Manufacturers' Monthly December 2010

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

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INSIDE Latest Products >> Industry News >> Coming Events >> Industry Opinion >> Exporting News >> Forklift Safety >> What's New for 2011 >> Packaging Equipment >> Plant & Machinery Maintenance

INSIDER SERIES >> Top 100 Manufacturers Report 2010

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It’s a sponsorship we wouldn’t trade for the world.

As sponsor of the Australian Export Awards for 23 years, the Commonwealth Bank is here to help exporters celebrate success on the world stage and the award stage. We’re committed to helping export businesses go from strength to strength, which is why we have dedicated Trade Specialists in every state.

Congratulations to all of the finalists and winners of this year’s awards.

Call 13 1998 anytime Email tradefinance@cba.com.au Visit commbank.com.au/trade

Commonwealth Bank of Australia ABN 48 123 123 124. CBABM1037_C

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Editor Sarah Falson Ph: (02) 9422 2480 Fax (02) 9422 2722 sarah.falson@reedbusiness.com.au Journalist Annie Dang Ph: (02) 9422 2964 Fax (02) 9422 2722 annie.dang@reedbusiness.com.au Editor-at-large Alan Johnson Ph: (02) 9422 2325 Fax (02) 9422 2722 alan.johnson@reedbusiness.com.au Graphic Designer Ronnie Lawrence ronald.lawrence@reedbusiness.com.au Creative Director Julie Coughlan Production Co-ordinator Mary Copland Ph: (02) 9422 2738 mary.copland@reedbusiness.com.au VIC/Overseas Sales Michael Northcott PO Box 3069 Eltham VIC 3095 Ph: 0448 077 247 michael.northcott@reedbusiness.com.au NSW Sales Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067.

Ph: (02) 9422 2368 Fax: (02) 9422 2722 Mobile: 0414 644 664 anthony.head@reedbusiness.com.au QLD Sales Sharon Amos PO Box 3136, Bracken Ridge QLD 4017 Ph: (07) 3261 8857 Fax: (07) 3261 8347 Mobile: 0417 072 625 sharon.amos@reedbusiness.com.au SA/NT & WA Sales Reed Business Information Ph: (02) 9422 2368 anthony.head@reedbusiness.com.au.

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DECEMBER 2010

4 Editorial ■

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6 Comment ■

Tough decisions key to boosting our economy.

8 Analysis News ■ ■ ■

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Farnell re-brands and re-launches.

Manufacturing subdued in October.

Queensland manufacturers to take part in Australianfirst study.

Endeavour Awards sponsor testimonial.

10 PLM systems can integrate potential areas of a product virtually.

13 Top 100 Manufacturers Report

20 IT@MM

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Quiet optimism in 2011.

Exclusive report and top 100 list for 2010.

18 Exporting ■ ■ ■

Key to global integration.

Australian-made products exporting success.

Supporting overseas investment.

manmonthly.com.au

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For daily news visit manmonthly.com.au

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The dawn of a new era.

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INSIDE Latest Products >> Industry News >> Coming Events >> Industry Opinion >> Exporting News >> Forklift Safety >> What's New for 2011 >> Packaging Equipment >> Plant & Machinery Maintenance

INSIDER SERIES >> Top 100 Manufacturers Report 2010

New IT products and services for 2011.

Ultra lightweight pump.

Oil-free compressors.

27 Packaging 24 Maintenance

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Keeping machines in good repair.

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Returnable plastic crates save.

Customised void fill solution.

Cappers suit various enclosures.

26 What’s New For 2011

29 Materials Handling

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All-in-one clamp kit.

Forklift recharging cable.

Automation to improve forklift safety.

Behind the cover The Australian Made, Australian Grown Logo is the most trusted (85%) and recognised (94%) symbol for products and produce that are truly Australian.

The logo can now be found on more than 10,000 products and the number grows every day.

The symbol is administered by the not-for-profit Australian Made,

Australian Grown Campaign and is available to businesses of all sizes with the annual fees starting at just $250 plus GST. It helps businesses grow sales in markets from Ballarat to Beijing – so if you are not already using it, make sure you register today.

For more information visit www.australianmade.com.au

Manufacturers’ Monthly DECEMBER 2010 3

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Editorial

SARAH FALSON – Editor

editor@manmonthly.com.au

The dawn of a new era Light once again shines on manufacturing after a tough year ‘in the red’.

A

S 2010 draws to a close, opinion is divided over the state-of-play in 2011, but one thing is certain: we have experienced the worst of the recession and are tracking the steep climb up the other side.

According to the Australian Industry Group’s outgoing national president, Don Matthews, Australia remains “the envy of the Western world, having emerged from the GFC early and in relatively good shape through a combination of good management and some good fortune.” See page 6 for more details.

Though Australian firms have tackled with some extremely tough overseas competition and exporters continue to feel the sting from the strong Australian dollar, savvy manufacturers are coming up with some very smart ways to stay ahead of the curve.

Next year technology suppliers will be the big winners. Those who manufacture and distribute gear to help businesses save money, energy and water will be swamped with new orders as manufacturers, mining sites and commercial properties start spending again.

There will also be a push to keep skilled workers in local businesses and training will be top-of-mind for business owners.

The Innovation Minister,

4 DECEMBER 2010 Manufacturers’ Monthly

Keeping skilled workers will be top of the list in 2011.

Senator Kim, has promised to continue to support both large and SME manufacturers that invest in R&D, and also those committed to developing more ‘sustainable’ modes of transport.

True, the Cleaner Car Rebate Scheme has been put on hold, but Senator Carr promises it will be rolled-out come 1 July 2011, allowing sufficient time for “a comprehensive consultation process to ensure best practice in terms of design, administration and risk management”.

Next year the industry will have access to some top-notch

trade shows showcasing the best new products Australia has to offer, including National Manufacturing Week, scheduled to kick-off in Melbourne on 24th May. The organisers have already leased three-quarters of their floor space to suppliers and distributors keen to sell their wares.

The fact that so many have already committed to this spend suggests they all agree next year will be a turning point in manufacturing after so much hardship.

Manufacturers’ Monthly will also host a stand at the event, and you will have the chance to

speak to yours truly at the 7th Annual Endeavour Awards which will be held on Thursday 26th May at the RACV Club in Melbourne.

See pages 13 to 17 for more positive news about our manufacturing industry in the form of our annual Top 100 Manufacturers report. The interviews on those pages suggest export will be a big area for growth in 2011, and the ‘backbone of manufacturing’, the metalworking industry, is rising out of the ashes, spreading hope for other industries in its wake.

As many manufacturing companies close down over the Christmas period, maintenance will again be the topic of conversation – turn to pages 24 and 25 for some tips for managers to keep in mind during the period, along with some new products to help get those factories clean and in good working order.

Now, on to a more personal note: the team at Manufacturers’ Monthly would like to thank all our advertisers and Endeavour Awards sponsors who have supported us over the last 12 months. Your patronage helps us keep our brand alive and makes it possible to continue providing Australia’s manufacturing industry with the latest products, solutions and in-depth features, month after month.

We wish you all a happy festive season and look forward to an action-packed 2011.

See you next year!

manmonthly.com.au

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lence l e c x e uring t c a f u n r ma o f m a r prog s d r a w nal a o i t a n r remie p s ’ a i l Austra

The 2011 Endeavour Awards is the pinnacle event where the best of Australia’s manufacturing industry get the recognition they deserve!

All finalists will receive free publicity in Manufacturers’ Monthly and two free tickets to the gala dinner on 26 May 2011 in Melbourne where the winners will be announced.

Award Categories Technology Application of the Year Environmental Solution of the Year Safety Scheme of the Year Consumer/Trade Product of the Year

Industrial Product of the Year Australian Steel Innovation Award Global Integration Award Exporter of the Year

Young Manufacturer of the Year Lifetime Achievement Award Manufacturer of the Year

How to Enter: Download a nomination kit at: www.manmonthly.com.au/awards For information about entering contact Margaret Tra p: 02 9422 2759 e: margaret.tra@reedbusiness.com.au Proudly brought to you by Manufacturers’ Monthly and the following sponsors:

.

ENTER

NOW

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Comment

DON MATTHEWS – Outgoing National President, Australian Industry Group

Balancing our economy On his final day as national president, Australian Industry Group’s Don Matthews comments on Australia’s ‘beggar-thy-neighbour’ attitude.

T

he world is a very different place from that of a year ago. There has been a dramatic re-casting of the political landscape that has rewritten the rules around government policymaking, and it is now even more difficult to make hard decisions and deliver reform.

Australia, meanwhile, remains the envy of the Western world, having emerged from the GFC early and in relatively good shape through a combination of good management and some good fortune.

However, our economy does face significant headwinds. Due to a mix of global factors and the mining boom, our currency is flirting with parity against the US dollar, with some suggesting it could stay high for an extend-

6 DECEMBER 2010 Manufacturers’ Monthly

ed period. This would place sustained structural pressures on large sections of the economy, including manufacturing.

There has been widespread commentary about ‘currency wars’ as countries seek to generate ‘beggar-thy-neighbour’ competitive advantage by intervening to hold their currencies low.

The danger: this could spill into more overt trade protectionism.

While the higher dollar will dampen inflation, interest rates are on-the-rise and banks are putting up their rates further than official increases despite the margin between their borrowing and lending costs being above pre-crisis levels.

Indeed, in a recent Ai Group/ Deloitte survey, around a quarter of businesses across the economy

identified the inability to obtain finance as a key factor impacting their business. Further, the looming skill shortages are now real and will intensify.

All of this is occurring against the backdrop of the mining boom, which is the source of many good things. However, it is creating a multi-speed economy and exacerbating the pressures of the dollar, rising interest rates and deepening skill shortages.

Our monthly surveys of manufacturing, services and construction all depict a patchy economy characterised by pockets of strength, particularly in industries related to mining. However, others are experiencing mixed and often soft trading conditions.

Australia thus faces a key challenge in responding to our cur-

editor@manmonthly.com.au

rent and prospective situation: that challenge is to ensure we have a balanced and diversified economy when the boom inevitably ends.

So what do we need to do?

Most fundamentally, we need to grow capacity and productivity.

This will have broad benefits and will create the right environment for industries currently under the greatest pressure to grow and prosper.

In many areas, there is a need to make tough decisions in order to boost productivity growth. For instance in: the pricing arrangements for transport and water; Federal-State relations; prioritising infrastructure; and tax reform.

This will require an appetite for reform that will be sorely tested in the current complex political environment. But good reform is worth fighting for.

[This is an edited version of Don Matthews’ address to the Ai Group Annual Forum in Canberra.]

Ai Group www.aigroup.com.au

manmonthly.com.au

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Servicing the Manufacturing Industry for 30 years Hydraulic and Industrial hose and fittings 90 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 EVENTS

In their element

DECEMBER 2–10: Practical Process Control Workshops Gain a clear, practical understanding of the essentials of process control and loop tuning, as well as how to optimise the operation of your plant or process. Register at www.idc-online.com 6–10: Air Compressor Optimisation Seminars Held by Sullair Australia (makers of Champion Compressors), this series of workshops will take place in all major states. For information, visit www.championcompressors.com.au 7: ISA Course (TI21C): Overview of Grounding & Noise Reduction for Control Equipment – Melbourne Contact events@iica.org.au

JANUARY 2011 12–15: Autozum, Austria The event plays a role beyond the national borders and is said to be the leading national show in the automotive sector for automobiles and automotive engineers. Visit reedexpo.com/en/Our-Events 25–26: Forced Degradation Conference This European conference provides learning and networking opportunities to optimise stress testing protocols in pharmaceuticals manufacturing. Visit www.informaglobalevents.com 25–28: Interplastica (Russia) Includes machines and equipment for the plastics and rubber industry.

Visit www.interplastica.de 19–21: Material Japan Material Japan gathers all kinds of electronic materials and technologies necessary for R&D and manufacturing electronic materials. Go to reedexpo.com/en/Our-Events 19–21: IC Packaging Technology Expo, Japan Exhibition featuring various products and technologies for semiconductors, sensor modules and LED packaging.

Visit reedexpo.com/en/Our-Events

8 DECEMBER 2010 Manufacturers’ Monthly

Element14 regional director Peter Davis says the company was ‘slow’.

BY SARAH FALSON

E

LECTRONICS component distributor, Farnell, has relaunched itself with a new name, new corporate branding and a new lease on life.

Now called ‘element14’ (silicon being the 14th element on the periodic table and also the main component in the smallest electronic device, the semiconductor) the company is part-way through a multi-million dollar transformation aiming to bring it up-to-date with competitors.

