Manufacturers' Monthly - July 2017 by Prime Creative Media

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2017

THE BOGE PRODUCT RANGE

EXCELLENCE AT A GLANCE

“ Outstanding compressed air solutions to meet every requirement at the highest standards.”

BOGE nitrogen and oxygen generators Save with onsite production compared to conventional bottling for food processing, laser cutting, food packaging, medical, water treatment and welding

First-Class-Engineering made in Germany This year BOGE celebrates 139 years since the founder Otto Boge was born and over 105 years of manufacturing history and innovation. With great vision the company is leading the industry with innovative new products

Sales and Service partners trained by BOGE In almost all states of Australia including regional areas BOGE work with an authorised distributor network of trained sales and service partners. These partners ensure your quality investment is preserved and performance optimised. BOGE service partners offer unrivalled service with prompt attention focusing on the needs of their customers

Quality products made in Germany at a very realistic price Not just assembled in Germany but actually made in Germany and certified accordingly. With economies of scale in making critical parts like the BOGE efficient air ends and with strict control over the quality of other local suppliers, BOGE products offer competitive pricing and real value

High pressure pistons Bottle it with BOGE! Industry’s first choice for high pressure boosters also including nitrogen boosters

BOGE oil free scroll compressors Optional integrated dryers Class ‘O’ oil free air for medical, dairy, food and beverages, printing and pharmaceutical

Stocking large quantities of machines and spare parts to support the dealer and the customer BOGE Compressors in Australia stock a large range of compressors, dryers, filters and all ancillary equipment as well as an extensive range of spare parts including a variety of oil ready to be delivered off the shelf from their Melbourne facility

BOGE Compressors Phone (03) 5940 3266 www.boge.net.au

BOGE oil free compressors Class ‘O’ oil free air for medical, dairy, food and beverages, printing and pharmaceutical

BOGE screw compressors The complete manufacturing solution Pressure range 7 to 13bar and rated power from 2.2 to 355kW ideal for joinery workshops, spray painting changes, large manufacturing and small manufacturing

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2017

FORGING A PATH FORWARD INSIDE >>

Print Post Approved PP100007882

Improving a delivery system

Endeavour Awards winnersâ&#x20AC;&#x2122; profiles

Into the world of smart factories

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Inside

For daily news visit manmonthly.com.au

JULY 2017

Managing Director: John Murphy Managing Editor: Syed Shah Ph: (02) 9439 7227 syed.shah@primecreative.com.au Journalists: Steven Impey & Stephanie Stefanovic Ph: (02) 9439 7227 steven.Impey@primecreative.com.au stephanie.stefanovic@primecreative.com.au Art Director/ Production Coordinator: Michelle Weston michelle.weston@primecreative.com.au

Design: James Finlay, Blake Storey, Adam Finlay Sales/Advertising: Nick Baker Ph: 0414 217 190 nick.baker@primecreative.com.au Subscriptions Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: (03) 9690 8766

Copyright Manufacturers’ Monthly is owned by Prime Creative Media and published by John Murphy. All material in Manufacturers’ Monthly is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject

14 6 Editor’s Comment

14 Endeavour Awards

34 Events@MM

7 Comment

22 Issues & Insights

35 Announcements

10 Precision Engineering

26 Industry Focus

36 What’s New

12 NMW Review

30 Compressors@MM

38 The Last Word

any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Australian Mining are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2016 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. Head Office

Behind the cover

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2017

11-15 Buckhurst St P: +61 3 9690 8766 enquiries@primecreative.com.au www.primecreative.com.au Sydney Office Suite 3.06, 1-9 Chandos Street Saint Leonards NSW 2065, Australia

Average Net Distribution Period ending Sept ’16 17,911

Printed by: Manark Printing 28 Dingley Ave Dandenong VIC 3175 Ph: (03) 9794 8337

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In a rapidly changing world, attempts to preserve the past will doom the future. The research priorities seek to avoid that trap by identifying the need for our industries to be agile and transformative, to provide high value-add and to recognise their place in a complex global supply chain. The research priorities also note the importance of seeking to dominate in selected product categories where we already have some wins in certain industrial sectors. We must accept that revenue growth in manufacturing will not routinely be accompanied by jobs growth in the manufacturing industry itself. That is not necessarily a bad thing, because

as new wealth is created it will be invested in services, health and other industries, with net creation of jobs. If we are smart about aligning our research to our priorities, there will be ample opportunity for us to develop advanced manufacturing techniques to create, or in some cases, bring back added-value manufacturing in food and resources, and expand our options to new business initiatives. We will then be able to improve quality and productivity, improve scheduling and logistics, and in many cases produce products in Australia more cheaply than we could import products of equivalent quality. “ Outstanding compressed air solutions to meet every requirement at the highest standards.”

BOGE nitrogen and oxygen generators Save with onsite production compared to conventional bottling for food processing, laser cutting, food packaging, medical, water treatment and welding

First-Class-Engineering made in Germany

This year BOGE celebrates 139 years since the founder Otto Boge was born and over 105 years of manufacturing history and innovation. With great vision the company is leading the industry with innovative new products

Sales and Service partners trained by BOGE

In almost all states of Australia including regional areas BOGE work with an authorised distributor network of trained sales and service partners. These partners ensure your quality investment is preserved and performance optimised. BOGE service partners offer unrivalled service with prompt attention focusing on the needs of their customers

Quality products made in Germany at a very realistic price

Not just assembled in Germany but actually made in Germany and certified accordingly. With economies of scale in making critical parts like the BOGE efficient air ends and with strict control over the quality of other local suppliers, BOGE products offer competitive pricing and real value

High pressure pistons Bottle it with BOGE! Industry’s first choice for high pressure boosters also including nitrogen boosters

FORGING A PATH FORWARD

BOGE oil free scroll compressors Optional integrated dryers Class ‘O’ oil free air for medical, dairy, food and beverages, printing and pharmaceutical

Stocking large quantities of machines and spare parts to support the dealer and the customer

INSIDE >>

BOGE Compressors in Australia stock a large range of compressors, dryers, filters and all ancillary equipment as well as an extensive range of spare parts including a variety of oil ready to be delivered off the shelf from their Melbourne facility

BOGE Compressors Phone (03) 5940 3266 www.boge.net.au

BOGE oil free compressors Class ‘O’ oil free air for medical, dairy, food and beverages, printing and pharmaceutical

Print Post Approved PP100007882

South Melbourne VIC 3205

Improving a delivery system

Endeavour Awards winners’ profiles

Into the world of smart factories

Manufacturers’ Monthly JULY 2017 5

Comment

SYED SHAH – Managing Editor, Manufacturer’s Monthly

Avoiding the tsunami

REASURER, Scott Morrison wanted to impose a credit limit as the national debt was spiralling out of control towards the $500 billion mark earlier this year– double the amount that was inherited from the Labor government. Just recently, it was reported that it had passed the magic number and is sitting at an unprecedented $560 billion plus debt. Now, I’m no economist but what I do know is that this jeopardises Australia’s pristine AAA credit ratings at the back of the tests the government has set itself with regards to national debt management. Obviously, long term structural budget reforms need to be stepped up to stop the rot. There is already a negative impact with the offshoring of Australian manufacturing picking up pace recently, starting with the automotive sector. That affects the economic growth and stability of Australians personally and the nation’s Gross Domestic Product

6 JULY 2017 Manufacturers’ Monthly

(GDP), tax revenues and government expenditures. Simply put, we should all know by now that it is just unacceptable to have unfair trading deals, and trade imbalance promotes a further downturn in the Australian economy. But at present, after seeing the promise of manufacturing opportunities from international companies at the National Manufacturers’ Week earlier this May, I think that there could not be a better time for cooler heads to prevail. In other words, now is the time for the industry to view its problems realistically and to look at the root causes to develop real solutions which will benefit all. Simply put, manufacturing has a job and tax revenue multiplier effect in an economy. Australians need jobs to survive, politicians need GDP growth to reduce debt, and corporations need a stable and cost effective environment to prosper. Take South Australia – the state is potentially in emergency with more

than 20,000 jobs at risk this year with the downturn of the automotive manufacturing industry and the unstable commodities market. With a less than modest manufacturing budget of slightly over $100 million, the industry is hard pressed to grow further and help the economy any more than the rate it is shrinking. However, despite the misgivings many might have about our current economic situation, Australia has a history of emerging from a damaging global economic tsunami intact. Many countries have been badly hit by the multiple global crises but Australia seems to always escape the storm through well timed budget stimulus and the continued demand by the Chinese for our natural resources. The loss of jobs will surely not bode well for the confidence of the nation but there is (unfortunately) no silver bullet to this issue. New projects are needed to fill the gap and put a plug on unemployment as we move into 2018 and beyond. The defence industry is one industry

that seems to need more skilled personnel as it ramps up its air and sea infrastructure. The imminent construction of 12 or so submarines will surely see a lot of prep work needed to be accomplished before starting off. In addition, other sectors such as infrastructure and construction projects need to be given a push to start earlier rather than later because they provide a lot of short term opportunities for the soon to be out-of-a-job workers. This is a good stop gap while the manufacturing sector restructures itself to accommodate more enduring jobs. Still, I am hopeful for the state of economic affairs in this country. If anything, the leaders within the sector are already pushing very hard for more advanced manufacturing to have a greater play – something that will definitely pave the way for new positions to be available. However, whether or not the “at risk” group is willing to re-train and review their skill sets to be able to fit into those new positions, still remains to be seen.

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Comment

WADE NOONAN – Victorian Minister for Industry and Employment

Victoria leading the way In a time where the Australian manufacturing sector needs all the help it can get, the state of Victoria is leading the charge.

