Manufacturers' Monthly December 2012 by Prime Creative Media

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

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NSIDE Keeping Manufacturing Local >> Materials Handling >> Whatâ&#x20AC;&#x2122;s New

INSIDER SERIES >> The Top 100

>> Manufacturing in the Asian Century >> Exporting >> New Technology for 2013

Australian Manufacturers

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Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Managing Editor Cole Latimer Ph: (02) 9422 2352 Fax (02) 9422 2722 cole.latimer@reedbusiness.com.au Journalist Brent Balinski Ph: (02) 9422 2480 Fax (02) 9422 2722 brent.balinski@reedbusiness.com.au Alex Heber Ph: (02) 9422 2884 Fax (02) 9422 2722 alex.heber@reedbusiness.com.au Vicky Validakis Ph: (02) 9422 2480 Fax (02) 9422 2722 vicky.validakis@reedbusiness.com.au Editor-at-Large Alan Johnson Ph: (02) 9422 2325 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 NSW, SA/NT & WA Sales Reed Business Information Ph: (02) 9422 2368 anthony.head@reedbusiness.com.au

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Inside DECEMBER 2012

4 Editorial Q A new year, and new opportunities

For daily news visit manmonthly.com.au

6 Comment Q Action needed on electricity prices

8 Endeavour Awards Q Nominate today

10 Analysis News

Q Australia in the Asian Century

12 IT@MM Q Technology advances for 2013

14 Defence Q No longer under the radar

Australians overseas

16 The Top 100 Q Australia’s top 100 Manufacturers Q Manufacturing’s state of play

24 What’s New

30 Body Protection

Q Process control Q Dust control

Q Gloves Q Helmets

20 Materials Handling

Q Safety Q Warehousing protection

Q Fall safety Q Spill stations

26 Onsite

32 Manufacturing’s Future

Q Manufacturers’ Monthly onsite

Q Flexibility in manufacturing

28 Export

34 Food and Beverage

Q To market, to market, to export

Q In vino veritas

Q Safer handling Q Pallet wrapping Q Avoiding injury

22 Australian Manufacturing Q The road to recovery - How Darrell

Lea is turning around 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

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

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December 2012

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NSIDE Keeping Manufacturing Local >> Materials Handling >> What’s New

INSIDER SERIES >> The Top 100

>> Manufacturing in the Asian Century >> Exporting >> New Technology for 2013

Australian Manufacturers

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Manufacturers’ Monthly DECEMBER 2012 3

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Editorial

COLE LATIMER – Managing Editor

editor@manmonthly.com.au

A new year, and new opportunities While this has been a year to forget, let’s try and make next year one to remember.

for one am glad this year is coming to an end. Because 2012 certainly was not a year for manufacturers, or the manufacturing industry. Nearly every single day the news headlines essentially crowed over what they claimed is the very public demise of Australian manufacturing. For the last few years this headline has been repeated time and time again. If you listened to the headlines it appears as though the manufacturing industry has done this to itself alone. However the number of outside influences that brought this industry to the precipice are almost to numerous to count. Manufacturing has continued to suffer through this slump, was punished by both the high Australian dollar and the mining boom, and was also effectively punished by a government that did not understand the needs of the manufacturing industry - nor seemed to care. The implementation of a carbon tax, and in turn the increased energy prices foisted upon manufacturers, only typified the actions of a government that is out of touch with the manufacturing sector. And while the bailout of the automotive sector helped to stem the tide somewhat, it seemed as though those in power thought that the public spectacle of trying to halt the loss in automotive manufacturing would

Let’s look to a brighter future. actually be a panacea for the rest of the diverse Australian manufacturing landscape. And as it played out, and those within the industry could have told them, it just was not the case. Due to its varied nature, the very thing that can make manufacturing successful in Australia, is the very thing that means there is not, and can not, be a single solution to the problems it is facing right now. Manufacturing in Australia is being

hamstrung by poor policy, a lack of forethought, and the inability of those in power to prepare for mining’s rise and manufacturing’s current ‘decline’. Yet it was not just Australia’s manufacturing industry that suffered. This year saw a global downturn in manufacturing, and even those manufacturing power houses such as China slowed down. The U.S. suffered; India, Europe, and

Australia’s industries all followed suit. So where to now? Where can the manufacturing industry go after such a rough year? Upwards and onwards. Really that’s the only way. And to a degree this is already happening. By divorcing the trauma that the automotive industry is experiencing right now, then the manufacturing industry will able to highlight that it is not in a continual spiral, as many others in the media seem to gleefully point out. The food and beverage industry, defence manufacturing, pharmaceuticals, alcohol, high end technology. These are all industries in which Australia excels. Australia should focus on its manufacturing strengths, and that is making top quality high end goods. As we can not compete on the size and scale that other nations can, and even now that scale is not acting as a buffer against the harshness of the manufacturing market worldwide. It will be the quality of our goods, and the ability to stand above that will save us. And while we are starting to see an inkling of this now, next year will be manufacturing’s year. 2013 is the time for the industry to do great things, and I for one look forward to what the industry can, and will achieve. Bring on the new year.

sales

4 DECEMBER 2012 Manufacturers’ Monthly

manmonthly.com.au

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Comment

INNES WILLOX – CEO Australian Industry Group

editor@manmonthly.com.au

Action needed on electricity prices As energy prices rise, the manufacturing industry is suffering more than most. Ai Groups writes exclusively for Manufacturers Monthly on what needs to be done to change this state of affairs.

A mutli-facted approach is needed to the rising cost of energy prices.

lectricity bills have been sky-rocketing over the past five years, with retail prices rising around 50 per cent, and further increases are expected to hit users soon. The carbon tax plays a part of this, but the biggest factor has been the huge investment in electricity networks; much of it built to meet peak demand. Ai Group has been increasingly concerned about cost impacts on hard-pressed businesses, and we recently joined with CHOICE, the Brotherhood of St Laurence, and the Energy Efficiency Council to propose a Plan for Affordable Energy designed to lessen some of the impacts of these continual rises. Our package of reforms has six main elements: Consumers who cut back during ‘super peaks’ should be rewarded. A quarter of our electricity bills cover costs from around 40 hours of extreme conditions each year.

6 DECEMBER 2012 Manufacturers’ Monthly

Everyone wants air conditioning on blisteringly hot days, for example – but simply by reducing demand on these days everyone could save a lot of money. The problem is a lack of incentive for most consumers to do so. Our plan proposes paying consumers to lower their demand during these ‘super peak’ periods, rewarding positive action. For instance, a business with cold storage could cycle off its chillers for up to an hour without thawing anything, and at the same time earn valuable money by “selling” electricity when the wholesale energy prices during these ‘super peaks’ times are very high. Technology currently exists to do the same thing in households, with smart meters and smart appliances. A more effective approach to driving cost-efficiency in our networks. Businesses that build and operate the poles and wires perform a vital service and are heavily regulated,

but the current rules do not provide the best encouragement for operational efficiency. For instance, networks in New South Wales must meet an oldfashioned reliability standard that mandates redundant infrastructure across the system. Whereas Victorian networks are instead built to a smarter standard, one that focuses on actual risk levels, so that consumers pay less and yet at the same time still get a reliable service. Energy efficiency programs should be strengthened. Government policies, such as the Clean Technology Program and the New South Wales Energy Savings Scheme, can help end-users get more bang for their electricity buck by offsetting the upfront costs of more efficient equipment and buildings. These policies could be strengthened to drive further reduction in peak demand as well as overall demand.

A careful rollout of smart meters and time-of-use pricing. If electricity prices actually reflect changing costs of supply throughout the day, and if users have better access to information about their usage, then some will be able to shift their use. In this way they are saving money for themselves and reducing pressure across the system. Time-of-use pricing is a big change, however, and bigger users are ready to deal with it first. Smaller users need to be well informed and given appropriate protections. The closer monitoring of deregulated energy prices. Energy prices are regulated to protect consumers, but deregulation may actually be the better way of achieving this. We need a clearer idea of what happens in the deregulated Victorian energy market, so we can determine if other states should follow suit. Ensure that the consumer voice is heard in the energy debate. Debates about pricing and regulatory issues are dominated by powerful interests. But we need to ensure that consumers have access to expert, well-funded advice and that their voices are heard. A basic customer protection framework has already been agreed to by COAG and needs to be implemented immediately. It is worth noting that the Productivity Commission, the Energy Market Commission, the Australian Competition and Consumer Commission, and a Senate committee are all calling for very similar reforms. With new decisions on network investment set for 2013, the right rules need to be in place soon or we will all pay the price. The Plan for Affordable Energy can be found at www.aigroup.com.au/ policy/reports manmonthly.com.au

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Servicing the Manufacturing Industry for over 30 years Hydraulic and Industrial hose and fittings 92 Service and Supply Centres Australia wide National fleet of 320+ fully stocked mobile service workshops Rapid response time, 24 hours 7 days All Service and Supply Centres ISO9001:2008 accredited NATA certified hose testing facility Registered training organisation Nationally accredited and certified technicians National pricing policy

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AnalysisNEWS Awards offer industry focus Packed house at this year’s Endeavour Awards gala dinner.

By Alan Johnson

ave Delany, MD of ifm efector, is proud to continue his company’s sponsorship of the Endeavour’s Life Time Achievement award. “The awards are really valuable in bringing the industry together, and recognise the fantastic products that Australian manufacturers produce, and the people behind these companies,” he said. While media headlines often portray the manufacturing industry as dying, Delany says he gets to visit many very successful Australian companies. “Two companies that stand out are ANCA and Hot Melt Packaging in South Australia who are both doing exceptionally well, and despite the strong Australian dollar, both companies are exporting strongly. “Even with obstacles in their way, those manufacturers who have something special to offer with regards to what their machine does or how their business runs are still growing and flourishing. “The people who are struggling the most are the component manufacturers for the automotive industry and those types of companies. I see two extremes. “To be a successful manufacturer in Australia today, you have to do something different, more than just what is on the global stage,” he said. Delany also believes the drop in the mining boom will only help the dollar ease, making Australian manufacturers more competitive. “Australia can not be reliant on just one industry, especially the mining industry, as it is always a boom and bust type of industry and never constant. “The softening of our dollar will really help other industries and can only be good for the country,” Delany told Manufacturers’ Monthly. “For me, 2009 was a critical year for our industry, a real paradigm shift for a lot of businesses. For us it changed the way we do things and has had an ongoing positive effect on the development of sensors now three years later. 8 DECEMBER 2012 Manufacturers’ Monthly

The awards are really valuable in bringing the industry together - Delany.