With its new identity, element14 will offer Asia Pacific’s manufacturing, OEMS and electronic design engineers more than 120,000 products for nextday delivery through a multi-currency, multi-language eCommerce engine, global eCommunity of engineers and other support and services.

Traditionally, Farnell has been a UK-based catalogue supplier of electronic design goods, however the business’s executives realised that, with 30% of its sales going online over the past few years, it was time to overhaul the business to keep up with demand.

“We’re known throughout the world for our service, for the product ranges we have and the proposition of our solutions,” said element14 regional director Australia and New Zealand,

Peter Davis, at the company’s official branding launch in late October in Sydney.

And the company is by no means small. Element14 currently employs over 4,000 people in 28 countries, has over two million customers worldwide in 256 industry segments, purchases direct from 3,500 suppliers and has over four million products available online.

The Farnell brand has always been a huge market player supplying products for electronic design engineers, manufacturers and large OEMs, and maintenance and repair engineers for 21 years now, and still retains some of its original customers.

The new ‘element14’ identity will re-invigorate the business and also alleviate the need for various legacy brands across Asia Pacific region.

Also joining the new branding is a community website where customers can chat with other engineers and manufacturers, talk in ‘real-time’ to maintenance engineers and also purchase goods. The company is calling this ‘the industry’s only fusion of commerce and community’.

“We recognised that our world is changing, and the needs of our customers are changing. If we stay as a tired, catalogue distributor we will struggle to keep pace with that. We’ve done endless amounts of research and canvassed hundreds of thousands of customers worldwide and they’ve told us that we need to be better at keeping pace with our developments,” Davis said.

“They want speed. They want products faster than they’ve ever needed them before. They need more information and they need that information at their fingertips rather than when our catalogues come out. They need new products – though we have lots of products they need more of them. And products that are local in nature too – design engineering products in China are not the same that are used in New Zealand and Australia.

If we stay as a tired, catalogue distributor we will struggle to keep pace – Davis.

“They need technical support, customer service and reliability.

And they need all this along a channel that they prefer to transact with.

“It’s created a great opportunity for us. We could have done this as the Farnell brand, but companies have a preconceived idea about Farnell. We’re changing because we need to stay ahead of the competition and our competition keeps innovating and changing.

“Most of all, we need to unite our brands. We have five different names across Asia Pacific.

Because we have this diversity of brands, it doesn’t half make things slow. We’re slow.”

The new community website combines business transactions with a website, and will help element14 customers find products more easily, and will also allow the company to keep its buyers up-to-date with the latest movements in technology.

“This fusion of commerce with community will be amazing.

That’s the bit we’re the most excited about. We’ve made massive investments both here and across Asia Pacific in sales and marketing, however our customers want to interact with us, so we’ve bolstered ourselves there.”

The community currently has over 30,000 members, with over 300,000 visitors last quarter.

Customers can easily research products, interact with peers and connect with suppliers and professionals.

Users will also be able to access any of element14’s breadth of products, including 85,000 in-stock in Sydney for immediate delivery, and another 120,000 available within two days with 140,000 available by the end of 2011. element14 www.element14.com Comment at manmonthly.com.au manmonthly.com.au

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AnalysisNEWS

Teach a man to fish An Australia-first training program will show ten lucky Queensland manufacturers that if you give a man a fish you will feed him for a day, but teach a man to fish and you will feed him for a lifetime. Margaret Tra writes.

A

USTRALIA has been chosen as the first country outside of Europe to take part in an exciting pilot program

by German company Fraunhofer, designed to help manufacturers become more competitive.

Ten Queensland manufacturers will be involved in workshops held by QMI Solutions designed to train them on Cost Focused Innovation (CFI) theory and tools, which is said to help meet identified challenges, develop new products and new markets.

IKEA is a pioneer of CFI, with the company’s innovative approach to affordable living for young families.

According to Fraunhofer’s Institute for Industrial Engineering (IAO) expert Andrew Wagner, research has found similarities between the Australian and European manufacturing markets which is a good indicator for the program’s success.

“We hope that Queensland manufacturers involved in the program are able to ask the right questions in order to identify new customer groups and consumer trends. Queensland manufacturers will now have a better understanding of the customer needs and right sizing products and services with respect to cost drivers and the underlying business model,” he said.

QMI will be the custodians of the program and will also be responsible for measuring outcomes in the future. The compa-

ny told Manufacturers’ Monthly that it hopes this study will foster closer relationships with Australian and European manufacturers in addition to exchanging knowledge for growth.

Fraunhofer IAO experts Wagner and Liza Wohlfart assisted QMI develop a one-day workshop and CFI activities with two local companies, using a series of tools.

“The tools help identify product features and options that reduce cost, but still maintain features that are important to the customer. Finally we look at how to modify the product and add value in an innovative way to satisfy the newly-identified customers,” said Wagner.

Involved in the program are Centor, a Brisbane company that designs and manufactures systems for folding and sliding doors, screens and blinds.

“By using the CFI approach, we hope to move our products from a niche to mainstream market, without sacrificing critical performance factors,” said Centor business manager Glen Pacholke.

QMI hopes that by using the tools from Fraunhofer, Queensland manufacturers will be able to take a new approach to growth which will help maintain the future of the industry and wider economy.

The company told Manufacturers’ Monthly once the evaluation stage of the Queensland-based program is

A Brisbane-based doors manufacturer is already part of the CFI program.

over, it will then consider offering the program to other Australian states.

Results for the European study can be found on the Fraunhofer

website, www.iao.fraunhofer.de, and the Australian ‘good practice’ study will be available soon.

QMI Solutions 07 3364 0700, www.qmisolutions.com.au

Manufacturing ‘subdued’ in October

BY JOHN ALLEN

THE manufacturing sector was ‘subdued’ in October, although decline slowed compared to the previous month, according to the latest Australian Industry Group – PwC Australian Performance of Manufacturing Index (Australian PMI).

10 DECEMBER 2010 Manufacturers’ Monthly

The index rose 2.1 points to 49.4, which is just below the critical 50-point level separating expansion from contraction.

According to the report, manufacturers said the strong Australian dollar and sluggish domestic demand impacted growth, which is similar to responses in September.

Though seven out of twelve subsectors expanded in the month – including clothing and footwear, and machinery and equipment – this was not enough to offset the steep decline in the textiles sub-sector, which was largely related to weak consumer confidence and a shortage of skilled labour.

Food and beverages, and wood products and furniture also remained ‘in the red’, according to the report.

However, across manufacturing in general, production levels and employment rose in October, which is positive for the industry.

Australian Industry Group 1800 648 859, www.aigroup.com.au manmonthly.com.au

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AnalysisNEWS

Equipment sharing helps smaller manufacturers An innovative new ‘business assistance’ scheme from Enterprise Connect makes specialised manufacturing equipment more easily accessible. Emily Coman writes.

S

MALLER manufacturing businesses now have access to specialised equipment thanks to a program offered by Enterprise Connect, the Australian Government’s $50million-a-year business assistance program.

Enterprise Connect’s Technology Partnerships Register is designed to bring together businesses that have made major investments in specialised equipment that for various reasons was under-utilised, with other businesses that require access to this equipment.

According to Enterprise Connect’s Technology and Knowledge Connect Manager, Evangelos Lambrinos, it is a win-win solution.

“Many businesses have invested heavily in equipment, but because of the highly specialised nature of the machinery, they often experience periods in which the equipment lays idle,” he said.

“At the same time, we became aware of other small businesses having to send work offshore because they couldn’t afford to buy the equipment for themselves. The Technology Partnerships Register connects owners and potential users to the benefit of both sides.”

The register has been in development since April 2009 and companies looking to access leading-edge equipment can now see all listings, including technical specifications and the location of available pieces of equipment, online on the Enterprise Connect website. There are currently 60 pieces of equipment listed through the program.

The scheme is designed to help potential users work out whether particular pieces of equipment can help them. All users need to do is fill out a simple online application form.

12 DECEMBER 2010 Manufacturers’ Monthly

The scheme allows manufacturers to share under-utilised equipment.

Equipment currently registered includes: a Direct Metal Laser Sintering Machine that fuses metal powder into a solid part by melting it locally; a Automatic Plasma Circumferential Seam Welder that welds circumferential, seam and other welds on stainless steel tanks and pressure vessels; and a Linear Vibration Welding Machine that uses friction welding for joining plastic parts.

Enterprise Connect’s Lambrinos says the benefits of getting involved with technology partnerships are clear.

“Businesses won’t have to spend thousands of dollars to buy equipment that may only be used once or twice. There is no high maintenance, insurance or storage costs involved for the applicant,” he said.

Enterprise Connect 131 791, www.enterpriseconnect.gov.au

Helping Australian businesses grow THE Endeavour Awards are an excellent way for innovative Australian businesses to receive formal recognition of their hard The Global work and Integration Award highlights the achievements, according to ICN increasing competitiveness of executive director, Derek Lark. Australia: Lark.

ICN will once again sponsor the Global Integration Award at the 7th Annual Endeavour Awards in Melbourne on 26 May. “The awards lift the profile of Australian industry, while putting the spotlight on the winners and giving them the exposure they deserve,” he told Manufacturers’ Monthly.

According to Lark, ICN continues to support the Endeavour Awards because they align so closely with ICN’s own objective – helping Australian companies grow their business and find new opportunities.

“ICN is particularly excited about the Global Integration Award. This highlights the increasing competitiveness of Australian industry in the global marketplace. The award serves as an excellent driver for Australian businesses to focus on a global strategy, which is critical to longterm business survival,” he said.

“Over the past few years, we have consistently seen entrants who have pursued opportunities globally and that have successfully-adapted their company to put it in the best position in that marketplace.

“As an organisation which aims to promote and expand Australian industry, ICN supports the Global Integration Award to encourage Australian businesses to become more competitive globally. In doing so, Australian businesses can take advantage of opportunities in major projects both within Australia and overseas.”

Industry Capability Network (ICN) 02 6285 2033, www.icn.org.au manmonthly.com.au

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InsiderSERIES

TOP 100 MANUFACTURERS

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TOP 100 MANUFACTURERS

A new dawn is breaking for Australian manufacturers.

Quiet optimism for 2011

recovery in Australia has gained momentum this year, underpinned by significant increases in commodity prices, stronger corporate profitability, strengthening labour market conditions and higher wage growth.

The strength of the economic recovery in Australia reportedly rests firmly on sustained improvements in private domestic demand as the impact of fiscal stimulus fades.

Going forward, retail spending is likely to pick-up momentum, the report says, and the brightening of employment prospects and the continual pick-up in wage growth will continue to help ease consumer caution.

Following are some snapshots of the Australian manufacturing sub-sectors during 2010.

Despite a tough year for Australian manufacturers, a sense of ‘quiet optimism’ Food, Beverage & Tobacco

is creeping in as we look towards a brighter 2011. Sarah Falson reports.

I

N the aftermath of the economic downturn, 2010 was a rough ride for most local manufacturers, who struggled with intense overseas competition which was exacerbated by the strong Australian dollar.

Companies experienced pressure from interest rate rises, skilled worker shortages, sluggish domestic demand and weakening consumer confidence in some areas, causing companies to seek ever more efficient and sustainable ways to do business.

However, there is no denying the 2010 environment for manufacturers in Australia was ‘quietly optimistic’, with production rising in the machinery and equipment, textiles and clothing, and construction materials subsectors towards the year’s end.

According to a report from the Economics and Research Unit, Australian Industry Group (Ai Group), the Australian manufacturing industry employed just over 1 million people in 2008–09, which is approximately 10% of total employment in the economy and the third largest employer behind the retail trade and health/social services industries.

“The sector makes a disproportionately large contribution to 14 DECEMBER 2010 Manufacturers’ Monthly

total business expenditure on research and development and exports a wide range of goods including metal products, food and beverages, automotive equipment and medical devices and equipment,” Ai Group chief executive, Heather Ridout, told Manufacturers’ Monthly.

Manufacturing is said to be the second largest goods exporter behind the mining industry; the value of exports in 2008–09 was approximately $57 billion, representing 24.7% of all goods exported. Major exports come from the food and beverages, medical equipment and passenger motor vehicles.

According to Ridout, the increasingly ‘globalised’ nature of Australian manufacturing will pose more competition for Australian firms in the future, and locals would do well to look at export opportunities in 2011.

