousands of huge pits filled with contaminated water to hand on to our kids. ‘Pat’ Great that someone in the Australian Government understands the value to the nation of the manufacturing industry. The UK Government is now trawling the world (including Australia) looking for potential manufacturers that wish to set up in the UK. Their government took its eye off the ball and lost most of their manufacturing industry and are now trying to get it back.

‘Sledge 56’ Yes, for too long we have allowed our “old” manufacturing industries to fester and die whilst not providing the incentives to allow “new” manufacturing to flourish. We forget that China is resource rich too, as is Russia. They have barely tapped their resources whilst still have both old and new technologies in play or being developed. We didn’t learn from the resources boom of the sixties and we haven’t learned this time either. To quote Forrest Gump – “Stupid is as stupid does” and that appears to be Aussie.

anymore; it’s illegal under WTO rules. This is why they won’t rebuild the manufacturing base. Editor’s note: Comments are as received. Corrections are made to spelling and grammar.

What do you think? Go to www.manmonthly. com.au and make a comment about this or any other issue.

‘Dino’ He’s got my vote already. The only way forward is home grown! ‘Dan Campbell’ Manufacturing is being destroyed by free- trade. The Government can’t put up tariffs

Manufacturers’ Monthly APRIL 2015 11

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Comment

INNES WILLOX – CEO Australian Industry Group

Can we regain an energy advantage? Energy is an essential. For some, however, the availability and cost of energy can make the difference in deciding whether or not to invest in the first place. Innes Willox writes.

sale electricity prices have risen and fallen, propelled by the supplydemand balance – once tight, now very loose – and the brief carbon tax regime. But the dominating factor was and continues to be the enormous run up in network costs. Tighter regulation of electricity networks is set to deliver benefits. That growth was partly driven ity networks, agreed in 2012 after to growth. And the regulatory rules by forecasts of continuing demand campaigning by Ai Group and others, turned out to be broken, encouraggrowth, and partly by rules for is now finally set to deliver benefits. ing gold plating and the treatment of network regulation and reliability. The regulator’s draft ruling on NSW state-owned networks as budgetary However, the forecasts were wrong networks would cut their revenue cash cows. – understandably, but hopelessly, request by 30 per cent, lowering costs Unit electricity prices are therewith demand shrinking every year to all users. Queensland is likely to up strongly. Manufacturers pay in 1 defiance 2 0 1 5of- repeatedly 0 1 3 - 2 2 5 Trebased 1 0 : 1 3 9 4 : 1 4fore 8 + 1 1 : 0 0 2 see similar cuts. Victoria may benefit twice as much for electricity now as projections for an imminent return less, since its more efficient privain 2004. And the same is now haptised networks did not raise their pening in gas, which is an essential prices as much in the first place. feedstock and energy source for On gas, we need pro-competitive many sectors of manufacturing. The new Liquefied Natural Gas ex- reform of the gas market, sensible Surface Preparation Solutions port industry taking shape in Queens- regulation to safely open up onshore gas production in NSW and Victoria, land has brought benefits, but by linking Australia’s eastern gas market and national interest assessment of any future proposals to increase LNG to East Asia it has ensured that we export capacity. start to import East Asian gas prices All those changes will stanch the linked to oil. That has been expected damage. But is it possible for Austo triple wholesale gas prices from tralia to regain an energy advantage? historical levels of $3 a gigajoule to We still have vast resources – and $10 a gigajoule or more. those include uranium, wind and sunIt is also imposing intense transhine as well as fossil fuels. Any new sitional pressures on supply. The generation option is going to be more current collapse in global oil prices expensive than today’s depreciated may delay the gas price surge a little, old facilities. even as it batters the value and profBut with advances in energy techitability of the LNG exporters. But oil nology underway, particularly in solar will recover eventually – replacement Airless and Air Blast Cleaning and Peening Equipment and storage, and costs rising in many production can’t be justified at curComponent Cleaning and Degreasing Systems countries as they reform subsidies rent market prices – and the upward Full Range of Quality Abrasives and clean up their systems, Australia march of Australian gas prices will Quality Replacement Parts and Accessories could still aim for relative advantage. resume in earnest. Service available for all makes and models To do so we will need to transcend So on energy costs, Australia has Australian Owned, Designed and Built Since 1928 the partisanship that has paralysed leapt towards the middle of the pack. CONTACT US TODAY! Australian energy policy – and But there is hope. Energy efficiency, 19 / 257 Colchester Rd, Kilsyth, VIC, 3137 pursue improved workplace relations once a concern only for the most P.O. Box 51, Bayswater, VIC 3153 practices and productivity gains to intensive manufacturers, has become Tel: +61 3 9729 4333 Fax: +61 3 9720 4247 control excessive construction costs. mainstream as prices have risen. Web: www.granowski.com.au E: wgmailbox@granowski.com.au www.aigroup.com.au Tighter regulation of electric-

OT so many years ago, cheap Australian energy was a drawcard for investment in metals, chemicals and more. Australia had huge resources of coal and gas, much of which were stranded from global markets and sold at prices set by local supply and demand. We had relatively cheap systems to bring that energy to market. And demand grew like topsy, rising every year from Federation until 2009. But since 2009 the picture has changed M A dramatically. 0 2 4 1 5 _ 0 0Electricity 0 _ GRA prices have increased steeply. Whole-

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TechnologyIT@MM Keeping pace with change By switching to ERP in the cloud, many manufacturers are transforming the way they operate, streamlining core business processes and enabling them to expand into new markets. Mark Troselj writes.

OT long ago Australian manufacturers could achieve success and even dominance by simply producing a quality product at a fair price. Today however, the world has changed dramatically, with globalisation, digitisation, ecommerce and customer empowerment forcing manufacturers to rethink the ingredients for success in fast moving global markets. As modern manufacturers face rapidly changing markets and business channels, a key enabler of their success to adapt and keep up is the transformation of their ERP systems. Turbosmart is a great example of a company that has made this transformation. The Australian automotive performance products manufacturer was using a number of basic onpremise software applications for accounting and ecommerce, as well as Excel spreadsheets, to manage its global manufacturing business – the company never had a clear picture of how its business was performing at any given time. By switching to ERP in the cloud, Turbosmart has transformed the way it operates by streamlining core business processes, enabling it to expand into new markets, which it couldn’t have done before. Without being encumbered by IT infrastructure, it now has the agility and flexibility to grow and explore new markets, knowing it can easily switch on vital business systems already geared to work in whatever market it enters into in the future. Transforming ERP processes and IT systems, however, is no easy feat. It requires taking the time to understand existing business processes and recreating them for better efficiency and optimal productivity. It is critically important to make sure your business processes match those of the supporting IT system, of

14 APRIL 2015 Manufacturers’ Monthly

doing so, create the optimal goals for an ERP project, along with a realistic budget, software requirements and a timeline for completing it.

The ERP RFP

ERP in the cloud allows manufacturers to streamline business processes, without being encumbered by IT infrastructure. leveraging the best practices for each vertical industry and knowing what to look for in your ERP partner. Transforming ERP is a major undertaking that requires understanding multiple business processes, how IT systems are affecting those processes, and then re-drawing them to get an efficient business operation. Successful ERP transformation also requires aligning the capabilities of your prospective ERP application with your firm’s strategic initiatives. If this isn’t done, there will be no ROI and a lot of wasted effort.