“We have always been a very proud German manufacturing company, but we have been forced to put production facilities outside of Germany simply because of the shortage of skilled workers in Germany itself. “But now, having people in other parts of the world influencing sensor development has brought a lot of fresh innovation and exciting new products to the market. “For example, we have new innovative products out of ifm US which have a completely different approach to traditional products that we have developed in the past. “These new temperature sensors and photo electrics are far more suited to our market, mainly due to the thinking behind the products. “These new products tend to be physically larger and more suited to rugged applications and the mining industry here in Australia, rather than a high tech electronic factory which might be very common in Europe. “At the same time as sensors are getting smarter and easier to set up. There are now far less networks required, making life easier for engineers, he said. “They can now utilise intelligent sensors from various manufacturers, offering the customer far more choice and very competitive pricing because of the competition, plus

they are able to communicate with all common standards. “A lot of work has been done so that these networks can easily fit these devices up.” Delany says he is seeing more and more people wanting to track products via RFID and UHF systems. “That’s a growth market for us at the moment, often in areas you wouldn’t first think of, tracking conveyor repairs for example. Applications are not just for tracking products down a production line or to the consumer anymore. “The cost of these tags have come down considerably and the distances they can work over is now a lot better, now up to 10 metres. “There are also now many specialised tags for very high temperature environments, such as inside a kiln for example. “With the high cost of labour here in Australia at present, manufacturers are looking at automating as much as possible and getting a lot more information out of their systems,” Delany said.

2013 Endeavour Awards The Endeavour Awards program is a unique opportunity for manufacturers to demonstrate and showcase their business successes and enhance the company’s reputation both locally and overseas, be it as a finalist or taking out an actual award.

Categories for 2013 • Technology Application of the Year Award: sponsored by SMC. • Exporter of the Year Award: sponsored by EFIC. • Environmental Solution of the Year Award: sponsored by Atlas Copco. • Australian Steel Innovation Award: sponsored by BlueScope Steel. • Global Integration Award: sponsored by ICN. • Safety Scheme of the Year: sponsored by Sick. • Australian Industrial Product of the Year Award: sponsored by BOC. • Australian Consumer/Trade Product of the Year Award. • The overall Manufacturer of the Year Award: sponsored by BlueScope Steel, will be chosen from among the winners of the above categories. • Lifetime Achievement Award: sponsored by IFM Efector. • Young Manufacturer of the Year Award. • Most Innovative Company Award. • Significant Achievement Award: sponsored by Enterprise Connect. (This award is for Enterprise Connect clients only.)

The Endeavour Awards celebrate and recognise the achievements of industry leaders in their drive to achieve best practice and excellence. manmonthly.com.au

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AnalysisNEWS EVENTS December 2012 3-4 December: MachineSAFE. The recently launched MachineSAFE Advanced 2 Day Training Course is the most comprehensive machinery safety course currently offered in Australia and New Zealand. Due to popular demand, the schedule has been brought forward, and addional subjects will be addressed in the new course. Subjects include how the newly introduced Work Health and Safety legislation impacts on machinery safety; mechanical guarding concepts; protective devices such as emergency stops, interlock switches, presence sensing devices, safety logic devices, safety contactors and valves; electrical safety circuit design; hydraulic and pneumatic safety circuit design; validation of Safety Control Systems; energy isolation; steps, ladders and platform design; and conveyor safety requirements. If you are involved in the process of specifying or upgrading the safety aspects of your machinery in your workplace, this is a must do course. This course will be held in Perth

May 2013 7-10 May: AUSPACK PLUS. The largest biennial packaging and processing machinery and materials exhibition in Australia, AUSPACK PLUS, will be heading to the Sydney Showgrounds, Sydney Olympic Park next year. AUSPACK PLUS is owned and presented by the Australian Packaging and Processing Machinery Association (APPMA), Australia’s only national packaging and processing machinery organisation.For information about AUSPACK PLUS 2013, please log on to the newly-designed website www. auspackplus.com.au 7-10 May: National Manufacturing Week. The event of events for the manufacutring industry, National Manufacturing Week, will be held in the Melbourne Convention Centre. The largest manufacturing exhibition in Australia, it features the newest technology, products, and services to help you perform you job better. As the offical publication of the 2012 NMW. For more information on the exhibition call 02 9422 2568, or visit www. nationalmanufacturingweek.com.au.

10 DECEMBER 2012 Manufacturers’ Monthly

Is the Asian Century the answer? Vicky Validakis investigates the government’s Asian Century white paper.

he white paper on Australia in the Asian Century, commissioned by Prime Minister Julia Gillard, outlines 24 objectives for the nation to achieve by 2025. The paper says the wealth of Australia as a whole will be boosted in the next decade through increased engagement with Asia. “The Asian Century offers a wealth of opportunities and career choices in a variety of businesses, including small and medium-sized enterprises, especially for Australia’s young people,” it says. It aims to exploit the opportunities in a region where the pace and scale of change “have been staggering” with the region set to become home to most of the world’s middle class. One of the ways that paper suggests tapping into the Asian boom, is by increasing ties through manufacturing, R&D, and shared knowledge between the two regions. “Construction and engineering services and manufacturing will support resources development; research and design services will, in turn, support manufacturing and engineering,“ the report states. The paper says Australian manufacturing is expected to grow and that firms must find ways to “adapt by anticipating changes in their markets, building the talents of their people and constantly innovating and lifting their productivity”. But while the paper points out the opportunities available, it does concede that small to medium sized firms faced significant challenges in developing and producing goods. “Manufacturing firms will need to change their business models, improve their market orientation and improve their innovation performance, including through their links with research organisations,” it states. A roadmap which aims to support the manufacturing sector to become even more productive and capitalise on the opportunities arising from Asia is set out in the paper and include changes to tax reform, innovation, infrastructure and regulatory reform. However, the paper has been labelled by some as ‘rhetoric only.’ While the paper is overwhelmingly positive in its assess-

Is Asia Australia’s future?

ment, critics argue that it is slight on the detail of how it will open Australian manufacturing to emerging markets to make the sector grow in productivity and competitiveness. While there was a clear emphasis on the need for businesses to adapt and innovate in order to cater for Asia’s emerging middle class, little was said on how the government proposed to help business achieve export success against the backdrop of a high Australian dollar and the demand for natural resources. And while it can be rightly assumed that increasing productivity will put Australian manufacturers in good steed to compete in Asia, the paper fails to address issues which damage competiveness such as the high dollar, rising labour costs and the inability to locate open markets in Asian regions. The infrastructure and engineering group UGL Limited criticised the lack of attention given to IR. Its CEO Richard Leupen said there is nothing new in the paper that would change the way we do business. Innes Willox, CEO of the Australian Industry Group, also agreed that the absence of IR was disappointing, saying “another key ingredient of productive performance – workplace relations reform – is noticeably absent in the White Paper”. Willox went on to say that in order to lift productivity the sector needed the identification of taxation reform, reducing regulatory burdens and an injection of long-term crossjurisdictional planning and private

sector funds to address our infrastructure backlog. “In all of these areas, delivery of results has proved very difficult to date and we urge all parties and all levels of government to commit to real reforms and real results.” Meanwhile Alan Oxley, managing director at ITS Global, criticised recommendations involving quotas on board members with Asian experience, and said doing business in the region was made difficult by the lack of openness in trade in some markets. “So I think the expectation that there’s an easy spot for our industries to move into those areas is probably wrong,” Oxley said. “I mean, they’re good, they’re competitive, but they’ll go where they can do business. And in the short to medium term, it’s going to remain the US and Europe.” And it seems most industry bodies agree that growth opportunities exist, without regulatory reform, the paper will do little to ensure the manufacturing industry will be able to tap in to the opportunities. With the paper throwing light onto the issues facing the manufacturing sector, it has succeeded in creating a discourse around the changes the industry needs, and what it feels is important for future success. But with the detail, funding and policy not visible at this stage, it seems the Asian Century white paper fails to deliver on just how the government proposes to do so. manmonthly.com.au

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Autodom doesnâ&#x20AC;&#x2122;t equal doom

SAGE to build new manufacturing plant

Those in the media stating that the end is nigh for manufacturing are jumping the gun. Brent Balinski writes.

s a magazine covering Australian manufacturing, we note the occasional opinion piece predicting the industryâ&#x20AC;&#x2122;s demise. â&#x20AC;&#x153;â&#x20AC;&#x2DC;Manufacturing is deadâ&#x20AC;&#x2122;? Really? Again?â&#x20AC;? we read, before going back to whatever it is we were doing. Last month Alan Kohler, that doyen of journos, was at it, extrapolating the difficulties faced by Autodom (and if voluntary administration isnâ&#x20AC;&#x2122;t a difficulty, then the word no longer has any meaning) to represent manufacturing in general. Yes, because the car parts maker â&#x20AC;&#x201C; like the rest of our auto industry, is in trouble â&#x20AC;&#x201C; then this is â&#x20AC;&#x153;a clear sign of manufacturing doom.â&#x20AC;? We have a great deal of respect for Mr. Kohler and his accomplishments as an analyst and contributor to what seems to be every single bit of media that covers business (really, the man is nothing if not prolific). But, as people whose jobs it is to make sense of manufacturing news stories, we have to take issue with his claims. Kohler notes the 2007 split of AiLimited to Autodom â&#x20AC;&#x201C; the car parts maker that will has since been bailed out by Ford and Holden â&#x20AC;&#x201C; and Forge Group, a mining engineering and construction business. Forge, Kohler points out, has done a hell of a lot better on the stock exchange than has Autodom. We canâ&#x20AC;&#x2122;t quibble on that note. In five or so years, Forgeâ&#x20AC;&#x2122;s share price has given 100 per cent per annum returns.

The manufacturing industry has seen many claiming it is the end, but this just isnâ&#x20AC;&#x2122;t the case.

Meanwhile, Autodomâ&#x20AC;&#x2122;s stocks have moved in value down from $2.34 to somewhere around a cup of warm saliva each. Trading is currently suspended. We canâ&#x20AC;&#x2122;t contest the above figures, or Kohlerâ&#x20AC;&#x2122;s pointing out that the manufacturing industry has been doing it tough due to the high dollar. We just canâ&#x20AC;&#x2122;t. But for the manufacturing industry to be in a state of â&#x20AC;&#x153;steady, catastrophic decline?â&#x20AC;? We just canâ&#x20AC;&#x2122;t let predictions of â&#x20AC;&#x153;doomâ&#x20AC;? and â&#x20AC;&#x153;catastrophic declineâ&#x20AC;? go unchallenged, based on the auto industryâ&#x20AC;&#x2122;s obvious difficulties. Sure, we could throw around the figure of 100,000 or so jobs lost in the industry since the GFC. Or the need for auto subsidies (and the great lengths the government has

gone to to hide the details of lobbying due to the embarrassment it might cause) to keep that manufacturing segment alive. But we could also point out the million or so folks that remain employed in manufacturing. Or the absolutely huge opportunities the food and beverage (which employs 300 000-plus workers) component of our industry will have in the Asian Century. We could rattle off until weâ&#x20AC;&#x2122;re blue in the face all the successes our winemakers, dairy producers and food manufacturers are having in China with the growing middle classâ&#x20AC;&#x2122;s demands for the things that we do so well. Or we could point to our strengths and opportunities in high tech manufacturing and what little companies like Ferra Engineering and Textor are doing to innovate and the commercial successes theyâ&#x20AC;&#x2122;re having. Or pharmaceuticals, perhaps? Or we could point out Blackmoresâ&#x20AC;&#x2122; profits and the near-doubling of its share price over the last five years. Itâ&#x20AC;&#x2122;s inarguable that a lot of manufacturing is facing difficulties. Itâ&#x20AC;&#x2122;s a big industry, with huge value in terms of what it contributes to our GDP, our employment, and its overrepresentation in the total R&D spend in this country. Of course some parts are doing it a bit rough. Weâ&#x20AC;&#x2122;re not for a second going to contest that. We notice these things, and weâ&#x20AC;&#x2122;re paid (not as much as Mr Kohler, mind) to do so. But doom, sir? Itâ&#x20AC;&#x2122;s a nasty word to throw around, and you shouldâ&#x20AC;&#x2122;ve picked a better one.

