Manufacturers' Monthly December 2011 by Prime Creative Media

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INSIDE Water Management >> Wallplanner 2012 >> Health & Safety >> Maintenance >> Warehousing >> New Technology for 2012 >> New Products >> Industry News >> Events & Training

MANUFACTURING OUTLOOK 2012 >> How to be one of Australia's Top 100 Manufacturers!

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Publisher Michelle Graves michelle.graves@reedbusiness.com.au Managing Editor Sarah Falson Ph: (02) 9422 2480 Fax (02) 9422 2722 sarah.falson@reedbusiness.com.au Journalist Annie Dang Ph: (02) 9422 2964 Fax (02) 9422 2722 annie.dang@reedbusiness.com.au Editor-at-large Alan Johnson Ph: (02) 9422 2325 Fax (02) 9422 2722 alan.johnson@reedbusiness.com.au Graphic Designer Ronnie Lawrence ronald.lawrence@reedbusiness.com.au Creative Director Julie Coughlan Production Co-ordinator Mary Copland Ph: (02) 9422 2738 mary.copland@reedbusiness.com.au VIC/Overseas Sales Michael Northcott PO Box 3069 Eltham VIC 3095 Ph: 0448 077 247 michael.northcott@reedbusiness.com.au NSW Sales Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067. Ph: (02) 9422 2368 Fax: (02) 9422 2722 Mobile: 0414 644 664 anthony.head@reedbusiness.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@reedbusiness.com.au SA/NT & WA Sales Reed Business Information Ph: (02) 9422 2368 anthony.head@reedbusiness.com.au Head Office Tower 2, 475 Victoria Avenue, Chatswood NSW 2067 Locked Bag 2999 Chatswood DC Chatswood 2067 Ph: (02) 9422 2999 Fax: (02) 9422 2966 Published 11 times a year Subscriptions $140.00 per annum. (inc GST) Overseas prices applyPh: 1300 360 126 Printed by Geon Impact Printing 69 – 79 Fallon Street, Brunswick VIC 3056 Ph: (03) 9387 7477

DECEMBER 2011

For daily news visit manmonthly.com.au

4 Editorial ■

When did tackling climate change stop being positive?

6 Comment ■

Carbon tax should reflect EU trading model.

8 Analysis News ■ ■ ■

Industry employment up but attitude down. Opportunities in mining sector. ‘Greening’ the tyre industry.

14 Lean Manufacturing ■ ■

What it means for the shop floor. New technology for 2012.

After spending $900k trying to recover from Queensland flood damage (above), Millatec Engineering’s MD, James Johnson, shares some hard-learnt insurance tips.

18 Maintenance ■

Tips learnt from administration woes.

20 Water Management ■

26 What’s New

32 Materials Handling

■

How to gain financial returns.

The latest manufacturing products to help your business get ahead in 2012.

21 Top 100 Manufacturers – Special Report

30 Health & Safety

■

Lessons learnt in 2011. What to expect in 2012.

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Inside

INSIDE Water Management >> Wallplanner 2012 >> Health & Safety >> Maintenance >> Warehousing >> New Technology for 2012 >> New Products >> Industry News >> Events & Training

MANUFACTURING OUTLOOK 2012 >> How to be one of Australia's Top 100 Manufacturers!

Warehouse racking for earthquake conditions.

34 Packaging Equipment Body protection products and tips for industrial workers.

■ ■

Quality control for niche production. Clear plastic tubes.

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Website: www.profilecuttingsystems.com Manufacturers’ Monthly DECEMBER 2011 3

Editorial

SARAH FALSON – Editor

editor@manmonthly.com.au

Taxing times for dirty industry Cutting greenhouse gas emissions to make Australia cleaner will help preserve our country’s future. So why are manufacturers so dirty about the carbon tax?

HE carbon tax was passed through the senate last month, sign-posting the end of months of speculation from Australia’s manufacturers over whether or not the reform will go ahead. Now, Manufacturers' Monthly readers have no choice but to prepare for a future alongside the much-debated tax. For some, the reform is a natural cost of living with climate change. For others, the tax is an unnecessary burden on their businesses, and possibly their livelihoods. Either way, the carbon tax is imminent. It has been on the political agenda in one form or another since before the 2007 federal election, so its passage into policy last month should not have come as a surprise to manufacturers. But policies affecting businesses come and go. And from time to time, new laws are passed. Australians either celebrate or damn the decision; a few weeks pass, and then they move on. So why is the carbon tax still being met with so much opposition? Put simply, the tax doesn’t make sense – not to families struggling with rising electricity, grocery and housing prices, and certainly not for manufacturers battling the

high dollar, overseas competition, the mining boom, a two-speed economy, job losses, industrial action, and any number of other ailments seemingly destined to wipe-out the industry for good. Just look at the latest PMI, which shows manufacturing activity declined during October due to a serious lack of new orders. The industry has had an extremely tough year, and their Christmas present for weathering the storm is a big, fat, tax. To add insult to injury, both the government and trade unions insist the carbon tax is a positive reform for the industry: Just look at how many jobs it will create! See how it will boost the economy! This is the answer to global competition! And every time the government plugs the benefits of the tax, as though it’s a gift for the economy, local manufacturers shrink just a little bit lower knowing that, come July 2012, the $23-per-tonne carbon tax will be just another item on their list of overdue bills. Here lies the problem. The reason the tax was thought-up in the first place has been forgotten – lost in the jumble of politics, fighting and self-righteousness. Picture this: the carbon tax is going to cut the carbon emitted into Australia's atmosphere by at least 160 million tonnes a year by

2020. This will help ensure the longevity of our natural resources, animals, and people. It will make Australia a cleaner, healthier place for our grandchildren, and their grandchildren. But before it even starts killingoff carbon, the tax is instead killing-off optimism. A report published on Manmonthly.com.au shows one of the major factors holding back manufacturing business growth is attitude; industry negativity has caused stagnation. People don't like paying taxes – it's as simple as that. A policy designed to unite industry to tackle a higher cause should come with a reward – not a punishment paid by ‘dirty’ industry. It's called ‘positive reinforcement’. Punishing industry for emitting carbon dioxide might make sense in the short-term, but it will cause detrimental and lasting side effects – and these have already begun to show in the gloomy attitude out there in our factories. Manufacturers would be much happier about forking-out for their carbon if the government created a rewards system, where every time a company paid $20 for a tonne of emissions, this money went towards creating clean technology to make saving that carbon easier. Millions of dollars could be thrown into more research and

The government should provide realistic incentives if it wants manufacturers to get on-board with the carbon tax.

development centres where Australian manufacturers could collaborate to create new and amazing innovations – not only in the area of clean technology, but also in infrastructure development, biomedical and pharmaceuticals research, and skills development to recruit tomorrow’s manufacturers. Everyone with a ‘carbon share’ in that development would get a slice of the profit once it went to market, meaning carbon prices wouldn’t have to be passed on to the consumer at all. If the government wants Australia to enter its clean energy future – and who doesn’t? – then it should work harder not to get the very same industry offside that will create the technology. Manufacturers just want to make stuff. Shouldn’t we let them get on with it?

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4 DECEMBER 2011 Manufacturers’ Monthly

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Comment

HEATHER RIDOUT – CEO Australian Industry Group

editor@manmonthly.com.au

A funny way to start a reform The carbon tax starting price is too high and doesn’t flex to match macroeconomic conditions, such as a recession or a boom. Heather Ridout writes for MM.

N recent weeks, European Union carbon permits in the EU emissions trading scheme were being traded at less than AUD$13.50. The price has been driven down by Europe’s ongoing debt crisis, which is adding to global economic uncertainty. That’s the way their scheme is meant to work: the carbon price flexes to match macroeconomic conditions, falling in a recession and rising during a boom. Australia is about to get an emissions trading scheme too, but for its first three years the scheme allows no price flex at all. While there may be sound arguments for a fixed priced period with a reform as complex and long-term as this, the price set must be sensible, reflecting domestic conditions and interna-

tional prices. Starting at $23 a tonne, the Clean Energy Act’s fixed-price phase fails that test. The fixed price also comes on top of the already high price imposed by the plethora of carbon reduction measures in operation at both State and Federal levels. An economy such as ours clearly needs a gentle transition that provides the ability to respond to global conditions. Manufacturing is struggling against the intense headwinds of the high dollar, fierce international competition and global economic turmoil. The energy efficiency investments that should help them weather higher electricity prices can take years to put in place, even with capital grants. Yet instead of a gentle

ramp-up, these vulnerable industries will be immediately exposed to the full force of the carbon price. That price is significantly out of line with current international carbon prices. While prices have been higher at times, EU carbon allowances are running at less than 60% of the Australian price. And offset credits under the CDM are cheaper still, trading this week at less than AUD$9.30. That matters even more than the EU price, because the Australian scheme will be linked to the CDM from 2015–16: liable businesses will be able to use CDM offsets to meet up to half their liability each year to 2020, and 100% thereafter. The CDM price is expected to temper the Australian carbon price. With

credible overseas abatement available at a low price, why would businesses bid much higher at Australian carbon auctions? Access to genuine overseas offsets is fundamental to achieving least-cost abatement for Australia, where the marginal cost of cutting carbon is higher than in developing countries. Under the Clean Energy Act, though, Australian businesses don’t have access to those offsets until 2015. In the meantime the carbon price won’t be tempered at all: it will be fixed, and fixed at a price much higher than would be imposed if full international trading were allowed from day one. There are practical problems with hastily setting up a trading platform, of course. But there is no reason whatsoever that the fixed-phase carbon price cannot be set at a much lower level. www.aigroup.com.au

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EFIC DID MORE THAN FINANCE MY EXPORTS

THEY GOT BEHIND THEM. Bob Wright, Chief Executive Ofﬁcer, Environmental Systems & Services

When we won a contract to install advanced satellite tracking ground stations with the Polar Research Institute of China, it should have been a dream come true. The complication was that as a new client, they wanted reassurance that we could fulﬁl the contract. With our reputation gaining momentum in the region this was a contract integral to our growth. We needed a solution that enabled us to support our ongoing business while pursuing overseas opportunities. EFIC provided more than just a ﬁnancial solution, they took the time to get to know our business and considered

our performance risk as well as our experience in delivering on past projects. EFIC supported us with an advance payment bond as well as a performance and warranty bond, enabling us to reassure our buyer and successfully fulﬁl the contract. EFIC were focused on helping us realise our export ambitions. This deal transformed our business, and we’ve gone on to win multiple contracts in the region.