Steps to success There are a number of steps you need to take prior to selecting a new ERP application or upgrading your existing one: 1. Align ERP project goals to match business goals. Too often, a manufacturer focuses on getting a new ERP system rather than on defining what that system should do and how well it supports its processes. That won’t lead to a good ERP se-

lection. Instead, take a deeper look at ERP processes and how they can be improved. 2. Evaluate business processes and map them out. Learn where they overlap, create redundant data, cause bottlenecks or waste, prevent good customer communications, or where they simply take longer than they should. 3. Learn the industry standard practices and compare them. Define the best practices for financial, CRM, logistics, supply chain and other business processes. 4. Develop a plan for how an organisation’s processes should operate and what is required of an ERP system in order to implement the better business practices. By understanding how the business should be changed -- how data should flow, what department should be communicating which data to other departments, and where information can be centralised and integrated – organisations can redraw their processes to be more efficient and, in

When designing an RFP (Request For Proposal) for an ERP purchase, manufacturers should include all of the business and IT requirements, particularly: • All standard ERP elements – e.g. ERP, CRM, financials, supply chain and HR – built into the platform, with support included for other needs such as ecommerce, distribution, order management, inventory, manufac turing, business intelligence, and so on. • Software that follows all industry best practices and is certified in necessary functionality, such as for various types of security, employment regulations and consumer privacy laws. • Customisation capabilities and partner modules to expand processes to unique needs. Also consider how much specialisation is needed to customise the application. After all, there’s a big difference between needing a $100,000 a year Java developer and simply putting existing staff through basic training. • In the cloud, a cloud-based platform enables customers to change and customise their applications to suit their own unique business processes. The single code base that a cloudbased platform provides makes it easier to add capabilities, customise and integrate other applications. It also ensures a standard set of processes and data enterprise-wide, and saves on IT maintenance costs. [Mark Troselj is VP and GM of NetSuite Australia] NetSuite Australia 02 9464 6100 www.netsuite.com.au manmonthly.com.au

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Nine steps to ERP implementation success Manufacturers can benefit from ERP solutions that support them effectively when implementing their development and expansion strategies. Craig Charlton writes.

T’S important for manufacturing companies today to be able to act quickly on business decisions. Often the existing heterogeneous IT application mix proves to be a corset that does not allow changes. But the benefits of modern ERP systems with consolidated control of valueadded processes are only attractive for the industry if the implementation is as smooth as possible. Companies should consider the following nine steps when planning the first phase of their ERP implementation phase.

Implementation pain analysis 1. DATA QUALITY Objective: Complete data migration from heterogeneous sources with simultaneous consolidation. Pain: In order to implement the ERP workflows based on consistent and centralised data storage, a consolidation of data silos is required. Data migration tools for a wide range of different source formats provide a high degree of automation for the extraction, cleanup and upgrade of a company’s data. It is important to provide control functions to the business logic and alarms that simplifies the data migration without costly manual intervention. 2. TWO-TIER STRATEGY Objective: Simple harmonisation and investment protection. Pain: Flexible usage models of an ERP system support companies in several ways. Individual business units can be equipped cheaper and faster with ERP solutions that are seamlessly integrated with existing environments, such as a central system at headquarters. A simplified deployment of an ERP system via a two-tier strategy also makes it easier to follow process, quality and compliance standards in offices around the world, support master data managemanmonthly.com.au

ment, and consolidate financial data across all subsidiaries. 3. SOFTWARE DEPLOYMENT Objective: Cost-oriented system implementation with a gradual introduction. Pain: If there are options for the ERP solution to operate as an on-premise solution, hosted or managed service or a combination of all, the company will benefit from a unified landscape but yet have plenty of room for an expanding ERP strategy. This also allows introduction in phases. 4. INDUSTRY-SPECIFIC ADAPTION Objective: Consideration of individual needs at little additional cost. Pain: The more consistent and wellthought-out an ERP solution is, the lower the effort required for program code changes and adaptations by specialists. ERP industry suites and module templates should provide about 85 percent of the required functionality out-of-the-box. If the software is also based on a flexible service-oriented architecture (SOA), detailed adjustments usually require only simple configurations with no need to delve into the software code. 5. INTEGRATION Objective: Seamless workflows with free choice of applications. Pain: When an ERP system provides a combination of flexible SOA and integration components for an easy connectivity to third-party-solutions, companies face two benefits: existing solutions can be used and future extensions and special applications can be integrated without changes in the core ERP system. At the same time modern integration components ensure workflows remain consistent and software updates aren’t affected. 6. TRAINING AND EDUCATION Objective: Improved productivity with minimal training. Pain: Two factors provide a high degree of acceptance and product-

ERP’s implementation phase is vital, it determines whether a project can be put into practice successfully and on budget. ivity from the beginning: a. A deep Microsoft Office integration allows users to work in familiar environments. b.Variable options simplify training. This includes not only traditional classroom training but also knowledge mentor platforms for the design of needs-based training. The latter offers interactive user manuals and structured knowledge tests. 7. INDUSTRY-SPECIFIC SUPPORT Objective: Accelerated implementation of Best Practices. Pain: When ERP implementations are based on a structured methodology, including best practices, from the project start, companies can directly align their ERP processes for optimal performance. Industry experience is crucial, being able to deliver customized scenarios using existing practiceoriented templates. 8. USER EXPERIENCE Objective: Practice-oriented decisionmaking. Pain: User conferences and an active user network support objective

decision making for a successful ERP strategy. The associated open exchange with the ERP vendor will ensure that the development of the ERP system will take into account the requirements of the industry, identify proven recipes for success and implement these faster. 9. MINIMISE RISK Objective: Predictable costs and customer-oriented implementation. Pain: If an ERP vendor offers dedicated arrangements to take the success and risks of an ERP project together with its customers, a consistent, result-oriented project design and implementation is promoted. Socalled shared benefit programs give companies proof that the software provider is positioning itself as a responsible and trust-worthy partner. [Craig Charlton is Senior Vice President for Asia Pacific with Epicor Software] Epicor Software 02 9927 6200 www.epicor.com Manufacturers’ Monthly APRIL 2015 15

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EndeavourAWARDS

Open to all manufacturers, Manufacturers’ Monthly’s Endeavour Awards program has evolved into the ideal vehicle for Australian manufacturers to highlight their recent successes and achievements.

PLATINUM SPONSOR

NOW in their 12th year, the Endeavour Awards are the only awards designed specifically for Australia’s manufacturing industry. Proudly sponsored by BlueScope Steel, the awards are designed to celebrate Australian manufacturers’ achievements and inspire innovation and success. This year we received entries from a whole host of manufacturers, large and small, including engineering companies, food processors and chemical companies. Several entries in 2015 focused on companies transforming their businesses, by increasing productivity, innovation and competitiveness. The Australian manufacturing industry is highly dynamic, with many unsung companies making a valuable contribution to Australia’s economic output, supporting local employment and training our future stars. The Awards dinner itself will be held on Thursday 28 May, 2015 at the Crown Casino River Room in Melbourne. This is manufacturing’s night of nights; a chance to meet colleagues and friends, do some networking and pat successful members of our industry on the back. Come and be part of the celebration. Tickets are available for purchase at endeavourawards.com.au

16 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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EndeavourAWARDS

PROUDLY SPONSORED BY BY PROUDLY SPONSORED

SAFETY SOLUTION OF THE YEAR

SPILL STATION AUSTRALIA

AUSTUBE MILLS

HYDROSAFE SELF-CONTAINED MOBILE EMERGENCY SAFETY SHOWER AND EYEWASH

ZERO HARM AND ZERO WASTE

Spill Station Australia began in 1983 with a primary focus on industrial absorbents and spill response kits. In those intervening years, the regulatory environment has matured to better reflect a growing understanding of the damage caused by chemical spills. Spill Station’s range of solutions has also evolved in that time to provide solutions to the changing compliance requirements of Australian Industry and Government. Its shower and eyewash solution is truly mobile. This trailer mounted, solar powered unit can be transported through all terrain whilst full of flushing water and be ready to use in under 5 minutes.

Austube Mills is the largest Australian manufacturer of the widest range of high quality structural steel pipe, tube and open profile sections that are third party certified (ACRS) to the highest AUS/ NZ Standards. The company recently embarked on a safety journey, Goal Zero: Zero Harm and Zero Waste – an internal set of initiatives. It implemented a combination of safety development programs that resulted from a business re-brand and the direction of its safety focus from independence, to interdependence. The range of revised Risk Management Tools starts with general hazard awareness tools (Personal Risk Assessment), escalating to structured tools (Job Safety Environmental Analysis and Work Safety Permits), up to critical risk tools (specific permits and forms) and then other specialised tools (plant risk assessment and working from home procedures).

ENERPAC

MACHINERY AUTOMATION & ROBOTICS

EVO SYSTEM

BLADESTOP

Enerpac is an international market leader in high-pressure hydraulics and a major supplier of high-pressure (700 bar) hydraulic equipment for 50 years. The Enerpac EVO synchronous lifting system has helped save a transformer manufacturer hundreds of thousands of dollars in freight from New Zealand to India by safely and precisely weighing the electrical equipment to exactly verify that its tonnage came in under local shipping port weight limits. The EVO system is the evolutionary result of Enerpac’s 25 years of experience in specialised hydraulic engineering and lifting technology using digitally controlled hydraulics. Through an integrated HMI, all of the EVO system movements are managed from a central control position that displays live operation with real-time status updates for each lifting position.