A major investment to enter the defence sector is paying off for SAGE Automation, with the final stage of its $11 million project with Chemring Australia to build countermeasures nearing completion. Chemring Australia has a long term contract with the Australian Defence Force to supply aircraft mounted countermeasures designed to draw missile attacks away from the aircraft, and as part of that contract has established a state of the art manufacturing plant. SAGE Automation has been responsible for the development and installation of automated processes for the new facility in the regional Victorian town of Lara (near Geelong), where the countermeasures will be manufactured. Constructed in four stages, this is the first countermeasure manufacturing plant constructed in the southern hemisphere. â&#x20AC;&#x153;This is the largest single project undertaken by SAGE across any sector and is a great demonstration of our companyâ&#x20AC;&#x2122;s wide ranging capabilities and expertise,â&#x20AC;? said Paul Johnson, SAGEâ&#x20AC;&#x2122;s General Manager of Defence. â&#x20AC;&#x153;This project was a unique combination of manual and automated processes and required us to consider issues such as delicate product handling techniques, functional safety requirements, machine guarding, hazardous areas and tight control over temperature and humidity requirements.â&#x20AC;?

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TechnologyIT@MM Technology advances for 2013 Manufacturers will be spoilt for choice next year as exciting new technology options hit the market. Alan Johnson reports.

ESPITE the dollar expected to fall a little in the new year, 2013 promises to be another tough year for manufacturers, but there will be many advances in computer technology on the market to improve productivity and profitability. The question many manufacturers ask though is what area will I get the biggest bang for my buck. Obviously it all depends on your own manufacturing operation and what you produce. While ERP systems are recognised as a company’s backbone, it is the 3D CAD systems that are increasingly critical for a product’s development and manufacture including design, prototyping, innovation, strength, weight, materials used, sustainability, and time to market. Mark Duggan, Elite Application Engineer with local SolidWorks reseller Intercad, says the benefit of 3D CAD systems for Australian manufacturers are their flexibility and being able to update designs quickly so manufacturers can react to the market. “Many of our customers are focusing on short production runs, which means being flexible and being able to adapt to change, offering customers customisation to clients. We have the technology to do that. “With our DriveWorks a configurator, for example, users can re-set their windows or doors for a customised job in just an hour, where it might normally take a week of drawing. “It’s just a matter of punching in the sizes required, and the system will produce the drawings and the flat patterns for the CNC machines. “One of our customers for example, MaxiTrans, who makes truck bodies, is able to customise its trucks with tool boxes, tail lights, etc where ever their customers want them at very little extra cost,” Duggan told Manufacturers’ Monthly. He says the latest release of SolidWorks has many features to 12 DECEMBER 2012 Manufacturers’ Monthly

3D CAD systems offer Australian manufacturers the ability to rapidly update designs and react to the market quickly.

Increasing number of supply chain and warehousing professionals are utilising mobile devices to make their day easier, and more productive. simplify a company’s product development and make businesses more productive. “There is something for everyone with SolidWorks 2013. There are great new features that will make big differences across organisations on a daily basis. “For example, those that have to produce to a tough schedule will appreciate the new drawing sections tool, while others will appreciate having more control over the sheet metal bend note, and others will go with making SpeedPak configurations at the top level for large assemblies,” said Duggan, one of ANZ’s

few SolidWorks Elite Application Engineers. “Interoperability is also a major step, with users now able to go in and look at the files and not have to change it to a 2013 format. Duggan also pointed to e-Drawings ability to be used on i-Pads as an exciting new option. “It allows users to take their i-Pad out into the manufacturing area, or have one there, and bring the drawings up on that rather than printing them out. “Other new features for users of SolidWorks 2013 include Fast Start where SolidWorks now begins loading components in the background

when a computer is started, resulting in a faster start/launch, plus a new section tool user interface which allows users to create section views, aligned section views and half section views on a drawing, thus, making the process of creating complex sections a lot easier. “For administrators, the SolidWorks CAD Admin Dashboard, accessed by clients on subscription through the Customer Portal, allows users to monitor performance, hardware status and system options settings, plus when creating or editing a workflow transition, users can now select Parallel as the transition type. This requires multiple users to run the transition before a file is moved to a new state. For example, there could be a couple of different departments having to sign off on a project before it moves into manufacture, this option allows them to sign off in parallel, at the same time, rather than passing the document from one to the other. “For simulation users we now have a new plastics module available for injection moulding, SimpoeWorks based, and for studies with a large number of bodies, there is a new sub-modelling feature that allows users to improve the results at critical areas without having to re-run the analysis for the whole model. Refining the mesh for a selected portion of the model and re-running the analysis only for the sub-model saves computation time,” Duggan told Manufacturers’ Monthly. For readers interested to hear more about SolidWorks Version 6, he says readers will have to wait till SolidWorks World 2013, to held in Orlando, Florida in January, but warns there is a limit to what it can do at the moment. “Version 6 will be incorporate cloud computing, but it will be a different system all together. “At this stage, users will not be able to migrate to Version 6 as it has been written differently so it will work on the cloud. manmonthly.com.au

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Voice-directed picking technology offers ease of use benefits and multi-lingual capabilities.

“The plan is to run the two versions in parallel, with the current version of SolidWorks going to at least 2020. “With cloud computing, the need for faster machines goes out the window, because the data will be in a computer farm somewhere so all users will need is a fast internet connection, but it still has a way to go before it is market ready and users feel safe about their information being held by a third party.

ERP deployment

Supply chain technology In 2013 it will be increasingly important for warehousing professionals to keep abreast of technological developments in supply chain technologies that can make their day easier, and more productive. Mobile devices have become ubiquitous in the warehouse, with a variety of professionals from warehouse managers through to pickers relying on these devices to complete their day-to-day tasks. According to Dr Trent Mifsud, Application Specialist with Intermec Technologies, one of the developing trends over the coming year will be the integration of HTML5 enabled applications and systems on mobile devices. “Increasingly, there is a more diverse range of mobile devices being used in the warehouse at any given time. These devices range from light-duty labelling devices all the way through to more rugged mobile forklift terminals, which may

ciently. Multi-modal mobile devices that are HTML5 enabled and allow workers to perform more than one task will allow warehouses to implement best-practice operations and significantly increase

or may not be utilising the same operating system.” According to Dr Mifsud, the primary advantage of a HTML5 software platform is that is independent of the hardware. “Applications developed using HTML5 can run on any device that provides an HTML5-capable browser or equivalent product. It does not matter if the operating system is Windows Mobile, Android, iOS or even Windows XP or Windows 7,” said Misfud. This diversity in mobile devices has also increased the demand for increasingly multimodal devices. A multi-modal mobile device is one that can be used for a specialised purpose, but can also be used for a diverse range of innovative functions. Tony Repaci, Intermec’s managing direc-

tor for Australia and NZ says one of the more distinct advantages that a multi-function terminal has is the ability to complete multiple tasks on a single device, this helps to maximise labour productivity and efficiency. “In the distribution hub, where fundamental repetitive tasks are performed thousands of times each day, using the most efficient technology to improve a process can produce significant productivity gains,” he said. With an integrated solution, manufacturers have the option to use processes that are voice only, voice-and-scan, or voicescan-and-screen. As warehouse professionals demand more mobility from their devices, they are going to require tools that enable them to do their jobs more accurately and effi-

In 2013 many manufacturers will be searching for innovative ways to improve operations, upgrade their IT infrastructure and keep pace with competitors utilising ERP business solutions. However, as Mike Lorge, managing director of Sage Business Solution explains, a successful ERP software implementation involves much more than simply deploying the technology. “Whether you are new to the world of ERP or have worked with a few suppliers, you will appreciate that choosing the right ERP solution for your organisation can be a tricky business.” But Lorge says it needn’t be, as long as you know why you need it. “You maybe introducing a new software solution but you should treat this as a business change programme not an IT change programme. The first step is to consult with your key stakeholders and be clear about what you, and your team, hope to achieve. It might be helpful to draw up a wish list of ‘must-haves’ and detail where you are prepared to compromise Defining what success looks like will help you manage expectations from the outset and help to measure the benefits felt by your business.”

“ EFIC DID MORE THAN SUPPLY WORKING CAPITAL. THEY PUT US ON TRACK FOR GROWTH.” Hugo Davidson, CEO, Knog

Find out more at eﬁc.gov.au/mm Overcoming ﬁnancial barriers for exporters

manmonthly.com.au

Manufacturers’ Monthly DECEMBER 2012 13

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DefenceMANUFACTURING No longer under the radar The Australian Government has thrown its support behind keeping manufacturing Australian.

turn around in government is ensuring that Australian defence manufacturing stays local. For years now South Australia has been the defence industry’s manufacturing hub in Australia, however in recent years the focus has shifted away from Australian built equipment to purchasing or renting second hand machinery from foreign nations such as the U.K., the U.S, and France as the government carries out its submarine fleet replacement project, which seeks to replace all its current fleet from 2025 onwards. This reached a head last month when the Australian Financial Review suggested in editorial that nuclear submarines from countries such as France, Japan, Germany, and Spain - proposed to replace the current Collins Class diesel electric fleet - could represent better value for the taxpayer

Stephen Smith says the government will not outsource jobs from ASC. than constructing them in South Australia. According to the forecast, the new submarine project will cost more than $36 billion, and will be the most expensive project ever carried out by the Australia Defence Force. However despite many media claims that the original project ran dramatically over budget, the figures indicated that the manufacturing

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stayed relatively within the inflation rates. Now Stephen Smith, the federal defence minister, has ruled out hiring or acquiring nuclear submarines from overseas, meaning that 2500 manufacturing jobs at government submarine maker Australian Submarine Corporation (ASC) are no longer in danger.

“Acquiring nuclear powered submarines would involve outsourcing the construction, maintenance and sustainment of the submarines to another country,” a spokeswoman for Smith explained. Both sides of politics have supported building the next submarine at ASC, which employs 2500 people at three sites in Adelaide and Perth. Any potential job losses in SA would be politically sensitive in the year leading up to the federal election, added to this is the fact that the submarines brought in would be nuclear powered, which would likely create a backlash from the public. The fleet of six diesel electric, Australian built Collins Class submarines has served in Australian waters since the early 1990s, however their tenure has been marred with controversy due to a reported number of defects in their operations.