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AnalysisNEWS EVENTS DECEMBER 6: Hands On Risk Assessment/Validation Training Treotham Automation’s half-day, Sydney session covers machinery using Sistema Software (EN-ISO 13849, Revision of EN 954-1). Register at www.treotham.com.au 5–7: Project Engineering – Fundamentals of a Project Lifecycle A 2.5-day Perth training course providing understanding of the project lifecycle in the chemical industry, from concept, through to final handover and plant start-up activities. Register at www.icheme.org/projeng 5–6: Practical Motor Protection, Control and Maintenance A 2-day workshop for anyone using electrical motors in the industrial or automation environment. Go to www.idc-online.com/training_courses

8 DECEMBER 2011 Manufacturers’ Monthly

Activity, employment up BY SARAH FALSON

HE rate of manufacturing decline eased in October, with the Australian Industry Group – PwC Australian Performance of Manufacturing Index (Australian PMI) showing industry activity rose 5.1 points to 47.4 during the period. A 47.4-point PMI is below the 50-point mark separating expansion from contraction however, meaning industry activity did decline during the month, but at a slower rate than previous months. According to Ai Group, the decline was particularly pronounced across the clothing and footwear sub-sector, which fell off a cliff during the month, down to a worrying 30 PMI points. Sub-sectors linked to the construction industry, including wood products and furniture,

fabricated metals, and other construction materials, also showed negative growth. Slowing sales, the ever-strong Australian dollar, cheap imports and weak housing and commercial construction were blamed once again for the decline in manufacturing activity. Interestingly, local manufacturers also cited the shortage of skilled workers as a significant barrier to industry growth. Australian Industry Group chief executive, Heather Ridout, said Australian manufacturing is doing a good job of battling against these oppositions to growth, however the industry isn’t in the black just yet. And, though new orders rose 2.3 PMI points to 46.9 during the month, we still want to see new orders rising above the 50-mark. “New orders remained soft suggesting that there are no real signs of a substantial, near term

pick up in the sector," Ridout said of the PMI. Happily, manufacturing employment did grow in October, after a long 11 months of contraction. This sub-sector rose to 51.6 points, due to increased hiring in the mining sub-sector, which includes manufactured chemicals, petroleum and coal products, along with machinery and equipment. PwC Australian head of industrial products, Graeme Billings, said the easing contraction in October and the rising employment levels is encouraging, but the industry has a lot of hard work to do if it wants to face more challenges in 2012. “Manufacturers need to continue to invest in productivity in order to lift competitiveness, a key determinant for the long term outlook for the sector,” he said. www.aigroup.com.au

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AnalysisNEWS

Opportunities knock: don’t miss out BY ALAN JOHNSON

ITH very few companies operating at full capacity, it’s surprising to hear that not every manufacturer in Australia is registered with ICN (Industry Capability Network). ICN must offer the best deal in town. The not-for-profit organisation has the potential to involve local manufacturers in some of the biggest projects in Australia and overseas, with no cost to the local business or its suppliers. One company that recently took advantage of ICN’s offerings was Garden City Geotech, which until recently was manufacturing plastic horticultural containers and plant pots for nurseries. Graham Brown, Garden City Geotech’s business development manager, said the company faced a major problem when, due to market consolidation, it ended up with a large market share. “We felt vulnerable, plus it is a very mature market with little potential for growth,” Brown told Manufacturers’ Monthly. “We were also involved in vacuum forming of seedling containers and that got us into sheet extrusion. The problem was, we were focussed solely on the nursery industry with seasonal variations and weather conditions. “The thought was we should capitalise on our plastics technology and find other markets utilising our expertise in processing polymers. “When we became aware of ICN, they put us in touch with the Northern Victorian Irrigation project which was very receptive to a local manufacturer of geomembranes, which is basically a very wide plastic sheet used for channel lining. “That was the catalyst for us entering the geomembrane market. But we didn’t want just to supply one customer, so using ICN we went around Australia and found we had enough support to go to the next stage. “The mining industry is the big end of the market, with two thirds of the geomembrane business – it uses massive quantities of it – plus agricultural for dam

10 DECEMBER 2011 Manufacturers’ Monthly

linings. And it’s all imported.” Brown said the company can meet all the specifications required and, despite the strong Australian dollar, they are competitive in part because the polymer pricing in Australia is tied to an import parity cost. The company has invested over $6m in equipment and facilities over the past two years, and is close to full production – in full commissioning and testing mode. Brown explained that the firm’s dual extrusion calendared sheet line, with Honeywell gauge control system and a Zumbach pinhole detector, can produce sheet up to 8m wide and 4mm thick, which is “the biggest in Australia by a long way and will mean an extra 16 to 18 positions on top of our current 250 employees around the country”. “The fact that we have another complementary market, in terms of our technology base, means we can use that expertise to get into a different market which has growth – water conservation and mining. “Once operational we expect to produce up to 8,000t of product a year; however that will supply less than a third of the imported product. “We will then be looking at another line which would give us more security and more market share.”

How ICN works Derek Lark, ICN’s executive director, said Garden City Geotech’s story is not unique. “We have helped thousands of companies for nearly 30 years now, and I advise all manufacturers to get on board,” he said. “It does take a little time, but it could be as short as 15 minutes. Yes, I know manufacturers are busy, but this could be the difference between a profit and a loss for the financial year.” Lark explains it’s not just about your present capability, but your potential capability too. “Most buyers are now more sophisticated. In the past they asked for companies that made three phase motors, for example, and we would give them an inde-

ICN’s expertise has led local manufacturer Garden City Geotech into exciting new opportunities in the mining industry.

pendent list; we don’t recommend one above the other. “But now, buyers want to know about three phase motor manufactures who we can pre-qualify to certain requirements. They will stipulate very tightly what they want, particularly around their commercial ability to deliver their quality and their ability to meet certain standards. “So today, we need to know a lot more about companies than we have ever known, and while we have 50,000 companies on our database, there are a lot of legacy companies that have been in the system since day one. “To do our best job and get local SMEs on these big contracts, we need to know more about them and we need them to keep their data up to date. “We understand that for SMEs, inputting their data can be onerous. We have been provided with funding by the federal government to build a new system that can take that data in just once for SMEs, and the organisations we have alliances with can access it.” Due to go live mid-December,

the alliances include state and federal government industry development offices and industry associations. “We have now built a system that is about suppliers and buyers. At the moment, we have 117 major projects with contracts worth over $100bn on our system, for suppliers to look at and to register interest,” said Lark. Lark says the projects range from resources through to defence and include the Air Warfare Destroyer program, the massive Chevron Gorgon project, and the Olympic Dam expansion. “Basically, we have every sector covered where there is a major contract, with sector managers to further assist suppliers. Then on the back of these we have directories for each major sector that the government has funded us to pursue: rail, water steel, mining, health, oil and gas, clean tech and NBN,” Lark said. “Then on top of that we have a very successful automotive program which now includes local and overseas companies who manufacture in North America, plus Access Auto, a dedicated webpage for the automotive industry. This is a portal for local industry to showcase its capabilities overseas. “It’s all about promoting Australian industry’s innovation and capabilies into local and global markets. We get SMEs the best chance of winning contracts. “ICN doesn’t guarantee you are going to win a contract, but if you are not there we can’t tell the buyers about you.” ICN 1300 961 139, www.icn.org.au

Top Tweets in November (quack!) What you missed last month on Twitter… • Government export finance guarantees Quickstep JSF composites success <Visit: bit.ly/uPsqVb> • Thales satellite systems engineering degree launched in NSW <Visit: bit.ly/tdAgC1> • Food industry to lose 130,000 jobs by 2020 <Visit: bit.ly/uF0LnS> • Kurri Kurri smelter slashes jobs <Visit: bit.ly/ubZjEY> • Government to fast track 457 visas <Visit: bit.ly/sgTDfF> Never miss out again! Follow us @manmonthly for all the latest news, product information and comment pieces from the industry.

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AnalysisNEWS

Rolling out the ‘green’ tyre BY ANNIE DANG IN GERMANY

Lanxess chairman Axel Heitmann, during his opening speech for Rubber Day 2011 in Düsseldorf, which attracted 250 international members of industry and media.