“In recent years we have seen a trend towards greater global engagement as manufacturers have complemented investments in Australia with investments in other countries and have integrated themselves into global supply chains much more than previously has been the case,” she said.

All up, the manufacturing industry reportedly made up approximately 8% of the economy (on the basis of gross value added – GVA) during 2010.

“The strongest performing manufacturing subsectors over the 2009–10 year were: food and beverages which grew by over 6% and machinery and equipment which expanded its output by over 5.5%. In contrast, the clothing, footwear and textiles subsector contracted by more than 17% and output of metal product manufacturers fell by an average of 5.7%,” said Ridout.

Still, the industry’s output declined 5.9% compared with 2007–08, with many businesses moving production offshore due to increasing pressures from the economic breakdown. However, 2010 is looking up for Australian manufacturers who are getting smarter about the way they do business.

“Over the year to the end of June 2010 manufacturing output grew by around 3% as it continued to recover from the setbacks associated with the global financial crisis (GFC),” said Ridout.

According to the Ai Group’s Australian Economic Update – September 2010, the economic

Australia’s food, beverage and tobacco manufacturing industry, which includes the $102 billion food and grocery sector, remains the nation’s largest manufacturing industry. However, according to a new report from the Australian Food and Grocery Council (AFGC) and KPMG, it is under intense pressure from rising imports and falling exports.

Launched in late October, the second annual economic snapshot of the food and grocery manufacturing sector, ‘State of the Industry 2010’, found for the first time in decades, the industry’s international net trade position fell dramatically from a $4.5 billion surplus in 2004–05 to a $1.8 billion deficit in 2009–10.

“This alarming result shows food and grocery manufacturing – which employs 288,000 people – is now a net-importer of food and grocery products which impacts industry’s growth and competitiveness,” said AFGC chief executive, Kate Carnell.

Carnell suggested the report showed industry remained large, however growth, employment and turn-over are flat.

According to Carnell, the industry represented 26% of the total Australian manufacturing by turnover (compared with 28% in the last report), and remained manmonthly.com.au

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comparable ($102 billion in 200708) to Australia’s booming mining sector.

“Industry is still a major exporter but imports are rising fast, eroding the trade surplus historically enjoyed by the industry. To protect Australia’s food supply and overcome this challenge, there must be a ‘whole-ofgovernment’ national strategy to ensure food and grocery manufacturing’s long-term growth, increase export earnings and boost competitiveness,” she said.

Metal Products Often called the ‘backbone of manufacturing’ the metalworking sector’s health is sometimes considered a good indicator of the strength of the manufacturing industry.

Given the wide use of steel in a number of industries and applications, the performance of the steel manufacturing sector likewise tends to be a good gauge for the wealth of the industry as a whole.

BlueScope Steel – Australia’s largest manufacturer of steel products – recently posted a $192 million profit turnaround on the Australian Stock Exchange, delivering a $126 million Net Profit After Tax (NPAT) for the 2010 financial year.

According to the company’s managing director and chief executive officer, Paul O-Malley, this is a pleasing result com-

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Action Engineering Services Group is an extension of a 35-year-old business, Action Bearings, that survived for 20 years of its life as a service-orientated stockist and distributor of NSK ball and roller bearings.

In the early 1990s the company had the vision to move into the growing world of factory automation by aligning itself with Thomson USA, which is the company that invented the linear ball manmonthly.com.au

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pared with the dramatic decline the company experienced during the second half of the 2009 financial year, which saw the company reporting a NPAT of just $56 million, and a Net Loss After Tax (NLAT) of $66 million.

“Given the unprecedented circumstances of FY2009 and the challenging business environment in FY2010, I am pleased with the improvement in our overall business performance,” he said, speaking at the results briefing in Sydney in August.

"We delivered an outstanding improvement in our Asian businesses, including record profits in China, Indonesia, Malaysia and Vietnam. We also achieved a significant reduction in the company's permanent cost base. Also encouraging was increasing demand in Australia, strong export sales and good earnings results both in New Zealand and at North Star BlueScope Steel, our steelmaking joint venture in the United States.

Regarding the outlook for the first half of 2011, O’Malley cites further improving market conditions – however this will be met with certain challenges, including the strengthening of the Australian dollar.

[To read the full story, go to http://bit.ly/dpPSVH] Ai Group www.aigroup.com.au AFGC 02 6273 1466, www.afgc.org.au BlueScope Steel 1300 855 998, www.bluescopesteel.com.au

Behind the cover THE poor state of traditional manufacturing industries has caused many industrial suppliers to review their activities and product content in order to maintain a sustainable market presence.

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InsiderSERIES

TOP 100 MANUFACTURERS

Proudly sponsored by

bushing.

Since then names such as SBC Korea, Pacific Bearings USA and MayTec Aluminium Profile have been added to the strong Action portfolio which has brought a distinct change to the company’s activities. Action Engineering Services Group has developed design, engineering, fabrication and installation services for its customer base. So, to take advantage of any of our strengths please call 03 8586 6900 or email sales@action-esg.com.au Manufacturers’ Monthly DECEMBER 2010 15

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InsiderSERIES

TOP 100 MANUFACTURERS

TOTAL REVENUE

NPAT

TOTAL ASSETS

SHAREHOLDER FUNDS

LIABILITIES

EMPLOYEES

Rank

Move

Company Name

New ($m)

Prev. ($m)

± (%)

New ($m)

Prev. ($m)

± (%)

New ($m)

Prev. ($m)

± (%) New ($m)

Prev. ($m)

±(%)

New ($m)

Prev. ($m)

±(%)

New

Prev.

± (%)

1 (1) 2 (3) 3 (2) 4 (7) 5 (8) 6 (6) 7 (5) 8 (9) 9 (11) 10 (10) 11 (32) 12 (12) 13 (14) 14 (19) 15 (15) 16 (18) 17 (16) 18 (13) 19 (-) 20 (21) 21 (22) 22 (26) 23 (17) 24 (23) 25 (25) 26 (30) 27 (33) 28 (20) 29 (37) 30 (27) 31 (34) 32 (36) 33 (28) 34 (40) 35 (47) 36 (44) 37 (39) 38 (42) 39 (46) 40 (59) 41 (-) 42 (86) 43 (52) 44 (63) 45 (53) 46 (50) 47 (57) 48 (68) 49 (-) 50 (61) 51 (67) 52 (66) 53 (55) 54 (62) 55 (58) 56 (29) 57 (-) 58 (73) 59 (69) 60 (75)

x + + + x + + x + x + + x + + + + + x + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

Caltex Australia Shell Australia BP Regional Australasia Amcor Toyota Motor Corporation Australia BlueScope Steel ExxonMobil Australia Sims Metal Management Orica OneSteel Gold Corporation PaperlinX CSL Coca-Cola Amatil Boral Foster's Group UGL GM Holden Lion Nathan National Foods CSR Pratt Holdings Incitec Pivot Alcoa of Australia Ford Motor Company of Australia Sigma Pharmaceuticals Nestle Australia Goodman Fielder ConocoPhillips Australia Gas Food Investments MML Holdings Swift Australia Murray Goulburn Co-operative Nufarm Inghams Enterprises GlaxoSmithKline Holdings Mitsubishi Motors Australia Pacific Brands Hanson Australia British American Tobacco Siemens Holcim BAE Systems Australia Mars Australia AstraZeneca Pfizer Australia Ansell Building Supplies Group Holdings Cadbury Australia Baiada Poultry Teys Bros Frito-Lay Australia Unilever Australia Kimberly-Clark Owens-Illinois Hills Industries Boart Longyear Tyco Flow Control International Thales Australia BOC Simplot Australia

$17,985,488 $16,252,700 $15,766,600 $9,952,700 $8,710,087 $8,635,200 $7,747,000 $7,483,700 $7,455,500 $6,260,900 $5,759,926 $5,085,100 $4,626,944 $4,561,700 $4,524,900 $4,474,000 $4,194,953 $4,112,925 $3,998,300 $3,812,300 $3,500,000 $3,466,300 $3,289,500 $3,287,706 $3,272,362 $2,784,817 $2,667,200 $2,531,648 $2,440,419 $2,390,308 $2,273,853 $2,241,000 $2,183,285 $1,950,000 $1,881,125 $1,827,337 $1,754,059 $1,738,100 $1,667,750 $1,658,452 $1,628,419 $1,506,147 $1,293,016 $1,292,842 $1,255,417 $1,236,100 $1,230,300 $1,220,711 $1,195,000 $1,190,206 $1,186,133 $1,175,153 $1,163,425 $1,159,400 $1,158,247 $1,097,270 $1,087,766 $1,086,383 $1,081,614 $1,009,323

$23,895,082 $21,652,700 $21,653,000 $9,633,800 $8,925,010 $10,389,200 $10,397,000 $8,674,747 $6,597,900 $7,307,800 $2,506,636 $6,569,900 $5,039,405 $4,258,500 $4,972,900 $4,718,600 $4,763,162 $5,889,750 $2,417,836 $3,553,400 $3,500,000 $2,935,700 $4,747,600 $3,411,660 $3,125,946 $2,727,466 $2,877,300 $3,135,336 $2,215,516 $2,889,540 $2,458,243 $2,405,503 $2,696,314 $1,895,000 $1,446,001 $1,571,109 $1,974,570 $1,787,900 $1,595,368 $1,193,712 $1,830,190 $809,454 $1,331,194 $1,133,118 $1,244,532 $1,360,600 $1,210,400 $1,154,100 $360,000 $1,170,366 $1,104,405 $1,109,765 $1,236,691 $1,166,400 $1,194,979 $2,060,812 $337,898 $987,812 $1,061,829 $953,153

-25% -25% -27% 3% -2% -17% -25% -14% 13% -14% 130% -23% -8% 7% -9% -5% -12% -30% 65% 7% 0% 18% -31% -4% 5% 2% -7% -19% 10% -17% -8% -7% -19% 3% 30% 16% -11% -3% 5% 39% -11% 86% -3% 14% 1% -9% 2% 6% 232% 2% 7% 6% -6% -1% -3% -47% 222% 10% 2% 6%

$314,082 $36,600 $440,400 $183,000 -$107,984 $126,000 $602,000 $126,700 $541,800 $258,400 $13,029 -$225,300 $1,052,901 $449,000 -$90,500 -$464,400 $144,546 -$210,634 $539,700 -$111,700 NA -$179,900 $155,800 $12,706 -$389,042 $162,474 $161,100 $505,044 $30,588 $73,924 $34,485 $25,000 -$23,990 NA $104,100 $81,168 $52,722 $181,500 $369,819 $74,585 $166,009 -$85,828 $79,059 $29,589 $104,856 $119,400 -$143,000 $459,988 NA $30,002 $65,517 $56,585 $225,032 $102,200 $40,188 -$16,667 $80,122 $67,738 $172,885 $22,952

$34,262 -$340,900 $851,200 $211,700 $123,368 -$66,400 $276,000 -$150,295 $539,600 $229,500 $26,648 -$798,200 $1,145,932 $385,600 $142,000 $438,300 $142,476 -$70,160 -$603,020 -$326,500 NA $604,600 $976,800 -$274,446 $80,124 $86,436 $175,700 $729,593 -$121,957 $69,717 $55,337 $1,050 $79,877 NA $35,840 $1,011 -$234,479 $278,900 $455,421 $45,994 $191,198 -$75,366 $120,982 $70,317 $163,814 $121,400 -$156,800 $243,173 NA $34,535 $31,051 $53,981 -$57,789 $93,500 $9,506 $175,515 $14,539 $22,921 $154,506 $38,388

817% -111% -48% -14% -188% -290% 118% -184% 0% 13% -51% -72% -8% 16% -164% -206% 1% 200% -189% -66% 0% -130% -84% -105% -586% 88% -8% -31% -125% 6% -38% 2281% -130% 0% 190% 7928% -122% -35% -19% 62% -13% 14% -35% -58% -36% -2% -9% 89% 0% -13% 111% 5% -489% 9% 323% -109% 451% 196% 12% -40%

$4,951,809 $4,662,300 $12,383,700 $11,310,200 $2,723,966 $8,997,600 $10,855,000 $4,239,700 $7,354,200 $7,067,700 $2,881,935 $2,305,000 $5,711,044 $5,570,800 $5,209,400 $6,829,800 $2,505,150 $2,860,559 $13,446,800 $3,874,600 NA $6,631,200 $5,121,300 $1,982,608 $1,926,046 $1,643,618 $3,082,000 $13,317,927 $1,677,536 $1,294,866 $861,559 $1,553,195 $3,093,842 $1,850,000 $1,551,322 $505,142 $2,088,610 $3,754,300 $3,002,744 $745,571 $1,616,368 $1,586,375 $593,556 $485,786 $1,364,869 $1,297,600 $1,233,500 $1,685,038 NA $317,335 $928,756 $691,894 $1,990,472 $2,118,900 $784,944 $1,529,603 $966,613 $1,162,754 $1,817,365 $751,206