Yes it is. Named the Best National Travel Management Company in Australia in the 2012 National Travel Industry Awards for Excellence, FCm Travel Solutions blends award winning thinking and global strength to deliver exceptional service. As an FCm client, you can be assured that every time you make a booking our focus is always on providing better travel ideas so you can achieve greater savings. Contact us today and see what’s possible when you combine the travel industry’s best people with the products and services of the Best National Travel Management Company 2012.

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14 DECEMBER 2012 Manufacturers’ Monthly

FCMAUS52643

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InsiderSERIES

TOP 100 AUSTRALIAN MANUFACTURERS

visit www.australianmade.com.au or call 1800 350 520

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Manufacturing’s state of play The release of the Top 100 list of manufacturers highlights varied nature of the industry.

n spite of the constant dire predictions regarding the industry’s future, IBISWorld’s latest Top 100 Manufacturers list has again shown strength in the industry. While three of the top ten companies - Caltex, Shell, and BP Australia, are petroleum refiners and manufacturers, the rest of the companies which round out the group are surprising. Chasing in fourth place as one of Australia’s largest manufacturers is paper and cardboard company Amcor, following closely by Toyota, another petroleum company ExxonMobil, then the Perth mint, Orica, Lion Nathan, and Boral. One of the least surprising aspects of the list is the number of food and beverage, and pharmaceutical manufacturers. The food and beverage industry has been one of the recent manufacturing success stories, which has seen significant growth in the sector over the past few years. Groups such as JSB, Fosters, Nestle, Goodman

16 DECEMBER 2012 Manufacturers’ Monthly

Fielder, Sucrogen and Inghams all saw a spike in their growth year on year. Baked goods manufacturer Bakers’ Delight was one of the major success stories of the year, seeing close to 500 per cent year on year growth in revenues. Kraft Foods also experienced an up turn in its fortunes, maintaining a heady 212 per cent growth in revenues compared to last year. Other food and beverage manufacturers and meat processors rounded out the bulk of the middle. This sector has seen an increase in activity, and is likely to grow in strength in exports over the coming year as Europe’s and the U.S. meat industry, particularly cattle, suffer due to low grain production. This has positioned Australia well as it mixes grain fed with grass fed on a higher scale than these regions. Sugar manufacturing in Australia has also remained strong, with MSF and Sucrogen seeing revenue growths of 180 per cent and 40 per

cent respectively, although Finasucre did drop a third in revenues. In an expected turn wine manufacturing was slower in revenue growths and recorded some reversals as Australia continues to experience a wine glut, however growing demand in China (see page 34) is predicted to

turn this sector around. Unsurprisingly one of the worst performing sectors of manufacturing has been the automotive and automotive components industry. However those that were able to take advantage of the mining boom, such as Volgren, MaxiTRANS, and Iveco weathered the storm better than the rest in the industry. In line with the mining boom, manufacturers of heavy industry equipment and mining specific machinery recorded an uplift in activity and revenues. The latest report from IBISWorld highlights the varied state of the manufacturing industry, and why many of the media’s attempts to paint it with a single brush fail - as it can not capture the wide spread and diverse nature of manufacturing in Australia. Overall, the list shows that while some in the industry have faltered and stumbled over the past year as the slowdown in manufacturing bites, others have taken advantage of new markets and are excelling in this current market. It has highlighted the future of manufacturing in Australia, and the small, but constant move away from traditional heavy industry and automotive manufacturing towards a more consumer based food and beverage, and pharmaceutical focus.

Behind the cover The Australian Made logo is used by thousands of manufacturers around the country to identify genuine Aussie products. Since its introduction by the Federal Government in 1986, it has helped promote the importance of local products and the jobs behind them for more than 25 years. The world knows and equates Australia with quality products, but it is the Australian Made logo that provides the added reassurance that a product has in fact been made here, to our high standards.

As a Insider registered certification trademark, the logo can only be used on products that are registered with the notfor-profit organisation Australian Made Campaign Limited. For more information on using the Australian Made logo, visit www.australianmade.com.au or call 1800 350 520. TOP 100 AUSTRALIAN MANUFACTURERS

SERIES

visit www.australianmade.com.au or call 1800 350 520

manmonthly.com.au

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RANKING

ENTERPRISE

Current Previous Move Name

State

YEAR’S REVENUE Main ANZSIC description

Current Total

Previous Total

±%

NPAT

EMPLOYEES

Current

Current Previous

Caltex

NSW

Petroleum Refining in Australia

$22,599,170.00

$18,960,383.00

19.2%

-713,514.00

3550

Shell Australia

VIC

Petroleum Refining in Australia

$22,241,900.00

$18,459,000.00

20.5%

-495,200.00

3546 0

-2

BP Australia

VIC

Petroleum Refining in Australia

$21,347,000.00

$19,931,000.00

7.1%

793,000.00

7463

Amcor

VIC

Paper and Paper Product Manufacturing in Australia

$12,352,600.00

$12,688,500.00

-2.6%

412,600.00

Toyota Motor Corporation

VIC

Motor Vehicle and Part Manufacturing in Australia

$7,385,717.00

$8,394,063.00

-12.0%

-32,574.00

ExxonMobil Australia

VIC

Petroleum and Coal Product Manufacturing n.e.c. in Australia

$6,950,000.00

$7,069,000.00

-1.7%

347,000.00

1793

1889

Perth Mint

Jewellery Manufacturing in Australia

$6,833,274.00

$5,488,087.00

24.5%

27,603.00

357

317

-1

Orica

VIC

Petroleum, Coal, Chemical and Associated Product Manufacturing in Australia

$6,300,400.00

$5,860,000.00

7.5%

642,300.00

14000

14237

Lion Nathan National Foods

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$5,162,600.00

$4,004,700.00

28.9%

-1,172,100.00

4401

3754

Boral

NSW

Non-Metallic Mineral Product Manufacturing in Australia

$4,938,300.00

$4,444,800.00

11.1%

176,600.00

14740

15227

-2

Coca-Cola Amatil

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$4,867,900.00

$4,630,300.00

5.1%

591,800.00

15278

15211

CSL

VIC

Pharmaceutical Product Manufacturing in Australia

$4,623,700.00

$4,321,568.00

7.0%

982,600.00

10515

10411

UGL

NSW

Railway Equipment Manufacturing in Australia

$4,463,332.00

$4,292,612.00

4.0%

134,322.00

28000

-4

GM Holden

VIC

Motor Vehicle and Part Manufacturing in Australia

$4,406,971.00

$4,549,003.00

-3.1%

89,689.00

Incitec Pivot

VIC

Fertiliser Manufacturing in Australia

$3,952,600.00

$2,985,400.00

32.4%

463,200.00

4910

4998

-1

Visy Industries

VIC

Paper and Paper Product Manufacturing in Australia

$3,900,000.00

$3,800,000.00

2.6%

9600

9100

ConocoPhillips Australasia

Petroleum Refining in Australia

$3,569,480.00

$2,781,803.00

28.3%

591,672.00

-2

PaperlinX

VIC

Pulp, Paper and Paperboard Manufacturing in Australia

$3,248,200.00

$3,675,000.00

-11.6%

-266,700.00

6212

JBS Australia

QLD

Meat Processing in Australia

$3,235,035.00

$2,774,186.00

16.6%

-39,021.00

6701

-1

Sigma Pharmaceuticals

VIC

Pharmaceutical Product Manufacturing in Australia

$2,897,627.00

$2,951,766.00

-1.8%

49,172.00

-4

Ford Australia

VIC

Motor Vehicle and Part Manufacturing in Australia

$2,854,686.00

$3,454,136.00

-17.4%

-289,846.00

Foster’s Group

VIC

Beverage and Malt Manufacturing in Australia

$2,564,900.00

$2,567,600.00

-0.1%

-89,000.00

2239

5731

Nestle

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$2,448,556.00

$2,279,958.00

7.4%

193,639.00

Murray Goulburn Co-op

VIC

Dairy Product Manufacturing in Australia

$2,361,000.00

$2,292,377.00

3.0%

2100

2200

Goodman Fielder

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$2,223,200.00

$2,230,300.00

-0.3%

-146,900.00

-3

Food Investments

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$2,222,564.00

$2,324,543.00

-4.4%

-23,227.00

8000

Nufarm

VIC

Pesticide Manufacturing in Australia

$2,207,772.00

$2,104,140.00

4.9%

72,594.00

3400

3100

Inghams Enterprises

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$2,100,000.00

$1,840,000.00

14.1%

9000

7890

+11

Pfizer Australia

NSW

Pharmaceutical Product Manufacturing in Australia

$2,036,310.00

$1,458,102.00

39.7%

61,148.00

1836

1450

+11

Boart Longyear

Mining and Construction Machinery Manufacturing in Australia

$1,993,552.00

$1,458,030.00

36.7%

157,105.00

+56

Kraft Foods

VIC

Food, Beverage and Tobacco Manufacturing in Australia

$1,941,808.00

$621,010.00

212.7%

45,820.00

2634

2237 3734

+12

Teys Australia

QLD

Meat Processing in Australia

$1,876,000.00

$1,313,819.00

42.8%

4300

-6

CSR

NSW

Non-Metallic Mineral Product Manufacturing in Australia

$1,861,900.00

$1,944,700.00

-4.3%

76,300.00

Sucrogen

NSW

Sugar Manufacturing in Australia

$1,856,000.00

$1,321,900.00

40.4%

42,300.00

-2

Holcim Australia

NSW

Cement, Lime, Plaster and Concrete Product Manufacturing in Australia

$1,849,903.00

$1,661,370.00

11.3%

137,935.00

3384

2722

-5

British American Tobacco (A’Asia Holdings) NSW

Tobacco Product Manufacturing in Australia

$1,842,637.00

$1,798,406.00

2.5%

612,732.00

-9

Mitsubishi Motors Australia

Motor Vehicle and Part Manufacturing in Australia

$1,821,011.00

$1,898,424.00

-4.1%

23,073.00

-9

BAE Systems Australia

Electronic Equipment Manufacturing in Australia

$1,790,879.00

$1,848,369.00

-3.1%

-49,699.00

-5

Treasury Wine Estates

VIC

Wine Manufacturing in Australia

$1,716,600.00

$1,646,100.00

4.3%

89,900.00

3129

3319

BOC

NSW

Industrial Gas Manufacturing in Australia

$1,632,386.00

$1,203,164.00

35.7%

703,766.00

-3

Unilever Australia

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$1,603,059.00

$1,530,446.00

4.7%

74,787.00

1631

1653

-5

Hanson Australia Holdings

NSW

Cement, Lime, Plaster and Concrete Product Manufacturing in Australia

$1,566,500.00

$1,576,500.00

-0.6%

115,300.00

-8

GlaxoSmithKline

VIC

Pharmaceutical Product Manufacturing in Australia

$1,500,893.00

$1,627,879.00

-7.8%

37,904.00

1554

Bradken

NSW

Machinery and Equipment Manufacturing in Australia

$1,458,098.00

$1,153,848.00

26.4%

100,533.00

-4

AstraZeneca

NSW

Pharmaceutical Product Manufacturing in Australia

$1,339,143.00

$1,394,524.00

-4.0%

131,307.00

916

927

-10

Pacific Brands

VIC

Clothing Manufacturing in Australia

$1,333,473.00

$1,627,771.00

-18.1%

-450,650.00

-5

Mars

VIC

Other Food Manufacturing in Australia

$1,311,448.00

$1,327,645.00

-1.2%

132,898.00

2000

1825

Baiada Poultry

NSW

Poultry Processing in Australia

$1,250,000.00

$1,195,000.00

4.6%

-3

Ansell

VIC

Rubber Product Manufacturing in Australia

$1,225,100.00

$1,233,800.00

-0.7%

130,000.00

10207

James Hardie Industries

NSW

Cement, Lime, Plaster and Concrete Product Manufacturing in Australia

$1,190,795.00

$1,171,600.00

1.6%

578,315.00

2604

2540

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18 DECEMBER 2012 Manufacturers’ Monthly