ICTORIA is the undisputed leader in medical technologies and pharmaceuticals in Australia. Our world-class sector boasts the innovation, research expertise and manufacturing excellence to transform ideas into solutions that change lives. The state’s combined medical tech, pharmaceuticals and biotech sector employs more than 23,000 people. Melbourne truly sets the stage for innovation in this field. To put it simply – there is no better place to develop an idea, manufacture a solution or make a new discovery. We have high-quality infrastructure, a skilled workforce, world-class liveability, well-connected cities, productive land and resources, and of course a proximity to Asia. And then there’s the remarkable economic impact of this sector. In 2013-14, Victoria’s medical technologies and pharmaceuticals industry generated more than $12.7 billion in revenue. In the same year, the sector also contributed over $1.35 billion in exports to the local economy. Between 2011 and 2016, exports have more than doubled. The global reach of our sector is remarkable, coupled with the hundreds of millions of dollars in capital investment from companies every year. This is an industry where researchers, clinicians and manufacturers are working together to develop solutions to some of the world’s biggest problems. And in many cases – these solutions don’t just drive economic activity – they are helping people right across the world. Victoria is currently home to Australia’s largest collection of medtech design, engineering and prototyping businesses – with around 180 biotech companies. In fact, more than 40 per cent of all ASX-listed life science

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companies call Melbourne home. These companies have access to outstanding talent in our world-class medical research institutes – of which we have 10 – and our biomedical engineering expertise. Just recently we saw the development of an $80 million enterprise involving Monash University and the University of Melbourne to commercialise the next major medical discoveries. The BioCurate enterprise is expected to generate about $360 million in activity, support new companies, increase investment and exports, and create specialised jobs in the sector. There are exciting things happening in the medical technologies and pharmaceuticals industry every day. And there’s strong linkage that can be drawn between medtech and Victoria’s world-class manufacturing sector. Manufacturing contributes around $26 billion to the Victorian economy each year and employs more than 270,000 people. We make things here in Victoria – and we’re proud of it – and this, of course, is very relevant to our medical technologies sector. Currently, we are also experiencing an exciting shift to advanced manufacturing. At the recent Manufacturing Hall of Fame awards in Melbourne, Philip Leslie from pharmaceutical company GlaxoSmithKline (GSK) was crowned this year’s Honouree – for innovation in the field of pharmaceuticals. Philip was able to pioneer a costeffective way of packaging vaccines, creating huge market opportunities. It’s clear that we’ve got the people and the facilities to deliver advanced additive and bio-manufacturing, develop new technologies and clinical trials, and discover new drugs. Hence, we also recognise the need to growth this important sector.

That’s why our medical technologies and pharmaceuticals sector is a key beneficiary of our $200 million Future Industries Fund. We offer job-creating grants to businesses to strengthen advanced manufacturing. Our Future Industries Manufacturing Program also seeks to grow this sector in a similar way – with funding to expand businesses and create jobs. Recipients include dorsaVi Pty Ltd in East Melbourne and IDT Australia in Boronia, which are investing in new technology and facilities, and creating jobs. Victoria’s Medical Technologies and Pharmaceuticals Sector Strategy provides a framework for Victoria to continue as a leader in the sector. Earlier this year, I had the pleasure of announcing a Sector Growth Program grant to a consortium between 4Dx Limited, Hydrix and Monash University for a world-first four-dimensional lung scanner – manufactured right here in Victoria. A $2.4 million project creating 56 new jobs – including highly-skilled

engineering and design roles. We’ll see this scanner used in research hospitals around the world and provides four-dimensional respiratory analysis to better diagnose and treat lung conditions. Last year, we also awarded Scoresby manufacturer Medical Developments International (MDI) a grant under our Future Industries Manufacturing Program. They’ve embarked on a $2.5 million project to build a new facility, create new jobs and boost their global exports by around $50 million. MDI is now set up to export its Penthrox pain relief product – otherwise known as the “green whistle.” These are just a few examples of how the Victorian Government is helping to grow this sector – create jobs – and inspire the technologies and innovations of tomorrow. And there’s always more we can do and I would say that Victoria is the home of ideas and Australia’s state of manufacturing. Saying that, I’m confident the next major medical discovery in Victoria isn’t far away. Manufacturers’ Monthly JULY 2017 7

THE GLOBAL LOGISTICS REVOLUTION MAY 10-12 2018 MELBOURNE CONVENTION & EXHIBITION CENTRE

MEGATRANS2018.COM.AU

Proud Partner

Supporting Sponsor

Association Partners

PrecisionENGINEERING Driving Victoria Airport’s baggage handling system NORD Drivesystems, a global supplier of drive technology for the manufacturing sector and elsewhere, was recently chosen to supply Super Premium Efficiency IE4 products for a complex baggage handling system in Canada.

ANADA’S Victoria Airport has both domestic and international flights and caters for just under two million passengers a year. When the airport needed to upgrade its baggage handling system, it turned to Glidepath, an Aucklandbased provider of parcel sortation, baggage handling, and cargo handling solutions. As Jason Williams, Project Engineer with Glidepath told Manufacturers’ Monthly, the new system would need to handle 750 bags an hour. “It’s a system that’s made up of 85 new conveyors, roughly 250m

in length. It comprises two in-line screening CT machines. It has two decision points for sortation and it has two separate infeed lines,” explained Williams. According to Williams, the project had two major challenges. Firstly, it needed to meet the stringent security requirements associated with air travel. “Our client are CATSA (the Canadian Air Transport Safety Authority) and the actual Airport authority itself,” said Williams. Secondly, because of the airport’s small footprint, the baggage handling system had to be housed in an unusually tight area. This created

a lot of challenges for the physical installation. “It has the highest number of different components we can possibly put in a system,” said Williams. “It has four-way sorters, spiral power curves, bag alignment devices. It’s got another device called a luffing conveyor and it also has Glidepath’s proprietary ploughs and power curves.” “It was very challenging right from the get-go trying to fit this system into this small space.”

NORD Drivesystems Glidepath chose motors and drives from NORD Drivesystems to power all this hardware.

“We used a complete IE4 Super Premium Efficiency solution. Each complete drive unit consists of a two-stage helical bevel gearbox with Gripmaxx keyless output shafts and IE4 permanent magnet motors fitted with on-board NORD inverter,” Phil Richards, NORD’s Intralogistics and Airport Sector Manager who worked closely with Williams on the project, told Manufacturers’ Monthly. “The inverter is also equipped with all the plug connectors specified by Glidepath as well as internal Ethernet IP for remote communication and operation of the complete drive unit.” Richards explained that the drive units are used on a variety of different applications in the airport’s baggage handling system. “There are general transport, merge and metering conveyors as well as four-way baggage sorters and dispensers,” he said. “The tasks can vary between conveyors. Some of the units move the baggage from conveyor to conveyor at a range of speeds and other units have intelligent positioning control like the sorters.” “For example, the NORD drive can move conveyors and other equipment up and down into precise positions to allow for gentle transfer and sorting of baggage.” In addition, all units are linked together via Ethernet IP so the client can remotely monitor from a control room what each drive unit is doing at all times.

Advantages of NORD products

The system is made up of 85 new conveyors, roughly 250m in length.

10 JULY 2017 Manufacturers’ Monthly

NORD products and specifications are very flexible and can be customised to suit the customer’s requirement. For the Victoria Airport project, NORD supplied the units all configured and supplied with their required plug connectors for power, manmonthly.com.au

PrecisionENGINEERING photo eyes, sensors and Ethernet IP plugs to allow for a daisy chain installation. “This reduces the installation and commissioning time considerably for Glidepath,” said Richards. “So instead of spending time and money with wiring and terminating cables, they can simply plug in the required cables and move onto the next unit.” Williams also cited the Super Premium Efficiency of the IE4 motors as an advantage. “On top of that, the field-mounted drives have field IO available which we used for the majority of our field I/O,” he added. “The real advantage here is they support high speed Ethernet which allows for reliable bag tracking on our system. We were able to use the I/O on board to facilitate the shaft encoders which is usually quite a high frequency high pulse rate IO mechanism.” The NORD products also delivered an extra benefit that Glidepath hadn’t been expecting at the time of purchase. “On our four way sorters we took advantage of the NORD positioning system which basically enables us to use the drive as a positioner,” said Williams. “A combination of an IE4 motor, a motor shaft encoder and the actual drive mounted in the field allowed us to use the drive as a really accurate position actuation for the three different positions within the four way sorters. “Because they offered this feature we gave it a crack. We were very happy with the result!”

In particular, he helped Glidepath with the set-up of the positioning that they used on the four way sorters. “He was very knowledgeable and very happy to share information teaching us how to use the NORDCon software and the hand-held programmers. All of that over the four-day commissioning phase was so valuable...it was really good,” said Williams. But the assistance didn’t finish once the installation and commissioning were complete. “I know NORD’s just a phone call away and they’ve got folks close by in Seattle,” said Williams. He emphasised the benefit of the process that he and Richards went through prior to commissioning.

“He worked with us to choose gear ratios and motor sizes which would reduce the overall number of different gearboxes and motor sizes. So I believe on this project we have just five different gear ratios for a job that has 90-odd motors in total and three different motor sizes…That is a huge advantage,” he said. “It just means we don’t have to buy as many spares. We’ll only need to carry just one spare for every type of gearbox and motor size.”

The system today Victoria Airport’s new baggage handling system began operating in late February this year. Today, it helps transport the bags of over 2,500 passengers per day,

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NORD Drivesystems NORD provides drive technology for a range of markets, including airports, intralogistics, cement, food & beverage, and steel. The company’s headquarters and factory in Germany employs engineers and R&D teams who work on developing and improving its technology to ensure it offers customers the most advanced geared motors and inverters. The company offers flexible and cost effective IE2, IE3 and IE4 geared motors combined with decentralised or field mount inverters that are fully customisable with a large range of communications cards and other on-board features that suit almost any application - from IP69K rated wash down units to specialised hoisting units with double safety brakes and encoders. NORD is committed to offering energy efficient and energy saving solutions that result in lower energy costs and help reduce the impact on the environment.