$4,921,583 $4,657,800 $12,752,000 $8,446,000 $2,288,704 $8,864,600 $10,247,000 $3,808,560 $8,007,800 $6,933,100 $2,204,899 $2,947,500 $7,366,815 $5,092,000 $5,491,200 $8,374,100 $2,537,747 $3,603,921 $4,517,495 $4,188,400 NA $8,185,400 $5,517,700 $2,055,950 $2,201,464 $2,088,928 $3,094,000 $11,738,047 $1,584,047 $1,211,953 $888,975 $1,577,529 $3,251,597 $1,824,000 $1,538,650 $466,018 $2,225,495 $4,040,300 $3,156,913 $816,780 $1,440,964 $1,568,033 $650,444 $514,395 $1,117,877 $1,312,100 $1,340,200 $1,750,732 NA $360,656 $926,677 $566,028 $1,921,762 $2,062,700 $830,109 $1,449,159 $916,757 $1,157,139 $1,842,665 $678,061

1% 0% -3% 34% 19% 2% 6% 11% -8% 2% 31% -22% -22% 9% -5% -18% -1% -21% 198% -7% 0% -19% -7% -4% -13% -21% 0% 13% 6% 7% -3% -2% -5% 1% 1% 8% -6% -7% -5% -9% 12% 1% -9% -6% 22% -1% -8% -4% 0% -12% 0% 22% 4% 3% -5% 6% 5% 0% -1% 11%

$2,601,963 $1,250,500 $5,038,900 $3,075,600 $1,206,727 $5,663,300 $1,356,000 $2,859,047 $4,318,400 $4,336,300 $97,501 $1,271,000 $5,462,895 $1,372,000 $2,753,600 $3,757,400 $1,120,288 $1,061,560 $1,428,969 $1,586,500 NA $3,155,300 $3,196,600 $169,571 $1,197,932 $309,075 $1,617,700 $5,910,708 $352,870 $567,176 $686,027 $727,040 $1,631,939 NA $514,173 $92,254 $1,267,053 $2,029,200 $745,277 $173,454 $980,336 $78,427 $75,004 $276,665 $388,814 $639,100 -$487,100 $379,373 NA $228,229 $708,711 $334,495 $557,129 $932,700 $428,619 $170,615 -$35,952 $454,814 $628,516 $266,182

12% 3% -18% 34% -13% 2% -17% 15% -8% 4% -1% -27% -23% 17% -5% -28% 3% -9% 322% 15% 0% 7% -9% 123% -11% -14% 3% 48% 219% 13% 6% -1% 7% 0% 21% 86% 9% -1% -18% 28% 16% 534% 187% -7% 27% 4% -178% 93% 0% 4% 4% 20% 41% 3% 16% 516% -216% 15% -7% 10%

$2,026,547 $3,379,400 $8,247,500 $7,186,300 $1,674,584 $3,241,900 $9,734,000 $960,900 $3,381,400 $2,575,000 $2,785,758 $1,381,100 $1,495,850 $3,970,700 $2,583,300 $4,114,400 $1,346,034 $1,894,112 $7,419,000 $2,056,400 NA $3,250,100 $2,215,100 $1,603,815 $859,092 $1,378,910 $1,414,000 $4,549,882 $551,028 $653,286 $136,157 $832,533 $1,343,951 NA $928,491 $333,920 $709,153 $1,739,200 $2,394,069 $524,342 $478,623 $1,089,403 $378,135 $229,139 $871,199 $633,000 $854,100 $952,730 NA $80,393 $191,530 $291,118 $1,207,324 $1,155,600 $288,445 $479,095 $925,086 $638,472 $1,234,613 $459,632

$2,319,620 $3,407,300 $7,713,100 $5,370,400 $1,081,977 $3,201,300 $8,891,000 $949,513 $3,689,400 $2,596,800 $2,107,398 $1,676,500 $1,903,920 $3,720,000 $2,737,600 $4,616,700 $1,417,459 $2,542,361 $3,088,526 $2,601,900 NA $5,030,100 $2,321,100 $1,886,379 $1,003,532 $1,779,853 $1,476,300 $5,827,339 $1,231,177 $644,777 $202,948 $850,489 $1,619,658 NA $1,024,477 $373,764 $958,442 $2,011,100 $2,411,636 $643,326 $460,628 $1,489,606 $575,440 $237,730 $729,063 $673,000 $1,827,300 $1,371,359 NA $132,427 $217,966 $231,533 $1,364,633 $1,130,000 $401,490 $1,278,544 $952,709 $702,325 $1,214,149 $411,879

-13% -1% 7% 34% 55% 1% 9% 1% -8% -1% 32% -18% -21% 7% -6% -11% -5% -25% 140% -21% 0% -35% -5% -15% -14% -23% -4% -22% -55% 1% -33% -2% -17% 0% -9% -11% -26% -14% -1% -18% 4% -27% -34% -4% 19% -6% -53% -31% 0% -39% -12% 26% -12% 2% -28% -63% -3% -9% 2% 12%

3,872 NA 4,924 NA NA NA 2,163 NA 15,140 10,598 233 6,508 9,992 15,543 14,806 5,731 43,000 NA 7,879 6,700 9,100 4,622 NA NA NA NA NA 499 6,000 2,801 4,158 2,161 NA 8,274 1,614 NA NA NA NA NA 2,666 6,561 1,900 1,012 1,150 10,376 2,968 NA NA 2,785 2,121 1,616 1,911 3,690 NA NA 2,600 3,519 NA 2,123

4,158 NA 5,391 NA NA NA 2,011 NA 15,268 11,104 232 7,199 10,340 15,495 14,766 6,271 43,000 NA 5,763 6,704 9,100 5,134 NA NA NA NA NA 472 6,000 NA 4,398 2,122 3,155 8,218 1,557 NA NA 3,983 NA 2,079 2,856 5,494 2,000 987 1,185 10,265 NA NA NA 2,729 2,250 1,521 2,006 3,663 2,800 NA 2,569 NA 2,068 2,162

-7% 0% -9% 0% 0% 0% 8% 0% -1% -5% 0% -10% -3% 0% 0% -9% 0% 0% 37% 0% 0% -10% 0% 0% 0% 0% 0% 6% 0% 0% -5% 2% 0% 1% 4% 0% 0% 0% 0% 0% -7% 19% -5% 3% -3% 1% 0% 0% 0% 2% -6% 6% -5% 1% 0% 0% 1% 0% 0% -2%

16 DECEMBER 2010 Manufacturers’ Monthly

$2,925,262 $1,282,900 $4,136,200 $4,123,900 $1,049,382 $5,755,700 $1,121,000 $3,278,800 $3,972,800 $4,492,700 $96,177 $923,900 $4,215,194 $1,600,100 $2,626,100 $2,715,400 $1,159,116 $966,447 $6,027,800 $1,818,200 NA $3,381,100 $2,906,200 $378,793 $1,066,954 $264,708 $1,668,000 $8,768,045 $1,126,508 $641,580 $725,402 $720,662 $1,749,891 NA $622,831 $171,222 $1,379,457 $2,015,100 $608,675 $221,229 $1,137,745 $496,972 $215,421 $256,647 $493,670 $664,600 $379,400 $732,308 NA $236,942 $737,226 $400,776 $783,148 $963,300 $496,499 $1,050,508 $41,527 $524,282 $582,752 $291,574

manmonthly.com.au

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TOTAL ASSETS

SHAREHOLDER FUNDS

LIABILITIES

EMPLOYEES

Rank

Move

Company Name

New ($m)

Prev. ($m)

± (%)

New ($m)

Prev. ($m)

± (%)

New ($m)

Prev. ($m)

± (%) New ($m)

Prev. ($m)

±(%)

New ($m)

Prev. ($m)

±(%)

New

Prev.

61 (56) 62 (70) 63 (74) 64 (72) 65 (71) 66 (105) 67 (65) 68 (77) 69 (78) 70 (100) 71 (90) 72 (93) 73 (89) 74 (101) 75 (80) 76 (99) 77 (117) 78 (85) 79 (91) 80 (95) 81 (82) 82 (102) 83 (83) 84 (-) 85 (108) 86 (103) 87 (96) 88 (92) 89 (118) 90 (-) 91 (79) 92 (94) 93 (106) 94 (110) 95 (87) 96 (119) 97 (113) 98 (109) 99 (97) 100 (-) 101 (84) 102 (-) 103 (-) 104 (112) 105 (98) 106 (-) 107 (-) 108 (-) 109 (-)

+ + + + + + + + + + + + + + + + + + + + x + + + + + + + + + + + + + + + + + + + + +

Bradken Goodyear Australia Arnotts Biscuits Manildra Milling Adelaide Brighton ResMed Holdings Aristocrat Leisure ABB Australia Ricegrowers Geminder Holdings Heinz Wattie's Parmalat Australia Boeing Australia Philip Morris Norske Skog Industries Cochlear Bridgestone Ridley Corporation Australian Aerospace Alcoa Australia Rolled Products Qenos Holdings Premium Wine Brands Gunns Joy Manufacturing Company Brickworks GWA International Constellation Australia Nippon Meat Packers Australia Roche Products Hospira Holdings Robert Bosch Bega Cheese Kraft Foods United Technologies Australia Olbia Honeywell Nuplex Operations RCR Tomlinson Nexans Australia Holding SCA Hygiene Australia PACCAR Australia Austal Colgate-Palmolive Diageo Australia Sun Metals Holdings Rheem Australia Merck Sharp & Dohme Baxter Healthcare Bayer Australia

$1,008,992 $1,006,265 $1,001,937 $1,000,000 $987,200 $935,553 $925,872 $922,189 $819,945 $800,000 $790,385 $786,263 $769,299 $754,742 $750,458 $746,273 $732,477 $729,228 $725,758 $708,684 $697,592 $686,209 $662,495 $662,150 $661,513 $661,113 $653,400 $631,849 $619,278 $612,528 $600,719 $588,630 $586,889 $586,211 $560,000 $557,717 $550,008 $549,047 $544,353 $539,014 $534,926 $530,656 $528,385 $520,324 $501,608 $491,425 $488,631 $487,782 $487,214

$1,223,571 $1,055,865 $963,028 $1,000,000 $1,022,400 $636,383 $1,110,214 $943,595 $903,786 $699,688 $651,189 $779,996 $792,673 $700,682 $861,329 $708,254 $564,805 $820,816 $785,990 $749,776 $857,947 $694,160 $758,318 $514,711 $595,316 $619,935 $740,971 $781,160 $531,841 $451,885 $876,831 $808,568 $621,472 $583,651 $785,000 $529,095 $578,698 $589,692 $733,129 $505,684 $831,383 $511,814 $510,413 $579,304 $561,890 $411,508 $527,021 $449,434 $476,293

-18% -5% 4% 0% -3% 47% -17% -2% -9% 14% 21% 1% -3% 8% -13% 5% 30% -11% -8% -5% -19% -1% -13% 29% 11% 7% -12% -19% 16% 36% -31% -27% -6% 0% -29% 5% -5% -7% -26% 7% -36% 4% 4% -10% -11% 19% -7% 9% 2%

$70,441 $46,909 $69,642 NA $123,100 $250,174 -$157,838 $22,284 $12,171 NA $55,803 $40,392 -$40,289 $284,409 $62,775 $155,152 -$97,137 $29,093 $23,650 $9,818 -$25,619 -$19,731 $28,498 $46,519 $138,790 $48,527 NA -$9,158 $24,219 -$4,577 $3,492 NA $46,552 $39,675 NA $78,020 $12,510 $17,457 $7,591 $21,592 $44,114 $37,132 $95,373 $36,701 $44,033 $53,683 -$6,353 $20,910 $26,361

$64,268 -$78,979 -$109,141 NA $120,800 $119,398 $101,207 $35,602 $75,811 NA $54,710 $11,483 $4,530 $236,716 -$84,750 $130,540 $7,850 -$39,533 $25,207 -$92,761 $20,247 $24,280 $56,236 $28,658 $305,215 $48,325 NA -$101,147 $11,585 -$42,412 $42,867 $10,671 $26,689 $33,528 NA $78,461 $23,547 $13,950 -$1,195 -$10,334 $75,935 $9,166 $74,291 $48,488 -$17,842 $45,446 $1,136 $12,404 $22,946