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ENTERPRISE

Current Previous Move Name

NPAT

EMPLOYEES

State

Main ANZSIC description

Current Total

YEAR’S REVENUE Previous Total

±%

Current

Current Previous

-1

Frito-Lay Australia

NSW

Tea, Coffee and Other Food Manufacturing in Australia

$1,187,318.00

$1,194,623.00

-0.6%

49,553.00

2141

2113

-4

H J Heinz Company Australia

VIC

Food, Beverage and Tobacco Manufacturing in Australia

$1,170,253.00

$1,200,585.00

-2.5%

26,281.00

1637

1617

Simplot Australia

VIC

Food, Beverage and Tobacco Manufacturing in Australia

$1,166,795.00

$1,105,145.00

5.6%

45,305.00

2444

2328

-9

Kimberly-Clark Pacific

NSW

Pharmaceutical Product Manufacturing in Australia

$1,129,717.00

$1,281,239.00

-11.8%

-10,446.00

1313

1871

Goodyear

NSW

Tyre Manufacturing in Australia

$1,114,539.00

$1,040,926.00

7.1%

48,327.00

1866

1991

-1

Adelaide Brighton

Cement, Lime, Plaster and Concrete Product Manufacturing in Australia

$1,112,800.00

$1,081,400.00

2.9%

148,400.00

1600

-25

Siemens

VIC

Machinery and Equipment Manufacturing in Australia

$1,109,943.00

$1,719,940.00

-35.5%

2040

1902

Manildra Group

NSW

Food, Beverage and Tobacco Manufacturing in Australia

$1,100,000.00

$1,000,000.00

10.0%

740

-7

Owens-Illinois

VIC

Glass and Glass Product Manufacturing in Australia

$1,091,300.00

$1,159,400.00

-5.9%

57,700.00

5800

3690

+10

Duluxgroup

VIC

Paint Manufacturing in Australia

$1,064,507.00

$777,076.00

37.0%

93,237.00

+10

Boeing Australia

NSW

Aircraft Manufacturing in Australia

$1,038,309.00

$759,532.00

36.7%

40,201.00

-5

Arnotts Biscuits

NSW

Biscuit Manufacturing in Australia

$1,031,294.00

$1,001,449.00

3.0%

89,307.00

4000

SunRice

NSW

Cereal Food and Baking Mix Manufacturing in Australia

$1,000,370.00

$810,964.00

23.4%

33,911.00

1858

1784

VIP Packaging

VIC

Synthetic Resin and Rubber Manufacturing in Australia

$986,000.00

$800,000.00

23.3%

3300

3200

-4

Thales Australia

NSW

Measurement and Other Scientific Equipment Manufacturing in Australia

$964,139.00

$904,262.00

6.6%

33,877.00

3300

3303

-6

ResMed Holdings

NSW

Medical and Surgical Equipment Manufacturing in Australia

$945,925.00

$935,292.00

1.1%

214,429.00

1400

1414

-8

Bega Cheese

NSW

Cheese Manufacturing in Australia

$935,893.00

$939,223.00

-0.4%

17,534.00

1360

1334

-3

Philip Morris

VIC

Tobacco Product Manufacturing in Australia

$909,514.00

$817,896.00

11.2%

376,428.00

757

-6

Parmalat Australia

QLD

Food, Beverage and Tobacco Manufacturing in Australia

$906,424.00

$826,719.00

9.6%

35,543.00

Tenix

NSW

Other Transport Equipment Manufacturing in Australia

$900,000.00

$700,000.00

28.6%

2500

-4

ABB Australia

NSW

Machinery and Equipment Manufacturing in Australia

$841,721.00

$805,731.00

4.5%

23,004.00

1378

1343

+20

Asahi

VIC

Beverage and Malt Manufacturing in Australia

$814,856.00

$598,650.00

36.1%

5,058.00

1606

1535

+15

RCR Tomlinson

Machinery and Equipment Manufacturing in Australia

$809,939.00

$620,510.00

30.5%

27,275.00

2316

2254

-12

Australian Paper

VIC

Pulp, Paper and Paperboard Manufacturing in Australia

$791,746.00

$876,782.00

-9.7%

-40,915.00

1368

1429

-11

Cochlear

NSW

Electronic Component Manufacturing in Australia

$782,593.00

$821,160.00

-4.7%

56,803.00

2390

-7

Norske Skog Industries

NSW

Pulp, Paper and Paperboard Manufacturing in Australia

$767,730.00

$786,007.00

-2.3%

10,438.00

+13

ALSTOM Australia

NSW

Industrial Machinery and Equipment Manufacturing in Australia

$754,878.00

$603,305.00

25.1%

-42,378.00

-4

Ridley

VIC

Prepared Animal and Bird Feed Manufacturing in Australia

$736,571.00

$725,120.00

1.6%

19,253.00

961

948

-4

Joy Global Australia

NSW

Mining and Construction Machinery Manufacturing in Australia

$721,211.00

$713,030.00

1.1%

48,181.00

1471

2111

-3

Aristocrat Leisure

NSW

Gaming and Vending Machines Manufacturing in Australia

$713,030.00

$705,043.00

1.1%

66,140.00

2111

2181

-3

Qenos Holdings

VIC

Petroleum and Coal Product Manufacturing n.e.c. in Australia

$705,026.00

$704,830.00

0.0%

2,568.00

722

728

104

+21

ASC

Shipbuilding in Australia

$699,784.00

$516,451.00

35.5%

10,577.00

1059

1401

-7

Nippon Meat

NSW

Meat and Meat Product Manufacturing in Australia

$685,437.00

$705,255.00

-2.8%

-53,941.00

1719

1897

105

+20

Austal

Other Transport Equipment Manufacturing in Australia

$680,814.00

$514,257.00

32.4%

11,043.00

3237

2404

-5

Bridgestone

Petroleum, Coal, Chemical and Associated Product Manufacturing in Australia

$679,137.00

$694,995.00

-2.3%

21,739.00

-14

PACCAR

VIC

Motor Vehicle Manufacturing in Australia

$667,405.00

$757,770.00

-11.9%

69,381.00

695

680

-14

Australian Aerospace

NSW

Aircraft Manufacturing in Australia

$626,366.00

$727,080.00

-13.9%

8,455.00

-5

GWA Group Limited

QLD

Ceramic Sanitary Ware and Other Ceramic Product Manufacturing in Australia

$616,954.00

$644,290.00

-4.2%

39,655.00

1788

2150

116

+26

Merck Sharp & Dohme

NSW

Pharmaceutical Product Manufacturing in Australia

$612,075.00

$458,502.00

33.5%

-2,763.00

750

639

-1

Roche Products

NSW

Pharmaceutical Product Manufacturing in Australia

$611,342.00

$606,500.00

0.8%

25,016.00

338

GUD Holdings

VIC

Machinery and Equipment Manufacturing in Australia

$609,935.00

$599,191.00

1.8%

92,762.00

1590

1576

-10

Robert Bosch

VIC

Motor Vehicle and Part Manufacturing in Australia

$588,874.00

$645,213.00

-8.7%

9,045.00

1070

1138

102

Diageo Australia

NSW

Beverage and Malt Manufacturing in Australia

$565,902.00

$520,522.00

8.7%

40,894.00

511

500

249

+154

Bakers Delight

VIC

Bakery Product Manufacturing in Australia

$560,000.00

$95,250.00

487.9%

15000

Honeywell

NSW

Machinery and Equipment Manufacturing in Australia

$558,747.00

$549,250.00

1.7%

87,116.00

1500

-12

Brickworks

NSW

Ceramic Product Manufacturing in Australia

$556,911.00

$639,156.00

-12.9%

43,304.00

-4

Nexans Australia

VIC

Cable and Wire Manufacturing in Australia

$554,221.00

$563,245.00

-1.6%

-51,874.00

906

881

-1

Nuplex Operations

NSW

Basic Chemical Manufacturing in Australia

$537,159.00

$538,981.00

-0.3%

16,175.00

714

747

-5

BASF

VIC

Basic Chemical Manufacturing in Australia

$535,591.00

$555,454.00

-3.6%

-6,470.00

437

431

100

106

JELD-WEN AUSTARLIA

NSW

Wooden Structual Component Manfacturing in Australia

$531,627.00

$11,635.00

3.9%

21,158.00

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manmonthly.com.au

Manufacturers’ Monthly DECEMBER 2012 19

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MaterialsHANDLING Lifting the standard

Simple injuries can be avoided.

Safety all wrapped up Decreasing material handling related injuries can be simple. Dan Clark writes.

arlier this year Manufacturers’ Monthly highlighted WorkSafe Victoria’s launch of a year-long campaign targeting musculoskeletal injuries. Commenting at the launch of the campaign, Victoria’s assistant treasurer Gordon Rich-Phillips noted that “musculoskeletal injuries are the most common workplace injury, costing nearly $1 billion a year in medical costs, wages and other expenses”. While this campaign is only being conducted in Victoria, the risk of musculoskeletal injuries is the same at any workplace in the country; however the causes of these injuries are not all the same. Time and time again the same activities account for the majority of workplace injury incidents. According to Rich-Phillips, dangerous manual handling, particularly lifting, lowering and moving things accounts for about 68 per cent of all musculoskeletal injury claims, while about 20 per cent are the result of slips, trips and falls. There are a number of safety solu-

20 DECEMBER 2012 Manufacturers’ Monthly

tions for preventing slips, trips and falls in the workplace, but the solution should fit the application. In the case of stretchwrapping pallets, when this is done manually it requires poor postures and movements, and often high force. WorkSafe Victoria notes that this can cause musculoskeletal injuries particularly to the back, shoulders, knees, wrists, fingers,and forearms. These injuries can occur suddenly or develop gradually over time. However these injuries can be easily avoided simply by installing an automatic pallet wrapper; using a semi-automatic stretchwrapping machine; or using a vacuum-sealing, or shrink-wrapping device. Many companies already provide specialised machinery, such as Integrated Packaging , which supplies a range of customised wrapping equipment and stretch film pallet wrappers designed with workplace safety in mind. Multiple configurations of these machines are available, allowing for custom specifications.