Commissioning Asked how the commissioning process went, Williams was quick to answer in the affirmative. “We didn’t have any issues with the commissioning. They were probably the best thing to commission on the whole job to be honest,” he said. “We did pre-commissioning on our own but we also had the benefit of getting a NORD commissioning engineer on-site with us and he was just fantastic.”

on their way to and from various Canadian destinations, as well as the US and Mexico. “Now that it is live, we are very happy with the NORD products. There’s nothing I can say that is negative about them,” said Williams. “Everything’s running. We haven’t got any problems with drives, we haven’t had to replace anything. It’s been a very good project showing proof of a great collaboration between Glidepath and NORD.” NORD Drivesystems 03 9394 0500 www.nord.com

The company recently committed to the standardisation of IE3 and IE4 geared motors. Although IE3 is now mandatory in various parts of the world including Europe and the US, it is not yet compulsory to supply IE3 in Australia and NZ.

Motors and drives from Nord Drive systems power Victoria Airport’s baggage handling system.

The company aims to be proactive in offering the largest range of IE3 geared motors here in Australia and NZ, from 0.12kW all the way through to the large sizes.

Manufacturers’ Monthly JULY 2017 11

NMW Review NMW 2017 records another successful year With advanced manufacturing techniques leading the technologies of tomorrow’s factory floor, Manufacturers’ Monthly was at the biggest National Manufacturers’ Week yet to get the lowdown on the latest in manufacturing. More than 230 companies showcased their latest technologies.

T the back of a less than exciting announcement by the federal government to pump in only slightly over $100 million into the country’s manufacturing budget, it was certainly a heartening sight to see National Manufacturing Week close on a high note. According to the organisers, this showcase was one of largest conference and exhibition programs to date, with more than 10,000 quality attendees from all over the world attending the event. Exhibition director Robby Clark said the organisers had already received positive feedback, which paired with the strong 2017 results, signalled an optimistic outlook for visiting industry, business owners and investors. “We are thrilled with the 2017 results, which have certainly been one of the biggest years on record for National Manufacturing Week in Australia,” said Clark.

12 JULY 2017 Manufacturers’ Monthly

“It is encouraging to hear many of our visitors, exhibitors and speakers view National Manufacturing Week as an event to mark in the calendar, with some already signed on for 2018 and beyond.” More than 230 exhibiting companies showcased the latest technologies, developments and programs over the four days, including Bosch Australia, Autodesk, BOC, Supagas, Central Innovation (Intercad), 3M, Lincoln Electric, Bystronic, Impact Robotics, KOBOT, SIKA Australia, Universal Robots and WAGO. Live demonstrations ran over the four days, including a smart washing system from CRC Industries Australia, a family of UR3, UR5 and UR10 robot arms from Universal Robots and a session from BOC Limited on the effects that shielding gases have on the welding arcs through the Kawasaki welding robot. Shermine Gotfredsen, general

manager of Universal Robots for Southeast Asia and Oceania said, “There has been a lot more interest in the use of robotics for the factory floor here in Oceania and this presents a good opportunity for us

to educate the manufacturing sector here on our latest offerings.” As part of his keynote presentation, Australian Advanced Manufacturing Council’s John Pollaers noted that “there has been a major shift in understanding about what is possible – that Australia can compete – in high value products and using innovative processes … and we can win”. This sentiment was echoed by leading industry speakers, who included the Australian Manufacturing Growth Centre’s Dr Jens Goennemann, CSIRO Manufacturing’s Dr Keith Mclean, Tinyme’s Nick McLennan, Universal Robots’ Andrew Pether, Sustainable Manufacturing Futures’ John Lawrence and BOC’s Peter Kuebler. As part of the DATTA Victoria pre-season robotics tournament, 11 student teams from four Victorian secondary schools competed in a robotics competition on the NMW exhibition floor.

Precision engineering’s show of strength Co-located on the same grounds, Austech featured the Manufacturers’

Live demonstrations ran over the four days which included the use of virtual reality and robotics.

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The Hawkei from Thales was a prime centrepiece at NMW.

Pavilion and showcased the capabilities of Australia’s precision engineering and advanced manufacturing industry. As well as featuring a diverse array of Australian component manufacturers, precision engineering firms, toolmakers, advanced manufacturers and general engineering companies, major exhibits featured were original equipment manufacturers (OEMs), including the Hawkei protected mobility vehicle from Thales, and a prime mover from Paccar. International machine tool companies like Amada, DMG Mori

and Swiss laser cutting experts, Bystronic, virtually stole the show with massive booths that demonstrated their commitment to Australian manufacturing. “There is a good case for large precision engineering companies to invest their products here in Oceania especially since the industries that require large-scale, precision cutting machines are restructuring to meet the increased demands of their clients,” said Johan Elster, president of business units, Bystronic. Recipients of the Victorian Government’s 2017 Victorian Manufacturing Hall of Fame and

Manufacturers’ Monthly’s Endeavour Awards were both announced during the event, each celebrating excellence and outstanding achievements of Australia’s manufacturing movers and shakers. Major partners included the Victorian Government, Advanced Manufacturing Growth Centre, Australian Advanced Manufacturing Council, CSIRO, Innovative Manufacturing CRC, Supply Chain and Logistics Association of Australia, Welding Technology Institute of Australia and the Institute of Instrumentation Control and Automation.

A chat about augmented reality

DXC Technology sees the tremendous potential for augmented worker technology. Augmented reality on the factory floor has been explored for many years and is a huge step forward in potentially ensuring greater productivity and safety for workers. Manufacturers’ Monthly caught up with Jarrod Bassan, mobility and IoT lead for DXC Technology who explained why there was a great amount of interest in the DAQRI Smart Helmet – one of the centrepieces on display at the DXC Technology stand at this year’s National Manufacturers’ Week. “During the National Manufacturing Week, DXC Technology demonstrated how augmented reality can be used on the

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factory floor. We had a tremendous response with hundreds of visitors trying the DAQRI Smart Helmet and experiencing augmented reality wearables for the first time,” said Bassan. These days, it is getting harder for manufacturers to shy away from tomorrow’s technologies and they still do have their concerns. Bassan explained that once they see the benefits of what augmented reality technology on the factory floor can do, hopefully their fears will be allayed. “Many of the attendees were challenged with rising costs of materials, energy and labour, but at the same time facing downward

pressure on prices,” said Bassan. He explained that visitors were seeing for the first time how to digitally enable their workforce to make them more productive, efficient and safer. With augmented reality technology, manufacturers can hope to achieve their desired target outputs quicker and less error prone. “Companies like Siemens and Boeing want to improve quality and reduce rework, for example reducing errors by as much as 90 per cent for complex assembly tasks and here at National Manufacturers’ Week, almost all the visitors we spoke to could see how augmented reality will provide a capability uplift to their workforce,” said Bassan.

Opportunity for increased collaboration The ability to call up a remote-expert has huge potential to reduce time and money spent travelling, and allows production issues to be solved faster. Bassan explained that with augmented reality, the worker can call up a remote expert in a way that is similar to making a Skype call. Citing an example, Bassan said that the expert could be an engineer in the back office, or a specialist on the other side of the world. He or she can then draw markers for the worker, for example, circling the right spare

part, or share documents or drawings to help them through the task. The worker is able to see all of this on a see-through heads-up display inside the helmet. “One company that we spoke to estimated they could reduce the cost of conducting site inspections by at least 30 per cent because they currently send three people out to customer sites to conduct inspections – but now they only need to send one person with the helmet and he can call up the other experts only when needed – it will be a huge saving for them,” Bassan told Manufacturers’ Monthly.

Moving forward DXC Technology sees the tremendous potential for augmented worker technology not just in manufacturing, but also in other sectors such as mining, construction, utilities and oil & gas. Bassan mentioned that many manufacturing companies are now seeing the potential and realising that this is a game-changing technology that will drive productivity, safety and improved quality across their whole workforce. “Most clients want to start with a small proof-of-concept as the first step to prove out the value, before progressing to a larger trial,” he concluded.

Manufacturers’ Monthly JULY 2017 13

EndeavourAWARDS 2017 The best is yet to come The 14th edition of the Endeavour Awards was nothing short of a cracker with good food, entertainment and most of all, honouring the best in Australian manufacturing.

HERE’S THE LIST OF THE ENDEAVOUR 2017 WINNERS: Technology Application Award (Proudly sponsored by Beckhoff) Winner: Solentive Software and Clipsal by Schneider Electric – Clipspec Application Environmental Solution of the Year (Proudly sponsored by MEGATRANS) Winner: Greenland Systems – GLX100 Orange Series Global Supply Chain Integration of the Year (Proudly sponsored by the Australian Advanced Manufacturing Council) Winner: Redarc Safety Solution of the Year (Proudly sponsored by Sick) Winner: United Forklift and Access Solutions – Athena 850 Bi-levelling Tracked Scissor Lift Outstanding Start-Up Award (Proudly sponsored by CSIRO) Winner: YUMARR Automation

The 2017 Endeavour Awards saw an increase in the number of quality submissions and the finalists for all categories were nothing short of deserving to be there.