10% -159% -164% 0% 2% 110% -256% -37% -84% 0% 2% 252% -989% 20% -174% 19% -1337% -174% -6% -111% -227% -181% -49% 62% -55% 0% 0% -91% 109% -89% -92% -100% 74% 18% 0% -1% -47% 25% -735% -309% -42% 305% 28% -24% -347% 18% -659% 69% 15%

$983,829 $518,133 $1,642,481 NA $1,355,000 $988,086 $808,108 $437,390 $720,008 $1,250,000 $973,115 $603,033 $1,243,267 $546,227 $1,485,910 $751,719 $472,490 $484,300 $465,287 $299,347 $654,164 $979,231 $2,564,354 $427,818 $2,264,985 $812,430 NA $249,457 $265,648 $1,587,604 $459,896 NA $319,819 $439,287 NA $331,174 $341,541 $355,796 $702,664 $689,483 $940,388 $648,118 $169,865 $778,905 $714,501 $733,515 $502,449 $254,598 $331,406

$951,989 $593,231 $1,573,697 NA $1,358,100 $800,328 $1,016,371 $512,388 $760,564 $702,296 $567,602 $604,589 $1,199,061 $498,223 $1,455,274 $679,373 $410,980 $468,621 $543,297 $383,089 $663,534 $1,052,031 $2,456,471 $470,031 $2,135,272 $782,453 NA $331,945 $212,452 $1,759,204 $505,922 $441,179 $356,748 $474,039 NA $382,836 $348,304 $343,400 $752,879 $767,574 $1,010,204 $503,738 $206,750 $759,030 $646,359 $700,407 $492,137 $221,303 $300,670

3% -13% 4% 0% 0% 23% -20% -15% -5% 78% 71% 0% 4% 10% 2% 11% 15% 3% -14% -22% -1% -7% 4% -9% 6% 4% 0% -25% 25% -10% -9% 0% -10% -7% 0% -13% -2% 4% -7% -10% -7% 29% -18% 3% 11% 5% 2% 15% 10%

$349,655 $125,985 $432,085 NA $701,900 $582,785 $192,429 $96,429 $223,459 NA $425,019 $343,036 $641,132 $287,557 $377,311 $364,234 $150,271 $276,211 $69,098 $3,566 $230,450 $529,295 $1,321,897 $68,745 $1,371,448 $426,164 NA -$29,138 $112,292 $360,804 $198,074 $169,734 $215,738 $149,209 NA $144,068 $90,809 $185,660 $251,462 $94,728 $331,579 $235,735 $109,862 $277,431 $280,175 $325,476 $279,557 $119,333 $143,744

35% 37% 15% 0% 28% 17% -20% 18% 16% 0% 14% 11% -6% 11% 15% 20% -5% 3% -2% 290% -4% -9% 13% 73% 20% 1% 0% 34% 22% 0% -20% 0% -15% -33% 0% -26% 31% 10% 3% 20% 15% 14% -35% 11% 21% 7% -2% 19% 19%

$512,121 $345,287 $1,144,309 NA $458,000 $308,794 $654,247 $323,293 $460,007 NA $488,102 $222,952 $642,544 $226,484 $1,050,192 $313,411 $329,312 $199,143 $397,746 $285,437 $433,317 $498,750 $1,071,463 $309,103 $615,051 $381,341 NA $288,493 $129,137 $1,225,150 $301,299 NA $136,974 $339,854 NA $225,215 $222,406 $151,187 $444,389 $575,434 $557,437 $378,753 $98,575 NA $374,628 $384,997 $229,245 $112,605 $160,519

$602,334 $467,246 $1,141,612 NA $656,200 $217,543 $823,942 $415,959 $537,105 NA $142,583 $261,553 $557,929 $210,666 $1,077,963 $315,139 $260,709 $192,410 $474,199 $379,523 $433,084 $522,736 $1,134,574 $401,286 $763,824 $356,289 NA $361,083 $100,160 $1,398,400 $307,848 $271,445 $141,010 $324,830 NA $238,768 $257,495 $157,740 $501,417 $672,846 $678,625 $268,003 $96,888 $481,599 $366,184 $374,931 $212,580 $101,970 $156,926

-15% -26% 0% 0% -30% 42% -21% -22% -14% 0% 242% -15% 15% 8% -3% -1% 26% 3% -16% -25% 0% -5% -6% -23% -19% 7% 0% -20% 29% -12% -2% 0% -3% 5% 0% -6% -14% -4% -11% -14% -18% 41% 2% 0% 2% 3% 8% 10% 2%

4,300 2,087 4,000 740 1,393 1,198 2,038 1,520 1,679 3,200 1,500 1,450 NA 755 NA 2,006 NA 974 NA 581 742 1,067 NA 1,042 1,415 1,922 1,781 1,798 560 1,047 1,170 897 NA NA 2,500 1,500 698 2,162 881 NA 578 2,452 566 530 NA 1,382 734 1,025 NA

4,200 2% 2,868 -27% NA 0% 740 0% 1,328 5% 1,190 1% 2,128 -4% 1,687 -10% 1,657 1% 2,266 41% 748 101% NA 0% NA 0% 729 4% NA 0% 1,888 6% NA 0% 931 5% NA 0% 593 -2% 789 -6% 1,516 -30% NA 0% 1,131 -8% 1,364 4% 1,891 2% 1,874 -5% 1,984 -9% 584 -4% 1,004 4% 1,390 -16% 1,160 -23% NA 0% NA 0% 2,050 22% 1,500 0% 768 -9% 2,206 -2% 969 -9% NA 0% 700 -17% 2,065 19% 659 -14% NA 0% NA 0% 1,289 7% 700 5% 911 13% NA 0%

$471,708 $172,846 $498,172 NA $897,000 $679,292 $153,861 $114,097 $260,001 NA $485,013 $380,081 $600,723 $319,743 $435,718 $438,308 $143,178 $285,157 $67,541 $13,910 $220,847 $480,481 $1,492,891 $118,715 $1,649,934 $431,089 NA -$39,036 $136,511 $362,454 $158,597 NA $182,845 $99,433 NA $105,959 $119,135 $204,609 $258,275 $114,049 $382,951 $269,365 $71,290 $308,346 $339,873 $348,518 $273,204 $141,993 $170,887

± (%)

NPAT = Net Profit After Tax + = Rise - = Fall X = Static Researched by IBISWorld

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Manufacturers’ Monthly DECEMBER 2010 17

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Exporting A

S an integrated global approach to product development gathers pace, it is imperative that Australian engineering teams are kept in the international design loop. This has implications on a number of fronts including development of our domestic design expertise, and the ability to exploit opportunities for export development and import replacement.

French-based company, Dassault Systemes (DS), supplies 3D and product lifecycle management (PLM) software that the company says is used to design 80% of the world’s vehicles and 40% of its aircraft, as well as many other products.

The DS portfolio includes: CATIA, for integrated collaborative design and engineering across disciplines; SolidWorks, for mechanical design in 3D; SIMULIA, for virtual product simulation; DELMIA, for enabling manufacturers to virtually experience their entire production system; and more.

When utilising CATIA for the design of composite parts for example, engineers in different locations can work concurrently on that component before later merging and synchronising separately-designed stacks into a single manufactured part.

During a recent visit to Australia, DS executive vice president, Etienne Droit, said that as product development activities are increasingly carried out by many diverse teams across geographically dispersed sites, pressures to deliver quality products on time have never been greater.

“Some 80% of all products being invented don’t get to the market, and the reasons are that the product is not right, it is not of good quality, or it is released too early or too late. This is not a sustainable situation, and there is a clear need to bring the voice of the customer inside the development process,” Droit told Manufacturers’ Monthly.

“A car for example must hit the market in the right way, otherwise big losses can occur. The 18 DECEMBER 2010 Manufacturers’ Monthly

Dassault’s PLM system can integrate potential areas of a product virtually.

Key to global integration Global product development presents both exciting opportunities and tough challenges for engineers working in Australia, writes Hartley Henderson. answer is to establish a PLM virtual universe where the product can be developed, because as market cycle times become more compressed, cooperation on global market considerations is critical.

“The key is to establish an online collaborative environment that taps into centres of excellence in different countries.

Australia for example is good at engineering composite materials, while France has expertise in plastic moulding. In this way, competent multi-disciplines can be brought together from around the world in a virtual environment to develop products.

“It is important that dispersed team members are all able to see the same 3D on the screen, which helps to avoid mistakes.

3D laptops are on the way and this will further empower multinational team operations.

“There is a lot of opportunity for Australia in a range of industries to take the next step and decide whether to develop products in Australia utilising some overseas input, or just buy the

original design. With CATIA it is possible to design and build in Australia. This country has a very strong education system that is producing expertise capable of developing new products here rather just servicing existing products.”

Managing director of DS for Australia and New Zealand, Gilles Cruanes, points-out that engineers at Toyota in Australia are part of a global team that includes input from engineers in Japan and the US to produce a Camry specifically for the Australian market. The team is using CATIA and DELMIA to connect live in real time on large screens from country to country,” he said “The fast moving digital capability of PLM has enabled an integrated global approach to product development, simulated testing and lifecycle management to bring goods and services to market faster at lower cost.

“Our PLM software is applied across most Australian industries from apparel to warship production. Without this technology,

Australian engineering could not continue to contribute to global projects.”

Growing trend So is the integration of Australian engineering teams in global product development projects likely to be a continuing and escalating trend?

Austrade’s industry leader for auto and advanced manufacturing, Hayden Williams, advises that in the automotive industry this is a growing practice at the motor vehicle producer and major component manufacture levels, as well as the aerospace industry.

“Probably the best recent example was GKN’s participation in the F35 ‘joint strike fighter’.

As the automotive and aerospace industries are truly global with global supply chains, this is one way Australian-based research and development will be competitive going forward,” Williams said.

Dassault Systemes Australia 02 9238 6312, www.3ds.com Austrade 13 28 78, www.austrade.gov.au manmonthly.com.au

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Exporting Australian success Research finds quality, price and ‘Australianness’ are key to export success.

Q

UALITY continues to be the most important attribute of our local manufacturers’ products, but interestingly an increasing number of exporters also believe country of origin plays an important role.

A high 30% of the businesses surveyed in a recent study by Roy Morgan Research for Australian Made, Australian Grown (AMAG) Campaign now use the Australian made logo because they believe Australian products have a good reputation in export markets.

The survey, conducted in August and September 2010, surveyed a wide range of businesses registered to use the AMAG logo.

“It is really encouraging to see that our local manufacturers understand that they can tap into the good reputation of Australian products to give their goods that unique selling point that may make buyers choose their products over those of their competitions. Quality and price are recognised as important, but so is country of origin. We’re thrilled to see businesses embrace the logo in export markets,” says Australian Grown Campaign chief executive, Ian Harrison.

The green and gold logo has been promoted in a wide range of export markets during the past five years with financial assistance from the Government.

The promotions have included in-store retail promotions and participation in tradeshows, with financial assistance available to participating businesses.

The symbol is used on over 10,000 products sold in Australia and in export markets around the world. According to the latest survey, key export markets for users of the logo include New Zealand, UK, USA, China, Japan, Hong Kong, Singapore, Malaysia and UAE/Dubai.

Local drum and materials handling expert Hydrum has been manmonthly.com.au

Hydrum has been manufacturing in Australia for more than 40 years and now exports 35% of its goods.

manufacturing in Australia for more than 40 years and now export 35% of its goods – most to the markets identified as key export markets by the surveyed businesses.

“Australian Made, global quality is the ideal terminology to use with our products as there is perfect synergy between those words and our products.

Customers recognise the logo and are comforted that they will receive products that commonly exceed their expectations,” says Hydrum director, Mark Whittle.

The business’ largest market is China and its products are sought-after by a wide industry base from pharmaceuticals to paint/petrochemical and food and beverage industries. The key to success, according to Whittle, is the business’ ability to

respond to market demands with customised, durable products.

“Hydrum continues to grow as an Australian manufacturer because it can customise any of our machines or create a special design to suit a specific application. This is something that imported machines struggle to achieve. We promote our products as Australian using the logo because it provides quick visual confirmation that you’ve purchased an Australian manufactured product. We believe that these identifiers are recognised globally and customers know that the products conform to good engineering practice, synonymous with a proud Australian manufacturer,” he said.