All machines in the range feature Pallet-Grip locking technology, which is designed to reduce the risk of operator injury by securely holding products in place Optimum Handling Solutions also provides a range of stretch wrapping machines, including manual, semi-automatic and fully automatic models. Where it is not practicable to utilise a wrapping machine or device, WorkSafe suggests minimising the risk of injury by using a raised automated scissor lift and turntable to improve posture and movements; or an alternative packing product such as tape-wrapping. Optimum Handling Solutions also stocks a range of scissor lifts, in electric, hydraulic, static spring and mobile models. These devices are specifically designed to increase productivity and operator safety, and are available in configurations to suit all manual handling requirements, with capacities ranging from 250kg up to 4,000kg.

As more manufacturers deal in bulk materials, the need to lift, shift, and warehouse empty containers is increasing. One of the latest developments in this field is MLA Holdings new Vulcan C90 empty container handler. According to the company one of the major changes in the new hydrostatic drive and lift transmission. As seen in the previous H100 to H180 heavy diesel trucks with a 10 to 18 tonne lifting capacity, this new model empty container handler now accelerates smoothly and responsively using dual pedal control. For driving speeds lower than 20 km per hour, the engine revs at just 1500 RPM, making it fuel efficient. In a major change up the coupling, gearbox, differential, and service brake are no longer necessary, which means that gear changing procedures are unnecessary, removing some of the mechanical wearing issues resulting in lower maintenance costs. It features variable displacement piston pumps and hydrostatic drives with load sensing technology. This means 20 per cent less fuel consumption due to the more efficient use of the engine revs through the load sensing system. The variable displacement load sensing system also allows for much faster cycle times through increased lifting speeds while the hydrostatic drive gives fast and smooth acceleration and deceleration also improving cycle times, it also heavily reduces the wear on brakes and the machine is decelerated through hydraulic braking, as braking is mostly done in the hydraulic pumps and drive motors and not with the use of friction brakes Unlike most other machines the mast is mounted on top of the drive axle and not in front of it and allows the user to reduce the lost load distance, enabling them to have the same lifting capacity but with a lighter machine foot print. It also has a double box spreader. This new DBS 10 Double box spreader enables a lifting capacity of 10 tonne with twin 4 foot containers. MLA Holdings www.mlaholdings.com.au

manmonthly.com.au

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AustralianMANUFACTURING The road to recovery The closing of Darrell Lea was the end of an icon, but an Australian manufacturing family is helping to turn its fortunes around. Brent Balinski writes.

The factory is the largest producer of liquorice in Australia, manufacturing 160 tonnes per week

“I

n the next 12 months, there won’t be anything that we don’t touch and improve with efficiencies in manufacturing,” Klark Quinn said. A bold statement from the 30-yearold in charge of overhauling the iconic confectionary maker Darrell Lea and making it profitable again. Quinn, the son of VIP Pet Foods owners Tony and Christina (whose fortune was estimated at $350 million), is no stranger to getting his hands dirty and to turning a factory’s operations around. At the time of writing, Darrell Lea has gone from total shutdown to just starting to be stocked on the shelves of selected IGA supermarkets, while the Quinns are trying to get DL into Coles and Woolies too. Are deals with other supermarket chains just waiting to be inked? “Pretty much; first of all we set up meetings with all the major Australian retailers and we’re pretty open and public with the future

22 DECEMBER 2012 Manufacturers’ Monthly

of Darrell Lea,” said Quinn when Manufacturers’ Monthly visited the Kogarah plant, which opened in 1962, in Sydney’s south. “The need for Darrell Lea from the Australian public – the prime minister talking about it on national TV [when it went into administration in July], the amount of media attention - proves how iconic and strong the Darrell Lea brand is. So we need to capitalise on that.” When the 85 year old, fourthgeneration family-owned Darrell Lea – famous for products like its soft eating liquorice and Rocklea Road bars – announced its collapse in July, everyone from prime minster Julia Gillard to septuagenarians who had grown up with the brand were disappointed. Comments on another Australian icon gone and the sad end of an era – and more headlines involving a pun on “rocky road” than you could possibly count – were hard to miss. Sales of their products all shot up as consumers flocked to

the closing retail outlets to stock up in what they thought was their last chance to do so. But in early December, DL found a buyer: the Quinn family, who stumped up an undisclosed sum (estimated at $25 million) to rescue the brand and its manufacturing operations. Not surprisingly, there was a lot that needed changing and will require further changes. First of all, getting Darrell Lea into the supermarkets is a big step. Refusing to be a supermarket brand but not quite positioning itself as a premium confectioner (like Haigh’s, for example) meant it limited itself. “Yeah, tradition killed them to some extent,” Quinn said. Further than that, there was a mountain of improvements that needed to be made to the way in which Darrell Lea cranked out its sweets. “It was very fat and inefficient before, so we need to make it into a lean manufacturing process; with

a mind to looking after the brand and not compromising the quality or upsetting any of the loyal Darrell Lea customers.” When we spoke to Quinn it was still early days in the company’s revamp. He says they’ve only retained 186 out of 700 products, with many performing poorly and some, for example boiled lollies, being produced at a considerable loss. Despite the aggressive shedding of loss-making product lines, he’s moving cautiously in other ways. “You can’t build Rome in a day, and you can’t make too many changes,” he explained. “You have to be mindful as well, that a lot of people have been here for over 40 years, and an exceptional amount of people have been here for 30 years, so people are part of the furniture, and if you start changing the furniture too quick, you’re going to upset a lot of people. “But at the same time we have purchased machinery and equipment. And [within two months] we started setting new equipment to help product efficiencies… So in the next six months we’re planning to touch 50 per cent of all production lines and improve them by 20 per cent. So that’s already happening. We don’t want to make too many quick decisions, too early.” Also part of the rationalisation process was doing away with anything that wasn’t completely Australian-made. Quinn gave the example of Bo-Peeps. Despite their sentimental value with some, the foreign-made sweets aren’t part of the new Darrell Lea. “And the way they’re produced, having them produced overseas, is not part of our vision. So firstly, keeping them Australian owned and Australian manufactured is our number one priority.” Quinn, who begins his day at 7 am and who often retires to his bachelor loft (the ironically-named “Penthouse”) around midnight, is manmonthly.com.au

MA N M. D E C 1 2 . P G 0 2 3 . p d f

currently spending as much time as he can, involving himself in all the aspects of the factory’s operations. “It’s extremely important that I understand every facet of the

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business,” he told Manufacturers’ Monthly during the site visit. The General Manager considers his experience in 2009, when VIP bought Bush’s International (now Australian

Pet Brands) for $45 million, a valuable lesson. The family placed Klark (at Bush’s Dubbo factory) and brother Kent (at the Ingleburn site) in charge of reviving the troubled manufacturer. “Being on the floor certainly helped and straight away we gained a lot of respect from the employees on the floor, and that helped change the business,” he stated. “In that culture change and getting people to trust you and respect you goes a long way. And that’s really important in any takeover of a business; you need to very quickly gain the respect and trust from the employees. And that has occurred just by our family’s natural demeanour, we’ve all worked on the floor, we all know what it takes to pack product into a box and drive a forklift and run a machine – we’ve

all done this before – so we have a very healthy respect for what it takes to do that.” After throwing himself into Bush’s, the Quinn brothers managed to stem the bleeding (the company was losing $400,000 a week, says Klark) after five months; within a year, it was turning a tidy profit again. The Quinns plan to relocate the DL factory’s operations. The factory, which currently sees 160 tonnes of liquorice (and is the largest liquorice producer in Australia) and 20 tonnes of chocolate produced each week, on a site with a 5,000 pallet storage capacity, won’t be doing what it does now in 18 to 24 months. “Part of our sale and purchase agreement was to purchase the Darrell Lea site at Ingleburn, which it had previously planned to relocate to many, many years ago, but had never had the opportunity to. “So we’ve got about a 7,000 pallet controlled environment warehouse on a 40,000 square metre block of land. We plan to build a world-class facility. And that will be a far more efficient and ergonomic plant.” For the time being, Quinn will continue learning about the Kogarah site. He admits his current schedule is unhealthy but necessary for getting the job done properly. And for the time being, chocolate lovers should keep an eye out for Darrell Lea on supermarket shelves as Christmas nears.

KERRICK...the quality is built in for powerful performance

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Manufacturers’ Monthly DECEMBER 2012 23

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

Built for tight spaces.

Provides wear protection

Arrowhead loader blades CPS Wear Parts has recently released arrowhead blades that are available in 500 Brinell, in all sizes from the smallest profile 101, for light material buckets, to the biggest profile 400, for the heavyduty buckets. The blades are most commonly used as front edges on loader buckets; however they can also be used as edge protectors between teeth and as bucket side protectors.

They are mounted in front of the cutting edge of the bucket, and efficiently protect both the cutting blade and the underside of the bucket. The blades provide extra wear protection on new buckets and can also operate as a replacement front edge for worn-out cutting blades. CPS Wear Parts 1300 904 313 www.cpswearparts.com.au

Sine wave inverters AJ Distributors presents the latest MeanWell’s 500W DC/AC modified sine wave inverters, According to the company they can be used to power portable equipment, lighting fixtures and home appliances in locations where main power is not readily available. They can be constructed as an energy-saving power station by adding external lead-acid batteries with solar panels. The ‘free energy’ received through the built-in MPPT solar chargers can be stored into the battery bank and then

transformed into AC output through its inverter stage. The MPPT function has 98 per cent high conversion efficiency; meanwhile the inverter has an 88 per cent high efficiency. Input protection includes BAT polarity, BAT low alarm, BAT low shutdown and BAT over voltage meanwhile output protection includes short circuit, overload and over-temperature features. AJ Distributors 1300 282 186 www.ajdistributors.com.au

Bulk bags with metal detector FLEXICON Corporation has released its new mobile bulk bag filling system with integral metal detector/separator and a tilt-down conveyor/feeder for dust-free filling at multiple locations. The system incorporates patented Twin-Centrepost bulk bag fillers that are designed to both maximise strength and improve accessibility to bag hooks.

It detects metal in the free-fall stream of material entering the filler and ejects it through a chute that discharges into a removable drum at the rear of the unit. The tilt-down flexible screw conveyor can be manoeuvred through narrow aisles and around corners. Flexicon Corporation 1300 266 705 www.flexicon.com.au

Dust suppressors TRAXX Construction Products has recently added the DB100 dust suppressor from DustBoss to its range. This dust supppressors have been engineered to deliver the power to reach the working face of industrial sites and is suitable for various manufacutring and

heavy duty industrial applications. They have a range of 100m, and are subsequently able to cover material stockpiles 90-100m high. Traxx Construction Products 1300 109 108 www.traxxcp.com.au

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Website: www.profilecuttingsystems.com manmonthly.com.au

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Brought to you by

High speed linear position sensor

Combine 16 switching elements in a 16 bit IO link signal.