HE Australian manufacturing centre which has contributed over $100 billion in gross value to the country, has a lot more to give. However, some old-fashioned trends have to be addressed if any new technologies are going to make headway into the manufacturing culture in Australia. During the National Manufacturing Week which was held as part of the week’s festivities together with the Endeavour Awards, there looked

14 JULY 2017 Manufacturers’ Monthly

to be increased interest from more Australian manufacturers to invest in tomorrow’s technologies. The 2017 Endeavour Awards saw an increase in the number of quality submissions and the finalists for all categories were nothing short of deserving to be there. The biggest winner for the night was Redarc who took three awards including the Manufacturer Of The Year award. By the end of the night, both winners and finalists were impressed at the direction that the awards were taking and looking

forward to next year’s party. “We thoroughly enjoyed the Endeavour Awards 2017 and would be working hard for 2018 to be recognised as another finalist for another innovative solution,” says Mark Versaci marketing manager for United Forklifts and Access Solutions. “We really enjoyed the Endeavour Awards and what they mean to the industry. It was obvious by the high level of participation and engagement that they were of great meaning and value to the industry,” said Kareem Tawansi, Solentive chief innovation officer, Solentive. Note to readers: Look forward to upcoming Manufacturers’ Monthly issues for the rest of the winners’ profiles.

Exporter of the Year (Proudly sponsored by Australian Advanced Manufacturing Growth Centre) Winner: Nufarm Australian Industrial Product of the Year (Proudly sponsored by The ANCA Group) Winner: Enerpac – Electric Torque Wrench Most Innovative Manufacturing Company Award (Proudly sponsored by SEW-Eurodrive) Winner: Redarc Manufacturer of the Year (Proudly sponsored by Air Liquide) Winner: Redarc manmonthly.com.au

2017

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Gaining the edge over the rest

NERPAC’S very own electric torque wrench (ETW) was named the Australian Industrial Product of the Year at this year’s Endeavour Awards – eight months after it went on the market. As a first to offer precision tightening technology, which also records task data to the minute, its digital capability gave the product the edge among a very strong category of industry innovators. Boasting new technology that allows the user to trace the torque-to-tightening of critical joints, bolts and assembles, the product has been on sale for less than a year. Andrew Marsh, the winning company’s national bolting manager, explained why its innovative qualities have made the ETW so popular among the manufacturing community. “This tool has been an area of growth for Enerpac because, due to the critical nature of the joint, companies now want to be able to catalogue their production,” Marsh said. “At the end of the job, it has become so important to have that traceability attached to what we do and, because there isn’t anything in the market offering that sort of after-feature, it has become very popular. Enerpac’s electric torque wrench records task data to the minute.

“You used to have people writing down information on paper, whereas this technology will automatically capture all of that data for you and offers a lot of benefits to the business.” Marsh also spoke of his regret at missing the ceremony held in Melbourne last month while travelling between Darwin and Perth – albeit was delighted for the team and product’s success. “Any time you receive an award or some form of recognition for a product you have worked closely on – whether that may be in its design or creation – it is always an extremely proud moment for the company,” he said. “Receiving such a prestigious award is a testament to the hard work and dedication of the entire Enerpac team. It reinforces Enerpac’s ‘Goal Zero’ aim, where we are striving for zero workplace accidents using our technology,” said Enerpac managing director, Denis Matulin. “Advances incorporated into the design of the Electric Torque Wrench include a large seven-inch touchscreen on the control box as well as a bright 3-line LED display on the back of the tool, so that it can be read easily, even in bright sunlight,” Matulin continued.

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Manufacturers’ Monthly JULY 2017 21

ISSUES&INSIGHTS Rise of the machine manufacturer As the world of manufacturing becomes more integrated, the role of robotics is changing the shape of the factory floor. Steven Impey takes a look at the effect it will have on the Australian workforce.

EPENDING on which literature the industry insider goes by, the impact that robotics will have on the factory floor of the future often splits its audience. The rise of robots programmed to do a human worker’s job sounds daunting – the very thought of seeing the livelihoods of Australian manufacturing workers potentially cut from under them is itself a concern. Manufacturing jobs have been in a steady decline for several decades as the industry shifts into a different gear. However, with more technologies now available on the market – and particularly robotics and artificial

intelligence – many experts in the field, on home soil and overseas, are arguing an integrated workplace with man and machine is the beginnings of a revival. Peter Bradbury, ABB’s sales manager for robotics, is among them. Speaking with Manufacturers’ Monthly, he explained how more small- and medium-sized businesses (SMEs) are showing interest in affordable automation. “Over the last couple of years, we have seen more optimistic signs with a return of investment in manufacturing,” he said. “A lot of that investment is primarily due to the sustained low of the Australian dollar

and it is starting to increase levels of investment. “This is something they call ‘reshoring’ in America, where essentially business that was originally replaced by imports is returning to the Australian market.”

Importance of changing perception Sectors leading the way include food and beverage, textiles and even plastics manufacturing. The “tyranny of distance”, as Bradbury puts it, is also playing a part in the change of tide – persuading more companies to manufacture at home rather than

paying for shipping costs overseas. “It’s quite likely that we will start to see more changes that we are already seeing in the pharmaceutical sector appear in the food industry – particularly with meat and the outbreak of certain diseases,” Bradbury said. “All of that requires more automation to allow all that information to be stored all the way from the factory floor right through to the consumer.” Amid a changing landscape, other areas will be pushed to adopt new technologies in production. Biopharmaceuticals, as a sector, is a prime example, where traceability has

Businesses are beginning to realise the potential for great return of investment in robotics. 22 JULY 2017 Manufacturers’ Monthly

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ISSUES&INSIGHTS to keep costs down and are, therefore, deciding to move overseas.” While it is causing more jobs to be lost, Gotfredsen wants to show automation can actually help create jobs by optimising robotics in manufacturing. “That’s what we believe in – to demonstrate how, with the implementation of robotics, we can create a cost-effective ecosystem,” she said.

Scepticism among Australian manufacturers Despite its advantages, there are still many misconceptions of automation in Australia.

become an absolute requirement. From the design, packaging and coding of products to the time and place of manufacturing, a window of opportunity has opened. However, changing misconceptions of automation appears to be an ongoing battle in Australia – even

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though industrial robotics are far cheaper than they were 20 years ago. Shermine Gotfredsen, general manager for Universal Robots’ Southeast Asia and Oceania branch based in Singapore, touched on her experiences working with the Australian market.

“If we are talking about competitors in the market, we have to look at the overall picture and the long-term repercussions for the industry,” she said. “What we are seeing in the Australian market is that, to stay competitive, companies are struggling

Universal Robots has just shy of 20,000 units in circulation globally although Australia makes up a very small piece of that pie. “One reason is that there is not enough facilitation from the government to give access for this kind of technology,” Gotfredsen said. “The other is the fact that awareness of the market isn’t at a high level. “There are many manufacturers who are still not aware of such new technology, which isn’t helping the market to grow.

Manufacturers’ Monthly JULY 2017 23

ISSUES&INSIGHTS There is a need for more information to be stored all the way from the factory floor to the consumer.

“We are also seeing a lot of scepticism and cautiousness around new technology and I think it is a case that companies like to wait to see how other people are going to react before making a decision.” Australia’s automotive industry is still playing a part too, with some of its robotics technology being transferred to alternative sectors. In Australia, Bosch has been a manufacturer since 1954, it’s automotive expertise has transferable technology. Through training, Andrew Bartlett, general manager for Bosch Australia Manufacturing Solutions, believes the industry is showing more confidence in the role of robotics. “Given that the automotive manufacturing industry in Australia will be effectively closing by the end of the year, our target was to look at our manufacturing industries in Australia and bring the 24 JULY 2017 Manufacturers’ Monthly

automotive style, rigour and process technologies to other fields,” Bartlett said. “With the onsite capabilities at Bosch, we can support our own manufacturing as a core priority but also grow the business to support other manufacturers, be that as a consulting service or the supply of turnkey production lines.”

Robotics is key to growth How does robotics affect the individual on the floor? As part of Bosch’s commitment to advanced manufacturing, Bartlett believes companies are beginning to understand the relevance robotics has to keep their business working. “It depends on how mature they are and whether they already have automation in their facilities,” Bartlett said. “Some of our customers, who already use a different flavour of automation, will need basic

training only while there are others we have to work with more closely, to deliver something they can use independently, on an autonomous level. “Some of the smaller companies are quite mature in how they want to grow their businesses and they do see that automation is key.” There is a brave new world available to Australian manufacturers and it seems some sectors have taken that leap. “I guess we have a good window on what is happening worldwide at Bosch and I can say that, in the industrial robotics arena, Australia is advancing quite well and I would say it isn’t too far off where the rest of the world is,” Bartlett continued. “When it comes to new robotic technology and collaborative robots, it has started to pick up [recently] – and, not necessarily in automation but say in Industry 4.0, we are very much at the formative phase.

“What direction we decide to take that in Australia is still a work in progress.” Donald Farmer, vice president for innovation and design for the American business intelligence and visualisation software supplier Qlik, discussed the impact the Internet of Things (IoT) is showing within the manufacturing industry in Australia. He spoke about the importance of human and robotic interaction in the manufacturing equation. “The most telling optimisations perform right through the supplychain, from manufacturing and even to shipping,” Farmer said. “That requires a much wider view of the data so, while you can get great optimisation from robotics and IoT, you need a much wider scope if you want to apply artificial intelligence. “That requires you to integrate data across the entire process and that requires, not only human insight, manmonthly.com.au

ISSUES&INSIGHTS but also tools capable of making that sort of synopsis.”

Human vs. artificial intelligence

There will be greater adoption of robotics in the years to come.