Machinery Automation & Robotics (MAR) was founded in 1987 and is a leading designer and manufacturer of complete industrial automation solutions servicing large and small scale production-critical companies. In collaboration with Meat & Livestock Australia, Machinery Automation & Robotics developed BladeStop. This mechanically stops a bandsaw blade when the unit senses that a person has come in contact with the blade. Upon sensing contact with the operator, the blade stops operating within 15 milliseconds. This can make a huge difference between just having a small skin cut and an amputated finger. Along with providing obvious social benefits, BladeStop is designed to also dramatically improve the overall sustainability of the meat processing industry.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

18 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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COMPLETE SOLUTIONS FOR EFFECTIVE HEALTH & SAFETY.

SICK has an enviable record of working with partners to develop well proven innovative safe solutions that continue to push that competitive advantage. This is why we are proud to once again sponsor this years â&#x20AC;&#x153;Safety Scheme of the Yearâ&#x20AC;? Endeavour Awards program, which recognizes companies and individuals for their contributions to the Australian manufacturing industry. For more information please visit www.sick.com.au or call 1300 405 807.

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EndeavourAWARDS

PROUDLY SPONSORED BY

ENVIRONMENTAL SOLUTION OF THE YEAR

TRI NATURE

PACCAR AUSTRALIA

PHOSPHATE FREE POWDER RANGE

ZERO WASTE TO LANDFILL

In 1989 the Tri Nature organisation was formed to bring natural solutions for industrial, household, and personal care to the marketplace. A world leader in natural technologies, it is one of the first companies in the world to introduce a phosphate free powder that actually worked. The product range consists of three phosphate-free powders that find general and extensive use in the home – Alpha Plus Laundry Powder, Alpha Plus Prewash Soaker, and Citrus Dishwashing Powder. The products help reduce all Tri Nature users’ impact on the environment. Combined with the absence of toxic caustic or chlorine compounds, they create much less load on effluent systems and waterways. In addition, because the range is not ‘bulked’ out with useless builders and fillers, the dosage per wash is far less than most products.

THE CRIBBING AND MATTING CO DURA CRIB RANGE OF BLOCKING AND CRIBBING PRODUCTS The Cribbing and Matting Co’s lightweight, splinter-free, nonabsorbent and environmentally sustainable Dura Crib range of blocking and cribbing products have been engineered for maximum durability and tested under the guidance of AS1170.0:2002 and AS2498.3:1993 to ensure optimum safety and risk management when stabilising heavy loads. The cribbing blocks work in a large range of applications including materials handling, ball and valve stabilisation, rail car maintenance, hi-rail stabilisation, automotive, fast stabilisation, extrication and more. Made from 100 per cent recycled plastic, they are suitable for both active cribbing, where a person is working nearby, and for passive cribbing, where cribbing is used to keep material off the ground to allow a forklift to operate.

PACCAR Australia is an ISO14001 certified organisation committed to preventing pollution and minimising the impact of its operations on the environment. In line with the global PACCAR goal of Zero Waste to Landfill, PACCAR Australia reduced the annual quantity of waste sent to landfill per truck from the Kenworth Truck manufacturing plant by 36.5% in 2014. In 2013, PACCAR Australia disposed of 200kg of waste to Landfill per truck manufactured. In 2014, this was reduced to 127kg per truck with the best performance in August when only 84kg/truck was sent to Landfill. To achieve this, PACCAR investigated waste avoidance, minimisation, reuse and recycling opportunities.

B.-D. FARM PARIS CREEK B.-d. Farm Paris Creek is one of Australia’s finest producers of award winning, certified organic dairy products such as milks, yogurts, Quarks, butter, soft cheeses and hard cheeses. The company uses biodynamic methods in its farming, and highly advanced, efficient equipment in its milk processing. A custom-designed renewable electricity generation system consisting of energy monitoring, industrial solar photovoltaic system, industrial evacuated tube solar collectors ensures maximised savings on fossil fuelled energy. Last year a new, multi-million dollar project has started: fully integrated ESL aseptic filling line for fresh milk production and bottling and new aseptic yogurt filling line will be integrated and connected to the solar system doubling milk intake and production by 2016.

20 APRIL 2015 Manufacturers’ Monthly

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COMMITTED TO SUSTAINABLE PRODUCTIVITY We are so passionate about our environment and what it means for our future, that we are once again proud to be the major sponsor for the “Environmental Solutions of the Year” award at the 2015 Endeavour Awards. - We wish all the finalist the best of luck! Atlas Copco Compressors Australia Freecall 1800 023 469 www.atlascopco.com.au

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EndeavourAWARDS

PROUDLY SPONSORED BY

AUSTRALIAN INDUSTRIAL PRODUCT OF THE YEAR

EBM-PAPST A&NZ

ENGI-O

AGRICOOL SHED VENTILATION SYSTEM

THE TUBE-DYE ASSEMBLY MACHINE

Ebm-papst A&NZ Pty Ltd is a 25-year-old Australasianbased manufacturer and distributor of market leading fans and motors for ventilation, air conditioning, refrigeration and other air moving applications. Through their head office in Melbourne and locations in Sydney and Auckland, they supply high efficiency fans and motors to OEMs and engineers who wish to upgrade their air movement systems. Their AgriCool ventilation system was specifically developed for the Australian poultry market, and can achieve power savings of over 75 per cent, and significantly reducing running costs of broiler sheds. The project was developed by a cross-functional, local team and is a good complete business development case from market survey to product placement. Three products are offered: tunnel ventilation fan, stirrer fan and destratification fan; all developed and manufactured in Melbourne.

Established in 2012, Engi-O is the Australian-owned and located developer, manufacturer and exporter of aseptic filling technologies and advanced manufacturing services for agribusiness, food and pharmaceuticals. It supplies international food producers and processors with engineering solutions that enable them to reduce post-harvest waste and assure food safety. Its Tube-Dye Assembly Machine automates the assembly of dye-filled tubes used in the dairy industry to detect ovulation in dairy cows. It uses a 9-stage process to assemble the components, weld the tubing, fill it with the detector dye and deliver the completed tubes to a collection point. Prior to the development of this machine, the assembly was time costly and inefficient. In enabling this stage to be done automatically, with minimal operator involvement, the client can achieve eight times the output.

KONECRANES

AIR SPRINGS SUPPLY

KONECRANES CLX CHAIN HOIST

FIRESTONE AIROMATIC POLYACTUATORS

Konecranes is a world-leading group of Lifting Businesses offering lifting equipment and service that improve productivity in a wide variety of industries. With more than 12,100 employees spanning 48 countries and 626 locations, the company has the resources, technology and determination to deliver on the promise of Lifting Business. Its CLX, a new-generation electric chain hoist designed to meet and exceed the most rigorous reliability, safety and efficiency demands of diversified industrial users, is bringing greater overhead crane efficiency and reliability to Australia and New Zealand. The CLX chain hoist incorporates a longer lifetime, with up to 1600 hours on most models with a full load, and a durable aluminium construction. Konecranes CLX Chain Hoist is a reliable lifting device that increases performance and adds customer value through innovative technology and design, extended lifetime expectancy and high safety.

Air Springs Supply is a leading supplier of air springs and associated pneumatic technology for the manufacturing, transport and other industrial sectors. Established for more than 20 years and representing many world leaders in its field, Air Springs is now an Australian distributor for Firestone, Continental Contitech, Pronal, and Ride Rite products. The Firestone Airomatic Polyactuator range – the most compact pneumatic actuator range Air Springs Supply has ever introduced to Australia – is one of the latest and smallest members of a Firestone actuator and isolator family that includes Airstroke actuators and Airmount isolators in individual stroke capacities up to 40,000 kg and measuring up to a metre across. Firestone developed the Airomatic Polyactuators to satisfy the need for very small spaces and light forces. These highly compact actuators have no pistons, rods or sliding seals, so friction, bending, scoring and wear are not a concern.

22 APRIL 2015 Manufacturers’ Monthly

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Supporting innovation and success BOC is the proud sponsor of the Australian Technology Application of the Year category in the 2015 Manufacturers’ Monthly Endeavour Awards. It is fitting that we are supporting the category which recognises innovation in new technology applications, as it is something that is very close to our hearts at BOC and an important hallmark of our own business. At BOC we aim to be admired for our people, who provide innovative and sustainable solutions that make a difference to the world. These awards

reflect and promote the same kind of spirit, and we acknowledge the terrific efforts of all entrants who share our passion to excel. BOC wishes all finalists the very best of luck in the tenth annual Manufacturers’ Monthly Endeavour Awards and encourages all businesses, big and small, to strive for continuous improvement with commitment, courage and creativity.