ARIOUS improvements have been made to the manufacture of tyres since the invention of the pneumatic model by John Dunlop in 1888. In 1973, Italian tyremaker Pirelli developed the steel-belted radial tyre which helps reduce car fuel consumption. Today, tyre manufacturers are developing tyres that reduce fuel consumption further, and with the introduction of stricter environmental laws and standards, the need to have a fuel-efficient ‘green’ tyre is imperative. Next year, Europe will legalise the mandatory labelling of tyre performance under an EU tyre labelling regulation. The new regulation comes as no surprise. According to German chemical firm Lanxess, which supplies rubber to major tyre manufacturers around the world, vehicle tyres contribute between 20 and 30% of a passenger car's fuel consumption and around 24% of its C02 emissions. The European Union tyre labelling initiative is expected to increase the market share of ‘green tyres’ made from highperformance rubber, from the current market share of 35% to around 50%. According to Lanxess chairman, Dr Axel Heitmann, a regulation around tyre labelling will not only help customers to determine the size of a tyre’s carbon footprint, but also help to reduce the environmental impact of growing global population and their need for increased mobility. Dr Heitmann was speaking at Rubber Day 2011 in Germany –

an annual event hosted by Lanxess where industry delegates gather to discuss rubber advancements. The latest Lanxess forecasts supported by internal market studies estimate that around 2 billion tyres will come off manufacturing production lines by 2015, compared with around 1.6 billion this year. This is an increase of about 25% output for the tyre industry. Dr Heitmann says the trend towards mobility will only continue to grow as more people choose to drive cars and the need for much more environmen-

tally-friendly means of mobility will continue to be a priority for the industry. The trend will lead to greater demand for ‘green’ innovation in tyre manufacturing, he said. Tyres reportedly account for about a fifth of the energy required to power a car, and ‘rolling resistance’ tyres account for approximately 4% of the world’s carbon-dioxide emissions. This has lead tyre manufacturers and suppliers to share the view that improved fuel economy can be achieved through reducing the rolling resistance of car tyres.

For example, reducing rolling resistance by up to 30% can significantly cut the fuel consumption of a car with a gasoline engine, said Lanxess head of research and development, Dr. Werner Breuers, during Rubber Day 2011. According to Dr Breuers, fuel can be slashed by half a litre per 100km, and C02 emissions could be cut by 1.2kg per 100km. Outside of Europe, tyre labelling programs are already under consideration in the countries with the strongest forecasted growth in mobility – largely the emerging markets of Asia and South America. In South Korea, plans to introduce compulsory labelling based on the EU-model in 2012 is already under consideration, while in Japan, the industry has been voluntarily labelling tyres since 2010. Tyre labelling regulations are also currently under discussion in the United States and Brazil. China is yet another country in which tyre labelling is a subject of debate. Australia is yet to enter the tyre labelling conversation, largely because there are hardly any tyre manufactures left in the domestic market; however it does not mean local manufacturers should shy away from the debate. Come July 2012, Australian consumers and industry will have to make sense of the nation’s first Carbon Tax, and the technology and innovation currently being developed by tyre manufacturers and supplier abroad could be the solution we need to help us reduce our carbon footprint. Lanxess 02 8748 3911, lanxess.com.au

Endeavour Awards support reflects BOC’s passion to excel BY SARAH FALSON

BOC will sponsor the Australian Industrial Product of the Year category at the ninth annual Manufacturers’ Monthly Endeavour Awards, recognising manufacturing innovation on 9 May 2012 in Sydney. 12 DECEMBER 2011 Manufacturers’ Monthly

In 2011, the Endeavour Awards attracted over 100 entries, and 300 attendees. “It is fitting that we are supporting this category, as it is something that is very close to our hearts at BOC and an important hallmark of our own business,” BOC told MM.

“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 entrants the very best of luck and encourages all businesses, big and small, to strive for continuous improvement with commitment, courage and creativity.” BOC 131 262, www.bocworldofwelding.com.au Endeavour Awards 02 9422 2480, www.manmonthly.com.au/awards manmonthly.com.au

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TechnologyIT@MM Equipment should provide strong ROI, efficiency gains and a reduction in error rates.

Lean manufacturing: what it means for the shop floor Automating processes to improve productivity and operational flow is one of the keys to manufacturing success in 2012 and beyond. Tony Repaci writes. EW technologies that automate a number of processes that have been problematic in the past, and feed them into lean manufacturing, will drive innovation on the shop floor in 2012 and beyond – yet this concept which will no doubt trouble the sleep of many local manufacturers in the future. Lean manufacturing is defined by The Lean Manufacturing Guide as “A systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the demand of the customer”. This has significant implications for local manufacturers, who are being pressured to streamline their processes, often through automation, and minimise their overall operating costs. Though responsible manufacturers will always look to minimise their outgoings, there is a range of technology trends, that local operators should be aware of, that can greatly enhance overall productivity and operational effectiveness when used in a manufacturing organisation. Some of these follow.

ing work spaces and processes. For repetitive, high-volume tasks such as applying labels, saving just a few seconds per operation can translate into meaningful efficiency gains and can go a long way towards a local manufacturer becoming ‘lean.’ Wireless printers give Australian warehouse operators a lot of flexibility on where printers can be positioned. And, by printing at the point of activity, workers are much less likely to apply the wrong label to an item or package. In the case where a mobile printer isn’t feasible or possible, positioning printers closer to areas where the work actually gets done also eliminates unnecessary trips back and forth from the workstation to the centralised printer. These walks to the printer may take only a few minutes, but multiplied across dozens of workers on multiple shifts, they represent an opportunity for tremendous time savings and productivity improvements. Eliminating unnecessary walking also helps eliminate distractions that lead to labelling errors and lost productivity.

Wireless equipment As local manufacturers move towards the concept of lean manufacturing, wireless technologies such as mobile printers will be a focal point of future warehouse fit-outs and critical to ‘on the shop floor’ operations. These devices can contribute to the productivity of a warehouse by fitting easily into exist-

Voice-activated solutions To help achieve greater levels of productivity, local manufacturers should also be looking to integrate voice-activated solutions into their operations. An advanced voice-activated kit can allow personnel to efficiently handle tasks like production line management, equipment replenishment, shipping

14 DECEMBER 2011 Manufacturers’ Monthly

and truck loading, which allows the shop floor to become a welloiled machine during manufacturing and distribution. The benefits of a voice solution can be attributed to the fact that it leaves the operator wholly hands free. Whereas in the past workers would be effectively chained to their paper order form and pen, the voice-directed system speaks to its operator via a headset, meaning that both hands and eyes are at liberty to accurately and safely complete any task at hand. Asset tracking system Manufacturing environments are also rich with technology and high value equipment these days. Many key pieces of equipment used on the shop floor can also be small and hard to trace. Utilising an advanced asset tracking solution allows managers to keep a record of their equipment, thus ensuring greater organisational inventory control and ensuring that the production line is not halted

or slowed by key equipment going missing. The application of serial numbered tracking labels to all piece of key equipment allows employees to sign out equipment or enter them back into the inventory by scanning the tag followed by their own personal identification badge, which is also coded. The manufacturing industry is at a tipping point. Warehouse and manufacturing operations in Australia are facing more pressure from a competitively strong Australian dollar and cheap imports to come up with solutions that ensure they will remain competitive in the long term. Any investments in new technology that will help drive innovation and increase efficiencies should therefore focus on providing strong ROI, tangible efficiency gains and a noticeable reduction in error rates. [Tony Repaci is Intermec’s managing director for Australia and New Zealand.] Intermec 02 9330 4400, www.intermec.com.au manmonthly.com.au

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TechnologyIT@MM

Technology bonanza expected for 2012 BY ALAN JOHNSON

EXT year promises to be an exciting year for technology, with many new products set for release in 2012. One company that has beat the rush is SolidWorks, which recently released its 2012 software and, according to Mark Duggan, Elite Application Engineer with local reseller Intercad, the refinements in the latest version strengthen the most widely-used 3D CAD software in Australia even further. “Overall SolidWorks 2012 is an important and substantial streamlining of an established platform,” Duggan told Manufacturers’ Monthly. “Chief among the new features is a Large Design Review mode [pictured, right] that lets users open massive assemblies, over 1,000 parts, very quickly, while still retaining capabilities that are useful when conducting design reviews of assemblies. “For example, you can now measure distances, create cross sections, hide and show components, and create, edit, and play back walk-throughs, without leaving the Large Design Review. “The user interface has also been streamlined, which will make a huge difference to users who work on the same file regularly,” he said. Dugan also explained that while SolidWorks has had Windows desktop search for a little while now, it has now been

extended so users can use the ‘command search’, which make it a lot quicker to find items. “Other important new features include: balloon alignment with Magnetic Lines, making it much easier to align balloons in a drawing view with full control of angles and spacing; Feature Freeze, one of my personal favourites, and one that’s been much requested by local designers, allowing users to literally freeze features from rebuilds of the model; and Multibody Exploded Views which gives users the option to explode views of multibody parts for easier navigation and more detailed analysis,” Dugan said. Other key features in SolidWorks 2012 include a Swept Flange tool – primarily aimed at the sheetmetal industry, which enables the creation of compound bends in sheetmetal parts and allows users to choose faces to ignore in flat patterns. A Tangent Flange position function is also now available, and users will be able to set flanges parallel to a sketch. There is also improved dual monitor support which allows SolidWorks to span across two displays in a logical manner.

