Working through from struggle to success. Some advice from Graeme Evans, Epicor Regional Vice President Australia, New Zealand & Pacific
In December of last year, the Westpac Australian Chamber of Commerce and Industry (ACCI) survey revealed that sentiment among local manufacturers had fallen to its lowest levels since the global financial crisis. This sentiment was mirrored in the New Zealand market with the latest data from Business NZ revealing that the manufacturing sector contracted for the tenth straight month in a row. The results were no surprise, given the ongoing economic uncertainty caused by inflationary pressures, regulatory change and supply chain disruptions.
Despite the economic headwinds, I have observed a sense of quiet confidence among local manufacturers regarding business conditions. Data can often be a lagging indicator, and with inflationary pressures likely to ease in the second half of this year, the Australian economy is expected to land more softly than originally anticipated.
A recent Grant Thornton study also suggested that local manufacturers have a more positive outlook on the market, with many recording strong sales growth in 2023. This trend is particularly evident for emerging manufacturers that are continuing to challenge their more mature competitors, both domestically and abroad.
The optimism in the market can also be attributed to ongoing government investment in the sector, from the Australian government’s $15 billion National Reconstruction Fund Corporation, which will help reshore and onshore operations, to other smaller programs that will help local companies to embrace Artificial Intelligence and upskilling. These initiatives will not only support sector growth and resilience, they have the potential to position Australian manufacturers as global leaders in several fields, such as electric vehicles, renewables and pharmaceuticals.
With added confidence about the road ahead, manufacturers are now searching for new, smarter technologies – including Enterprise Resource Planning (ERP) – that will drive efficiency, agility and automation. At Epicor, we continue to work hand in hand with manufacturers to explore potential solutions that are tailored to their business-critical needs.
Industry 4.0 means that flexibility and agility are environment essential for success. By understanding the potential opportunities of a connected shop floor, we are committed to supporting manufacturers to invest in innovations that allow them to respond to future challenges, drive growth and improve their bottom line.
As part of Australian Manufacturing Week, we are excited to showcase how Epicor Kinetic is designed for and with manufacturers to achieve greater efficiencies. Epicor Kinetic delivers real-time intelligence and collaboration tools to optimise operations and help manufacturers compete in the global marketplace.
Epicor’s technology allows companies to better manage their financials, supply chains, risk, compliance, and products and we are already working hand in hand with Australian and New Zealand manufacturers such as Steel Blue and Sistema to help transform their business and digitise their operations. We are ready to embrace the growing momentum in the sector and support local manufacturers to navigate challenges and seize opportunities in 2024 and beyond.
Stand MS475 at AMW2024