BOC Limited

Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia boc.com.au |131 262 BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2015. MP15-0093|SG|MM|0315

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A Member of The Linde Group

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EndeavourAWARDS

PROUDLY SPONSORED BY BY PROUDLY SPONSORED

GLOBAL INTEGRATION

KONECRANES

BATTLEFIELD SPORTS

KONECRANES SMARTON FOR MOLY-COP

SATR2

Konecranes is a world-leading group of Lifting Businesses offering lifting equipment and service that improve productivity in a wide variety of industries. Moly-Cop Indonesia is the first company in Indonesia and one of the first in South East Asia to install the latest Konecranes SMARTON ‘crane with a brain’ with TRUCONNECT remote monitoring and reporting. The SMARTON crane at Moly-Cop Indonesia’s Cilegon plant has some of Konecranes most advanced technology, including smart features like sway control and target positioning to make lifting safer and more efficient. The customer relies on their 15t crane for all their loading and unloading, so if they have lots of deliveries to make, they need to be as efficient as possible.

TECHNOFAST INDUSTRIES HYDRO POWER STATION – SOUTH KOREA Technofast Industries is a worldwide leader and specialist in bolt tensioning, providing innovative technical solutions and uncompromising customer service. Products manufactured at its Brisbane operation include bolt tensioners, hydraulic nuts, plus ancillary items. Following considerable investment in time building relationships within South Korea’s power generation industry, Technofast’s products are now used on one of the country’s major hydro power projects. Technofast’s EziTite M125 hydraulic bolts are being used as an alternative to heater rods previously employed in maintenance. The hydraulic bolting system is applicable to gas, steam, water and wind turbines. It securely fastens together the shaft and turbine blades.

From humble beginnings in the 1990s, Battlefield Sports has gone from strength to strength on the global stage and has become an industry leader in outdoor laser tag equipment. Battlefield Sports’ patented technology enables theme park operators and Family Entertainment Centres alike to create exhilarating events for their customers either inside or outside. SATR, the worldfirst intelligent optoelectronics can simulate the performance and sounds of up to 69 firearms, plus a “Laser Tag” theme. Made in Australia, this is a world-class product designed for numerous markets; it interacts in 13 languages and can be customised. Patented in Australia and the USA. Recently it was invited to the premiere of sci-fi movie Divergent. The task was to create a fan experience outside the Odeon cinema in London.

FROSTY BOY AUSTRALIA Frosty Boy Australia, established in 1976, is a leading Australian manufacturer and supplier of dessert and beverage powder-base products. The company, with its facility in Yatala, Gold Coast, manufactures the equivalent of two million serves of soft serve ice cream per day and exports to 48 countries, wth 75 per cent of sales attributed to export. Indeed, Frosty Boy’s continued success is attributed to its export. Since the company began exporting more than 14 years ago, Frosty Boy has experienced a year upon year average compound sales growth of 18 per cent. The company maintains a commitment to food safety with accreditations regularly monitored by Australian and international industry bodies.

24 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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It’s about

who you know in business. Let ICN introduce you. Industry Capability Network (ICN) is connected with major and regional projects in the country, and works closely with state and federal agencies across Australia and New Zealand. If there is a project, component or supply-chain opportunity that’s right for you, we’ll know about it. ICN consultants have a thorough knowledge of existing and planned projects, and are ready to help your business.

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EndeavourAWARDS

PROUDLY SPONSORED BY

MOST INNOVATIVE MANUFACTURING COMPANY

TEXTOR TECHNOLOGIES

RED ROBOT

NON-WOVEN MATERIALS

PHOTO BOOTHS AND PHOTO SHARING TECHNOLOGY

Textor Technologies (Textor) is a non-woven textile manufacturer for the hygiene industry, and based in Tullamarine, Victoria. Formed in 2000 as part of a management buyout from the English parent company, it has remained a privately owned family business since. Textor specialises in the design and development of materials for the diaper market; its technology evolves around the handling and transfer of bodily fluids. The company’s commitment to innovation is globally recognised. Its philosophy involves not just product and process development, it also includes the business model and the way it treats its employees. In 2014 Textor commercialised a novel 3-dimensional nonwoven material, considered to be a disruptive technology. It provides not only a technically superior performance but also a material that can be perceived by the end user as a clear point of difference which leads to better brand loyalty for Textor’s key customer.

MICRON MANUFACTURING Micron is a new, innovative and creative engineering and manufacturing company. Micron services many market sectors, mainly in the R&D, design and manufacture of new products. They run a lead manufacturing facility in Sydney, with a focus on automation and labour saving through technology. Only seven are employed, with a highly automated operation. It offers complete sheet metal design, engineering and manufacturing solutions, specialising in high-mix, low-volume and highvolume work with the flexibility for 24-hour turn-around on custom jobs. Its turnaround is between 20 and 50 different jobs a week in the Australian market, serving the mining and resources, retail, rail and infrastructure, and government markets.

Red Robot was founded in 2012 by Phil Preston and Duncan Amos. To date there are three major products on offer, along with a series of options and add-ons. RR serves two distinct markets: the photo booth rental start up market, and social photo sharing technologies for branding and marketing purposes. The Photo Booth industry is not something that had existed previously in Australia. Red Robot is a leader and innovator in the industry. Red Robot designs and manufactures Australia’s first fully commercial, portable, single operator, event-based Photo Booth aimed at others wanting to emulate its rental business model. In three short years it has become Australia’s largest manufacturer and exporter of the concept, while helping more than 220 small businesses to start up.

SEELEY INTERNATIONAL Founded in 1972, Seeley International is Australia’s largest air conditioning manufacturer and global leader in developing energyefficient cooling and heating products. A commitment to innovation and excellence is at the heart of Seeley, and its success in delivering on that commitment has been recognised through many awards and an expanding global presence, exporting to more than 120 countries worldwide. This year Seeley launched another world first, its Braemar 7 star ducted gas heater, the highest star rating and most efficient conventional gas heater in the world. The 7 star heater has shifted the paradigm of the star rating system in Australia. It recently invested in a product testing facility worth over a million dollars, which is NATA accredited and based the company’s manufacturing plant in Lonsdale, SA.

26 APRIL 2015 Manufacturers’ Monthly

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SEW-EURODRIVE – Driving the World

Proud sponsor of the Most Innovative Manufacturing Company

Why do manufacturers turn to SEW? One of our core values is service. It’s this proud tradition of providing unparalleled service that forms the cornerstone of the company globally, and why we have a network of state-of-the-art facilities spanning across Australia. It’s also the reason why SEW-EURODRIVE is usually the first address when searching for drive technology to drive this great nation. Many household brands are secure in the fact that SEW is working quietly in the background ensuring a seamless path into the market place.

www.sew-eurodrive.com.au 1300 SEW AUS (1300 739 287) to be directed to your nearest office Melbourne (Head Office) I Sydney I Brisbane I Townsville I Perth I Adelaide

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EndeavourAWARDS

PROUDLY SPONSORED BY

TECHNOLOGY APPLICATION

KEECH AUSTRALIA KEECH 3D ADVANCED MANUFACTURING Keech Australia is recognised as one of regional Australia’s most successful and innovative businesses. From its traditional foundry beginnings, the company now employs the latest technology in design, research and additive manufacturing to produce carbon neutral steel castings for the global mining industry, and is an OEM and direct supplier to the world’s largest miners and equipment makers. Keech’s patternmaking subsidary became Keech 3D Advanced Manufacturing in 2014, investing around a million dollars in Australia’s largest commercial 3D printing machinery. As well as an innovative new business income stream for Keech, Keech 3D’s digital manufacturing enables rapid prototyping for its parent company by eliminating time and labour intensive production steps.