Upcoming kernel change While SolidWorks has been very open about its upcoming kernel change, Duggan is adamant it will not impact the user negatively in any way. “It’s nothing out of the ordinary and users shouldn’t be con-

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Latest version allows users to measure distances, create cross sections, hide and show components, and create, edit, and play-back walk-throughs, without leaving the new Large Design Review.

cerned. It’s just a bit of scaremongering by our competition. As far as our users are concerned, when it does happen in 2013 or 2014, they won’t see any difference,” Duggan said. “No one knows what the kernel programming looks like anyway and any programming or applications we do is all on a set of tools outside the kernel. We never manipulate the kernel when programming.” In fact, observers suggest that for many years SolidWorks has not really been relying on any particular kernel for its existence and growth. A cursory view of features such as multi-body parts, deformable solids, and n-sided patch fill, would help users understand the versatility of features that have made users love SolidWorks the way it is today. SolidWorks has been leverag-

ing on the Solid Modelling strengths of Parasolid, surfacing capabilities of ACIS (Spatial) and Advanced Math Libraries of CATIA. Regarding history-free CAD systems, Dugan describes it as a bit of a gimmick. “You will find most users like the ability to go back and make modifications,” he said. Insiders suggest the bulk of SolidWorks development work is now focussing on the next versions of SolidWorks which will be using the Version 6 CGM kernel from parent company, Dassault Systemes. Apparently, this new SolidWorks (V6?) will be designed in such a way, that it primarily works off the Cloud. But it will have some offline capability as well. Intercad 02 9454 4444, www.intercad.com.au manmonthly.com.au

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Maintenance Millatec spent over $600K on direct repair and clean-up costs, and $300K on subcontracting and miscellaneous costs due to the devastating Queensland floods in January. After nine months spent trying to recover from the loss, the company has entered voluntary administration.

Lessons learnt the hard way Millatec Engineering was on-track for a record profit year when insurance problems related to flood damage sent it into administration. Alan Johnson writes.

HETHER itâ&#x20AC;&#x2122;s for business, a car or your home, we all detest paying insurance premiums, but when things go wrong, for they surely will one day, that's when you trust the brokerâ&#x20AC;&#x2122;s professional advice and guidance. One manufacturer who did just that is James Johnson, managing director of Brisbaneâ&#x20AC;&#x2122;s Millatec Engineering, which went into administration after the company couldn't recover from severe flood damage earlier this year.

â&#x20AC;&#x153;I wish the broker had spent more time on us and his independence as a professional advisor. We would have then had the option of flood insurance as an identified risk,â&#x20AC;? Johnson told MM. â&#x20AC;&#x153;After nine months of trying to recover from the floods, when the factory went 2.9m under, we had to place the company into administration on 30 September.â&#x20AC;? Millatec was a world-recognised engineering firm, manufacturing high-end precision components. A founding member of the DMTC

(Defence Material Technology Centre), the firm was known for its R&D and advancement of Australian manufacturing. With the loss of millions of dollars of equipment, and with GIO insurance denying Millatecâ&#x20AC;&#x2122;s claim, the company fought an uphill battle to recover. According to Johnson, this was then compounded by the Queensland State Government withholding information on how the release of water from the Wivenhoe dam contributed to the

flood heights, and how new developments increased water runoff. The devastation has taught Johnson a number of business lessons which he would like to pass on to other manufacturers. â&#x20AC;&#x153;First and foremost, ensure your insurance broker is independent and acting in your interest. When renewing your insurance, the broker should present two or three insurance companies and detail the benefits of each one,â&#x20AC;? he said. â&#x20AC;&#x153;Also, ensure your broker conducts a yearly business and site risk assessment of your facilities.â&#x20AC;? Johnson says it is important the broker explains â&#x20AC;&#x2DC;uninsurable eventsâ&#x20AC;&#x2122; and how these impact on business interruption insurance. â&#x20AC;&#x153;If an incident is deemed uninsurable, business interruption insurance will not be triggered. Even the smallest amount of coverage taken as a sub-limit can trigger your business interruption insurance and save your business,â&#x20AC;? he said. â&#x20AC;&#x153;Secondly, ensure you engage professionals that help you make business decisions â&#x20AC;&#x201C; not based on emotions or ego. PricewaterhouseCoopers (PwC) did a brilliant job giving us reality checks each month. And never forget to communicate with stakeholders, be it good or bad news. â&#x20AC;&#x153;During the recovery period we saw the best and worst of business and people, but I would like to

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publically thank the staff, NAB, ATO, PwC, Okuma Australia, HM Precision Grinding Services, and the many other supplies and customers that helped us and worked with us as we tried to recover.â&#x20AC;? Before the floods, the familyowned firm, which employed 28 staff, was on target for a record production and profit year. â&#x20AC;&#x153;We had improved productivity, and were discussing with new national customers about us being part of their core supply chain; 60% of all our work was interstate. And after the floods, we did the right thing and ensured none of our clients lost production. We subcontracted work to other firms, from Sydney to Bundaberg, bringing back onsite for QA inspections. We never stopped trading,â&#x20AC;? Johnson said. Now, Johnson is not sure what he will do: â&#x20AC;&#x153;For the moment Iâ&#x20AC;&#x2122;m doing my best for administrators, bank, staff and creditors; later I will probably reflect on the lessons learnt over the past nine months,â&#x20AC;? he said.

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DIMAC Tooling is now offering German-made Reven Recojet oil mist separators, Ultra Cleaners and Rejet-A air cleaners that incorporate fans and motors that fulfil the EUâ&#x20AC;&#x2122;s Energy-related Products (ErP) Directive for energy efficiency. The mist separators and air cleaners are designed to filter mechanical air using Revenâ&#x20AC;&#x2122;s own mechanical separating system, called X-Cyclone. The separating system works by separting air pollutants and contaminants from oil, emulsions and other fluids from the ambi-

ent air as aerosols to a very high extent. On the new energy-efficient ErP versions, the motor has been moved outside of the air stream, which leads to a higher lifetime for the motors, according to Dimac Tooling. The ErP version reportedly comes with a much more compact door design, therefore the door and the fan housing are both oil- and water-proof. Dimac Tooling 03 9561 6155, www.dimac.com.au

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WaterMANAGEMENT How to capture water’s flow-on benefits Reducing water consumption in the plant can be both environmentally positive and economically rewarding, as these two Melbourne-based manufacturers discovered. Every little bit counts, Hartley Henderson reports.

ITH the escalating cost of mains water supply, projects aimed at effectively managing water use can deliver significant benefits for both a company’s bottom line and the environment. Securency International, a polymer banknote producer, recently undertook a study at its Melbourne facility to compare vacuum distillation with chemical treatment systems in order to address a trade waste issue. Trade waste at the plant is produced from two main streams: electroplating waste and printing equipment wash-down waste. A vacuum distillation system was chosen in order to optimise recycling and reuse, to ensure adherence to environmental risk management regulations, and to reduce the company’s environmental footprint. Project manager Dominik Michalek says safety and the lower operational and administration costs were also major considerations. “The vacuum distillation system has full Ethernet control, automatic operation 24/7, fast set-up, and no additional labour and monitoring requirements,” Michalek told MM. “We were confronted with significant challenges to design and install the system, including a

20 DECEMBER 2011 Manufacturers’ Monthly

very short timeframe. Due to a lack of infrastructure, a complete pipeline system had to be installed, including a line to deliver waste collected from three process lines to the waste treatment plant, and a line to take the purified water back to the process lines. “Due to the very complex trade waste composition (heavy metals, alkaline/acidic, and a wide variety of different solvents) it was necessary to investigate the use of suitable material for all fusion welded pipeline work. The vacuum distillation system includes a compressor located in the evaporator, and steam created by the evaporation is compressed to atmospheric pressure by a vacuum pump. The temperature of the steam rises when the pressure increases. “The hot steam then feeds to a heat exchanger and the condensation energy produced is used to evaporate the wastewater being fed into the system. “This system, from H2O Steinen in Germany, is very energy-efficient and produces a crystal clear distillate that can be disposed of into the public sewer or in many cases reused in suitable production streams.” According to Michalek, some 95% of the treated wastewater is being reused, resulting in

The first step is to obtain a clear awareness of actual water consumption, says Henkel’s Fahlbusch (pictured).

potable water savings of around $50,000 per year and zero trade waste disposal costs. “Total cost of the project was $550,000 of which $239,000 relates to the customised vacuum evaporating system,” he said. “The remaining $311,000 was spent designing and constructing the necessary infrastructure and safety systems. Projected payback for the total project investment is 3.4 years.”

Small steps pay off Henkel Australia, which employs around 150 people in Melbourne, manufactures a diversified range of products including adhesives, sealants and surface treatments. The company has demonstrated that by undertaking a number of small steps, substantial reductions in water consumption can be achieved. According to manufacturing operations manager, Darren Fahlbusch, daily water consumption at the Kilsyth site has been reduced by 65% since 2006. “The first step was to obtain a clear awareness of actual water consumption, and this was done by installing additional meters and tracking water consumption on a regular basis. Raising employee awareness and ensuring involvement was a key factor in the success of the program,” he said.

