June 1, 2018

Australian PMI: Manufacturing grows for 20th successive month

May marked the longest run of expanding or stable conditions for the Australian PMI since 2005, with the longest positive run being 50 continuous months from July 2001 to July 2005. Five of the seven activity sub-indexes in the Australian PMI expanded in May. New orders edged up 0.8 points to 62.4, indicating healthy demand and a strong likelihood of further near-term growth, while sales levels were stable (down 12.1 points to 50.4). Seven of the eight manufacturing sub-sectors expanded in May (based on trend data), with the wood & paper products sub-sector’s stable conditions the only exception (down 0.6 points to 49.4). Sub-sectors providing manufactured goods for large transport projects and the construction sector continue to report very strong levels of activity: petroleum, coal & chemicals (down 0.9 points to 64.2); metal products (down 0.2 points to 61.4); machinery & equipment (down 0.3…
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June 1, 2018

Drilltechniques – Ticking off its technology wish list

Whenever a company identifies a requirement for a new machine tool, most workshop managers start thinking about accuracy and reliability, whereas the company accountant may believe that price and lifespan are the most important criteria. The result is often somewhere in the middle – ideally, a brand new machine that is engineered and built for reliability, with a world-class control, and operator training to ensure accuracy, while meeting the initial budget and amortisation parameters set by the accountant. Even though machine tools and their electronic systems have become remarkably sophisticated nowadays, good planning makes it possible to acquire a new machine that meets the needs and wants on a workshop manager’s wish list. The recent purchase of a new CNC lathe by Drilltechniques is a good example. What is really interesting is the rationale behind the acquisition. Hitting the front In just 10 years, Drilltechniques has become a byword for excellence across a number of…
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June 1, 2018

Women shine at Victorian Manufacturing Hall of Fame

The State Minister for Industry and Employment Ben Carroll presented the inaugural Woman Manufacturer of the Year award to Vanessa Kearney from Viva Energy and Jill Walsh from Actco Pickering Metal Industries at the awards ceremony, held at Crown Palladium in Melbourne. The Young Manufacturer of the Year Award was taken out by another female trailblazer, Vanessa Katsanevakis, who won the award for her leadership at Sussex Taps. Katsanevakis guided the business through a major rebrand and a period of exponential growth. The Hall of Fame Gala Dinner was attended by hundreds of industry stakeholders, and recognised outstanding manufacturing businesses and individuals. The Manufacturer of the Year (Large Business) was awarded to Bosch Australia, while Siemens took out the new Leader in Industry 4.0 award and PACCAR Australia was awarded the 2018 Leader in Workforce Skills Development. A number of other companies were also recognised with awards for excellence in some of Victoria’s key growth sectors, including: Creature Technology – Medium Business Osteon Medical – Small Business Entegra Signature Structures – Construction Technologies Albins Performance Transmissions…
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June 1, 2018

Australian Made CEO steps down

“After 14 years running this great organisation, it’s time to do a little less and give someone else a run,” said Harrison. “We’ve come a long way over that time and I’m very proud of what we’ve been able to achieve. “Australia’s strong nation brand is a great asset for our business community and our economy, but the challenge always is to make that connection. That is exactly what the Aussie Made logo was created to do 32 years ago and, I am pleased to say, is doing so even more powerfully today. The logo is a well-known and trusted symbol by consumers the world over who are looking to buy genuine Aussie products. “It’s been an honour to have been able to lead the Australian Made Campaign and I am thankful to the Board for giving me that opportunity. Although stepping down as Chief Executive, I will of…
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June 1, 2018

R&D compliance burden for start-ups and SMES

Budget papers released on 8 May reveal that R&D Tax Incentive claimants including SMEs and the start-up sector may be faced with additional compliance burdens. Under the new measures, which come into effect on 1 July, there will be additional funding for enforcement activity allocated to the Tax Office and AusIndustry. Jack Qi, Director of Tax Services and R&D specialist at William Buck, says that while at first glance SMEs and start-ups may have been spared the brunt of the tightening of the R&D Tax Incentive, compliance changes could have the biggest impact. “Given that such activity has already ramped up in recent years, any further focus will mean it’s more important than ever to prepare robust R&D claims and quality, contemporaneous internal documentation that will withstand scrutiny,” says Qi. “From a cash flow perspective, we anticipate potential delays in companies receiving their R&D refunds until any review is finalised.” Qi warns the Government against making any more changes to the R&D Tax…
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May 23, 2018