REDARC ELECTRONICS REDARC TOW-PRO REDARC is a technology-based company founded in 1979 in South Australia. It designs, manufactures and provides patented, reliable and fully integrated portable vehicular power solutions and customer-centric after sales service to customers in Australia, New Zealand, France and North America. Its Tow-Pro is a world breakthrough in electronic brake controllers, offering greater safety for motorists towing heavy trainers and caravans. The Tow-Pro electronic brake controller offers motorists the choice of engaging either inertia sensing or user controlled braking on trailers through the simple turn of a dial inside the towing vehicle. It is the first time either mode can be selected through one central unit. Its combination of small/safe dashboard footprint and inertial progressive braking is unique in its market and is the result of significant innovation.

BONFIGLIOLI TRANSMISSION AUSTRALIA Bonfiglioli Transmission (Australia) is part of the international Bonfiglioli group, with 2,500 employees worldwide. Bonfiglioli designs, manufacture sand distributes a complete range of gear-motors, drive systems and planetary gearboxes to satisfy the most demanding needs for industrial processes, automation, mobile and renewable energy applications. Bonfiglioli engineers further reduced the footprint of their powerful but compact planetary/helical Hi Torque combination drives to provide a durable and efficient solution for a new shuttle conveyor drive at Fortescue’s Cloudbreak operation. Additional features included a pump-driven lubrication system, assembled locally to expedite construction and installation.

BOUWMEESTER COMPOSITES TAMMAR CARBON MOUNTAIN BIKE RIM AND CEP MANUFACTURING In 2008 Mello Bouwmeester founded his company in Victoria, producing carbon racing wheels for the road bicycle market in Australia. The popularity of the wheels quickly grew in the domestic racing and saw the wheels claim several national international awards. During this period, the rims were made in Asia to Bouwmeester’s design and specification. In 2012 a new product, direction and focus on local manufacture in advanced composites was taken for the business, by this time Mello had also relocated to South Australia. Tammar is manufactured with an energy efficient advanced composites process to produce a globally leading and optimised carbon mountain bike wheel. The advanced production process creates a new carbon product offering the end user a lighter, stronger and optimised carbon rim for performance compared to aluminium and current carbon rims on the market.

28 APRIL 2015 Manufacturers’ Monthly

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EndeavourAWARDS IT APPLICATION

MANSFIELDS’ APPLICATION OF INFOMOTION ERP InfoMotion ERP takes a holistic view of an organisation’s requirements and delivers an end-to-end single platform software solution which is fully integrated for company-wide deployment and complete with highly automated workflow processes. Mansfields, a privately owned dry food manufacturing company located in Victoria, wanted a system that would replace manual processes and automate the recording of production data, from the factory floor to the office. If data could be captured and reported in real-time, Mansfields would gain benefits in data accuracy, flexibility and resource efficiency. Mansfields estimates that the introduction of InfoMotion and the resulting automation of previously manual processes has reduced demand on resources in administration by 30 per cent.

ZIP HEATERS’ APPLICATION OF MITREFINCH’S TMS Mitrefinch’s employee time and attendance system software (TMS) helps organisations to automate manual tasks, including, recording who is at work, allocating employee time to job codes, highlighting exceptions for approval and calculate award/entitlements. The software can collect employee time and job data from wall-mounted terminals, PC or mobile device, and touch screen kiosks. Zip, a Mitrefinch customer, designs and makes instant boiling water systems sold in more than 70 countries. However, it had an employee time and attendance management that was becoming cumbersome and taking up a lot of management time. Fortunately, Mitrefinch’s employee time and attendance system software was able to achieve all of the business goals that Zip Heaters had (and more). The system was approved and rolled out across Zip sites in New South Wales.

EXPORTER OF THE YEAR

COMPOSITE MATERIALS ENGINEERING Composite Materials Engineering (CME) has been exporting locally manufactured composite products for over 30 years. CME is well known internationally in many industries. However, the company is particularly prominent in the food manufacturing industry. It supplies products to confectionery, pharmaceutical and bakery manufacturers in over 35 countries. CME launched Akril panels in 2006. Akril panels are an alternative to glass and are used in domestic and commercial developments as splashbacks for kitchens, laundries and bathrooms as well as wall panels and signage. In 2014 CME launched the Akril panel product range in the UK and has seen a significant rise in the market in the past 12 months. As well as supplying the local market, the additional business gained through export has enabled the company to become more cost competitive.

COOK MEDICAL AUSTRALIA Cook Medical Australia is based in Brisbane and serves as the company’s Asia Pacific headquarters. The Brisbane facility is also one of Cook Medical’s major manufacturing plants. Medical technology manufactured there is sold in more than 135 countries around the world. From Brisbane, Cook Medical Australia oversees Cook Medical businesses in Japan, China, Korea, India, Singapore, Malaysia, Hong Kong, Taiwan and Thailand. Plans for the future include entering the medical device markets in Vietnam and Indonesia. In 2014 Cook Medical Australia manufactured over 10,000 stent grafts for the treatment of aortic aneurysms, including over 3,000 patient specific custom made devices and just over three quarter of a million needles to assist in the treatment of reproductive health. Of these locally manufactured products, 92% of them were exported to over 130 markets around the globe.

30 APRIL 2015 Manufacturers’ Monthly

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EndeavourAWARDS YOUNG MANUFACTURER OF THE YEAR

JAY THOMAS LOGAN

DANIEL EGAN-WYER

HOWARTH’S SHEET METAL FABRICATION

MACHINERY AUTOMATION & ROBOTICS

Jay Logan commenced work at Howarths in 2009, when he was just 15 years old. Since then has shown his dedication and commitment to his chosen profession, and completed his apprenticeship hours in record time: allowing him to be signed off early. Logan was fortunate to also be a nominee at ‘World Skills 2013’, finishing in the top 10. This was an outstanding achievement for such a young man. Logan is a Sheet Metal Worker 1st Class, who is part of the dedicated team at Howarth’s. He is responsible for the full range of work within the factory including the operation of the company’s Adira Press Brake and Strippet Turret Press. He carries out various welding and assembly tasks as well. Howarth’s Sheet Metal Fabrication is an Australian owned business located on the Redcliffe Peninsula in Brisbane.

Daniel Egan-Wyer has shown great innovation, initiative and technical skill in the cutting edge automation technologies of 3D vision and complex robot control. He has developed structured Visual Basic code to coordinate the actions of a robot and implement the sensing algorithms to automatically execute multiple robot tool changes. Actions include raising the conveyor belt whilst still running and completing replacement of worn idlers with new idlers before lowering the conveyor belt down on the new idler set. Egan-Wyer’s code controls the steps of this process, during normal operation as well as under fault conditions or when the cycle needs to end prematurely. Machinery Automation & Robotics (MAR) is a leading designer and manufacturer of complete industrial automation solutions.

LIFETIME ACHIEVEMENT

JOHN GUEST

MIKE RICH

JUBILEE SPRINGS

ATTACHE SOFTWARE

John Guest is the managing director of Jubilee Springs, one of the few remaining spring companies in Australia. He started in 1973, after his father died and after finishing year 9 at school. He became a fitter and machinist and worked his way through the company, beginning at the factory floor. Among his milestones are decentralising the company from Sydney to the Central Coast, where he managed the building of three new factories. He oversaw the taking over of several companies, including 4 Slide Forming, Peerless Pegs, and C&K Springs. He has seen Jubilee grow from five to over 40 employees, and the multi-generational Australian business is still going strong after 75 years.

Mike Rich started in manufacturing with what is now Fonterra (the world’s largest dairy company), then in meat propcessing, then in the oil industry (where he learned computer programming). Armed with a commerce degree, he moved into smart manufacturing and developed software that has helped over 30,000 SMEs, including manufacturers, improve business performance. Attache is one of the most successful local smart manufacturers, twice winning Software Product of The Year. Rich has been managing director and major shareholder for 28 years, moving into the cloud several years ahead of the others. He is also the “chief engineer” behind its business transformation process, and the voice behind the M Institute, which aims to increase the number of medium-sized firms in Australia.

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MadeIN AUSTRALIA Frosty Boy’s future in Asia looks bright In not much over a decade, Frosty Boy has increased exports from almost nothing to threequarters of its business, selling into nearly 50 countries. Brent Balinski reports.