Passive junction boxes TURCK has extended its range of passive junction boxes with two active IO-Link variants, complementing the company’s current product line which includes standard junction boxes with 4, 6 and 8 input connectors and a multipole cable output. The IO-Link junction boxes combine 16 switching status elements in a 16-bit IO-Link signal, bringing 16 switching signals from the machine to the control cabinet via a single standard cable. Instead of assigning each signal to the individual wire of an M23 master cable, terminating and routing them into the control cabinet with expensive multi-pole cables, the IO-Link junction box only requires a single standard M12 cable. The signals can come from proximity switches, pushbutton actuators, optical switches or temperature sensors with a switch output. According to the company these junction boxes are

optimal when a large number of signals have to be routed from the machine to the control cabinet. Like TURCK’s standard passive junction boxes, the IO-Link junctions are provided with LEDs that indicate the switching status of each individual input. The junction boxes can be connected to PNP or NPN LED circuits. The passive junction boxes are available as 4, 6 and 8 channel versions. The outputs of the devices are available with a straight female connector, side female connector or fixed cable output in 2 or 10 m lengths. TURCK’s extensive line of products includes advanced sensors, measurement, instrumentation, connectivity, interface and networks for factory & process automation markets that meet clients’ application demands. Turck turckaustralia@turck.com www.turck.com.au

TURCK has released its latest highspeed motion control devices - new LI inductive linear position sensor. Designed for closed loop applications, new electronics architecture in the device increases the effective output rate of the sensor from 1 to 5 kHz. In conjunction with the short signal run time (130 μs) and the highly resolved SSi output, the inductive linear position sensors can achieve the performance of potentiometers but without their disadvantages. Unlike potentiometers, the LI sensors offer permanent protection to IP67, provide non-contact measuring and are absolutely wear-free. The magnetic field immune sensors are suitable for measuring axes with high-speed controls such as is used in injection molding machines. Other application areas include axis measurement in packaging machines, presses or machine tools. With the high speed and precision of the sensor (system resolution of 1 μm), machine builders can keep the position

error in motor control applications to a minimum. As with all inductive linear position sensors, the high-speed variant has very short blind zones and can tolerate up to a 4 millimeter offset of the positioning element (perpendicular to the measuring axis). As well as the highspeed variant with an SSI interface and 16-bit resolution, the analog variant of the sensor will also be offered in the future with the higher output rate of 5 kHz. The analog sensor has a 0 to 10 V or 4 to 20 mA output. Turck 1300 132 566 www.turck.com.au

LED replacements AEROSPACE and Defence Products has released its latest new series of BA15d LED bulb replacements, introduced by Marl International. This new series of LED lights uses only half the power of the existing range and is based on the latest surface mount LED technology. Aerospace and Defence products say that the 240 series is manufactured using the company’s new surface mount line and designed to be aesthetically pleasing. manmonthly.com.au

The product has a rated life of 100,000 hours continuous illumination that is said to often outlast the control panel in which they are fitted and can thus be eliminated from the maintenance schedule. The bulbs can operate utilising a much wider voltage range from 8-48V AC/DC or 48-130V AC/DC. Colours offered are warm white, amber, white, red, green and blue. Aerospace and Defence Products 1300 027 858 www.aerospacedefenceproducts.com.au

Manufacturers’ Monthly DECEMBER 2012 25

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OnSITE

Conveying success In the face of the downturn, one manufacturer is actually growing. Brent Balinski reports.

rom a tiny niche seller of retailer of conveyor products to a growing company servicing the materials handling needs of many of the big names, Convatech almost happened by accident, Craig Philpotts, the company’s managing director said. “The company started off being able to put one of the items of the conveyor in a box and sell it,” he told Manufacturers’ Monthly during a visit to its Warabrook headquarters.

26 DECEMBER 2012 Manufacturers’ Monthly

The company’s focus is now the outsourcing of conveyor supply, installation, and maintenance. Philpotts has been with the company for 24 years, not quite since its beginning, but from a time when it was simply a supplier of conveyor belt cleaning equipment. Things all changed in the late 1980s, after one expression of interest from the local BHP steel works. “BHP steel works basically said ‘we really like what you do there,

how about doing the whole conveyor maintenance for us?’ ” Philpotts explained. “So that was, I suppose, a very big turning point, where we actually went from six people to around 40 people overnight, simply because we took on their labour issues and to carry that out. “What we learned at BHP, we basically took through the rest of the industry here in NSW at that time, and we actually got a very good contract list in the space of about two years.” Newcastle’s BHP steelworks are, of course, no more, but Convatech has gone from strength to strength. According to its managing director, the company turns over $140 million a year, employs over 400 and has nine offices across Australia, after deciding to branch out of Newcastle and into Queensland six years ago. “For the last four years, we’ve had anything between 30 and 40 per cent growth,” said Philpotts, who puts the company’s success down to a superior knowledge of conveyor needs,

its effective, standardised approach, and their proven success with big name clients. “Fortescue took us on simply because we were consistent with our approach and I suppose, from a privateer point of view, they were seeing the same faces all the time and I think they’ve liked that. “We have a lot of respect for our clients and basically what we try to understand is their needs,” he said. “We don’t try to push anything onto our clients.” He said that the company starts by identifying the specific needs of a client, working through Convatech’s standardised processes for seeing what a plant was, and discussing what the client hopes to achieve in terms of materials handling. “And basically they’ve given us a great opportunity to maintain their three inland mines [in Western Australia’s Pilbara region] and also their port facility at Port Hedland, after some of the savings and some of the benefits that Convatech has been able to deliver to that site. “Our model to do that is one that we’ve worked on for many, many years, making sure that each of those items is recognised and maintained accordingly. And we’re able to control our people’s costs, simply because we retain all that information, we analyse it, and we’re making sure that we’re making those decisions based on knowledge and experience and benefits from that.” At the moment, while trying to keep pace with demand for what the company does, Convatech is developing programs to boost workers’ skills. “We’ve just launched in Western Australia, starting with 14 people in a belt-splicing training program,” Philpotts told Manufacturers’ Monthly. “We’ve just completed one previously, about three months ago, where we had about ten people in that program. The training course is an intensive 16 weeks, delivered by a matter expert. We’ve had TAFE involved. This particular training course is very much involved with belt splicing and being able to go and do that work, given that it’s not something of a registered trade.” “It’s about being prepared and training the next generation.” manmonthly.com.au

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Investing in the future A focus on export and and development is against the grain of most the industry. Brent Balinski reports. “ANCA exports 99 per cent of its production to somewhere else in the world,” explained Grant Anderson, CEO of ANCA Group. “So therefore we’re continually focussed on driving up our export volumes.” What? A manufacturer talking not in terms of weathering the high dollar and merely surviving, and instead of boosting exports? But ANCA – a member of the Victorian Manufacturing Hall of Fame – is no ordinary company. Last month ANCA won its seventh Governor of Victoria Award and being named the state’s best Large Advanced Manufacturer. It currently exports almost all of what it creates. ANCA (previously Australian Numerical Control and Automation), goes back to 1974. Its twin missions, through ANCA Machine Tool Pty Ltd

R&D has been a focus. and ANCA Motion Pty Ltd respectively, are to “provide precise and flexible CNC tool grinders” and “provide innovative motion control systems.”

“Any recognition that we get for export is a valuable thing for the company in the sense that it recognises our contribution as an exporter in Australia, and secondly it helps

attract employees to the company, and that is a valuable aspect of winning an export award,” Anderson told Manufacturers’ Monthly. “I guess finally we wouldn’t be exporting today if we weren’t at the forefront of our industry sector and so that’s recognition that we are a leader in our field in that sense.” Anderson, formerly of automotive parts maker Britax Rainsfords, has been CEO since 2010, and believes his experience in management and in export-oriented manufacturing has suited him to ANCA. “I had an extensive background in the industry, starting out in basic engineering. [Rainsfords] was an exporting best practise automotive company, and as part of that I studied under Mr. Toyota at Toyota, on the Toyota production system.” It is about that whole concept or approach of lean manufacturing.

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EXPORTING

The decision to export should not be taken lightly.

To market, to market, to export New markets opening overseas provide both an opportunity and risk to manufacturers. Alex Heber investigates how they should be approached.

he mining boom has brought with it the opportunity for direct export, increased demand for local resources and stimulated growth in services for the resources export supply chain. However, with a strong Aussie dollar Australian manufacturers are increasingly looking for the best ways to export their goods overseas. Ai Group chief executive, Innes Willox said a good place for exporters to begin is to identify markets where the unique selling position of their product has the best chance for success. “If your product is about safety, targeting a country with weak OHS laws might not be the best course of action,” Willox said. To combat this, Peter Mace general manager at the Australian Institute of Export said it is important manufacturers thoroughly research and visit the market proposed for export to check there is a willing customer base and that pricing is in line with expectations. “We often find trade shows are a great way for manufacturers to

28 DECEMBER 2012 Manufacturers’ Monthly

assess what competitors are doing, what distributors and agents they could potentially partner up with and also what end customers are looking for. “You get to see the whole lot under one roof at a trade show and they might find that they might need to do some product changes or modifications to meet the local market and they would come through from doing research, visits and going to trade shows,” Mace said. Preparing your business for the trials and tribulations exporting brings is vital, Austrade has developed the International Readiness Indicator, an online tool designed for new exporters to easily determine whether your business is ready to make the leap into international markets. When beginning to export NAB said it is imperative to research the market, learn from other’s mistakes, validate the product and understand the competition. “Selling into export markets is more complicated than dealing with domestic customers. It requires an

understanding of the various logistical issues involved, a new skill set and a medium to long-term commitment to make the effort worthwhile,” NAB said. However, developing a sound export strategy is the key to longer term export success. Willox told Manufacturers’ Monthly that the way you export will depend on the market entry strategy you choose and the channels to market available to you. “A sound export strategy will help you in dealing with bankers, financial advisers and government agencies. It will ensure you grow within your capability – and not stretch resources,” Austrade added. Willox went on to state that “direct exporting is not for everyone, using a consolidator or working with existing major customers can be lower risk option”. Trading on country of origin strengths is a strategy that tends to be undercapitalised by many Australian manufacturers’ Ian Harrison, CEO at Australian Made, told Manufacturers’ Monthly.