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Human intelligence is innovative, which is an important aspect for any company to be able to see opportunities in the marketplace and to make successful business decisions. “Most well-automated manufacturers I look at now have some form of predictive maintenance,” Farmer said. “They collect a lot of data from the robots on the production line and can tell when a machine might need to be repaired. “What [robotics] can’t tell is the impact repairing that machine will have on upcoming orders and the profitability of those orders, so it takes a wider scope of data to make predictions in the context of the business. “What a machine is not capable of doing is looking at or prioritising orders, which is a very human decision.”

If Australia wants to stay internationally viable, domestic producers need to become more productive and automation has a strong case for the job. Like every other advancement in industry, Bradbury is confident Australian manufacturing can grow with robotics by its side. “I think we are going to see more up-take in robotics – particularly in collaborative robots – over the next few years and we will also see them used in different places, including logistics,” Bradbury said. “It is a continuation of Australia turning from a country with a high number of labourers and manufacturers into a service industry. While you are moving production back into the country, it is continually becoming more automated. “That does mean you aren’t seeing so many manufacturing personnel on the factory floor but rather in high-level and high-paid jobs in the servicing industry.”

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IndustryFOCUS The relationship between smart factories and global competitiveness Smart factories could add between $500 billion and $1.5 trillion to the global economy in the next five years, according to a new report from consulting firm Capgemini. Stephanie Stefanovic looks into the adoption of smart technology and processes in Australian manufacturing, and how well Australia stacks up on a global scale.

N today’s industrial climate, many manufacturers are aware of the benefits of automation and connected (or “smart”) technologies to increase efficiency and accuracy, while also cutting costs. According to Capgemini’s new smart factory survey, in the next five years smart factories are expected to see on-time delivery of products increase by 13 times, while quality indicators are expected to improve at more than 12 times the rate of improvement

since 1990. Over the same period, overall productivity and labour cost improvements are expected to grow at seven and nine times the rate of growth since 1990, respectively. While all of this sounds ideal, the reality is that for a lot of manufacturers, replacing working equipment and doing a complete overhaul of the plant’s manufacturing process is not feasible without financial assistance. This is particularly true of the Australian

manufacturing industry, which has been struggling for some time.

Smart factories across the globe Currently, the nation with the biggest proportion of smart factories is the United States. According to Capgemini, 54 per cent of US factories have an operational smart factory initiative. This is followed by Germany (46 per cent), France (44 per cent), the UK (43 per cent),

Sweden (39 per cent), Italy (33 per cent), India (28 per cent) and China (25 per cent). China could soon be moving up in the rankings however, with 53 per cent of Chinese manufacturers currently formulating a smart factory initiative. India and Italy are not far behind, with 42 per cent of Indian and Italian manufacturers currently formulating a smart factory initiative. Australia, on the other hand, has such low levels of smart factory

In the next five years, smart factories are expected to see on-time delivery of products increase by up to 13 times.

26 JULY 2017 Manufacturers’ Monthly

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technology that it has not made Capgemini’s list. This is reflected in Australia’s Global Manufacturing Competitiveness ranking, which has dropped significantly in the past six years. Currently ranked 21, Australia is falling behind the likes of China, the US, Germany, Japan, South Korea and the UK. The nation’s ranking was 15 in 2010, 16 in 2013, and has now dropped outside of the top 20, and is projected to drop even further in the next few years. According to Deloitte, a big part of nations’ success in the rankings is due to the development of advanced manufacturing capabilities by investing in high-tech infrastructure and education. “As the digital and physical worlds of manufacturing converge,

Australia as a global competitor Many Australian manufacturers have found a way to compete internationally, and successfully sell final products or intermediate components into the supply chains of other local or global manufacturers, according to Dr Jens Goennemann of the Australian Manufacturing Growth Council (AMGC). However, there are also many Australian manufacturing firms that are struggling to compete on a global scale, being led by managers that “lag behind their international counterparts”. Therefore, in its Sector Competitiveness Plan, AMGC has recommended three key areas that Australian manufacturers need to focus on in order to be competitive:

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In the next five years smart factories are expected to see on-time delivery of products increase by 13 times, while quality indicators are expected to improve at more than 12 times the rate of improvement since 1990. advanced technologies have become even more essential to company- and country-level-competitiveness. In fact, technology-intensive sectors dominate the global manufacturing landscape in most advanced economies and appear to offer a strong path to achieve or sustain manufacturing competitiveness,” reads Deloitte’s 2016 Global Manufacturing Competitiveness Index report. “These leading manufacturing countries are continually investing in research and development (R&D) through public means while incentivising the private sector to conduct its own research through the development of collaborative innovation systems. The integration of government, academia, and private equity investors to build and sustain these ecosystems yields significant benefits for participating manufacturers.”

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Reducing production costs Australian manufacturing has a production cost disadvantage when compared to benchmark industrial nations, according to the plan. The factors contributing to this include higher labour costs, material input costs, capital efficiency and overheads. And while Australia is unlikely to become a low-cost location for manufacturing production, there are a number of opportunities to increase cost competitiveness. For example, high skill labour is significantly cheaper in Australia than the international benchmark. “In the medical devices industry, management and professional wages are 38 per cent lower in Australia than in the US. However, this often doesn’t flow through to lower overall labour costs because Australia’s highskill workers have a more limited mix of skills (eg. only 17 per cent of Australian aerospace workers have

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IndustryFOCUS bachelor’s degrees compared with 44 per cent in the US),” reads the plan. Furthermore, Australia has an opportunity to lift its competitiveness in capital efficiency and overheads by improving management quality and collaborating more to overcome the “challenges of scale”. This refers to the fact that Australia’s manufacturing firms are small compared to major global competitors, even allowing for differences in market size. “Australian manufacturing can reduce costs through increased productivity by adopting advanced production processes, involving higher capital intensity, automation and ‘Industry 4.0’ techniques,” according to the AMGC.

Increasing the value differentiation of Australia’s manufactured products Because Australian manufacturers are not the lowest-cost producers, they must compete on sources of value other than cost. “A panel of international purchasing managers and customers interviewed for this report identified a number of reasons why they choose to buy manufactured goods from Australia. These included product quality (design and technology leadership), reliability and reputation (on-time and in-full delivery, flexibility, safety and transparency) and service support (pre- and postproduction),” reads the report. According to the AMGC, this finding is confirmed by the tendency in recent years for more value to stem from non-production parts of the value chain, such as R&D and services. The importance of these factors is confirmed by Australia’s export performance. “However, Australian businesses currently spend relatively little on R&D, and government support for business-led R&D is not optimally designed. In fact, the current funding mix is not likely to maximise investment by firms in R&D across different risk profiles, spillover benefits and time horizons. “Australia is an outlier in the 28 JULY 2017 Manufacturers’ Monthly

mix of assistance such as the federal government’s R&D Tax Incentive. Further, the current design of the R&D Tax Incentive does not ensure that public expenditure goes towards R&D activity that would have otherwise not happened.” The AMGC has also recommended that Australian manufacturing increase its competitiveness by providing value-adding services associated with manufactured goods, building on its skills and strengths in service sectors.

Shifting Australian manufacturing towards higher-potential markets The AMGC recommends that Australian manufacturers shift their focus towards the highestpotential markets, in order to reduce the cost and improve the value of the products they sell on global markets. Some manufacturing subindustries under-serve a number of key export markets, including markets for immediate goods. Many Australian manufacturers are also poorly connected into global value chains, and are among the lowest level of backward linkages among OECD (Organisation for Economic

Co-operation and Development) countries.

The importance of advanced manufacturing There is no one agreed upon definition of advanced manufacturing, but it is generally seen as the use of new technology, improved processes and management methods to improve the overall manufacturing process. Connected technology plays a big part in this, enabling manufacturers to completely overhaul the way they do business. “Where we are seeing success, companies are excelling in not only product and process transformation, but also business model transformation. This is the difference between this period in our technological and digital history and earlier watershed moments,” said John Pollaers, chairman of the Australian Advanced Manufacturing Council (AAMC). In Australia, there were over 22,000 Patent Cooperation Treaty (PCT) applications related to advanced manufacturing between 2000 and 2013, according to the Department of Industry, Innovation

and Science. At this time, Australia ranked 14th in applications globally, which is comparable to Israel and Finland. According to the Department, this should be viewed positively, considering Australia’s population size. However, the nation’s growth in PCT applications was 15 per cent over 14 years, which was much lower than the rest of the world, which averaged at 102 per cent growth. Each of the individual Australian technology sectors also grew much less than their global counterparts. Again, this is an issue for Australian manufacturers. Understanding the growing importance of advanced manufacturing to the Australian economy, the Australian Government has introduced a range of intiatives, including: • The $100 million Advanced Manufacturing Fund, which will give support to advanced manufacturing businesses by funding new processes and equipment, as well as encouraging R&D, investing in emerging engineers and scientists, and providing facilities to test new products.

Australian businesses currently do not spend enough on R&D, according to the AMGC.

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IndustryFOCUS • The $250 million Industry Growth Centres Initiative, which will provide further funding to develop Australia’s advanced manufacturing sector. • The $40 million Innovative Manufacturing Cooperative Research Centre, which intends to help create new products, processes and business models through the development and application of new materials, systems and technologies. Industry experts hope that these funds and initiatives will help encourage Australian manufacturers to invest in R&D, and look into the use of connected technologies to help elevate their businesses to the global scale. The AAMC has also cited Australia’s defence expenditure program and innovative SMEs gaining access to global supply chains, as factors in Australian manufacturers’ success on a11.05.17 global scale. Projekt1 08:15 Seite 1

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Compressors @MM Opportunity is in the air There needs to be a re-evaluation of the business models present for compressed air technologies, says Elgi, a global air compressor manufacturer. Elgi Australia’s headquarters in Brisbane has a service office and a well-stocked warehouse.