HE buzz phrase “Asian Century” was one you couldn’t avoid in 2012, but rarely hear nowadays. However, the increasing size of the middle-class in the continent still holds huge potential for Australian food and beverage exporters, such as Frosty Boy Australia. Frosty Boy officially opened a new, purpose-built factory in Yatala at the end of last year, relocating for capacity reasons. Its rapid growth – 18 per cent compound annual growth for the last 14 years, according to the company – has been driven in no small part due to success in Asia. Frosty Boy CEO Dirk Pretorius believes there are two parts to the company’s thriving trade in the continent: smartly and effectively serving its existing customer base, and being visible in its market. The latter includes putting in time at a lot of trade shows. “What you find in these Asian markets, if you just go and look at your QSR [Quick service restaurant] chain, and the growth rate – because of the acceptability of western foods and the demand of western foods in Asia – is [increasing] so rapidly. “Combine that with the disposable income [growth in the middle class], you’ve got a sort of natural growth pattern happening in that market with your existing customers,” he told Manufacturers’ Monthly. The business-to-business manufacturer of powdered soft serve, frozen yoghurt and beverage powders includes Burger King Asia and Wendy’s among its customers. Frosty Boy exports to 48 countries currently, but its success and its focus is largely due to its Asian customers. “We focus on the Asian market in terms of the time that we spend in the market,” said Pretorius, who believes that the business can sustain growth of around 15 to 20 per cent.

Keep the cost down The Yatala site covers 6,000 square 32 APRIL 2015 Manufacturers’ Monthly

metres and has double the capacity of the previous plant. It is the third site the company has occupied since the current owners picked up the company in 1999. The factory’s current output is the equivalent of two million serves of soft serve per day, running two shifts a day, five days a week. “With the previous factory we were running seven days a week, 24 hours a day, in the end,” said Pretorius. “So we’ve made sure we had enough capacity; we’re currently

Firstly, continuous improvement involves keeping abreast of trends in the fast-moving food technology market. New technologies are matched to existing recipes, for example. The second part is the recipes themselves. It’s not a one-size-fitsall approach for what Frosty Boy produces. Recipes must be developed to tastes and/or matched to an existing product. Finally, and also involving collaboration with the customer, involves matching ideas to customers’ menus

The Yatala site has double the capacity of the previous plant. sitting at around 60 per cent capacity on a five day per week production shift. So there’s a little bit more up our sleeve, and that will see us through for the next ten years.” The site runs two lines. These include the line from the previous site at Loganholme and a new, “superhigh-capacity version” of the old line. The facility is highly automated, from measuring to palletising. Despite the high output volumes, the plant can be run with only six people per shift manufacturing product.

R&D is key For Pretorius’s business, research and development means three things.

and suggesting products that match market trends. “The investment in that is basically at our new facility we have a really good R&D [capability] in there, for food tech,” he said. “And obviously getting the best minds in the business as a part of your team to do this work for us.”

Blends and trends Speaking of trends, one that has influenced a recent addition to the business is around beverages. According to research used by Frosty Boy, the beverage market is growing sharply worldwide. Just within Australia, it’s worth $542 mil-

lion, and has grown 10 per cent since 2009. In view of this, Frosty Boy launched its Art Of Blend brand of premium beverages in September last year. “It’s early days though, but it’s definitely taken off much better than expected,” said Pretorius of the addition to the company’s range, which features its own website and brand, distinct from Frosty Boy’s. As part of the mission to get the new Art of Blend (and the company’s tried and true frozen yoghurt and ice cream formulas) to more and more customers, Pretorius was in India spruiking the new brand when we spoke to him. The company’s focus on exports, particularly to that continent, has significantly sharpened since Pretorius began in his role. In 2001, 98 per cent of sales were Australian. These days, 75 per cent of its business is export. Recognition of its success has included qualifying as a finalist in the Premier of Queensland’s Export Awards in both the Manufacturing and Regional Exporter categories. Its export growth – past and future – seems very much an Asian Century story. “If you look at the size of the Australian market and you compare it to, for instance, the size of the market in Asia, where we have 4 billion people, and you look at the middle class in these markets – which is our consumers – and it’s currently more than 600 million people in that middle class,” he said. “And the projection is that this will grow in the next ten years to over 3 billion people in that middle class. It’s a no-brainer basically, on where the focus should be if you want to expand your business.” Frosty Boy Australia 1800 784 197 www.frostyboy.com.au manmonthly.com.au

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Materials HANDLING Optimising crane safety and productivity

ONECRANES, has introduced to Australasia its Crane Reliability Study (CRS) to gather accurate and important data on crane usage and design life, in order to optimise safety, productivity and maintenance programs. CRS is an engineering assessment that studies the current condition of a crane and provides an accurate estimate of its remaining design life. Konecranes follows this up by providing a comprehensive report and expert consultation with a plan for current and future crane usage, providing a valuable tool when dealing with an aging crane fleet, changes in production, safety issues, or other concerns. “Each CRS is customizable to individual users’ specific needs and requirements,” says Mr John Bailey, General Manager, Service Development, Asia MKonecranes A 0 4 1 5 _ South 0 0 0 East _ SC A Pacific (including Australia and New

maintenance contract. “Our highly trained staff utilize the latest technology to provide an expert guide to improving crane reliability and performance,” he said. A CRS is highly beneficial in the following scenarios. Firstly, if production increases, a CRS will determine whether the cranes can handle the increased work. Secondly, if a crane is going to be used for additional tasks other than those specified originally, a CRS will assess whether the crane is capable to safely take on the new tasks, or if not, recommend any necessary changes. Thirdly, when the remaining design life of a crane is unknown, a CRS will provide accurate calculations of it, allowing estimations of safe Konecranes can provide a CRS for any make operational life and maintenance and or model of crane. modernization optimization. lastly, if a crane is experiencZealand), an organisation that glob1 2 0 1 5 - 0 3 - 3 0 T 1 5 : 2 9 : 4 9 And + 1 1 : 0 0 ing any problems or has decreased ally has over 430,000 cranes under

productivity, a CRS can pinpoint the cause of the problem and recommend the best solution. “Konecranes can provide a CRS for any make or model of crane, regardless of age,” says Mr Bailey. “The CRS looks at the overall condition of a crane’s structures and components and evaluates this in detail with a focus on safety, productivity, reliability, usability and remaining design life,” he said. “Knowing what modernizations are needed in advance allows users to prioritize their activities and schedule the work so that the productivity is maximized and uptime of the equipment is increased over its life cycle. This not only helps prevent unnecessary production downtime, but also saves money. CRS helps you to plan the future of your cranes.” Kone Cranes 1300 937637 www.konecranes.com.au

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Confined space lifting solution PHOENIX Lifting introduces a new solution for the safe handling of heavy loads in confined spaces. My-T-Lift is a 360Â° telescopic jib crane that can safely handle heavy loads up to 300kg. Designed for single handed operation, the new telescopic jib cranes can be mounted on trucks, trailers, pontoons and Suitable for use similar structures. indoors and outdoors. The design of the crane allows accurate placement of heavy loads, even in confined spaces. Made from high quality durable steel, the telescopic angle of 360 degrees in the Meister cranes Can safely handle heavy loads up to 300kg. jib crane can be folded down allows a greater area to be serviced. when not in use. Designed to Australian Standard AS 1418, The telescopic jib cranes are available with an optional manual winch consistMeister column mounted slewing jib cranes ing of a 6-metre rope or a 12- or 24-volt electric winch, featuring a rope length of can be supplied with motorised slew or 12 metres. manual hand drive slew. The cranes are available in a 150-10,000kg SWL range. Phoenix Lifting The company supplies a range of slewing 1300 875 611 2 0 1 5 - 0 3 - 1 2 T1 4 : 2 0 : 0 4 + 1 1 : 0 0 jib cranes and lifting equipment. www.phoenixlifting.com.au

Column mounted slewing jib crane PHOENIX Lifting presents the proven range of Meister slewing cranes designed to deliver safety and efficiency in the workplace. Ideal for use almost everywhere including indoors, outdoors, on production lines, despatch areas and loading bays, Meister column mounted slewing jib cranes come with a large M range A 0 4of1accessories 5 _ 0 0 0 and _ Kstandard ON 1 parts for unlimited versatility. The slewing

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manmonthly.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly APRIL 2015 35

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Management Does manufacturing have a future? The mining boom presented Australia with a once in a generation chance to reposition its economy for sustainable growth. But, writes Professor Roy Green, we squandered it.