Hydrum 02 9756 1555, www.hydrum.com.au Australian Made 1800 350 520, www.australianmade.com.au

Supporting overseas investments IN the 2010 financial year the Australian Government’s export credit agency, Export Finance and Insurance Corporation (EFIC), helped Australian exporters navigate difficult markets through the highest level of signings and the largest volume of exports supported for over 10 years.

EFIC’s 2010 Annual Report records that EFIC supported overseas investments worth over $5.9 billion through facilities of $971.3 million.

“In a year when Australian businesses faced continuing economic and financial uncertainty, this strong result reflects an increased effort to deliver on our mission: to help Australian exporters overcome financial barriers,” said EFIC’s chief executive officer and managing director, Angus Armour.

EFIC provided facilities including loans, contract bonds and guarantees to support exporters ranging from small companies to major corporates, and their exports to over 40 countries, including US$350 to the Papua New Guinea liquified natural gas project.

Armour said that while demand for EFIC’s traditional products remained strong, an important focus during the year was finding further ways to assist small and mediumsized enterprises (SMEs).

“EFIC has reviewed and expanded its product range, and strengthened ties with commercial finance providers so that we’re meeting demand from SMEs and making it easier for them to find us. With major banks, we re-launched the export working capital guarantee, which is aimed at helping medium-sized businesses to finance large export contracts,” Armour said.

Export Finance and Insurance Corporation 1800 887 588, www.efic.gov.au

Manufacturers’ Monthly DECEMBER 2010 19

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TechnologyIT@MM

Taking the costs out of manufacturing.

Preparing for 2011 Australia’s manufacturing industry faces another tough year ahead, but there are technologies to help companies fiscally and environmentally. Alan Johnson reports.

W

ITH environmental issues and energy costs set to rise even further with the introduction of a carbon tax in 2011, it is increasingly important for manufacturers to become aware of new technologies to reduce their operating costs and their carbon footprint.

What many don’t realise is that energy in the manufacturing sector is the single largest operating and maintenance expense.

According to Infor vice president

20 DECEMBER 2010 Manufacturers’ Monthly

global asset sustainability, Rod Ellsworth, energy costs are 60–80% of operating and maintenance expense in many sectors, including food, chemical, metal and pharmaceuticals.

“So it is becoming more relevant that manufacturers start managing their assets, their property, plant and equipment that consumes that energy. We factor all that into our new Asset Sustainability Application. Plus from a sustainability perspective,

we factor in companies’ environmental stewardship into the way they operate and maintain their properties, plant and equipment,” Ellsworth told Manufacturers’ Monthly on his recent visit to Australia.

He says the application, which factors in energy into the day-today decisions of how they operate and maintain the equipment, has changed the paradigm on how users make decisions on managing their assets.

“Previously they didn’t factor in the cost of energy or the environmental impact of how this piece of equipment is operating. We look at how long a piece of equipment is running, plus a couple of premises not many people think about,” he said.

“First fact is that most assets are not operating as efficiently as they were designed to operate, which in manufacturing is predominately motor driven assets.”

According to Ellsworth, most assets are operating 5 to 80% less energy efficiently than they were designed to operate.

“It all depends on the type of asset, but if you aren’t monitoring and managing your assets on a continual basis those dollars go out,” he said.

“We have taken the approach that if we can fix the energy efficiency problems with the assets, we will inherently fix the environmental problems with the assets. The way we do this is to monitor the energy consumption on a real time basis, whether it’s at the asset or at the system or structure within a manufacturing facility or the facility itself.

“We know how much energy users should be consuming, versus what they are actually consuming.”

Ellsworth says information in the application on what that asset should be consuming can come from the OEM or look at average energy efficiency standards at NEMA (National Electrical Manufacturers Association).

“If neither of these is available, then we will go in and, after all the preventative maintenance on that asset/motor, monitor it for its efficiency and establish a baseline. Then if it deteriorates from there, we know we need to do something,” Ellsworth said.

“We can capture any of those approaches. Then we break down the energy coming in; the kW, the current, the V, the power factors, the phase imbalance etc.

“We understand every aspect of how that device is consuming energy. By bringing in that informanmonthly.com.au

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mation in real time, we then have within asset sustainability application a knowledge base, called alert management.

“It looks at where users are at and where they are supposed to be. It identifies all anomalies with energy.

“We monitor all these and alert the customer proactively if the customer’s equipment is not running as energy efficiently as possible, plus give them the reasons why.”

Ellsworth says compressors, motorised pumps and valves, motors themselves, such as on conveyors for example are the primary users of energy.

“Over 70% of energy usage in manufacturing is consumed by 3phase motors,” Ellsworth said.

While offering a comprehensive view of energy usage, Ellsworth says the new Asset Sustainability Application is not that complicated, or expensive to set up.

“There needs to be a sub meter to capture the informa-

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tion, which can be wired or wireless. It becomes an IP address on the users network.”

Ellsworth says the new application can save manufacturers 10 to 20% of their cost of energy, plus far less carbon emissions.

Cloud computing Cloud computing is another area more manufacturers are set to embrace in 2011, with security concerns becoming less of an issue. Many analysts are now predicting more than 40% of all software will be sold as a service in five years time.

Infor senior vice president and chief strategy officer, Bruce Richardson, believes it is a matter of education.

“On-premises deployments will still be prevalent but the percentage of customers wanting cloud based solutions will continue to grow as customers become more comfortable with the cloud deployment model,” Richardson told Manufacturers’ Monthly on his recent visit to Australia.

PM

“We have offered cloud services for over 10 years and currently have more than 750 customers and a half million active users.

“The beauty with Infor’s solutions is that customers have the choice of on-premises, cloud, or even hybrid deployments using the same software.”

Regarding security concerns, Richardson says the data centres used by Infor include onsite security guards, multiple mantraps which must be traversed to enter server area, security scans at each entry, palm scans for entry into the server cage and also security cameras that cover all internal and external areas.

“We also manage firewalls at multiple levels in the network, intrusion detection and prevention technology, firewall and ids log monitoring performed real time by an external security firm, regular vulnerability scans, virus protection, SSL/TLS and VPN connections are supported, administrative user ID and pass-

word management solutions for enforcing best practices.

“For customers, another factor is availability. Infor’s solutions are setup with full redundancy to eliminate single points of failure.

“Another concern for customers is interoperability. Infor ION allows for plug and play integration between Infor and non Infor solutions. It works natively over the web for remote integration,” he said.

Richardson rejects outright industry’s concerns that transaction speeds could be affected if a large number of heavy data users take up the 'Cloud' offer worldwide.

“Our solutions are built to scale wide so there really isn’t a limit to how large our customer base can be and there should be no change in performance as the number of customers increase,” he said.

[To read the full story, go to http://bit.ly/97Kq8s] Infor 02 9021 7100, www.infor.com.au

Manufacturers’ Monthly DECEMBER 2010 21

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TechnologyIT@MM Multi-image 3D optics software ADEPT has released MicroPolyView, a 360°, 3D, multiimage optics software package designed to measure and inspect small objects whose dimensions range from 1mm to 10mm, using a single lens.

Traditionally, where a sample needed to be observed from a number of angles, different perspective views were achieved by deploying an array of cameras or by moving the imaging system around the component; both solutions being complex and expensive.

Opto Engineering’s new Micro-Polyview lens, however, is capable of observing and measuring an object from different angles by using an array of mirrors interfaced to a bitelecentric lens. While keeping the top of the object directly imaged at the centre of the field-of-view, the lateral views feature exactly the same magnification and the images remain in perfect focus even when the object is displaced.

This allows all views to be used to measure, precisely, the dimensions of components from different angles with only one camera and without moving anything.

The lenses are said to be easily-customisable and versions can be manufactured with a different number of views and mirror inclinations.

Adept Electronic Solutions 089242 5411, www.adept.net.au

22 DECEMBER 2010 Manufacturers’ Monthly

Code verification software

M

ATHWORKS has announced enhancements to its Polyspace embedded code verification products, which prove the absence of certain run-time errors in source code.

The new Polyspace metrics web dashboard, automated scheduling of verification jobs, e-mail notification and increased code metric support allow engineers to choose and track embedded software quality metrics and thresholds.

These enhancements are designed to shelp software teams to better define quality objectives and reach these faster for high-integrity applications across the automotive, aerospace, defence, and industrial automation and machinery industries.

The metrics web dashboard helps software developers define relevant metrics and thresholds, such as code metrics, MISRA-C and run-time error metrics.

It also provides the ability to track progress of these metrics

Software ensures that the appropriate quality objectives are met along a software development lifecycle using a web browser.

through the verification process and also to compare any differences in quality in each code revision.

As well, the company now offers integration with nightly processes and email systems, helping to automate the process of continuous verification.

Engineers can reduce the iterative work of manual verification tasks, which allows them to focus on higher-level verification tasks such as addressing new issues arising between two versions of the same code.

MathWorks 02 8669 4730 www.mathworks.com.au

Hybrid 2D/3D CAD system upgraded SIEMENS PLM software’s Solid Edge ST3 software offers new functionality – enabled by synchronous technology – that is said to significantly accelerate product design, streamline revisions, and make importing and reusing third-party CAD data easier. The new release also includes a variety of enhancements related to simulation,

design data management, and more than a thousand customerdriven improvements.

According to the company, synchronous technology has the capacity to perform a variety of design tasks in a fraction of the time it takes with a traditional approach. In addition to support for part modeling and sheet metal design, synchronous-based

models can now be used directly with all assembly applications – such as piping, frames, wiring, and assembly features.

Also delivered is a first-ever part-to-part associativity that lets users establish and alter design intent before, during or after the assembly process.

Siemens PLM Software www.siemens.com/plm

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Single board computer with 8-core

Small power supply

G

E Intelligent Platforms has released the rugged, OpenVPX-compliant SBC312 3U VPX single board computer (SBC).

Designed for demanding spaceand weight-constrained environments such as unmanned vehicles in military and other defence applications, the unit is based on the 8-core Freescale QorIQ P4080 processor.

The SBC312 is said to deliver substantial processing performance while maintaining power consumption and heat dissipation at the level of earlier dual core 3U VPX single board computers.

The sixth 3U VPX SBC platform announced by GE, the SBC312, is said to provide an optimum technology insertion opportunity for existing users of the SBC310 and SBC330.

According to the company, this further enhances the unit’s sustainable competitive advantage.

The unit is also available as another model with the

The computer features up to 4GB of dual channel DDR3 memory.

QorIQ 4-core P4040 processor as an option.

The SBC312 is available in five air- and conduction-cooled ruggedisation levels.

According to GE Intelligent Platforms, this allows for maximum reliability in demanding and harsh military and aerospace applications, and is also available in VITA-48 format for 2level maintenance.

The model features up to 4GB of dual channel DDR3 memory,

and provides significant flexibility, allowing the SBC312 to be configured to meet the demands of a broad range of applications and environments, beyond military and defence.

Two x4 PCI Express Gen2 links are provided with the SBC312 single board computer, each of which can be configured as four x1 PCI Express links, says GE Intelligent Platforms.

GE Intelligent Platforms www.ge-ip.com

WIELAND Electric offers the wipos PB1 power supply series especially for electrical installations that are suspended in ceilings, in intermediate floors and in the dado skirting.

The switching power supplies are designed for 0.42 to 4.2 A and are mounted on DIN rails; screw connection is also possible from 2.5 A upwards.

The compact AC/DC units are said to supply 100% output at ambient temperatures of up to 60°C. They can be used in temperatures between -25 and 70°C and in outside areas.

Other features include long hold-up times of >60 ms, compensation of voltage drops through adjustable output voltage as well as a broad-range voltage input for worldwide use, the manufacturer says.

The power supply series meets all important standards, the company says.

Treotham Automation 02 9907 1778, www.treotham.com.au

ERP system with Cognos 10 embedded PRONTO Software has integrated IBM’s latest business intelligence (BI) suite, Cognos 10, into the upcoming release of its flagship ERP system, Pronto-Xi, to enable quicker, smarter decision-making for midmarket customers.

The seamless integration of Cognos 10 is said to provide enhanced reporting capabilities and instant business insight, thereby empowering users to access meaningful data anytime, anywhere.

The full release will be launched in March 2011, while a beta version is available now.

According to Pronto Software’s managing director, David Jackman, the partnership with IBM is a step in the company’s vision to increase the functionality and breadth of its product portfolio, delivering a next generation ERP system that includes an BI out of the box.

