Advanced Robotic Technology (ART) director, David White, talks to CCN about why manufacturing matters. According to White it matters more than ever as it drives innovation and technological change.
CCN: So why is manufacturing so important?
White: Manufacturing accounts for a quarter of Australia’s private sector R&D expenditure. Manufacturing is the sector that contains and advances the skills and capabilities that prescribe membership in the ranks of the advanced nations of the world. For research and innovation, manufacturing provides the essential ground from which future streams of products and incomes can emerge. Furthermore, without a manufacturing base, Australia would need to import more consumer and capital goods, reinforcing our chronic inability to run a positive trade balance.
Additional borrowing to do so, together with the repatriation of resource profits, would expose serious vulnerabilities in our external position. So manufacturing matters – more than ever – and every local manufacturer has a contribution to make.
CCN: Imports cannot be replaced without demand?
White: This country’s innovative capacity in the advanced manufacturing sector is in strong demand in global supply chains, especially within the high growth Asia-Pacific region. Australia’s capabilities tend to be focused on high technology, high value-add, and high-skill manufacturing that uses advanced design, processes, materials and technologies.
CCN: Are we talking 100% Australian-made?
White: Advanced Robotic Technology (ART) has always been – and will be – proud to be a 100 per cent Australian manufacturer with all our ART-brand products, including plasma cutters and routers, all manufactured to the highest standard with advanced design features and latest CNC and automation technologies to make our customers more competitive. ART, like many of Australia’s specialised automation and robotics system suppliers, is able to deliver innovative and efficient automation solutions for many processing, manufacturing, material handling, assembly and packaging requirements; which is what our industry needs to survive in the long run.
CCN: Your outlook is very positive?
White: Sure ART invests a lot of resources into developing new features and functionality into our products. Because our software developers work closely with our mechanical and electronics engineers, as well as our own in-house CNC operators, we have an extremely short development cycle time. There is another important reason why Australian manufacturing will survive: Local support. As the market is being infused with cheaper imports, it is ever more vital that Australian manufacturers pull together to provide, not only world-class products, but also the necessary support structure that is lacking with many overseas products.
CCN: Is local support enough to reduce imports?
White: Australia is a long way from the rest of the world. While it is becoming increasingly popular to purchase technology over the internet, a lot of companies are left high and dry when something goes wrong. ART encourages Australian manufacturers to focus on quality and service – that is where real value can be found. Even though Australian companies are starting to rethink their outsourcing strategies we still expect to see an increase in imported products due to the strong Australian dollar.
CCN: This puts increasing pressure on Australian manufacturers to be more efficient.
White: The challenge is to increase productivity without compromising on the safety and quality of the product or the level of after sales support. One of the major advantages we have over imported products is the ability to customise, our entire sales process is focused around the needs of the client. Australian manufacturing is important because of the strong connection between manufacturing and developing a knowledge-based economy. True we may no longer be as competitive as we used to be in textiles, garments and footwear or mass production given the competition from low-wage economies. But by embracing modern methods of manufacturing, particularly through the use of automation, local manufacturers will be able to boost productivity and help to balance out some of the inherent costs of manufacturing in our country. We can bring manufacturing back into our country if we provide the right service and technology.