CHARACTERISTIC feature of economic booms is that those caught up in the excitement believe they will go on forever. Australia’s recent mining boom is no exception. Following the pattern of resource-based economies, a commodity price hike increased our terms of trade without any special effort on our part – adding 15 per cent to our national income over a six year period while the rest of the world languished in recession. Did I say the rest of the world? Some countries performed much better than others, and I’m not just referring to the obvious example of China and emerging markets. The advanced economies which recovered most strongly from the global financial crisis – Germany, Sweden, Switzerland – also have the most competitive manufacturing sectors. How can this be when manufacturing is supposed to be in terminal decline? I’ll come back to this question in a moment, but first let’s revisit Australia’s boom, which ended in predictable symmetry with the way it began – a commodity price collapse. This precipitated the biggest reversal of our terms of trade in five decades with immediate impact on our national income. Is it any wonder this government and the last have found achieving budget balance so hard? We must come to terms with the painful reality that Australia has squandered a once in a generation chance to reposition its economy for sustainable growth. The question is not whether it could have been different, as we know in retrospect it could, but what policy lessons can be learned for the future? The Dutch had to learn these lessons the hard way in the 1970s when a currency spike associated with North Sea gas made their manufacturing sector uncompetitive. The phenomenon was given a name – the ‘Dutch disease’. The British did no better, in fact arguably worse, when

36 APRIL 2015 Manufacturers’ Monthly

The mining boom was never going to be a substitute for a robust manufacturing sector, says Roy Green. in the 1980s they cheerfully frittered away the proceeds of their oil bonanza in tax cuts and a consumption boom, rather than a long term investment strategy. It has taken more than a decade for the UK to rebalance its economy, with a renewed focus on manufacturing. Only the Norwegians understood the lessons of these dismal but instructive experiences. They took a public stake in their oil assets and imposed not a 20 or 40 per cent but a 76 per cent resource rent tax. They also established a sovereign wealth fund to quarantine exchange rate effects and invest in their research and innovation infrastructure. Clearly, these measures will enhance Norway’s capacity to diversify its industrial structure as the oil price plummets. Likewise, Australia’s challenge is to identify new sources of growth, based not just on our comparative advantage in raw materials, subject as they are to diminishing returns, but on the ‘competitive advantage’ conferred by knowledge and ingenuity. This will mean rethinking our

approach to manufacturing, with the prospect of increasing returns in high value segments of the world market. But we face three additional hurdles which compound this challenge. First, while the dollar would normally have fallen with the terms of trade, it refused to do so until recently, and even now may be overvalued. The effect has been to make it harder for trade-exposed non-mining activities to plug the gap left by mining. As a result, the large scale job losses in manufacturing over the last five years are attributable more to import competition than the labourdisplacing technological change which has characterised manufacturing historically. The second, related hurdle is the deterioration of Australia’s productivity performance since the 1990s, masked as it was by the terms of trade. This deterioration not only subtracts from current and future growth, but exacerbates our competitiveness problem. As a high cost economy, Australia must undertake a fundamental shift from domestically focused mass production – a legacy

of tariff protection – to more flexible and specialised activities in global markets and value chains. The Europeans call this ‘smart specialisation’. The third hurdle can only be described in Paul Keating’s memorable phrase as policy indolence. Just at a time when governments around the world are recognising that the way out of secular stagnation, unemployment and environmental degradation is through productivity-enhancing investment in innovation and skills, the Australian Government is reducing its contribution to this vital strategic objective. This is all the more extraordinary when we cast our minds back to the 2008 review of the national innovation system, which lamented that we didn’t have much of one. Australia ranks poorly for business-university collaboration, not because of market failure but ‘systems failure’. And we still do, as the present Industry Minister has publicly acknowledged. How can manufacturing help us to reimagine our future? In becoming more globalised, knowledge-intensive and interdependent with service design, robotics and digitisation, manufacturing matters more than ever for advanced economies. This is firstly because it drives innovation and technological change, and secondly because it contributes to the external trade balance. On the first point, manufacturing accounts for a quarter of Australia’s private sector R&D expenditure. And even more is spent on ‘non-R&D’ innovation, such as new business models, systems integration and high performance work and management practices, with diffusion effects throughout the economy. Second, without a manufacturing base, Australia would need to import more consumer and capital goods, reinforcing our chronic inability to run a positive trade balance. Additional borrowing to do so together with the repatriation of resource profits would manmonthly.com.au

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expose serious vulnerabilities in our external position. Before the global financial crisis, conventional wisdom viewed the current account deficit as irrelevant. Since then, economic opinion has switched as financial markets savaged countries excessively dependent on foreign borrowings. It is increasingly recognised that accelerating deindustrialisation results in countries going backwards technologically with a diminished capacity for innovation. Other industries cannot substitute for this loss in capacity. While the resources sector increased its R&D spending to match manufacturing, this has mostly been directed at tax minimisation rather than technology maximisation. Also sales of locally made equipment to the resources sector amount to just 2 per cent of total annual manufacturing sales. The mining boom was never going to save or substitute for a robust manufacturing sector. Without manufacturing, we face the prospect of losing science and engineering expertise. Manufacturing directly employs one in five engineers in Australia, and many more indirectly. Many people initially trained in manufacturing move to other industries. Where will the engineers, technicians, maintenance fitters and machinists come from to install and maintain our telecommunications, power stations, water plants, transport and defence systems? The resources sector does not train for these skills, but ‘buys them in’. How long will the taxpayer fund research in solar energy, aerospace, microelectronics, advanced materials, nanotechnology and biotechnology when the industries that use these

“

Where will the engineers, technicians, maintenance fitters and machinists of tomorow come from... manmonthly.com.au

high level skills to innovate and make new products have disappeared? The Productivity Commission has already questioned public support for science and engineering when the benefits of resulting knowledge accrue to other nations. Recent experience should be sufficient to dispel the myth that advanced economies can offshore their manufacturing base and retain high value design and marketing. Asian firms that started as cheap no-name makers of western-designed and branded products have quickly become global manufacturing leaders. Manufacturing is changing the world and is itself changing as the prime source of transformational products and services. Australia’s commodity boom was an opportunity to build this transformational capacity, not to let it slip away in the name of a ‘black box’ economic model. Now we must do so in less favourable circumstances. Despite over two decades of trade liberalisation, Australia has a predominance of low to medium tech manufacturing, in steel, non-ferrous processing, building products, basic chemicals and food processing. On the other hand, we scarcely register in high tech manufacturing, despite some notable success stories. Around the world, ‘micromultinationals’ are superseding vertically integrated corporations through niche production in global networks and value chains. This is the future of manufacturing, but also the largest component of Australia’s trade deficit. The alternative is manufacturing decline. Some economists would argue that this is not a problem at all but ‘structural change’ which results in a re-allocation of labour and capital, leaving us all better off. The main deficiency of this approach is that it confines itself to asking how a fixed quantity of resources can be efficiently allocated. Consequently, it sees industry assistance as a zero-sum game, with some firms benefiting at the expense of other producers and consumers, with no net economic gain. By contrast, influenced by the work of Joseph Schumpeter, other economists are beginning to model

Australia scarely registers in high tech manufacturing. capitalism as a ‘dynamic system’, where change is the only constant. It is increasingly understood that because innovation is risky and expensive, and information is costly to acquire and use, government has a role in reducing risk and encouraging the uptake of new technologies and skills. This is the role of the ‘entrepreneurial state’. The former Labor government commendably brought innovation to the forefront of industry policy. This included support not only for R&D and entrepreneurial start-ups in high tech manufacturing but also the development of innovation capability in low and medium tech firms. After a shaky start, and a barrage of policy advice from business groups, the Coalition government has begun to craft similar measures, albeit with minimal funding. The centrepiece of the government’s approach is five new ‘Growth Centres’, including one for advanced manufacturing, which will be designed to encourage business- university collaboration. These have been allocated around $190 million, compared with almost $3 billion for the UK Catapult Centres, on which they are modelled. In my view, a shared vision of future manufacturing in Australia should have three main elements. First, it should intensify the engagement of industry with research institutions, given the importance of public research in our innovation

system. Second, it should further enhance the ‘absorptive capacity’ of manufacturing firms, along with more effective public procurement, so they are better placed to participate in global markets and value chains. Finally, there should be a renewed emphasis on management and workplace innovation as the key to a competitive, knowledge-based economy. Our own recent analysis of Australian manufacturing management showed that the area where managers most lag world best practice is ‘instilling a talent mindset’. There is no shortage of talent and creativity in Australia, as many examples attest, including among our successful manufacturers. The real deficit lies in the performance of our innovation system, the imagination of our policy-makers and the capacity of our managers to nurture talent and deploy it to full potential. This is an edited version of a presentation which originally appeared on Ockam’s Razor, ABC, February 22 2015. Reproduced with the author’s permission. [Professor Roy Green is Dean of the UTS Business School, University of Technology Sydney. He chaired the CSIRO Manufacturing Sector Advisory Council, the NSW Manufacturing Council and the former Australian Government’s Innovative Regions Centre.] Manufacturers’ Monthly APRIL 2015 37