“Over the past five years, we have had a heavy development manmonthly.com.au

focus on simplifying IT for our customers. This is becoming increasingly important from a business analysis and reporting perspective as volumes of data increase, making fast and effective business decisions all the more challenging,” said Jackman.

“We’ve done all the integration work so that IBM Cognos 10 is tightly embedded into ProntoXi and our customers can start reaping the benefits immediately. They will be able to create ad hoc reports, slice and dice the data, and create dashboards in a new intuitive interface.”

He explained one of the biggest obstacles to gaining insight from data is demystifying the complexities in the underlying database. “IBM Cognos 10 offers a simple mechanism for providing at-a-glance insight into key business drivers in an easy to understand way.”

Pronto Software 03 9887 7770, www.pronto.com.au Manufacturers’ Monthly DECEMBER 2010 23

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Plant& MACHINERY MAINTENANCE Keeping machines in good repair As 2010 draws to an end, maintenance has once again become the topic of discussion among Australian manufacturing businesses ahead of the January shut-down period. Annie Dang writes.

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ERFORMING maintenance on machines and factory equipment is more than just an annual checklist for manufacturers to tick off. The process involves setting-up a more structured system which ensures plant machinery is kept in good repair throughout the year.

According Atlas Copco Compressors Australia technical support engineer, Nash Bakhit, cleaning machinery is important for smooth operation of factory equipment, especially when it comes to compressors.

"Maintenance of machines is not just about changing oil and filters. It is also about cleaning the machine to make sure it has better air flow through it providing better operation, longer life and most importantly very minimum down time due to failures,” he told Manufacturers’ Monthly.

Some equipment failures, especially with compressor screw elements and motors are due to dirty machines. Keeping machines clean not only provides a safer work place for workers, it also helps to reduce costs and provide longer machine life.

“Keeping machinery clean is important as it keeps industrial equipment free of grease and dust and other foreign and contaminant materials, which can pose as potential threats to the proper function of the equipment and the safety of workers,” Bakhit said.

“Regular maintenance and service of equipment will ensure smooth operation of the equipment, less down time for breakdown and longer operation life.”

WorkSafe Victoria director of manufacturing, logistics and agriculture, Ross Pilkington, says the key to ensuring clean machinery and a clean and safe workplace is to have a systematic housekeeping and cleaning process in place.

24 DECEMBER 2010 Manufacturers’ Monthly

“Having a systematic process of cleaning, such as the 5S method of Stock, Store, Shine, Standardised and Sustain, provides a safe and productive work place,” Pilkington said.

“It ensures that staff know when and how often maintenance will be conducted, and is a way for manufacturers to manage safety in the workplace as part of the day-to-day production process.”

For manufacturers looking to conduct large-scale maintenance over the January shutdown period, careful planning, communication to staff and preparation remains crucial.

“Manufacturers need to consult with their staff so they know what is happening when the factory does shut down, communicate when the shutdown will happen and a reasonable schedule for the maintenance,” Pilkington said.

“They will also need to make sure that staff are competent to perform maintenance and if they are bringing on more staff, that the additional staff is inducted and familiar with the workplace.

Although large-scale end-ofyear shutdown maintenance has long been the tradition in Australia’s manufacturing industry, manufacturers are now incorporating maintenance tasks into daily production processes.

“More and more we are seeing maintenance being done throughout the year rather than during shutdown periods. In the last couple of years, we have seen the annual shutdown periods used more for change of process than for maintenance,” said Pilkington.

The shift away from large-scale annual maintenance to daily production maintenance not only reflects Australia’s maturing maintenance sector, but is expected to put the sector in

Maintenance conducted as part of the production cycle ensures a safe and productive work space.

good position for strong growth in the coming decade.

According to Maintenance in Australia 2010–2025, a report published by research and analysis firm, BIS Shrapnel, Australia’s maintenance spending activity is forecasted to grow strongly through to the middle of this decade.

The report reveals the build-up during the boom investment period prior to the economic downturn, combined with improved market conditions and strong profits will see maintenance bounce back for both heavy and light manufacturing sector over the next few years.

“As more people are now looking to spend money on machines and money to maintain those machines, it shows that manufacturers are starting to develop a good understanding of the importance of maintenance and its role in providing a safe and

productive workplace,” Pilkington said.

“It is important that people in the industry are aware that maintenance is an essential spend in ensuring factories are a safe place to wok.

“In Victoria, we certainly put more emphasis on making sure non-production maintenance tasks are done in a safe manner and that those tasks are planned to ensure that they are appropriately locked down and tagged out.”

According to Pilkington, the findings of the report indicate a positive trend for the local manufacturing industry.

“Any trend that sees more money being spent on maintenance is good for the sector and good for the industry,” he said.

Atlas Copco Compressors Australia 1800 023 469, www.atlascopco.com WorkSafe Victoria 1800 136 089, www.worksafe.vic.gov.au manmonthly.com.au

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No-clog chip vacuum for 205-litre drums EXAIR’s 205-Litre Chip Vac picks up chips from manufacturing processes and delivers them to an ordinary 205 litre drum. It can be moved from drum to drum easily to keep different materials separate for recycling.

The vaccum can be used to clean chips from fixtures, floors and work surfaces of machining centres, lathes, saws, mills and other industrial equipment.

According to the distributor, the compressed-air-powered Chip Vac creates a powerful direct flow action that effectively moves metal, wood or plastic chips.

Dusty materials such as absorbents are trapped by the 0.1 micron filter bag to keep the surrounding air clean.

To prevent material contamination, a poly drum liner can be inserted into the drum.

The Model 6193-205 Chip Vac System includes a shutoff valve, filter bag, drum lid with locking

duty cleaner

The Chip Vac is covered by a five-year warranty.

ring, 3-metre flexible vacuum hose, aluminium chip wand, two extension wands, crevice tool, brush, skimmer and floor tool (drum not included).

Other models available include the Model 6293-205 Deluxe Chip Vac System, which adds a 205-

litre drum dolly, and the 5-Gallon Mini Chip Vac System Model 6193-5, which comes complete with a 5-gallon drum and all the same tools as the 205litre system.

Compressed Air Australia 1300 787 688, caa.exair.com

New IRM software manages corporate risks INSIGHT TECH Solutions has designed a corporate risk compliance and insurance management suite, Intelligent Risk Manager (IRM), for organisa-

manmonthly.com.au

Powerful, heavy

tions to manage their risks efficiently and effectively.

The software is customisable and non-legacy system dependent, delivering OH&S, security,

asset and business continuance and high-end risk analysis for medium to large enterprises.

Insight Intelligence 02 8860 6546, wwww.insightintelligence.net

KERRICK released the HC4015 – a 4,000 psi heavy duty mobile cold water pressure cleaner.

Combined with 15 litres per minute volume, the The cleaner HC4015 is comes with four ‘quick described by connect’ nozzles. the company as a powerful cleaner capable of tackling the most demanding of cleaning tasks.

The HC4015 is powered by a Honda GX390 petrol engine allowing the user great portability.

It features four ‘quick connect’ nozzles, a 15-metre-high pressure hose, 250mm all terrain wheels and a rugged frame. It is also equipped with a CAT pump, an in-line clear water filter and a detergent facility.

Kerrick Industrial 1300 537 742, www.kerrick.com.au

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What’sNewfor 2011 See more new products at manmonthly.com.au

All-in-one clamp kit AN all-in-one clamp-making tool that allows users to produce the exact clamp for the job in hand has been released by hose clamp manufacturer, Norma.

Flex’O’metre is a seashell-type plastic dispenser containing three metres of continuous-length stainless steel band that can be cut to length and coupled with a patented head and band fixing system that comes stored within the centre of the unit.

This practical industrial tool is said to conveniently hang on a tool belt or workshop peg.

It has an inbuilt band length measuring system plus a window showing the amount of band that is left.

Flex’O’metre is available in two material grades identified by the band slide colour on the top of the dispenser. The stainless steel band with mild steel hardware is identified with a black slide and the stainless steel 304 grade band and hardware is identified with a red slide. Two band width styles of 8mm and 13mm are available in the Flex’O’metre tool to meet different clamping requirements.

The kit is adjustable to suit various clamping

Norma Pacific 03 9761 4416, normapacific.com

Universal welding lasers ROFIN Laser Micro’s new generation of universal welding lasers, StarWeld Select, are said to be manual welding lasers and CNC-controlled systems in the one unit.

With one universal operating concept, the Select can be operated as an ergonomically-optimised manual welding laser, as a deposit welding laser

with joystick or as a high-precision CNC system. All process steps are controlled via the multi-functional joystick and a large multi-colour touch screen display enables semi-automatic laser welding, CNC teach-in or jogging of heavy workpieces.

Laser Resources Management 03 9338 1655, www.laserresources.com.au The transmitter can be used in military, aerospace and medical equipment.

Pressure transmitter BESTECH Australia’s AST20HA digitally-compensated pressure transducer/ pressure transmitter from American Sensor Technologies is said to offer high performance over temperature, with real time thermal compensation and linearity correction.

The system incorporates the manufacturer’s Krystal Bond technology which reportedly offers excellent nonlinearity and non-repeatability performance. Pressure ranges vary from -1...2 bar to 0...700bar. Proof pressure is 2x

the standard rated pressure, and the unit can survive over 100 million pressure cycles.

The pressure transducer/transmitter has a compensated temperature range of 0 - 70°C, and the unit is sealed to an IP66 rating.

This pressure transducer finds applications in military and aerospace vehicles and equipment, in medical laboratories, and in analytical instruments.

Bestech Australia 03 9584 1133, www.bestech.com.au

Oil-free screw compressors KAESER Compressors Australia is now offering a new range of oil-free, twostage rotary screw compressors, the DSG and FSG, which have been designed for applications where oil-free compression is specifically required.

At the heart of these units lies a quality two-stage compressor air-end.

The rotors are equipped with Ultra Coat, which is said to be resistant to 26 DECEMBER 2010 Manufacturers’ Monthly

temperatures up to 300°C. Because this coating is highly abrasion-proof, it’s sealing and protection performance remains unchanged after years of operation, the company claims.

The units come in either watercooled or air-cooled versions, in addition to the option of frequency control.

Kaeser Compressors 03 9791 5999, www.kaeser.com.au manmonthly.com.au

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Forklift recharging cable A NEW forklift recharging reel from ReCoila allows users to address safety hazards associated with re-charging forklifts by getting the recharging cables up off the floor away from potential damage.

Bad recharges and overheating cables which are a result of damaged cables and connections can be rectified with the use of a forklift recharging reel, ReCoila says.

Ultra lightweight industrial pump The pump can be used to power water transfer.

When not in use, the cables are stored away in the reel, preventing wear and tear. This also helps prevent accidents from stray cables.

According to ReCoila, installing a recharging reel also compels workplaces to allocate a designated maintenance and recharge area for forklifts – something encouraged by many work safe authorities.

The recharging system gets cables up off the floor.

ReCoila 02 9621 8988, www.recoila.com.au

ESAB Falcon Fully Integrated power supply, software and hardware.

The ESAB Falcon is a remarkably versatile cutting machine for plate processing that can meet the needs of your current production with the option of upgrading in the future if your cutting demands change.

The ESAB Falcon can be used for Oxy-fuel, Plasma or combined Oxy-fuel and Plasma cutting.

Extensive control functions, interfaces and an integrated cutting database with 65 fixed programs deliver a high degree of cut quality.

A NEW four-stroke, ultra lightweight, self-priming pump from Australian Pump Industries weighs only 5.3kg but offers a 40-metre head with a maximum flow of 120 litres per minute.

Called the Aussie Quick Prime model QP1 GX25, the new pump is powered by a Honda lightweight fourstroke GX25 engine.

The versatile unit is said to offer a combination of performance and flow, and is able to perform emergency spot fire mop-up, water transfer or even personal protection for fire fighters.

The Aussie QP1 GX25 is fitted with Nitrile seals which reportedly make it suitable for diesel fuel transfer applications.

The unit comes mounted on heavy duty steel skids with anti vibration mounts and with a convenient carry handle. A hose coupling and strainer kit is also included as standard equipment.

Aussie Pump Industries 02 9894 4144, www.aussiepumps.com.au manmonthly.com.au

Two tool carriages, Oxy-fuel and Plasma for wider variety of cutting options.

Low level outboard rail allows for easy loading and unloading of the table with forklifts.

Backlash free cutting accuracy.

Solid reinforced main beam.

IN STOC K

NOW

Options for

• Cutting tables • Fume extraction

This versatile heavy-duty water-cooled plasma cutting and gouging system is ideal for mechanized applications.