“Very fortunately for Australian exporters and producers being Aussie is a positive in most market places in the world. “We are recognised as an economy with very high standards because of the quality products we manufacturer and the produce we grow and process,” he said. Harrison said in other countries around the world the cost of maintaining the quality standards Australia takes for granted is high and compliance and accountability is low. “In other communities, particularly the case in Asia, because of the costs of maintaining those standards there is often not the level of compliance that we would find comfortable here in Australia. “Aussie products and produce command a premium in those regions,” Harrison told Manufacturers Monthly. The Export Finance and Insurance Corporation (EFIC) is Australia’s official export credit agency, owned by the Federal Government they can stretch beyond what the commercial market and banks can do, helping Australian based exporters in situations where their banks might not be able to through the mitigation of both country and exporter risk and overcoming financial barriers. Jonathan Reso, director, SME and mid market origination at EFIC told Manufacturers’ Monthly that although Australian manufacturers are facing testing times, there is support available. “It’s no secret that these are challenging times for some exporters. However, there are a number of things that can be done to help mitigate challenges. For example, utilising all forms of support, including those from government for trade missions; targeting geographies where you have experience and connections or existing clients that other companies do not; and focusing on unique high-end ‘smart’ solutions leveraging ‘best-of-breed’ IP,” Reso said. In a tough market, Australian manufacturers are utilising opportunities abroad to expand their business, allowing risk to be spread whilst reducing dependence on domestic markets. manmonthly.com.au

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BodyPROTECTION Safety helmet accessories MSA (Aust.) Pty. Limited has introduced a new V-Gard accessory system for MSA helmets. Consisting of cap and hat frames, visors and chin protectors, the V-Gard accessories are designed to deliver the same high standard of protection as V-Gard helmets. Offering versatility, performance and user-friendly features, the accessories range is designed to connect visors to frames easily or help change visors quickly by using a patented alignments guide and three touch point loading for

easy installation. A replaceable debris control system prevents and reduces the effect of debris through gaps between the visor frame and visor, while the sloped design and V shaped channel in the frame allows debris to be quickly and safely removed from the frame, according to the company. A retractable chin protector option is available for higher wearer comfort, allowing more movement and less interference. Tested and approved as a fully integrated system to work with MSA

V-Gard protective helmets, the range is certified to protective eye and face protection standards AS/NZS1337.1, EN166 and ANSI Z87.1-2010. MSA (Aust.) 1300 035 749 www.au.msasafety.com

Spill containment pallets Enware Australia has introduced the Enpac range of spill containment and dispensing solutions, designed to provide an integrated response to major workplace hazards. The range comprises tough polyethylene technologies designed to prevent health, environmental and downtime hazards resulting from chemical spills, and includes two and four-drum polyethylene spill pallets, and two, four, six and eight-drum work-

stations. The equipment is designed to meet the compliance requirements of demanding packaging and environmental standards for handling, storage and transporting of hazardous materials, including those of the US EPA. Enware Australia 02 9525 9511 www.enware.com.au

Laser protection gloves Warsash Scientific offers a certified range of laser protection gloves by Laservision. The laser protection gloves are designed to ensure working protection when using high power handguided laser systems, and protect at 800nm to 1100nm. They are a 5-finger glove featuring a certified resistance of 40kW/ mÂ˛ against laser radiation of 1064nm before exceeding the MPE SkinValue. The coated fingertips and palm protect delicate laser optics and optical elements from perspiration and other liquids. Designed to be breathable and comfortable, the gloves feature a liquid-tight SoftGrip HighPerformance-Elastomer (HPE) coating, and solid temperature isolation properties. Warsash Scientific 1300 359 983 www.warsash.com.au

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Self retracting lanyard MSA has introduced the Workman SRL series self retracting lanyard. With lightweight design and durable, its thermoplastic housing has impact-absorbing bumpers which aids the lanyard in providing years of service. It features RFID-enabled product for simplified product tracking and inspection and has a 136kg working capacity for increased versatility. According to the company the lanyard is available with galvanised or stainless steel lifeline (cable) to fit various applications. The product is certified to ANSI Z359.14 2012, CSA Z259.2.2 and meets all OSHA requirements. MSA 1300 035 749 www.au.msasafety.com

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ManufacturingFUTURE Flexibility key to manufacturers’ success Despite media headlines to the contrary, numerous Australian manufacturers are not just surviving, but many are flourishing in these difficult times. Alan Johnson reports. We would like to see more government support for innovation and easier access to funding.

Jayco’s production lines have the ability to ramp up and down very quickly, by adding or taking away stages.

ITH around half of the recreational vehicle (RV) market in Australia, Jayco has achieved what many manufacturers can only dream of. With all its RVs designed and built in Australia, Chris Ryan, Jayco’s production manager, says one of the company’s key reasons for success is its flexibility and its ability to react quickly to the market. “Bringing a product from concept to the market place promptly is a key area for us, and always has been. “Over the years, as we have grown, we have maintained our flexibility. “We haven’t got the bureaucracy that many similar size companies have,” Ryan added. “It means we can make decisions and make changes quickly. We pride ourselves in being a dynamic company,” he explained to Manufacturers’ Monthly. 32 DECEMBER 2012 Manufacturers’ Monthly

Since commencing in 1975, Jayco has built over 120,000 RVs and is one of Dandenong’s largest employers with around 800 employees. “When we moved into this new factory, which was a greenfields site back in 2007, we designed our five production lines with the ability to ramp up and down quickly, by adding or taking away stages. “For example, we can go from producing 55 camper trailers a week to 65 in less than a week without significant changes to the layouts,” Ryan told Manufacturers’ Monthly. While not heavy investors in automation, he says the company instead looks at best practice within the industry from around the world. “I have just returned from Germany where I was looking at new machinery and more importantly how manufacturers there produce their vehicles.”

He explained that “how they build their furniture is one key area of difference I noted, with a focus on the production line being a customer of that department. “Currently we produce our furniture components and send them to the cabinet shops, instead we will now kit up in the four sections and present complete units to the production line, so that everything needed to build a piece of furniture is kitted up on the one trolley. “That comes down to nesting and a change in philosophy as far as our machinery is concerned,” he told Manufacturers’ Monthly. Ryan said the company is constantly looking for ways to become more efficient and reduce the labour content of the production process where it can. “That does not mean eliminating employees. It means redeploying

that labour on more developmental projects. “We are presently looking at our engineering and our transition from model to model, with replenishment also high on our agenda. “For example, we are looking at increasing our use of Kanban in the production process,” he said. Ryan explained that the company does not build stock units. “Instead we build to order in batches, but we have reduced our batch sizes from 60 or 70 down to 25 and will probably reduce that even further in time. “It’s a case of gently, gently, in small increments, rather than a massive change all at once.” To improve efficiency, Ryan says the company is increasingly using 3D CAD in its development department and has bolstered its resources in its R&D department regarding labour and equipment. When it comes to options, Ryan says caravans are very different to cars in that they a person’s home away from home and many want to put their own customisation and tweaks on them. “Feedback from our dealers and our end customers highlighted the need for flexibility in design to meet customers individual requirements. “We looked at our most common requests and designed modules to accommodate those requests. “This move has streamlined our manufacturing process, and we no longer produce custom vans as such. “As a mass manufacturer that was one way we could compete in the market,” Ryan said. If Ryan had a magic wand, he would like to see the government do more in terms of support for innovation and easier access to government funding, stating that “it is very difficult to find out where there is money available for grants”. manmonthly.com.au

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FoodMANUFACTURING In vino veritas The boom of the Australian wine market overseas has seen a rash of Chinese attempts at counterfeiting. Brent Balinski writes.

The Asian Century is driving the demand for Australian wines.

ast year Penfolds released its most expensive wine ever, the Bin 620 cabernet shiraz blend. The price tag of $1000, a bit rich for most, created some interest, as did the choice of city – never before had Penfolds launched a wine outside of Australia – for the unveiling, Shanghai. The Asian Century gets talked about a lot in terms of what it’ll mean to Australian food and beverage makers. The type of manufacturer that is expected to excel in the future is seen as one with a high value-add, high-quality product that appeals to the increasingly affluent Chinese middle class with a growing appetite for the finer things in life such as wine. Wine Australia released their Wine Export Approval Report last week to the sound of cheers from vintners who’d been putting more and more resources into the Far East. Sales to China were up 16.3 per cent by volume, and, much better

34 DECEMBER 2012 Manufacturers’ Monthly

still, 23.1 per cent by value, for the year to September. “China’s demand for premium wine continues to drive strong growth in the higher price segments, with the above $10.00 per litre segment a stand-out, up 37 per cent,” Wine Australia’s chief executive Andrew Cheesman said. “The average value per litre of Australian bottled imports to China is now for the first time higher than the average for French wines,” Cheesman explained. The boom in sales of big, highlyalcoholic red wines to the United States starting in the late 1990s (encouraged by uber-influential US wine critic Robert Parker) has well and truly tapered off, and the Australian wine industry has shrunk significantly in the last few years. China’s appetite is, however, on the up and up. Since 2005-2006 we’ve grown exports to that market from $21 million a year to more than $200 million a year.

Earlier in the month CRI English, a Chinese news service, noted the increasingly prestigious image of Australian wine among the Chinese. Australia is seen as an exporter with a unique, clean product, with innovation in growing techniques and packaging on its side. “You know it’s an enormous market, but the adoption of wine as a product beyond the novelty stage, which it is currently at, is going to take a while,” Professor Tony Spawton of University of SA told CRI. “The return from China, I would suggest, is going to be a long time in the future.” Red wine is seen as a mark of sophistication, a status symbol, especially if it’s cheap (and, some have noted, especially if it’s in a bottle sealed with cork). Cheap wine just won’t do, explained Zhangyue Zhou, director of the AusAsia Business School at James Cook University.

“As a country we are not doing a good job of promoting our wine to the Chinese market, I think that’s damaging to our wine reputation. In China, if (a product) is cheap, normally people will believe it’s not good,” he said earlier this year. “They often associate their consumption to status, not to whether they enjoy the quality of the product.” And, perhaps highlighting the interest in expensive Australian reds, our higher end wines are good enough to copy, with bottles labelled “Benfolds” (an apparent aping of Penfolds) and “Hill of Glory” (a near-facsimile of Henschke’s $600a-pop Hill of Grace) spotted, and Grant Brinklow of Sandalford Wines last week suggesting the Federal Government needed to do more to combat Chinese piracy. With China the fastest-growing market for wine in the world, the opportunities are strong for Australian winemakers to capitalise, so long as their product isn’t driven downmarket where it’s being sold. And what can be learned from the gains being made in the Chinese market? It seems to be a case of a segment of Australian manufacturing playing to its strengths. Our wines – and our food and beverage products in general – are seen as clean, innovative, high-quality products. The variety of climates and soil types in Australia offer a wide variety of wine styles. And it seems that the times very much suit winemakers. Wine manufacturers are wellplaced to take advantage of the Asian Century. And it’s not just winemakers, with cheese producers, for example, seeing massive recent jumps in Chinese sales. As long as quality and costs aren’t cut, then our food and beverage makers can potentially do well out of the growing number of Chinese citizens who are able to afford – and who demand – top-shelf stuff to take away their hunger and thirst. manmonthly.com.au

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