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Exporting Time to chase the tiger Exporting, like so many things in life, is all about timing, and with India’s star on the rise, now could be the opportune juncture to go hunting. Alan Johnson reports. (Part II)

INCE his election in May last year, Indian Prime Minister Narendra Modi has set the world’s largest democracy on path of economic reform. For example, he has instituted ‘Make in India’, a national program designed to transform India into a global manufacturing hub. When Australian manufacturers first hear about the program, they might think of it as competition. However, as Nicola Watkinson, Austrade’s Trade Commissioner for South Asia told Manufacturers’ Monthly, that is not the case. In fact, she said, the program offers Australian manufacturers a huge opportunity, because up until now the manufacturing sector in India, as a whole, has not been particularly competitive. “Now there is a huge amount of government support, at both the state and federal level, to try and improve the competitiveness of Indian manufacturing, meaning there are a number of opportunities for Australian companies,” Watkinson said. First she said is India’s economies of scale, something Australian companies need if they are going to expand beyond their domestic horizons. She said Indian companies are actively looking for new technologies, new innovations and solutions that will allow them to become more competitive. “For Australian manufacturers this is a great opportunity to showcase their skills. They have shown their manufacturing expertise in short production runs, and managing the complexity of being nimble, lean and flexible,” said Watkinson. “There is a lot of expertise in Australia that can help Indian manufacturers to implement process and product innovation as well as sell into the value chains that they are creating.” In January this year, over 300 Australian companies joined Trade Minister, Andrew Robb, in India for 38 APRIL 2015 Manufacturers’ Monthly

one of the largest Australian trade promotions ever held. Watkinson said Australia Business Week in India was very successful and a serious commitment to genuinely explore Australia’s trade potential with India. “India is now a reforming economy as well as a developing one, and Australian companies should make efforts to understand this as well as act on it,” she said.

automotive sector. Many might not realise that India is the world’s third largest producer of cars, and will keep growing. “But there are other opportunities, to feed into those value chains that the Indians are building now as they become more competitive across a whole range of industry sectors.” She said the third aim was to attract Indian investment into some of Australia’s small technology and start

improve, but now Modi wants India to be a place where people come to see good manufacturing and over time to export products.” Watkinson explained that, at the moment, very little of India’s manufacturing is exported. “India mainly manufacturers products for the domestic consumer, whose market share has been eroded in recent years by imports. Basically, China and other countries produce better quality goods for a cheaper price,” she said. “So India has to improve its manufacturing productivity in order to compete on its own domestic stage as well as becoming good enough to be able to export, and that is where I see Australia’s capabilities can support it.

Challenges

Watkinson said the aim of the trade week was to get Australian manufacturers to meet leading Indian manufacturers and corporate houses to achieve three outcomes. “Firstly to get manufacturers some direct supply contracts. One company, for example, might have a very efficient water filter suitable for Indian manufacturers along the Ganges River, where new rules dictate zero liquid discharge,” she said. “The second aim revolved around value chain integration. Already we have a number of Australian companies that are feeding into India’s

up manufacturing companies, those who find it so hard to win support domestically from banks and other financial institutions. “While Australia is small, what we offer is a strong capability in technology and innovation in both product and process innovation,” Watkinson said. “Indians are actively looking on how they are going to deliver on Modi’s Make in India campaign and they can only do that by becoming competitive in their domestic market, because up until now it has been very fragmented and very protected. “There hasn’t been the need to

Regarding dos and don’ts Watkinson admitted India has some challenges, but said things like bribery and IP protection are not pronounced issues in the market. “IP protection is not the same degree of problem as manufacturers have experienced in China,” she said. “In India, we have the Westminster system and the legal system is a lot clearer, if quite slow. You should avoid using it if you can, but it does move to protect IP.” Watkinson said the real challenge in India is to work out which part of India companies should tackle first. “It’s a huge market, with each region having its own special characteristics,” she said. For example, Watkinson suggested equipment manufacturers should focus on Calcutta, for that is where the big companies are. “However if company manufactures IT equipment then the focus should be on Bangalore, and be part of the development there, or if an automotive manufacturer, they should be looking at Chennai,” she said. She said the first challenge for Australian companies is not to see >> manmonthly.com.au

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Exporting >>

India as one market but to pick a part of India to start with and to look at how they do business in that location, because the different states’ rules are quite specific to each jurisdiction. “It is best to go into one location and succeed there, and then expand out from that part into other areas of India. Getting that decision right first is really important,” she said. According to Watkinson, the second challenge is having a market entry strategy. “What strategy are you going to use, are you going to have a local distributor here, enter a JV partnership or set up your own company?” she said. “There is a lot of work that needs to be done to look at the best approach would be for different industries.” She said having a good partnership is very important in such a complex market. “Finding a partner that doesn’t have a history of problems regarding bribery and other issues is important,” she said.

How it’s done The joint venture between India’s Tata Steel and Australia’s BlueScope Steel is an example of how Australian manufacturers can find new markets and new revenues overseas. The partnership, which was first established in 2005, has outperformed expectations, powered by India’s economic growth. Today, Tata BlueScope Steel has three business divisions in India offering premium brand steel products for building and construction. The company has four state-of-theM A 0 3 1 5 _ plants, 0 0 0 _supported MO S art manufacturing

40 APRIL 2015 Manufacturers’ Monthly

Australia’s merchandise trade with India A$m 20,000 16,000

Exports

12,000 8,000 4,000

2008-09 2009-10

Imports

2010-11 2011-12 2012-13 2013-14

Compiled by the Economic Diplomacy, Trade Advocacy & Statistics Section, DFAT, using the latest data from the ABS, the IMF and various international sources. India. Having a global brand does not by a network of sales offices. A board guarantee acceptance by the local that comprises representatives from market,” he said. both companies governs the Tata “We learnt this the hard way. We BlueScope business. based our business case on achieving BlueScope, which had limited oppremiums because we held a signifierating experience in India, opted for cant share of the Australian market a joint venture because of Tata’s local and we thought we would achieve brand recognition and its corporate similar results in India. values. Tata had strong growth ambi“But that was not to be the case. tions, and a marketing and branding We had to do the hard slog of buildethos similar to BlueScope. ing brand value. This is one of the Tata BlueScope’s CFO, Shyamreasons it so important to have a sunder, an Australian national, said strong, well-recognised local partner.” the move into South Asia has helped People often underestimate or BlueScope to increase revenue. misunderstand India’s strong busiHowever, he said operating in an ness culture, which Shyamsunder economy of rapid growth yet poor insaid is different to other South-East frastructure posed a few challenges, Asian countries. with the Indian market highly price He said English literacy, numerasensitive. cy, and engineering skills are strong “You can achieve premiums for in India. This gives India an edge in your product only after proving its 1value, 2 0and 1 5that - 0 takes 2 - 2a6long T 1 time 5 : 3in0 : 4 business 1 + 1 1 and : 0 0 entrepreneurialism.

“India has a strong, confident business culture. Even at the corporate leadership level, people are entrepreneurial in ways that surprise those from a western corporate culture. And Indian companies are prudent about investments,” Shyamsunder said. “Australian companies have to be prepared to work through these issues to find a way forward that works for both sides.” He also explained that the country has a hierarchical and paternalistic management style where the subordinates believe that being the boss means they need to be consulted on almost all decisions. “Even highly qualified subject matter experts will always feel obliged to refer to their managers. This takes some getting used to for Australian companies,” he said. Shyamsunder also said that protecting IP, careful use of language, and respect for cultural and religious sensitivities are important in India. “Having said all this, a well led and adaptive Australian company can overcome these issues and create important new markets and revenue streams in India.” Part I of this article appeared in the March issue of Manufacturers’ Monthly. [Alan Johnson is Manufacturers’ Monthly’s former editor. He has researched and written about all aspects of the Australian manufacturing sector for over 25 years.] Austrade 13 28 78 www.austrade.gov.au

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