ITH rapidly evolving technology, economic reforms and a changing industry mix, complex challenges lie before the Australian manufacturing sector. In this period of transition, seemingly insignificant cost-saving opportunities can completely change the equation for manufacturers. One such area that warrants re-evaluation is compressed air. Compressed air is an expensive (albeit essential) utility in manufacturing, accounting for 10 to 15 percent of the entire energy consumed. Not to mention the additional maintenance, repair and replacement costs incurred during the lifetime of an air compressor. While most buyers consider the immediate cost of an air compressor, the lifecycle or ownership cost is often ignored – a factor that could be heavy on the pocket in the long-term. Elgi, a global air compressor manufacturer, takes a foresighted approach. With a design philosophy, manufacturing process and after-sales strategy aimed at offering maximum savings for the customer, the company makes a formidable claim: “We provide the lowest lifecycle cost in the world.” Energy consumption accounts for a substantial chunk of the

30 JULY 2017 Manufacturers’ Monthly

ownership cost of an air compressor –– an obstacle that Elgi tackles right at the crux. Early on, they made a strategic decision to achieve complete autonomy in manufacturing. With decades of R&D and heavy investment in technology, the company is among the few in the world that is capable of designing and manufacturing airends. Their signature profile rotors are widely known for their energyefficient design. The in-house rotor manufacturing facility gives the company a massive competitive edge. In addition to air compressor manufacturing units in the USA, Italy and India, the company has developed a captive foundry and state-of-the art machining centres. In a nutshell, they even build the machines that builds their air compressors. This allows them to innovate and evolve machines with a special focus on energy efficiency. The company has proven its mettle by building world-class lubricated screw air compressors that ensure an oil carryover of less than 1 ppm. Recorded to be the lowest oil contamination in the world for lubricated air compressors, this is no small feat. Another significant advantage that underpins the company’s claim is its unique design that naturally lends itself to efficiency. The air compressors

are built keeping ease of maintenance in mind, leading to longer service intervals and minimum downtime. The airends are serviceable, saving up to 80 per cent of the lifecycle cost. The air compressor parts are sourced from world renowned vendors making replacements a hassle-free process. The company’s manufacturing prowess and service is backed by intensive warranty programs at no extra cost. Elgi Australia’s headquarters in Brisbane has a service office and a

well-stocked warehouse, making spares and consumables locally available to the customer at competitive prices. Established in 1960, Elgi made inroads in Australia and New Zealand in 2003 and has seen exponential growth ever since. The company is working with stalwarts across an array of industries, including prominent names such as Timber Link, Pro-Diving and the likes. Having established a presence in over 73 countries, they are looking at expanding and establishing a strong presence in Australian manufacturing. With business confidence projected to increase this year, the company sees positive signs in the current industrial ecosystem. In particular, the company is eyeing the SME sector where the future seems more than promising. In the current industrial climate, it is essential that manufacturers do not overlook any avenues for cost-saving. Elgi focused efforts on bringing down the ownership cost for customers is good news. To get ahead in the numbers game, it is important to seize every opportunity. Elgi Australia www.elgi.com.au 1800 813 177 Elgi’s manufacturing prowess and service are backed by intensive warranty programs at no cost.

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Compressors@MM Bottoms up to precision and quality Jim Rohner, managing director of Boge Compressors Australia, explains the finesse behind having a compressor that works well across all environments.

OGE Kompressoren has more than a century worth of experience in compressors and is a market leader in this field. Whether for high speed turbo compressors, screw compressors, piston compressors, scroll compressors, complete systems or individual devices, the company looks to meet what it terms “the most diverse requirements and highest standards”, with precision

and quality always put first. The family company operates internationally and has a workforce of 750 employees, with its headquarters located in Bielefeld, Germany. With its numerous sales offices and subsidiaries, the company offers its international customers comprehensive services and supplies its products and systems to more than 120 countries worldwide. Purity isn’t just an issue when making beer, but also when decanting any drink. Boge has now extended its Eccentric-Oilfree (EO) range of scroll compressors to ensure full protection from contamination. The new EO 11 produces class 0 oil-free compressed air in the 11 kW performance segment. The full performance range from 5.5kW to 22kW is now covered. The EO series is available with one

The EO series is available with one to four airends. In the upgrade-ready version the EO 11 can be alternatively retrofitted with an integrated refrigerant dryer or a third airend. to four airends. In the upgradeready version the EO 11 can be alternatively retrofitted with an integrated refrigerant dryer or a third airend. Its compact design combined with operation at minimum 59dB(A) means there is no problem with installing the system next to the workplace. Oil-free compressed air for sensitive applications – Boge caters for this requirement with its EO compressors. The recipe for success here is the scroll compressor technology which does without oil lubrication: The aluminium spirals in the compressor chamber intermesh but do not touch. The resulting compressed air is pulsation-free and free of oil. This means that EO scroll compressors are perfect for connecting a nitrogen PSA generator from the N P series when decanting wine. Nitrogen prevents the wine from fermenting further and stops bacteria or mould forming in the bottle. The result: an improvement in the shelf life and quality of the product.

Modular, compact, application-oriented

Purity isn’t an issue when making beer, buat also when decanting any drink.

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Up to four compressors can be installed in the housing of the compressor to ensure flexible adaptation to the compressed air demand. At 10 bar the EO series can cover delivery rates from 490 l/ min to 1,960 l/min, while at 8 bar the supply of compressed air ranges from 620 l/min to 2,480 l/min. Featuring a modular design, the compressors can be ordered with an

integrated or separate refrigerant compressed air dryer, mounted on a receiver or as a duplex and multiple system. Like the EO 17, the new EO 11 is available as an upgrade version. This allows the twostage compressor to be extended to include a third airend or an integrated refrigerant dryer. The system comes with the electrics required here, so offering users flexible options for retrofitting. The machine design ensures optimum space utilisation, with EO system solutions being no wider than a standard doorway. In conjunction with its quiet operation – min. 59 dB(A) – the compressor is perfect for installation next to a workstation.

Flexibility – more than just a catchword The control system, focus control 2.0, can regulate up to four EO scroll compressors horizontally with base load switching, so ensuring efficient control for as many as 16 compressor units. And when maintenance is required, users benefit from unrestricted operation of the compressed air system. Durability and efficiency are backed up by a two-stage cooling concept. The temperature of the compressed air is first cooled by a primary surface cooler, followed by an aftercooler in stainless steel. The pressure dewpoint for delta t is approximately 8K. Boge Australia au.boge.com 03 5940 3266 Manufacturers’ Monthly JULY 2017 31

Compressors @MM Compressed air drying: Cutting cost and saving space Compressor specialists Kaeser Compressors show how new thermal mass technologies are now enabling significant savings to be made when it comes to providing effective refrigeration drying of compressed air.

Innovative new refrigeration dryers are reducing space requirements and drastically cutting energy consumption

HERE are a number of drying methods available to treat compressed air, the suitability of each depending on the requirements of the specific production process in question. Refrigeration drying is the most common as it delivers sufficient performance and compressed air quality for most uses. However in the past it has been relatively energyintensive.

Peak values are decisive In order to reliably provide the required compressed air quality, refrigeration dryers should be designed for continuous performance under the most extreme conditions even if peak temperature conditions were to prevail 365 days a year. As this is never the case, more energy must be invested in compressed air drying than is required to meet actual demand – unless the dryers are equipped with a technology capable of adjusting their output to actual demand. 32 JULY 2017 Manufacturers’ Monthly

When a compressed air system runs at 100 per cent of capacity, the process of drying the compressed air accounts for around 3 per cent of the systems total energy requirements. However, if the system is only running at partial load, the compressed air dryer will also be running at less than capacity. This is especially unfavourable when production facilities are operating for just one or two shifts, as the dryers are left to dry only the compressed air for smaller consumer points or leaks during periods when production activities are not required. To ensure reliable compressed air quality it is recommended that compressed air dryers run continuously. However, the more the compressors are running at anything less than full capacity, the greater the energy waste resulting from a compressed air dryer left running continuously 24 hours per day, configured to deal with maximum temperatures. Under such conditions,

the energy requirements for the compressed air dryer can spike dramatically and account for up to 20 per cent of the total energy required for compressed air production.

Energy optimisation measures Refrigeration dryers have benefited from technical innovations over the years, including ‘digital scroll’ coolant compressors and thermal mass dryers, which improved the performance of refrigeration dryers operating with air flow rates of less than 50m³/min in partial load. The digital scroll method involved modifying the clearance losses within the scroll compressor used for the coolant, which in turn regulated the flow rate of coolant to adjust it to the quantity required to cool the compressed air. In addition to a scroll compressor to cover the base load, a controlled scroll compressor which was switched off completely during periods of very low demand was employed. The method allowed for a relatively large

control range. Unfortunately, technical difficulties of implementing it made it less attractive. Buffer dryers were the preferred technology for compressed air flow rates less than 20m³/min. Some systems relied on a tank to buffer load fluctuations while keeping the pressure relatively constant and reducing compressor switching to a minimum. This meant the larger the tank, the smaller the pressure fluctuations and therefore, less switching was required. Other systems relied on a thermal mass instead of incorporating a cool air buffer tank. These dryers generally use mineral materials to store the cooling energy. To keep the switching frequency of the coolant compressor within economical bounds and to ensure a consistent pressure dew point, the amount of mass required rises in direct proportion to the system capacity. Furthermore, heat distribution within the thermal mass requires precise regulation. Thermal mass systems are extremely reliable and involve no mechanical loads or switching of any type of system. When the thermal mass is saturated, the system maintains safety reserves to accommodate short-term overload periods. However, weight considerations impose certain restrictions, for example thermal mass dryers suitable for even relatively modest compressed air capacities of 17 to 20m³/min are extremely heavy. Until recently, larger systems had to be equipped with digital scroll systems and were precluded from benefiting from the advantages of thermal mass dryers.