“It is not necessary to focus on big ticket items because many small, low-cost improvements can add up to a big result”. The wide ranging water reduction program included predictive maintenance of the deionisation process that resulted in water savings of 70kL per year, and improved maintenance of steam traps has resulted in both water and energy savings. Other initiatives include the connection of laboratory equipment to a site-chilled water recirculation system, a closed loop water system for an homogeniser, washing raw material drums into product mixers, and collecting single pass cooling water for reuse. In addition, urinals have been converted to non-flush operation, and trigger nozzles are now installed on hoses for washing mixing vessels and for hose-down. Also, tanks with a capacity of 75,000L have been installed to store rainwater collected from the factory roof for use in production processes. Fahlbusch says all but three of the 17 improvement projects cost less than $2,000 to implement; the total spend was less than $40,000; and total water savings are around 6500kL/yr. Henkel Australia 03 9724 6373, www.henkel.com.au Securency International 03 9303 0700, www.securency.com.au manmonthly.com.au

InsiderSERIES

TOP 100 MANUFACTURERS - OUTLOOK FOR 2012

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Manufacturers have been constantly playing catch-up in 2011, but there are various game-changers already set for 2012. Is your company ready to compete?

Will you be on top in 2012?

trade in our region. That is, eliminating tariffs, a very important expression of the level of ambition of this new partnership.” The TPP is the latest in a stream of measures tackling export difficulties and the high Australian dollar. Anti-dumping laws are also under the spotlight to ensure a level playing field for our suppliers in 2012. “Australian industries and businesses don’t want government hand-outs or protectionist quick fixes – they just want the Australian Government to understand and respond to the challenges facing Australian manufacturing,” said opposition leader, Tony Abbott.

This year has been a tough race for manufacturers. But those that have survived 3. Mining and Resources

will form an elite new breed that will leave the rest for dead, writes Sarah Falson.

ANUFACTURERS are facing increasingly dynamic market ecosystems and value networks. Global competition, climate change, energy prices, the Australian dollar, skills shortages and the mining boom are just some of the hurdles they jump every day. But Australian firms are becoming increasingly effective at jumping through hoops with new, innovative ways to tackle these challenges. The hurdles in 2012 won't be any different. But what will change – what has to change – is the attitude manufacturers have towards their country, their industry, and themselves.

This year was rough. But through hard work comes rewards. And 2012 is shaping up to be rewarding for local manufacturers on many fronts. Here is our list of the top hurdles manufacturers will clear in 2012 – and beyond.

1. Carbon Tax Australia’s top polluters will pay $23 per tonne of carbon emitted from July. The government will provide offsets for research and development, SMEs, and more. It’s now up to manufacturers to make the technology needed to survive the tax. “A lot of creativity will be required to help companies deal

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TOP 100 MANUFACTURERS - OUTLOOK FOR 2012

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with this without adding a significant cost to their business,” ifm efector managing director, Dave Delany, told MM. “Therefore, there is the opportunity for companies to come up with solutions focussed on the energy industry,.” Companies will need energy and water management gear, including automation and control systems, metering, instrumentation and sensors. They’ll also need ongoing support and maintenance.

2. Trade Barriers For a nation so reliant on export, there were some serious barriers to success during 2011. But Australia and the US have pledged their support for an historic new trade deal that will see nine countries phase-out import and export tariffs. Called the Trans-Pacific Partnership (TPP), the deal would ensure our manufacturers gain more access to global economies. “We are a great trading nation and anything we can do to increase our capacity to trade is good for Australian jobs,” said Prime Minister Julia Gillard, announcing the deal at the AsiaPacific Economic Cooperation (APEC) summit in Hawaii. “In ambition the TPP has as a goal eliminating barriers to

It’s no secret that the mining industry in Australia is booming. However it may come as a surprise to some that there are manufacturing opportunities galore in the resources sector – if you know where to look. A not-for-profit organisation called ICN (Industry Capability Network) has the potential to get local manufacturers involved in some of the biggest projects in Australia and overseas. One company that recently took advantage was Garden City Geotech, who up to recently was manufacturing plastic horticultural containers and plant pots for the nursery industry. “When we became aware of ICN, they put us in touch with the Northern Victorian Irrigation project who was very receptive to a local manufacturer of geomembranes, which is basically a very wide plastic sheet used for channel lining,” company BDM, Graham Brown, told MM. The company has invested over $6m in equipment and facilities over the past two years, and is now close to full production. The government is also onboard with manufacturing opportunities in the resources sector, offering $1.2 million of grants to help companies form ties with mining projects. Another success story is Perth company Hoffman Engineering, which designs and makes compomanmonthly.com.au

nents for mining machinery. “Other sections of manufacturing would do well to look at the track record of this place – how it has stayed at the forefront of research and development, how it has met its customers' needs and how it has been investing in skills and training every step of the way," Gillard said during a visit to the company’s facility. . Manufacturers can also get into the industry by taking advantage of the sector’s more obvious needs. “Mining is a dangerous business. So it is essential to keep workers safe while still manufacturing at the desired capacity. An opportunity exists for manufacturers to provide equipment that can automate these processes,” said ifm efector’s Delany. “I have noticed customers doing clever things with robots, enabling tasks to be carried out safely in harsh and dangerous environments.”

4. Skilled Labour Manufacturers have been concerned about the lack of skilled labour in Australia for years. In late 2011, the government held the Future Jobs Forum, to find ways industry sectors can work together to save jobs. Speaking at the event was Dow Chemical chief executive, Andrew Liveris, who said that Australia needs to overhaul its immigration laws to ensure workers who receive skills training here don’t return home. “Australia has a small worker base, and to build an economy

manmonthly.com.au

Australia’s biggest polluters – approximately 500 trade-exposed manufacturers – will pay $20 per tonne of carbon emitted from July.

run by the best and brightest we not only need an education system that can produce this workforce, but an immigration system that can attract them,” he said. The government has already started fast-tracking 457 visas to ensure more skilled workers enter the country. Alternative forms of training are also being rolled-out to combat the shortage, such as apprenticeships for skilled older workers (see story, right).

5. Productivity & Innovation Say hello to the industry’s new buzzwords for 2012. Last month, a seminar devoted to these themes alone was staged in Melbourne. US Information Technology and Innovation Foundation president, Dr Robert Atkinson, provided the keynote, claiming collaboration between like-minded companies is the way forward.

ARC Advisory Group VP collaborative manufacturing, Greg Gorbach, agrees. “Three trends – a shift in global economic power, increased accessibility and capability of IT, and increased influence of Millennials [tech-savvy consumers] – act together to create a world in which the rules of buying, selling, marketing, and competition will change markedly,” Gorbach told MM. “To survive and compete, manufacturers will need to increase the breadth, scope, and character of their external collaborations. In some situations, they will need to take the lead, dynamically orchestrate distributed network agreements, execution, and transactions to ensure orders are fulfilled as promised. In other situations, they will need to let others take the lead, while participating profitably and strategically.”

Apprenticeships for older workers SKILLSTECH Australia is encouraging manufacturers to hire adult apprentices to combat the skills shortage. The Queensland-based training facility is offering training to skill older workers to join the manufacturing industry, and has also launched the first ever adult apprenticeships for the resources and energy sector, designed for manufacturers who want to enter mining. Six trade apprenticeships are available: Electrical Fitter Mechanic, Dual Trade Electrical/Instrumentation, Metal Fabrication Boiler Maker Welder, Metal Fabrication Pipe Fitter, Engineering Diesel Fitter and Carpentry Form worker. “SkillsTech Australia is willing and more than able to work with manufacturers on customised training programs to engage advanced adult apprentices for their sector,” SkillsTech Australia director of client services and industry engagement, Helen Bulle,told Manufacturers’ Monthly. “This type of tailored training ensures the apprentice is immediately productive and also attaining their qualifications to Australian best practice and industry standard.” SkillsTech Australia 1800 654 447, www.skillstech.tafe.qld.gov.au

Manufacturers’ Monthly DECEMBER 2011 23

InsiderSERIES 10 minutes with Senator Kim Carr firms to help them adjust their business models to the new realities. Innovation is the key.

