Revolutionising Australian Manufacturing: 6 Key Industry Updates

From advancements in automated technology to additional skills funding and increases in manufacturing input prices, the Australian manufacturing industry has experienced significant changes in recent months.

While the industry has faced challenges, it has also presented opportunities for growth and innovation.

Keep reading to find out more about recent industry news and trends.

Australian Producer Price Index reports positive figures as manufacturing input prices went up – Kate B, Australian Manufacturing

The Australian Producer Price Index increased by 5.2% YoY in Q1, with input prices to manufacturing rising 0.6% over the quarter and 5% over the past year.

Metal ore mining contributed the most to input price rises for manufacturing, while agriculture and basic chemical production fell.

Final demand growth was driven by electricity and gas supply, building construction, and education and training services. Falling prices in petroleum refining, furniture, and computer and electronic equipment manufacturing contributed to a softer annual inflation rate.

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Coles opens first Automated Distribution Centre in QLD – Mignon D’Souza, Manufacturers’ Monthly

Australian supermarket chain Coles Group has opened its first Automated Distribution Centre (ADC) in Redbank, Queensland, which is the largest of its kind in the Southern Hemisphere. The ADC will use the Witron technology and is the first of two such facilities Coles is opening, with the second due in New South Wales in 2024.

The facilities are expected to create safer and more sustainable outcomes for workers and suppliers and to improve on-shelf availability for customers. The Redbank ADC, which will service 219 Coles supermarkets, can process up to four million cases per week when operating at full capacity.

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Report highlights Australian manufacturing’s latest challenges – Industry Update

The upcoming Federal Budget is being discussed in light of challenging times with high-interest rates and rising inflation.

The Australian government’s National Reconstruction Fund will set up a $15 billion fund to support local manufacturing and R&D, including investing $1 billion in innovative Australian technologies such as AI and robotics.

The 2023 Rockwell Automation State of Smart Manufacturing Report reveals that Australian manufacturers are embracing AI, with 35% already investing and 40% planning to invest in 2022-23, but retaining workers and knowledge is a challenge for growth.

The report also highlights low familiarity with smart manufacturing technologies, leading to technology paralysis and cybersecurity risks. Process automation and balancing quality, growth, and worker retention are the main internal obstacles for growth, while excess technology options are the main external barrier.

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Backing manufacturing and engineering jobs in Melbourne – Mignon D’Souza, Manufacturers’ Monthly

The Victorian government has announced a $2 million partnership between Jobs Victoria and Chisholm Institute to fill 100 engineering roles in manufacturing by April next year.

The Jobs Victoria Engineering Project is open to people facing barriers to employment, including women aged 45 and over, people from culturally and linguistically diverse backgrounds, and people with disabilities.

The roles will be based across southeast Melbourne, including 70 production welder and machine operator roles and 30 fabrication and mechanical apprenticeships.

Participants will receive 12 months of secure employment and access to additional support to set them up for long-term careers in the fast-growing manufacturing sector.

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$4.1b allocated for skills and training to address economic challenges – Kate B, Australian Manufacturing

The Albanese Government will invest $3.7 billion in a five-year National Skills Agreement (NSA) to boost vocational education and training (VET) in collaboration with states and territories.

The funding includes $400m to support another 300,000 TAFE and VET Fee-Free places in critical sectors like clean economy, manufacturing, cybersecurity, and technology. The investment aims to equip Australians with skills needed for well-paid, secure work, and fill skill gaps for employers.

The government also aims to close the gap between First Nations students and apprentices as well as assist women in enrolling in and completing VET courses, particularly in higher-paying sectors like manufacturing, historically dominated by males.

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Labour shortages can make net zero transition challenging: Weld Australia – Mignon D’Souza, Manufacturers’ Monthly

Weld Australia’s 2023 Member Survey highlights that the Federal Government needs to provide real support to the industry to facilitate the renewable energy revolution.

The welding and fabrication industry is facing many challenges that would make the Federal Government’s plans almost impossible to deliver, including severe labour shortages, increasing material and labour costs, and regulatory barriers.

The Federal Government has legislated emissions reduction targets of 43% by 2030 and net-zero by 2050. This will require the construction of new infrastructure on a massive scale, but a lack of skilled workers, including welders, is expected to create a shortfall of at least 70,000 welders by 2030.

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