South Australia sets the pace in precision manufacturing

Kennewell CNC Machining Based in Murray Bridge, 76kms east of Adelaide, Kennewell CNC Machining is a precision engineering company that has successfully launched a project supported by the Government of South Australia’s Regional Development Fund, integrating a Fanuc Robot with an Okuma Genos M560V vertical machining centre, and also purchasing an Okuma LB3000EX-II-MYWx800 multi-axis CNC lathe with OSP-P300L Control. Established in 1995, Kennewell had already been an important Okuma customer for many years. The company’s Managing Director Brett Kennewell had served his apprenticeship on Okuma machines more than 25 years ago. “The Okuma machines are robustly built for stability and precision - as an example our 11 year-old machine, is still operating and is as accurate today as it was on installation,” says Brett. “Okuma personnel do everything they can to assist us with technical advice and support which is readily available locally and remotely. The ongoing training is a key factor in the relationship with this partner as we strive…
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May 18, 2018

Fostering innovation in rail

The focus of research & development (R&D) activities in the manufacturing sector is guided by many factors, including the global economic environment, domestic and international demand, regulations and standards, the nature of competitive global supply, the general level of confidence within the sector, and the subsequent capacity of domestic manufacturers to invest in research, innovation, capital equipment and human resources. To assist the rail industry to reduce barriers in undertaking R&D activities, the Rail Manufacturing CRC was formed. The Rail Manufacturing CRC is an industry-led Cooperative Research Centre supporting industry to develop new products, technologies and supply chain networks to increase Australian rail manufacturing’s competitiveness, capacity and productivity. The Centre is funded by the Commonwealth Government’s Department of Industry, Innovation and Science, and will operate until June 2020. Making connections in rail The Rail Manufacturing CRC connects Australian rail businesses with universities and research institutions that are leading the way in innovative rail research. Rail…
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May 18, 2018

Production heats up for renewable energy storage company

1414 Degrees has spent almost a decade developing its Thermal Energy Storage System (TESS) technology to store electricity as thermal energy by heating and melting containers full of silicon at a cost estimated to be up to ten times cheaper than lithium batteries. The South Australian company moved into a 3,000sqm factory on the site of the former Chrysler /Mitsubishi engine plant late last year. The Lonsdale plant housed one of the largest iron foundries in the Southern Hemisphere in the 1960s and 1970s and was closed in 2005. 1414 Degrees recently began building its first 10MWh TESS-IND system and expects to have at least two sites for installation in the first half of 2018. Work on the first 13.3MWh test cell for a 200MWh TESS-GRID system is expected to begin soon. The company is planning to initially build two grid-scale 1GWh systems in South Australia, which would be comprised of five 200MWh units and potentially play a significant role in stabilising the state’s renewable energy-dependent electricity network. 1414 Degrees has…
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May 18, 2018

Overseas with AMTIL

The International Manufacturing Technology Show (IMTS), the premier manufacturing technology show in North America, will be taking place in Chicago on 10-15 September. This will be followed by JIMTOF2018, the Japan international machine tool fair, on 1-6 November, in Tokyo. AMTIL will have stands in the international associations sections of both exhibitions, with our staff on hand to answer enquiries from exhibition visitors keen to know more about manufacturing in Australia and the opportunities here. In addition, AMTIL will be using the opportunity to engage with other international manufacturing associations. “Having a presence at the big overseas shows like IMTS and JIMTOF is vital for AMTIL,” says AMTIL CEO Shane Infanti. “As well as representing our members on the global stage, they allow us to build stronger links with manufacturing associations from around the world and exchange ideas and information.” AMTIL will be engaging in a range of activities in support of any members who will be attending IMTS or JIMTOF. If you plan to visit either event, please contact…
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May 11, 2018