BY SARAH FALSON

WE spoke with Innovation Minister, Senator Kim Carr, about the future of manufacturing in Australia and what companies can expect in 2012. Q: What capabilities will be in demand next year? A: The Future Manufacturing Council tabled a report at the recent Jobs Forum that identifies key features that set strong firms apart in the market: • They bundle goods and services together to offer solution • They make and sell products and services that are in demand • They reduce waste • They diversify • They integrate into global supply chains • They enter the increasingly affluent middle-class markets in the BRIC economies – Brazil, Russia, India and China. Q. How can manufacturers tackle the high Australian dollar? A: There are some benefits from a strong Australian dollar, such as lower inflation and access to cheaper imported capital goods and equipment. At the same time, the Government is working with

Q: Tips to take advantage of the mining boom? A: Australian industry participation is vital for spreading the benefits of the resources boom to other sectors. In October 2011, I announced that the Government will not only apply Australian Industry Participation Plan requirements to large government grants over $20 million – we will also require future resources project developers to publish more details on opportunities for local firms if they want to receive tariff concessions under the Enhanced Project By-law Scheme. Q. What are manufacturers demanding from suppliers? A: I welcome the demand for technologies that take advantage of the Government’s nationbuilding plans. The NBN. The climate change measures. The boost to the budgets of the CSIRO and the universities. We are seeing firms that use new technology to diversify into niche, higher value-added markets – such as medical devices, scientific instruments and custom-designed chemicals and plastics. We are also seeing firms integrate cloud computing and computer-enabled design into their routine operations. Q: What are you doing about the skills shortage? A: On 6 October 2011, at the

Future Jobs Forum, the Prime Minister announced the formation of a Prime Ministerial Taskforce on Manufacturing. The Taskforce will be chaired by the Prime Minister with the help of manufacturing leaders, unions, the science and technology sector and government. It will coordinate work conducted at a range of levels across government to help the manufacturing industry build crucial skills, move up the value chain, and obtain capital. Q: Where do you stand on dumping and protectionism? A: The Government has acted swiftly to implement the reforms we announced on 22 June this year. This is about ensuring that Australia’s anti-dumping arrangements match the current economic circumstances and the expectations of industry. From the Government’s perspective, protectionism is not about fighting change, and it should not be boxed into the old protectionist versus freetrade debate. Across the political spectrum, there is a growing global consensus that investment in innovation is the only way to build industries that compete in an advanced economy. China, India and the US all understand this. I am confident Australia is wellplaced to collaborate and compete for new investment. Our proximity to Asia, our worldclass research capabilities and our stable business environment set us apart.

Positive outlook for manufacturing

BY SOPHIE MIRABELLA MP

DESPITE a raft of challenges, maufacturers showed their resilience in 2011. It is absolutely vital that the next few years of policymaking ensure the future of Australian industry. There is an overwhelming desire for manufacturing to remain and prosper in Australia; this was reflected in 2011 through increased net exports. We must look to the rest of the world and learn from their experiences. French and German governments have committed to lean and advanced manufacturing. The US has re-invested huge sums in R&D. British manufacturers intend to increase investment in 60% of production facilities over the next two years. Japan has placed enormous emphasis on innovation. And almost all of these nations have been active in identifying means of reducing the regulatory burdens and costs imposed on their local manufacturing businesses. There is certainly a lot that can be done, and I hope manufacturing challenges will be met in 2012 with the necessary political will and leadership. [Sophie Mirabella is Shadow Minister for Innovation.]

ifm efector’s people and our products are committed to helping you succeed in your business.

ifm offers solutions to application challenges

1300 365 088 sales.au@ifm.com www.ifm.com/au 24 DECEMBER 2011 Manufacturers’ Monthly

Position sensors and detection systems for all applications, including robotics, handling, production and logistics. Fluid sensors suitable for food and hygienic areas, as well as environments with aggressive oils and coolants. Networking, identiﬁcation and control systems. AS-interface to easily transmit sensor signals to a controller at a low cost. Robust control system ecomatmobile is the perfect solution for mobile applications. You can count on ifm to be a reliable partner. www.ifm.com/au

manmonthly.com.au

TOP 100 MANUFACTURERS 2011 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51.

COMPANY NAME Alcoa Inc Brambles Orica Amcor QR National Transurban Group Leighton Holdings Incitec Pivot MAP Group Alumina Asciano Group Fletcher Building Qantas Airways Sims Metal Management Toll Holdings Boral Campbell Brothers Seven Group Holdings James Hardie Industries Onesteel UGL Auckland International Airport Bluescope Steel Seek Reece Australia Adelaide Brighton Mineral Resources Transfield Services Boart Longyear Connecteast Group Monadelphous Group Downer EDI Brickworks CSR Bradken Australian Infrastructure Fund Nufarm DuluxGroup Qube Logistics Sai Global Air New Zealand Steamships Trading Company GWA Group Macquarie Atlas Roads International Transpacific Industries Group NRW Emeco Mermaid Marine Australia Mcmillan Sharkespeare Cabcharge Australia

MARKET CAP $12,124m $10,681m $9,785m $8,838m $8,247m $7,550m $7,016m $6,287m $6,216m $5,149m $4,799m $4,499m $4,168m $3,625m $3,444m $3,212m $3,089m $2,951m $2,563m $2,475m $2,305m $2,248m $2,220m $2,168m $2,058m $1,966m $1,945m $1,842m $1,840m $1,812m $1,611m $1,588m $1,505m $1,467m $1,286m $1,192m $1,176m $1,033m $953m $948m $938m $884m $829m $792m $783m $778m $713m $687m $652m $620m

SECTOR Aluminium Commercial & Professional Services Materials ex Metals & Mining Materials ex Metals & Mining Transportation Transportation Capital Goods Materials ex Metals & Mining Transportation Aluminum Transportation Materials ex Metals & Mining Transportation Metals Recycling Transportation Materials ex Metals & Mining Commercial & Professional Services Capital Goods Materials ex Metals & Mining Steel Capital Goods Transportation Steel Commercial & Professional Services Capital Goods Materials ex Metals & Mining Commercial & Professional Services Commercial & Professional Services Capital Goods Toll Roads Capital Goods Commercial & Professional Services Materials ex Metals & Mining Capital Goods Capital Goods Transportation Materials ex Metals & Mining Materials ex Metals & Mining Transportation Commercial & Professional Services Transportation Capital Goods Capital Goods Toll Roads Commercial & Professional Services Capital Goods Capital Goods Transportation Commercial & Professional Services Commercial & Professional Services

COMPANY NAME 52. Virgin Blue 53. Spotless Group 54. Salmat 55. Cardno 56. Clough 57. Austal 58. Skilled Group 59. Industrea 60. Forge Group 61. Nuplex Industries 62. Macmahon 63. Sedgman 64. Ausenco 65. Wah Nam International Holdings 66. Austin Engineering 67. Decmil Group 68. Brisconnections Holding Trust 69. Hills Industries 70. GR Engineering Services 71. Programmed Maintenance Services 72. Alesco 73. Watpac 74. TFS 75. Whk Group 76. Gunns 77. Lycopodium 78. National Hire Group 79. Talent2 International 80. RCR Tomlinson 81. Credit Corp Group 82. Royal Wolf Holdings 83. Pmp 84. Chandler Macleod Group 85. Tox Free Solutions 86. Norfolk Group 87. Seymour Whyte 88. Global Construction Services 89. Gerard Lighting Group 90. Resource Equipment 91. Ceramic Fuel Cells 92. Service Stream 93. Boom Logistics 94. Southern Cross Electrical Engineering 95. Engenco 96. K&S 97. Ludowici 98. WDS 99. Henry Walker Eltin Group 100. Zicom Group (List courtesy of ASX.)

MARKET CAP $619m $612m $591m $578m $547m $523m $522m $492m $453m $439m $411m $388m $351m $348m $348m $343m $316m $298m $293m $260m $257m $255m $245m $244m $229m $222m $215m $215m $215m $215m $207m $205m $197m $196m $185m $179m $176m $168m $164m $144m $139m $138m $135m $130m $122m $117m $108m $107m $106m

SECTOR Transportation Commercial & Professional Services Commercial & Professional Services Capital Goods Capital Goods Capital Goods Commercial & Professional Services Capital Goods Capital Goods Chemicals Capital Goods Capital Goods Capital Goods Transportation Capital Goods Commercial & Professional Services Transportation Capital Goods Capital Goods Commercial & Professional Services Capital Goods Capital Goods Materials ex Metals & Mining Commercial & Professional Services Materials ex Metals & Mining Capital Goods Capital Goods Commercial & Professional Services Capital Goods Commercial & Professional Services Transportation Commercial & Professional Services Commercial & Professional Services Commercial & Professional Services Commercial & Professional Services Capital Goods Capital Goods Capital Goods Capital Goods Capital Goods Capital Goods Capital Goods Capital Goods Capital Goods Transportation Capital Goods Capital Goods Capital Goods Capital Goods

More support required for growing SME market BY SARAH FALSON

MEDIUM-sized businesses added more value to Australiaâ&#x20AC;&#x2122;s GDP than small or large businesses during the 2009â&#x20AC;&#x201C;10 financial year, and therefore should receive more government support in 2012, research suggests. Businesses in the mid-market ($10mâ&#x20AC;&#x201C;$250m revenue) represented just 1.3% of all business-

es in Australia during the last financial year, however they contributed $425 billion towards the countryâ&#x20AC;&#x2122;s GDP. â&#x20AC;&#x153;Both small and large businesses get attention in the Australian marketplace, and are effective at influencing policy in their sector. The mid-market on the other hand often goes unnoticed, yet punches well above its weight,â&#x20AC;? said GE Capital

Australia and New Zealand CEO and president, Skander Malcolm. For Malcolm, the study comes at an important time for the Australian economy, when businesses should be looking at how they can benefit from mining. â&#x20AC;&#x153;As Australia seeks to determine how it can capture the benefits of the mining boom and prepare its business sector for a new global economy, the mid-

market presents itself as a golden opportunity to drive a more sustainable path to growthâ&#x20AC;?, said Malcolm. â&#x20AC;&#x153;Through understanding the mid-market better, providing access to expertise, and greater access to capital, we are determined to help the Australian mid-market succeed.â&#x20AC;? GE Capital 03 9921 6851, australianmidmarket.com.au

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Manufacturersâ&#x20AC;&#x2122; Monthly DECEMBER 2011 25

What’sNew for 2012 See more new products at manmonthly.com.au

Integrated air treatment package CAPS Australia’s range of TAS (Total Air Systems) compressors now includes the new Ingersoll Rand 15–37 kW TAS units. The new models are fully integrated systems, each consisting of a compressor, air receiver, dryer and filters. According to CAPS, relatively small footprints and whisper-quiet operation mean the compressors can be positioned close to the point of use, reducing installation costs. Package pre-filters are designed to protect the internal components from

contamination, which extends the service life, while the design simplifies servicing, all of which reduces maintenance costs, according to CAPS. These latest TAS units also benefit from an intuitive user interface. Further, the lubricant used is biodegradable, and can be discharged directly to the sewer, therefore negating the need to install an expensive oil/water separator which brings ongoing maintenance costs, CAPS says. CAPS Australia 03 8527 6815, www.capsaust.com.au

Pick and place robot

The new 15-37Kw integrated air treatment package includes compressor, air receiver, dryer and filters.