New technology A new technology which has manmonthly.com.au

Compressors@MM recently entered the market is a refrigeration dryer equipped with a totally different type of thermal mass – a phase changing material (PCM). Phase changing materials can store and release vast quantities of energy if they are harnessed at the precise point at which they undergo a phase change. These materials work according to the same principle by which ice cubes keep a drink cool. The temperature of the drink remains constant if the ice cubes remain melting in the glass. They can absorb a significant amount of heat before melting completely; consider that the same amount of energy is required to change solid ice with a temperature of 0 deg C to a liquid as is needed to heat water from 0 to 80 deg C. These thermal masses are also known as latent heat thermal masses owing to their capacity to store thermal energy virtually invisibly for long periods with only minor losses and their ability to accommodate any desired repetition cycle. Latent heat thermal masses usually employ special salts or types of paraffin as the storage medium since they can absorb huge amounts of thermal energy. When the thermal energy is discharged, the thermal mass solidifies. During this process, the thermal mass returns the large amount of heat it previously absorbed back into the environment. The temperature remains constant during the transition from one state of matter to another as all the heat entering the system is invested in the change of state. These innovative refrigeration dryers exploit the analogous principle of liquefying and solidifying for thermal management purposes. At a basic level, these dryers function as follows: when compressed air requires cooling, from e.g. a starting temperature of 5 deg C, the coolant compressor is switched on. The refrigeration dryer cools the paraffin to a temperature of around 3 deg C while the compressed air cools simultaneously. During this period, the temperature remains constant because the paraffin is undergoing a phase change from fluid to solid. The material is then cooled somewhat more, to around 2 deg C. The coolant manmonthly.com.au

compressor then switches off the supply current. The compressed air then flows into the heat exchanger, which is surrounded by the solidified paraffin, where the air gradually warms the paraffin, which in turn keeps the compressed air cool as it changes from the solid to fluid state. This process continues until a set maximum temperature threshold is reached, at which point the coolant compressor switches on the supply current and the whole cycle begins anew. These new refrigeration dryers employ a paraffin-based system. This material has a low expansion coefficient as well as 98 per cent better thermal density than the materials previously used as thermal masses. The higher storage density of the PCM has meant that the heat exchanger in the refrigeration dryer could be completely redesigned. While earlier refrigeration dryers used copper spiral heat exchangers, the first thermal mass dryers relied on plate heat exchangers. However, the new refrigeration dryers work with an aluminium heat exchanger that combines these two heat exchanger systems – an air-air heat exchanger as well as another compressed air-PCM heat exchanger. In addition to energy efficiency advantages, this new dual heat exchanger design has also reduced the space requirement.

Reduced pressure loss, reduced energy requirement The compact design has allowed pressure losses to be reduced to 0.15 bar in comparison to the 0.20 bar value characteristic of conventional models. The input energy requirements are also exceptionally low, requiring less than 87 watts per m³/min to dry compressed air. Thanks to new, smaller components as well as intelligent component layout, this new technology also means that the entire dryer can also be significantly lighter and more compact. Furthermore, the entire cooling system has been upgraded in these new refrigeration dryers, along with the air heat exchanger. A highly efficient scroll compressor has replaced the previously used reciprocating compressor and, the capillary tube has been replaced by an expansion valve. Expansion valves regulate the coolant quantities dynamically, depending on the load. As a result, significantly less coolant is required and the coolant compressors can run at a much lower output. Overall, these new dryers require 50 per cent less power than comparable conventional equipment.

Gateway to further development Recent developments serve as a gateway enabling even larger dryers

to be equipped with this innovative technology. This will primarily benefit systems in the capacity range beyond the technical limits of thermal mass dryers, for which weight and size considerations have previously made this technology an impractical option. In the coming years even more models with greater capacities can be expected to enter the market.

The system functions as follows: 1. Compressor supplies cold coolant to dry compressed air and cool the thermal mass. 2. Thermal mass solidifies, maintaining constant temperature, and channels significant amounts of heat through the coolant. 3. Coolant cools the thermal mass until the switch-off threshold is reached. 4. Coolant compressor switches off. 5. By absorbing heat from the air, thermal mass provides cooling action to dry compressed air. 6. Thermal mass melts, maintaining constant temperature, while absorbing significant amounts of heat from the moist compressed air. 7.

hermal mass warms until T a threshold is reached, triggering the compressor to switch on. How the new refrigeration dryer system works

Manufacturers’ Monthly JULY 2017 33

ManufacturingSTRATEGIES Going beyond the status quo with dynamic pricing science Marc Chesover, Pros senior vice president EMEA and APAC gives strategies for manufacturers on how to stay ahead of the game in an increasingly competitive climate.

HILE price volatility, increased market risk or shifts in buyer behaviours can all erode margins, companies in the automotive and industrial industries can still grow sales, even during times of economic instability. Today, the industry is adapting to new ways of doing business, powered by a shift to modern commerce and dynamic pricing science. While many manufacturers have implemented e-commerce strategies and CRM systems to adapt, the inability to dynamically price at market speed remains their biggest obstacle to gaining a true competitive edge. Manufacturers have historically focused on relationship-based sales processes and the post-transactional experience to maintain a steady customer base. With the success of companies like Amazon — and their ability for self-service, instant pricing and relevant upsell offers on the spot — customers are beginning to expect those same experiences in the B2B world. For example, one of the major sources of friction in today’s buying process is the internally focused approval cycle. Traditional commerce models are typically characterised by intuition, opaque pricing, delays and inconsistencies across channels. In many instances, automotive and industrial manufacturers bring a “company in control” mindset to their interactions and negotiations with customers, requiring all deals — large and small — to go through an extensive approval process, largely centred on financials and with pricing as the long pole in the tent. Negotiation becomes a competitive sport, measured all too frequently by how low a company is willing to slash prices. While pricing is a critical component that ensures companies are profitable, buyers are seeking more. Today’s consumers

34 JULY 2017 Manufacturers’ Monthly

demand a new approach — one that’s frictionless and personalised, and delivers a precision-based sales experience. To discover what makes manufacturers unique, Hanover Research surveyed more than 100 industry leaders and found “fair pricing” and “quote turnaround time” to be the most common points of frustration for their customers. The survey also revealed that customer dissatisfaction with pricing — that results in numerous price iterations — was the biggest factor in slowing quote turnaround. The Hanover study reveals key findings about the sales process:

at a significant disadvantage. To stay ahead of the industry’s evolving and competitive landscape, manufacturers need to provide a timely and consistent sales experience to each individual consumer to succeed: • Create the right offers – Create the right offer to the right customer at the right time by treating each buyer as a “segment of one.” Personalised, customised offers based on the intelligence gained from algorithmic analysis creates more impact in competitive market segments. • Efficiently deliver pricing to the field or end customer – Optimised pricing can only be effective if both

• 82 per cent of manufacturers believe price negotiations that lengthen quote turnaround time have resulted in lower win rates and lost revenue. • 42 per cent of manufacturers believe quote turnaround time is one of the top three factors customers find most frustrating about the sales experience. • Only 29 per cent of manufacturers give customers a discount or credit when a quoting process is slow or inaccurate, while 56 per cent simply apologise and move on. Whether companies offer a discount or not, a slow quote process can negatively impact the overall buyer experience and put manufacturers

the sales team and the channel are empowered to access and use price recommendations. Tools that allow companies to deliver pricing to sales at the time of quote and extend the same capabilities and experience across all direct and indirect sales channels are essential in creating a consistent experience no matter where or how customers buy. • Track and analyse – Companies need systems to assess hundreds and thousands of internal and external factors and data points to create the deepest segmentation, understand customer buying patterns and identify meaningful correlations.

• Ensure speed – Modern commerce moves at the speed of business, which means automotive and industrial suppliers and distributors need to respond with precision and consistency across all channels. According to Forrester Research, 50 per cent of deals are won by the vendor that responds first. Static, outdated quoting that was once designed to protect margins translates today to lost revenue. Dynamic pricing science delivers what modern commerce requires — speedy, financially sound deals that are consistent across channels. The lynchpin to achieving these goals lies within dynamic pricing science, powered by algorithms and context-aware, machine-guided learning. By embracing dynamic pricing as a foundation of how they sell, manufacturers will be able to synchronise their pricing strategies across channels in real-time and present the right price to the right customers at the right time. When cementing a business in science-driven commerce, companies can capture opportunities that were previously lost without risking revenue leakage or sacrificing margin from inconsistent end-of-channel pricing. The cost of maintaining statusquo selling processes is too high to ignore, and many industries will be disrupted by the uneven pace by which they rise to this challenge. Modern commerce is emerging as the key strategy for responding to changing selling landscapes — creating a sales experience that accelerates deals, increases win rates and improves customer satisfaction and loyalty. Pros 02 8912 2199 www.pros.com manmonthly.com.au

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What’sNew Guided broaches

Warning indicators

ELMASS Australia has announced its new guided broaches, which it says eliminate problems associated with conventional broaching or slotting technologies. The guided broaching tools can be used either on any conventional machine that makes a linear movement such as a pedestal drill, slotter or lathe or on purpose designed NC broaching machines. Because toolbars used on slotters will deflect over the length of the keyway, the resulting product might not meet the specified tolerances, and deflection becomes worse the longer the bore is. Deflection also becomes worse the longer the bore is. The main advantage of the guided broaches is that the cutter is supported at the point of action and is forced to be perpendicular to the bore and cannot deflect, according to Elmass. This makes them a suitable tool for general engineering. The use of guided broaches has five main advantages, according to Elmass: avoiding deflection and vibration, flexibility, versatility, maintenance and customised design. These advantages result in precision keyways and splines. Elmass Australia 07 3881 1919 www.elmass.com.au

