The future of the Australian manufacturing sector rests on its ability to transition to more cost-effective sustainable practices, but this move will take time, writes Rob Stummer.

The Australian manufacturing sector can achieve significant costs savings, by improving the efficiency of equipment and processes and lowering energy and water consumption. Other effective strategies will include increasing the use of renewables, reducing waste, emissions and packaging, as well as using fewer raw materials.

Wind and solar

Wind and solar energy are becoming more cost-competitive. This means the transition to clean renewable energies is either in progress or planned by heavy industries. Now that renewables are accountable for an ever-rising share of Australia’s power mix, supplying about 20% of demand, the transition is already in full swing. Australia has the highest average solar radiation per square metre of any continent. Manufacturers, who usually have extensive roof space, can harness the power of the greatest free energy source available – the sun.

B&R Enclosures, an electrical enclosures, racks and cabinets manufacturer and a loyal SYSPRO customer, has announced a piloted project at its Brisbane facility by installing a solar energy system. This has provided the company with a range of benefits including significant cost savings, and has allowed it to be more environmentally responsible.

Water harvesting

While sun and wind are both important for the manufacturer to capture and use, there has been an increasing uptake of smart, water efficiency solutions, including rainwater harvesting, for non-filtered uses. This is a worthwhile alternative to the use of substantial quantities of expensive drinking water in production processes and sewerage. Around Australia, many sustainability-focused manufacturers have seen the sense in capturing this free resource, as well as introducing ways to be more efficient with using water with the aim of lowering their consumption.

Sustainable packaging

There has been a huge generational shift in attitudes towards single-use plastic. Consumers are now choosing to buy from brands they believe are doing social or environmental good. The reduction of paper and plastic in manufacturing, packaging and distribution and the further recycling of these resources after use is critical and currently in progress.

Some manufacturers are yet to sufficiently prioritise sustainability, and circularity when considering design, use and disposal of packaging, with a lot of packaging still single-use and non-recyclable.

Some of the smaller manufacturers are now collaborating with larger ones to “close the plastic waste loop”. CSR collects its disused shrink-wrapped plastic and sends it to Plastic Forests, which has used it to produce air conditioning mounting blocks. These mounting blocks can also be used to dampen vibration on machinery such as compressors.

Paperless manufacturing

The paperless office has been an aspiration of the manufacturing industry for years. Saving costs and the environment are both achievable, however, going paperless will require more than simply recycling office memos and printing less. Paperless manufacturing is shifting the way manufacturing plants operate. Many manufacturing and distribution plants are using their ERP system to reduce manual processes and have moved to a paperless industrial environment. B&R Enclosures has a predominantly paperless shopfloor, and Independent Liquor Group is integrating its ERP with its paperless warehousing system.

Grid-scale batteries

As the industry grapples with the transition to renewables, batteries will be pivotal to providing capacity when the sun isn’t shining, when the wind isn’t blowing, and the market demand requires it.

One of Australia’s biggest batteries will be built by independent power supplier Vena Energy in Wandoan, Queensland, in 18 months under a deal involving energy giant AGL. This move will strengthen the grid’s ability to shift from coal to renewable power generation by smoothing out the intermittent nature of wind and solar power.

Although the grid-scale battery market is in its infancy, batteries are considered to be crucial in the nation’s move away from heavy-emitting coal-fired power stations. This is due to their capacity to store electricity generated from renewable sources and dispense it at a later time, when conditions for renewables are unfavourable.

What does this mean?

Due to its significant resource use, waste and emissions, heavy industry has been an obstacle to sustainable development for many years. Many leading industrial players are starting to take sustainability seriously and are building it into their everyday operations. All manufacturers need to make a commitment to do more with less.

Sustainability trends are currently driving major changes in the industrial sector. Suppliers to this sector can play a key role in helping these companies meet these challenges. But they will only do so by the entire manufacturing industry working together to deliver big and bold innovations that will facilitate significant change.

Rob Stummer is the CEO for Asia Pacific at SYSPRO.

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