Profibus extender with surge protection THE new Profibus extender from Phoenix Contact is said to enable straightforward integration of remote Profibus devices at data rates of up to 1.5Mbps. The extender has two DSL connections per device meaning that, in addition to point-to-point connections, they can also be used to establish line structures with up to 30 devices. To protect the communications modules, surge protection is required for both DSL connections. The DIN rail-mountable DSL surge protector offers two a/b connections per screw terminal. When designing a line structure, users therefore need only one surge protector per intermediate station, thus saving space in the control cabinet and also lowering costs.

The extender offers straightforward integration of remote Profibus devices at data rates of up to 1.5 Mbps.

Motion Technologies 02 9524 4782, www.motiontech.com.au

FMS, robotic 3D simulation software

Phoenix Contact 1300 786 411, www.phoenixcontact.com.au

Portable oscilloscopes for service and maintenance FLUKE has introduced the ScopeMeter 190 Series II 2-channel handheld portable oscilloscopes, which combine the power of a 2-channel oscilloscope, with a 5,000-count digital multimeter and paperless recording modes, for service and maintenance professionals. Enhancements in the new 190 Series II include extended battery life, hot-swappable batteries and a higher safety rating than previous models. The ScopeMeter can operate for up to four hours with a 2400mAh Li-Ion pack (standard with 2-channel mod26 DECEMBER 2011 Manufacturers’ Monthly

JUNG Automation has developed an innovative parallel kinematic robot named ParaPicker. The robot uses three parallel and perpendicular linear module actuators to create a cost-effective pick and place robot, distributor Motion Technologies says. The parallel arrangement of the actuators is said to make mathematical algorithms relatively simple, resulting in low software development costs, while low computing power is required. The robots’ controller is made from inexpensive, commercially-available industrial PC. The ParaPicker motion control software includes eight standard trajectories, to realise automation and positioning jobs on-the-fly. ParaPicker performance is said to be comparable to delta-robot designs that use rotary motors.

els), or up to seven hours with the high capacity 4,800mAh Li-Ion pack (standard with 4-channel models; optional for 2-channel models). The battery door makes it possible to quickly swap-in a fresh-charged battery. Independent electrically-isolated inputs safety rated to CAT III 1000 V/CAT IV are said to make it safe for engineers or technicians to measure everything from low voltage control signals, all the way up to a 3-phase mains power supplies. Fluke Australia 02 8850 3333, www.fluke.com.au

The oscilloscopes can operate for up to four hours with a 2,400mAh Li-Ion pack, or up to seven hours with the high-capacity 4,800mAh Li-Ion pack.

FASTERNS’ MMS5 for flexible manufacturing systems (FMS), and Fastsimu for offline robotic programming, are said to enhance the capabilities of today’s advanced automated material handling and processing equipment. The MMS5 control system software expands the capabilities of FMS with a factory-wide MES for control over such functions as automatic warehousing, tool management and robotic cell integration. MMS5 is said to allow for the highest level of machine utilisation rates with proactive scheduling, providing for quick and easy access to all production data with a standard web browser. The new Fastsimu offline robotic programming system is described as an advanced, user-friendly software application that provides robotic production features for machining, grinding and de-burring operations. The software can be used in conjunction with 3D CAD models or by utilising tool paths created by CAD/CAM, which makes it possible to program the robot just like a multi-axis machine tool. Fastems, www.fastems.com manmonthly.com.au

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What’sNEW for 2012 Steel pipe press system

Safety hand rails

VICTAULIC has released Vic-Press, a flame-free press system that can reportedly join small-diameter piping very quickly and reliably. Vic-Press is said to be the industry’s first ANSI Schedule 10S pipe sized press-to-connect system designed for off-the-shelf ASTM A-312 Schedule 10S stainless steel pipe. According to the company, the press system offers increased strength and durability, along with improved flow characteristics compared to light-wall tube systems. The system is also said to produce a safer, more efficient pipe assembly than welding, threading and flanging, and also reportedly meets or exceeds industry standards. The system can be used with standard Schedule 10S stainless steel

bility of right and left doors and covers, along with simple wiring via numbered cage clamp terminals.

KLEIN Group Limited, an Australian company specialising in stainless steel fabrication, has developed what it claims is a ‘world-first’ safety hand rail, called the KAG Rail. According to Klein Group, the KAG Rail reduces ‘slip and fall’ accidents in a variety of manufacturing working environments. The product has a unique inbuilt swage pattern that contours to the shape of a closed hand, allowing users to have better grip on the rail. The system can be fitted with fibre optic lights for operation in dark environments. Further, services such as water, electricity, air/gas and data can be concealed inside the rail channel. Klein says it has already received a number of orders from organisations in Australia and overseas for the rail. The Queensland University of Technology has reportedly deemed the system to improve grip by up to 80% in dry conditions, and 40% in wet and greasy conditions, making it ideal for various manufacturing areas.

Schneider Electric 1300 369 233, www.schneider-electric.com.au

Klein Architectural 07 3290 5880, www.klein.net.au

The press-to-connect system is designed for off-the-shelf ASTM A-312 Schedule 10S stainless steel pipe.

pipe, which offers increased strength and durability and eliminates the need to stock specialty pipe. The pipe-wall thickness of ANSI Schedule 10S pipe is up to double that of light-wall tube, says Victaulic. With pressure tolerances up to 500

psi (3450 kPa), Vic-Press exceeds ANSI class 150 standards. Vic-Press is said to meet ASME B31.1, 31.3 and 31.9 support requirements, and is ANSI/NSF 61 certified for potable water up to 82degC. Victaulic 03 9392 4096, www.victaulic.com

Solenoid interlocking switches for machine safety SCHNEIDER Electric’s new Electroslim XCS Series includes safety interlock switches for gate guard mounting and machine safety. Slim models in metal or plastic come with a manual key for

locking and unlocking options, ideal for commissioning works. The units hold up to six contacts, three safety and three auxiliary. They feature an interlocking opening capa-

SAFETY GATING SYSTEM - MEZZANINE FLOOR POSITIVE LOCKING NEGLIGIBLE LOSS OF FLOOR SPACE

Mezgate II when not in use

PTY LTD

www.tpcastings.com.au 03 9768 3255

Mezgate II when accessing mezzanine

• Negligible space occupied on mezzanine ﬂoor whether in use or not. • No limit on load height on pallet. • Exceptionally easy to operate. • Incorporates patented locking system to ensure safety at all times. • Standard unit designed for standard pallet (1500mm opening) but can be applied to any width provided space available. GRANDSON PTY. LTD. Phone: 03 9729 4054 Mob: 0429 191 131 Web: www.ozgrandson.com.au E-mail: grandson@sme.com.au 28 DECEMBER 2011 Manufacturers’ Monthly

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Health& SAFETY - BODY PROTECTION UV is often overlooked as a workplace risk, getting lost in a list of more obvious dangers such as working with machinery and chemicals. Image: Queensland Health 2010.

How to be smart in the sun When it comes to UV risk, you can’t afford not to cover up. Cairin Conway writes.

USTRALIA has some of the highest levels of ultraviolet (UV) radiation in the world. At least two in every three Australians will develop skin cancer before the age of 70. If you’re an outdoor worker, the likelihood of developing skin cancer is even greater. Yet, UV is often forgotten as a work risk. SunSmart recommends that all workplaces with both outdoor and indoor workers develop a UV protection program to protect workers from the risk of UV

radiation. This includes the provision of protective equipment and training, reviewing scheduling of work and monitoring compliance. With the Model Work Health and Safety Act being introduced in January 2012, this is especially important. “Workplaces should be looking at sharing outdoor tasks, making use of shade and the provision of personal protective clothinglong sleeved, collared shirts, broad brimmed hats, sunglasses; along with regularly applying

SET TING THE WITH STANDARDS AFE INNOVATIVE S TIONS STORAGE SOLU EF CTIVE COMPLIANCE EFFECTIVE EFFECT COMPLIA ANCE FOR F THE MANUFACTURING INDUST INDUSTRY TRY

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Relocatable bulk stores Safety cabinets Gas cylinder stores Lube stations Bunding Safety showers Custom design to suit your situation

DESIGNED AND MANUFACTURED IN AUSTRALIA

1300 134 223 1300 307 895 sales@storemasta.com.au www.storemasta.com.au 30 DECEMBER 2011 Manufacturers’ Monthly

protecting the

SPF 30+ sunscreen on the remaining skin that is still exposed,” said SunSmart manager, Sue Heward. As with any change process, actions take time, consultation, clear communication between head offices and satellite sites, support and commitment from all levels of the organisation as well as an allocation of resources. Where employees have a low level of awareness of the risks, and protection policies are not enforced, this often translates to poor results when trying to reduce UV overexposure. In Victoria, SunSmart has a range of workplace education for workplaces, including the free SunSmart UV Alert widget from cancer.org.au which can be added to a company’s homepage. The widget shows the weather, temperature and UV level specific to the site, including times to instigate sun protection. A free SunSmart app for iPhones provides the same functions and is available from iTunes. SunSmart 03 9635 5148, www.sunsmart.com.au

Recirculating dust collection systems can bring energy savings.