PATLITE provides a wide range of visual and auditory warning indicators: Warning Lights, Emergency Lighting, Alert Beacons, LED Signalling Devices, Wireless Warning Devices, Explosion Proof Lighting and Sound, LED Illumination for Infrastructure, LED Illumination for Infrastructure, LED Illumination for FA, CNC and Machinery, Traffic Control Lights, and OEM LED Lighting. The KHE 100mm Beacon The KHE Series are multi feature LED beacons with three selectable light patterns for diverse use such as LED Strobe Lights, Flash and Rotate. The clear lens makes it easier to see the light in bright ambient conditions. CLF LED Work Lights – LED Lighting The CLF Series is a LED work light that comes in various lengths. It comes pre-assembled and pre-wired, with an aluminium casing, clear polycarbonate lense, and your choice of clear (white), red or amber lights. Explosion Proof Lighting – LED Signal Towers The EDLM and EDWM are innovative 3 and 5 colour LED signalling towers, enclosed in pressure and flame proof housings, designed specifically for use in potentially flammable and explosive atmospheres, such as chemical, petrochemical, mineral or natural gas production, food industries, combustible dusts, and industrial lighting. BD Audible Panel Mounts – Warning Systems The panel mount BD Series stores 32 different sounds conveniently arranged for playback suitable in noisy factories. One sound group can be reprogrammed using any of the 32 pre-installed sounds (optional SD card required). Patlite SignalFX Australia www.signalfx.com.au 03 9001 2006

LCD controller board METROMATICS has released its new LCD Controller Board under the brand name MetroSpec. The MetroSpec “Stirling” LCD Controller Board is used to control, display images and information on high resolution LCD Panels making it suitable for applications in commercial digital signage, industrial outdoor digital signage and in harsher conditions where LCD Panels are used such as in defence and rail environments. Key Features include: • Video wall support • Auto brightness • 4Kx2K ultra high definition compliant • Operates in extreme conditions The controller board is compliant with HDCP 2.2, HDMI 2.0, Display Port V1.2a and ROHS. It

36 JULY 2017 Manufacturers’ Monthly

supports HDMI 4Kx2K Inputs, UHD Panels (Vx1, eDP Interface), QHD Panels with LVDS Interface, RS-232C Inputs and allows software/firmware updates through USB Memory. It contains a seven button keypad interface and on-screen menus to allow adjustments to the display, IR Control, automatic LCD dimming control and two fan control ports for the automatic (via internal sensor) or manual fan driving. The controller board provides a range of outputs such as video, RS-232C and speakers. It has been designed to operate in harsh conditions from 0 to 50oC with humidity of up to 80 per cent and weighs only 400g. Metromatics 07 3868 4255 www.metromatics.com.au

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Evaluation kit for motion-control systems A new evaluation kit from Sensitec is designed for the development of linear- and angular-measurement based motion-control systems. Sensitec has developed the kit for use in any application where motion is controlled via the measurement and detection of magnetic, electric or mechanical parameters such as angles, paths and positions. Targeting a range of markets including industrial automation, automotive, aerospace, machine tooling and medical biosensors, the kit features Sensitec’s magnetoresistive sensor technology and enables users to gain experience with the technology. It also allows them to learn about how different factors impact on the resolution of the measurement signal, such as the length of magnetic pole, pitch, and interpolation factor. The kit was developed as an extension board for an Arduino microcontroller system and enables software adjustment of gain and interpolation factor. Analogue and digital sensor signals can be received and processed by the Arduino microcontroller. The Arduino plug-in kit uses two Wheatstone bridges, which are shifted against each other as part of the sensor technology to facilitate measurement of absolute angles of up to 360° as well as absolute length. Key applications include automotive sensors that are used at various measuring points in modern cars and commercial vehicles; in automation systems that require precision detection of highly dynamic motions and positions using magneto-resistive sensors; or in machine tooling with integrated sensor solutions for increased reliability. Sensitec www.sensitec.com

Precision machining of plastics ALLPLASTICS Engineering stock and cut building, engineering and architectural plastics in Rod, Sheet and Tube forms. Thermoplastic Materials Allplastics Engineering offer CNC Profile Routing and the latest technology in CNC Machining. These are some of the materials supplied: acetal, acrylic, ABS, PTFE (Teflon), HDPE,

polypropylene, polycarbonate, mylar, PEEK, hi impact polystyrene, PVC, nylon, UHMWPE, phenolics, PETG, polyurethane, polyester, high performance plastics and wear resistant bushing materials phenolics. Plastics machining and plastics equipment product range Allplastics Engineering offers an extensive range of CNC equipment and CNC services

utilising their fully equipped machine shop including: CNC Tuning and CNC Routing, milling, drilling, threading, manual turning of plastics and polyurethanes, diamond edge polishing, moulding, buffing, gluing, bending and welding, and Cut to Size service. Allplastics Engineering www.allplastics.com.au 02 9417 6111

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Manufacturers’ Monthly JULY 2017 37

The LastWORD The need for change Businesses need to be ready to embrace change as we move ahead in the times. Innex Willox, chief executive of the Ai Group explains the benefits disruptive technologies bring.

HE imperative to “disrupt or be disrupted” keeps a lot of CEOs up at night. Accelerating change, advancing technology and new business models are sources both of opportunity and threat for established businesses, with a disruptive new competitor never more than one start-up away. In this environment, one thing is certain: if Australia’s businesses – and manufacturers in particular – are going to thrive and deliver employment and prosperity to the community, they need to make the most of emerging technologies. But a new Ai Group report has found that while Australian businesses are investing in new technologies to enhance profit and performance, industry as a whole is lagging in adoption of key innovations. Based on a wide survey of Australian businesses, the report confirms a close association between investment in digital

38 JULY 2017 Manufacturers’ Monthly

technologies and higher business performance. Businesses are investing to improve customer service, lift productivity and boost competitiveness – and businesses that did not use any of the digital technologies surveyed had about 14 per cent lower gross profit margins. Cloud computing is now widely used to cut costs, improve service and ease business growth – 42 of the businesses we surveyed use cloud computing, and they experienced an average of five per cent growth in profit margins over the year of the survey, compared to an average two per cent reduction in profit margins for other businesses. Business also makes extensive use of mobile apps (58 per cent of Australian businesses), enabled by our vibrant and mature mobile telephony market. The Internet of Things (IoT) is widely discussed and ever more devices are becoming connected, but most businesses are not yet

investing in or using the building blocks of this technology. It remains elusive, as businesses are yet to fully integrate its technological foundations. For manufacturers, the relatively low use of networked technologies (as proxies to IoT) suggests that they are still at the early stages of embracing the technological foundation for the new manufacturing vision often referred to as “Industry 4.0”. With the WannaCry ransomware attack still reverberating, it is of particular concern that the report shows that businesses have been slow to adopt cyber security technology. Cyber security is a critical risk management issue for the boardroom, and is growing more so as more activities go online, more devices become connected, and threats evolve. Despite this, 78 per cent of businesses surveyed did not report using cyber security technology beyond common defaults. Further, few saw cyber security issues as a barrier to new digital investments – only 13 per cent reported this as an inhibiting factor. This confirms the findings of other observers, and is deeply concerning given the demonstrated ability of cyber breaches to damage reputations, disrupt business operations and bring down critical infrastructure. We need to get on top of security as digital technologies and the IoT continue to grow in Australia. “Big data” appears to be another area of largely untapped potential at this point. Businesses in our survey that made use of big data experienced an average 16 per cent growth in gross profit margin over the year – yet only seven per cent of Australian businesses make

significant use of it. The NBN continues to play an important role in supporting growth. While rollout is accelerating, most regions are yet to be served – only eight per cent of businesses reported having an NBN connection, with 82 per cent accessing the internet via ADSL. Among our survey respondents, 20 per cent experienced frequent internet service interruptions, and 59 per cent of businesses indicated that they would be willing to pay for faster internet services. These results suggest that much demand remains to be met, and 2017 should see the NBN strive to meet more businesses’ needs than ever before. Getting the most out of technology requires businesses to build digital into their strategies. Many are doing so, for instance by growing digital skills through staff training and recruitment. This will be vital to ensure businesses have a future-ready workforce. However, some 17 per cent of businesses plan to do nothing to improve staff digital skills. This and other disconnects leave too many businesses at risk of falling behind local and global competition. There is much that industry can do to improve performance and collaborate with governments and other bodies to help Australia embrace the fourth industrial revolution. Our Business Beyond Broadband report highlights the progress we’ve made – and the imperative that Australia not become one of the unlucky countries that falls behind. Innes Willox, Chief Executive Australian Industry Group manmonthly.com.au

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Nobody extends wear life like we do. You’ve probably heard about the innovation and progress LaserBond is achieving in surface engineering technology. We apply new surfaces to worn parts so they work literally better than new. And brand new parts can also be treated so they last a lot longer. Customers enjoy longer wear life, fewer shutdowns for component replacement, and better workplace health and safety control. Our laser-applied coatings typically at least double the life of a part. The new ‘laser cell’ in our SA engineering facility will have the highest-power laser beam used for laser cladding in the Southern Hemisphere. We already operate the three most powerful lasers in this industry in Australia. These are supported by many other processes and technologies, such as HP HVOF, all supported by our own well-equipped metallographic

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laboratory and state-of-the-art workshops. If you’re looking for the best surface engineering available, look no further.

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LaserBond Limited | www.laserbond.com.au Sydney | Adelaide | Freecall 1 300 527 372 International +612 4631 4500 | Fax +612 4631 4555 Email info@laserbond.com.au

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