Precise setting of the cutting torch height is achieved automatically ensuring optimum cutting quality at all times.

Each tool carriage is provided with a reliable automatic ignition device.

Ask for a “No obligation demonstration” at the Westgate Hi-Tech Machinery ESAB Centre of Excellence.

Tel: (03) 9391 1133 Fax: (03) 9391 1244 sales@westgatehitech.com.au www.westgatehitech.com.au 5 Sutton Street, Sth. Kingsville, 3015, Victoria ABN 37 395 752 411

Manufacturers’ Monthly DECEMBER 2010 27

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What’sNEW - PACKAGING Returnable plastic crates create value

Customised void fill solution

CHEP Australia’s returnable plastic crate (RPC) system for produce has been found to deliver environmental performance and financial value in the supply chain by an independent lifecycle study from RMIT University Melbourne.

The study found the CHEP RPC system generated significant benefits for customers compared with a single-use corrugated cardboard packaging system.

Based on the results of the study, the estimated benefits on a daily basis are: more than 175 tonnes of greenhouse gas emissions saved; more than 1.2 million litres of water saved; and more than 20 tonnes of solid waste avoided.

The study complies with the ISO 14044 methodology for environmental systems and has reportedly been reviewed by two independent industry experts.

The assessment took into account the environmental impact of the entire product and system lifecycle, including inputs to manufacture and the full end of life processes for both packaging systems.

The key results from the study highlight the sustainability efficiencies of the CHEP RPC system when compared with a single-use corrugated cardboard system. The efficiencies identified include: greenhouse gas emissions were 70% less than a singleuse corrugated cardboard system; there was 95% less solid waste than the single use corrugated cardboard system because of a reduction in manufacturing process waste, even if all cardboard is recycled after use; it takes 85% less water to wash RPCs than

THE Fromm Airpad AP502 is a small, portable machine that makes void fill for packaging requirements.

The system is said to eliminate The system makes void fill to suit the room required individual packaging requirements. to store void fill material in a warehouse.

The unit doesn’t require an operator and creates void fill with the touch of a button, according to Fromm.

The film is perforated allowing the user to tear it off at the required length, along with the range of pad sizes, allowing users to customise their protective packaging procedure.

According to the manufacturer, using a Fromm Airpad machine is half the cost of protecting products with bubble wrap or polystyrene pieces, and is half the weight of loose fill material, which also saves on transportation costs.

The Airpads are wound into large rolls directly from the machine and two rolls of Fromm PE Film make enough Airpads to fill two semi trailers.

The returnable crates use less water to clean than their equivalent would use to manufacture.

is required for the manufacture and recycling of a single-use corrugated cardboard system.

CHEP Australia 02 9856 2450, www.chep.com

Cappers suit various enclosures PACKSERV provides a variety of cappers for hire to suit various enclosures required in packaging situations.

The first, the Automatic Inline Machine by Asset Packaging Machines, comes with jaws, gates and sensors to allow continuous operation achieving between 20 to 60 units per minute depending on the type of production.

28 DECEMBER 2010 Manufacturers’ Monthly

Another model, the Semi-Automatic Bench-Top Cap Tightening machine, is air-operated, fully torqueadjustable and has a variety of chucks and attachments to suit any screw top closure. Some of the more popular closures it tightens include screw, pump, mist, trigger-pack, witches hat and snap. It will reportedly run at 15 units per minute.

Packserv 1300 557 312, www.packserv.com.au/equipment.htm

Australian Warehouse Solutions (AWS) 1800 023 890, www.austwarehouse.com.au

Online label-making MANUFACTURERS can now label their own goods with the NiceLabel Portal, a web-based label printing solution. According to the creator, Euro Plus, abandoning desktop printing applications ensures consistent and dependable formats of all labels.

NiceLabel Portal allows users to click a web link and print a label. There is no need for a desktop installation, studying standards and label requirements, the company claims.

Euro Plus, www.europlus.si/home

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MaterialsHANDLING Automation to improve forklift safety Forklifts are dangerous to operate and their potential to cause serious injuries is often underestimated.

Automation technology provides a new avenue for forklift safety. Annie Dang writes.

Automation technology reduces forklift related injuries by taking out the human element in forklift operation.

W

HILE fewer people are now being killed as a result of forklift incidents, injuries related to forklift use are on-the-rise.

In Victoria, an average of 250 people are seriously injured by forklifts each year, according to WorkSafe Victoria. These injuries are often cause by workers being hit by the forklift or by the loads carried by a forklift, and can include broken bones, hospitalisation and potential fatalities.

WorkSafe Victoria’s acting manager for manufacturing & logistics strategy, Carolyn Kennedy, says the potential for forklifts to cause serious injuries and sometimes death is often significantly underestimated.

“They are heavy, difficult to manoeuvre, and take considerable distance to come to a stop, even from walking pace,” she told Manufacturers’ Monthly.

There has been a shift to more rigorous safety standards of late that have provided a less injurious environment where forklifts are used.

However, tighter safety regulations that look to travelling speeds and type of load being carried have left manufacturers questioning productivity. manmonthly.com.au

Adapt A Lift technology products manager, Nathan McKenzie, said speed regulations have helped to reduce workplace injuries, however have lead many manufactures to believe that safe speed reduces worker as well as factory productivity.

“Manufactures need to get over the preconception that slower travelling forklifts reduce productivity,” said McKenzie.

“Moving at a slower pace doesn’t reduce productively in the warehouse – it only increases safety, which ensures smooth continuation of the production process.”

Though Australian companies have moved to adopt more sophisticated operating processes aimed at reducing the risks associated with forklifts, manufacturers are still faced with another issue – that many forklift-related injuries are the cause of human-associated error.

According to Industrial Conveying managing director, Don Erskine, operating a forklift poses a number of risks, including those associated with blind spots.

“As forklifts do a lot of their travelling in reverse, the driver is never completely facing the direction of travel when in this

mode. Field-of-vision issues can pose a danger to other employees who are working on the same warehouse floor,” Erskine said.

Erskine states the best form of remedy for Australian companies to reduce the number of accidents involving forklifts, arguably is to remove forklift fleets altogether and replace them with an automated version.

The solution is said to ensure drivers and pedestrians will not be injured.

“Technologies such as the Automated Warehouse Trucks (AWTs) have been developed primarily to achieve greater speed and work efficiency while improving safety levels for staff,” Erskine said.

“Using laser guiding or a spot system overseen by a software

platform, AWTs put control of warehouse movements into the hands of management rather than floor staff or the forklift operator, ensuring stock handling in the warehouse is always proactive rather than reactive.”

The system reportedly integrates seamlessly with automated dock technologies which allow companies to have fully-automated handling from shelf to truck.

The concept behind its development is to move people away from the activity zone to reduce potential for injury.

However, the question largely remains whether the introduction of such technology in the warehouse will reduce the forklift-related injuries and deaths.

Erskine says that the AWT system is more reliable than human >>

MATERIALS HANDLING positioning DISPENSING INVERTING elevating LOADING LIFTING

ARE YOU HANDLING PALLETISED GOODS? WE HAVE THE SOLUTIONS! For information or catalogue: Phone: 1800 066 008 Fax: 1300 858 626 or email at sales@optimumgroup.com.au www.optimumgroup.com.au

Ergonomics in Action Manufacturers’ Monthly DECEMBER 2010 29

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Materials HANDLING

500-tonne portable power rams

No-lift stackers WAREQUIP distributes a wide range of Walkie Stackers from manual units through to electric units in both straddle legged and forkover units.

Stacker capacities range from 500kg to The stackers are available for electric 1,000kg with or manual operation. lift heights ranging from 1,600mm to 3,000mm.

The manual units have handor foot-lift operation and level release, while semi-electric stacker units have electric lift and manual push capabilities.

As the stacker requires no lifting, it is said to reduce the pressure on backs as workers no longer have to use their backs to lift and transport packages.

Warequip 1800 337 711, www.warequip.com.au

KENNARDS Lift & Shift has added 500-tonne capacity porta power rams to its Lift & Shift range of hire equipment.

The units have a cylinder under each corner and are capable of lifting heavy machinery or construction items up to 2,000 tonnes. The rams weigh 600kg and are double acting.

The range, which starts at five tonne, includes double acting,

The units are capable of lifting items up to 2,000 tonnes.

continued from page 29

injury almost non-existent. But in reality, we expect forklifts to always be part of the landscape whereas AWTs are emerging as the technology of choice for large capacity, high-rate movement of palletised goods.”

WorkSafe Victoria’s Kennedy shares the same view.

“Automated technologies work where there is a known or set work path, for example on a production line, where they are guided using infrared or radar technologies,” Kennedy said.

driver operation. But whether companies will move to completely automate their forklift operations, replacing drivers with driver operation software, remains uncertain.

“There will always be a strong call for forklifts purely because of the diverse range of applications which see them in use,” Erskine said.

“Naturally, if forklifts disappear altogether to be replaced

by AWTs in the future, it should in theory make the instance of

single acting, and lock nut cylinders. Threaded collar- and basemounted holes are said to enable

the unit to be easily secured and used sideways or inverted.

The rams are part of the Lift & Shift’s range of jacks for jobs involving pulling, pushing, bending, load testing and clamping. Kennards Lift & Shift has hire centres in Brisbane, Sydney, Wollongong, Melbourne, Adelaide and Perth.

Kennards Lift & Shift 02 9747 6661, www.liftandshift.com.au

“Where a process can be established that facilitates work on a set path or track, automated technologies may be a useful device. However, they will not replace forklifts in all circumstances, so there remains the need to be vigilant in regard to separation of people and forklifts.”

WorkSafe Victoria, 1800 136 089, www.worksafe.vic.gov.au Adaptalift Hyster, 03 9547 8000, www.aalhyster.com.au Industrial Conveying (Aust), 03 5440 5100, www.icaust.com.au

HELI Forklifts – The Best Value For Money

Forklifts In Australia

HELI Australia offers a complete range of forklifts from manual pallet jacks to 45 ton Reach Stackers.

The New HELI Green series 1.5 ton to 3.5 ton dual fuel and diesel forklifts offer exceptional performance at an affordable price. Proudly sold and supported nationwide by Forkbiz Sales and Rentals.

Give us a call 1300 721 141 for an obligation free demo or inspection.

www.forkbiz.com.au | evand@forkbiz.com | www.pacificheli.com.au

30 DECEMBER 2010 Manufacturers’ Monthly

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The offering reduces the need for third-party software.

Software automates design INTERGRAPH has released the first production version of its SmartPlant Enterprise solution for the mining, port, power, pulp and paper industries, SmartPlant

3D Materials Handling Edition, to automate the design and modelling of bulk materials handling systems for the pulp, paper, mining and power industries.

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The software is said to allow changes to be completed faster with detailed fabrication-level deliverables for chute plate design, reducing the need for third-party software and lowering project costs.

According to the company, capital expenditure costs can be reduced by giving users the opportunity to design and model sections of the system once, save them to a catalogue, and reuse the design in future projects.

Key features of the edition include conveyor belt line layout, transfer Chute Design - SP3D MHE, 3D display performance and design reuse. The Model Data Reuse Wizard feature allows systematic reuse of 3D model data.

Intergraph Corporation 02 9956 4000, www.intergraph.com/global/au

RF crane system for high-rise warehouses INDUSTRIAL Conveying has developed new technology for high-rise warehouses which allows each crane to communicate with stationary objects on its racks.

Using Radio Frequency (RF), the

manmonthly.com.au

equipment provides a communications link between the materials handling technology and the product, which is said to provide rapid movement by the crane to gather stock.

A RF crane system can reportedly achieve efficient aisle movement, lower lift times and accurate placement.

Industrial Conveying 03 5440 5100, www.icaust.com.au

Discharge control AN all-new TIP-TITETM Drum Dump Feeder from Flexicon seals drums against a discharge cone, tips the drum and feeds bulk material into downstream equipment, dust-free at controlled rates.

The drum platform is raised by a single hydraulic cylinder, creating a dust-tight seal between the rim of a drum and the underside of the discharge cone. A second hydraulic cylinder tips the platform-hood assembly and drum, stopping at dump angles of up to 90 degrees with a motion-dampening feature. Material flowing through the discharge cone charges the intake adapter of a cantilevered flexible screw conveyor that feeds downstream equipment volumetrically.

The Drum Dump Feeder is available in stationary and mobile configurations.

Flexicon Corporation 1300 353942, www.flexicon.com.au

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