SA manufacturers take lead on innovation

Ellex is a global leader in medical devices for the diagnosis and treatment of eye disease. It has about 10 core products across five areas: glaucoma; diabetic eye diseases; secondary cataracts; age-related macular degeneration; and vitreous opacities (commonly known as eye floaters). The company officially opened new headquarters in the northern Adelaide suburb of Mawson Lakes in December. The new 2.18-hectare facility allows Ellex’s machine shop, clean rooms and administration to be co-located for the first time. A major feature is the Controlled Environment Room (CER), a state-of-the-art, dust-free space where the lasers are built, eliminating contamination risk. Early indications have shown measurable reductions in costs and manufacturing time per unit, without any risk of compromising the quality and reliability of products. Ellex sells its laser and ultrasound systems in more than 100 countries and has offices in the US, France, Germany and Japan. Executive Director Dr Meera Verma said Ellex almost doubled the laser and ultrasound side of the business between 2013 and 2017 and was experiencing remarkable growth –…
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May 11, 2018

Innovative approaches to renewable energy procurement

As issues abound with respect to escalating electricity prices and the Energy Security Board (ESB), and the Turnbull Government scrambles to unveil the National Energy Guarantee, more and more corporate acquirers of large-scale electricity are turning their minds to how best to procure cost-efficient, environmentally-friendly energy. Globally, a trend is beginning to emerge whereby large corporate manufacturing and retail businesses such as Ikea, Volkswagen, General Motors and Dow Chemical have undertaken to purchase their electricity directly from offsite renewable energy generators such as solar and wind farms. This ‘Direct Model’ of procurement is a departure from commonly recognised approaches, which involve a recognised retailer acting as middleman for the procurement. This international trend reveals the potential for a new Australian market to emerge with respect to offsite renewable energy procurement by corporate entities. Models for offsite renewable energy procurement The proliferation of new market structures supporting renewable energy procurement presents challenges of complexity to energy users looking for a better deal. The most commonly used model for large-scale procurement or…
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May 4, 2018

One on One – Melinda Cilento

AMT: Tell us about CEDA and what its aims and objectives are as an organisation. Melinda Cilento: CEDA has been around for about 60 years now. We are a member-based organisation; we’re passionately committed to advancing good public policy debates in Australia with a view to driving better policy outcomes that support social and economic development in Australia.   AMT: What areas of policy are you seeking to influence? MC: I’m relatively new to the role. For me, the priority this year is to actually take a bit of a step back from the agenda that we’ve had in recent years and reaffirm our purpose by exploring the whole concept of economic development. It’s a phrase we use in our title, but when you think about a country that’s now grown consistently for 27 years, and we are an advanced developed economy, I think it’s time to circle back to the concept of economic development and have a conversation about what that actually means, what we think…
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May 4, 2018

FUTUREMAP to chart SME course for Industry 4.0 at NMW

FUTUREMAP is a business diagnostic tool specifically developed for small-to-medium (SME) manfuacturers by the IMCRC in collaboration with the Advanced Manufacturing Growth Centre (AMGC) and the Federal Government’s Entrepreneurs’ Programme. Through either one-on-one structured discussions or interactive group workshops, FUTUREMAP enables participating manufacturers to map the current state of their business and identify where they can lift their awareness, competitiveness and build resilience against 13 key areas of industrial and advanced manufacturing competitiveness. The IMCRC will be facilitating the first FUTUREMAP interactive workshops at NMW, providing Australian SME manufacturers with an opportunity to identify areas of focus and potential investment to transform and future-proof their business in a rapidly digitalised world. David Chuter, CEO and Managing Director of the IMCRC, is confident that FUTUREMAP, as one of the first business diagnostic programs designed specifically for the Australian SME manufacturing sector, will become an engaging and valuable resource for the broader industry and potentially beyond. “The intent of FUTUREMAP is to…
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