Dust collector CAMFIL Farr Air Pollution Control (APC) now offers its Gold Series cartridge dust collector with an optional integrated HEPA safety monitoring filter. Mounted on top of the collector so that no additional floor space is required, this after-filter prevents collected dust from re-entering the workspace if there should be a leak in the dust collector’s primary filtering system. It is a required component in recirculating dust collection systems that recycle air downstream of the collector when filtering hazardous dusts. Each module incorporates two HEPA filters capable of handling 2500 cfm (4248 cmh) of air per filter and rated to remove 99.97% of airborne particles of 0.3 micron in diameter and larger, claims Camfil. Unlike some after-filters which are installed downstream of the fan with the filter at positive pressure, the Gold Series’ integrated design reportedly maintains the after-filter at negative pressure, preventing contaminated air from escaping in the event of a leak. According to Camfil, recirculating dust collection systems are gaining in popularity because recycling of heated or cooled air back through the plant downstream of the collector brings significant energy savings. Camfil Farr APC, www.camfilfarrapc.com

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MaterialsHANDLING Storage systems in earthquakes Dr Murray Clarke comments on the performance of storage systems during seismic events, including the The ColbyRACK range of storage equipment incorporates spine bracing, chemical anchors and special seismic baseplates to reduce damage from earthquakes.

recent devastating earthquakes in New Zealand.

ESIGNING rack structures to cope with the unpredictable forces generated during an earthquake requires a combination of detailed engineering, sophisticated computer analysis, and a degree of crystal ball gazing – on the part of the engineer – into how the storage system may be utilised over its lifetime. When structural engineers design a building, they can make reasonable assumptions, guided by design standards, about the

likely loadings on the structure during day-to-day use. Warehouse storage systems, on the other hand, could be empty one day, and full the next. The total load, where loads are located, and the height of racks, all have an impact on the performance of a system during a seismic event.

Storage in earthquakes In non-seismic areas, storage systems are designed to support mostly vertical loads – horizontal loads typically account for only

0.5% of the vertical loads, making them relatively insignificant. However, when an earthquake occurs, ground acceleration can increase the horizontal loadings on storage systems by a factor of 10 or more. The storage system rack frames and beams respond

by swaying to and fro, and the total mass within the racks – the stored pallets – begins to move in relation to the ground, creating inertial cross-aisle (transverse) and down-aisle (longitudinal) forces within the structure. The inertial forces acting in

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HHSO`Z[LYMVYRSPM[Z JVT H\ 32 DECEMBER 2011 Manufacturers’ Monthly

manmonthly.com.au

the cross-aisle direction will cause the rack to sway, increasing compression in one upright and decreasing the load on the other. The greater the horizontal seismic inertial forces, the higher the compression and uplift forces will be. These uplift forces result in the racks attempting to pull the baseplates free of the ground anchors. The need to accommodate seismic loads may lead to the use of bigger and stronger uprights and beams in the racking system. Alternatively, some suppliers make use of vertical and horizontal bracing to stabilise the rack in the longitudinal direction. At Dematic, we avoid the use of down-aisle bracing whenever possible, preferring instead to opt for the use of â&#x20AC;&#x2DC;standardâ&#x20AC;&#x2122; racking uprights and beams, increased in size as necessary to accommodate the seismic loads. Spine bracing at the rear of rack frames can be problematic since the bracing is prone to damage when putting away and retriev-

Dr Murray Clarke (BSc BE PhD MIEAust) says when earthquakes occur, ground acceleration can increase the horizontal loadings on storage systems, causing them to sway to and fro, resulting in product loss.

ing pallets, possibly reducing effectiveness under load. Dematic also employs chemical anchors and special seismic baseplates, designed to behave in a predictable manner in the presence of uplift forces.

Seismic design process In recent years, Dematic has

designed and implemented over a dozen major ColbyRACK pallet storage systems for a diverse range of customers in New Zealand including Progressive, Foodstuffs, Ezibuy, Brand Lines, Provet, Officemax and The Just Group, with all of the installations located in seismicallyactive areas. Dematicâ&#x20AC;&#x2122;s storage system designs for seismic areas are proof-checked by specialist local consulting engineers, and follow the four-step PS1-PS4 procedure, which includes independent reviews at all stages from design to installation. It has been noted in several reviews of failed racking structures that existing and unreported rack damage may have contributed to rack collapses. Rack uprights and beams can be easily damaged during forklift operations, and a regular rack inspection and repair process is highly recommended. If you have any concerns your storage systems are not up to

standard, or that their structural integrity may have been compromised, it is recommended an appropriately-qualified engineer inspect them as soon as possible. Obviously, a thorough inspection of storage systems is necessary immediately following a significant seismic event. Also, should the use of a storage system change significantly, its suitability for other purposes should also be checked and verified.

And finally, caveat emptor It is important buyers know what they are paying for when purchasing storage systems. Storage systems may all look similar, but their performance can vary. Storage system buyers should insist on detailed manufacturing specifications and any necessary certification to ensure they are actually getting what they pay for, and that it is fit for purpose. [Dr Murray Clarke, BSc BE PhD MIEAust, is structural design manager at Dematic.] Dematic 02 9486 5555, www.dematic.com.au

Acra Machinery Pty Ltd

20 Fowler Road Dandenong, Victoria, 3175

ph. (03) 9794 6675 www.acra.com.au

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EUROPES NO.1 FABRICATION MACHINERY SUPPLIER AVAILABLE IN AUSTRALIA manmonthly.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly DECEMBER 2011 33

PackagingEQUIPMENT Potato chips from the heart

Strong enough to package cutting tools and welding rods.

An entrepreneurial potato-farmer-turned-chipmaker from New Zealand controls quality in his operation using carefully-selected machinery from Heat and Control.

HE Bowan family decided to go into chip manufacturing in 2009, purchasing an old factory in Tiramu. This bold decision lead to the family carving out a niche in New Zealandâ&#x20AC;&#x2122;s potato chip market, with the launch of a new brand called Heartland Potato Chips. Owning and operating a potato farm already, company owner Ray Bowan knew that quality control starts at the farm. So, in need of a flexible packaging solution, Bowan turned to supplier Heat and Control. Heat and Controlâ&#x20AC;&#x2122;s NZ industry manager, Scott Burrows, said Bowan and Heartlandâ&#x20AC;&#x2122;s product manager, Bill Cockburn, were very specific about the equipment needed to package their new brand of chips. â&#x20AC;&#x153;FastBack conveyors were an ideal choice for transporting such a delicate product as potato chips. The horizontal motion of the conveyor reduces breakages, and also minimises seasoning loss,â&#x20AC;? he said. Cockburn had previous experience with Ishida multihead

weighers, and asked Heat and Control for a complete Ishida packaging line. Even though a system of this type wasnâ&#x20AC;&#x2122;t available, the supplier was able to provide an Ishida computer checkweigher, a Heat and Control FastBack conveyor and CEIA metal detector, and Matrix packaging system, all completing the 300kg/hr potato chip line. â&#x20AC;&#x153;The line speed/packaging speed required to â&#x20AC;&#x2DC;pullâ&#x20AC;&#x2122; the processing supply volume did not warrant a high speed Ishida VFFS solution. Although when the time comes, they may choose an Ishida Atlas bagmaker which has product stripping capabilities, as the specific gravity (solids) can change through the seasons and therefore the bulk density when packed,â&#x20AC;? said Burrows. Heartlandâ&#x20AC;&#x2122;s Cockburn took extreme care to purchase the right equipment. â&#x20AC;&#x153;Conditioning units, along with a modern fryer were purchased overseas, but when it came to our end-of-line equipment, we looked to Heat and Control to

Heartland uses an Ishida checkweigher, and Matrix packaging equipment.

Clear plastic tubes

supply us the best quality and reliability to compliment our line,â&#x20AC;? he said. So, with a passion for challenges, and with over 40 years experience in potato farming, Heartland Potato Chipsâ&#x20AC;&#x2122; Bowan family got the chance to fulfil a life-long dream: to produce their own potato chips, in their own factory, from their own potatoes. How's that for quality control?

STOCKCAP has released a new range of clear tube packaging made of recyclable PETG plastic. The units come in sizes from 7mm up to 90mm diameter, in lengths of 1.22 metres, which are suitable for packaging cutting tools, bearings, welding rods, screwdrivers and other products requiring extra-strong packaging. According to the manufacturer, the PETG material maintains its shape while being flexible enough not to split or crack under typical use.

Heat and Control 07 3877 6333, www.heatandcontrol.com

Sinclair & Rush 1800 003 211, www.sinclair-rush.com

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manmonthly.com.au

Last Year 640,700 Australians were injured in the workplace SOURCE: Australian Bureau of Statistics

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