Comment
GEOFF CRITTENDEN – CEO, Weld Australia
There is an opportunity for local governments to enable the local manufacturing scene to compete on a world stage.
Manufacturing needs a coordinated national policy approach
R
ECENTLY, New South Wales Premier Dominic Perrottet awarded a $70 million contract for the manufacture of electric buses to a western Sydney manufacturer. Custom Denning will manufacture 79 electric buses, as part of the NSW Government’s commitment for the state’s fleet of more than 8,000 buses to go green by 2030. Weld Australia has long urged all state governments to support local manufacturers, welders, and fabricators in their procurement processes. Local procurement has the power to create thousands of jobs, a solid local supply chain, and an industry equipped to export worldclass products all over the world.
Cornering the global market There is a real opportunity for our governments to invest in creating a robust, resilient manufacturing industry that can compete on the world stage. Over the years, AustralRecently, New South Wales Premier Dominic Perrottet awarded a $70 million contract for the manufacture of electric buses to a western Sydney manufacturer. Custom Denning will manufacture 79 electric buses, as part of the NSW Government’s commitment for the state’s fleet of more than 8,000 8 APRIL 2022 Manufacturers’ Monthly
buses to go green by 2030. Weld Australia has long urged all state governments to support local manufacturers, welders, and fabricators in their procurement processes. Local procurement has the power to create thousands of jobs, a solid local supply chain, and an industry equipped to export worldclass products all over the world.
Cornering the global market There is a real opportunity for our governments to invest in creating a robust, resilient manufacturing industry that can compete on the world stage. Over the years, Australians have been responsible for engineering and manufacturing some of the most ingenious inventions that have not only competed on the world stage but cornered the global market. For instance, in 1953, Melbourne-based Aeronautical Research Laboratory scientist David Warren invented the “black box”, forever changing the aviation industry. In the 1920s, an Australian team, including Dr Mark Lidwill and physicist Edgar Booth, developed the pacemaker. Over three million people across the globe rely on pacemakers. In 1992, researchers at the CSIRO (who were originally looking for faint
echoes of black holes) developed Wi-Fi technology. Today, Wi-Fi is used by billions of people. As history clearly demonstrates, there is enormous potential in the Australian manufacturing industry. But this potential must be fostered by Federal and State Government procurement policies that support local manufacturers. This government support will go a long in ensuring that, while the engineering and ingenuity remain onshore, the manufacturing is not sent offshore. This government support will create thousands of jobs, supporting local economies in a post COVID-19 world – the NSW Government contract with Custom Denning is expected to result in the employment of 40 new apprentices, plus many more skilled tradesmen.
A coordinated national policy approach In addition to local procurement, one of the most effective ways in which our governments can support the manufacturing industry is a coordinated national policy approach. Let’s use electric vehicles as an example. Global automotive manufacturing is rapidly transitioning to electric vehicle production in response to technological advancements and consumers’ growing
demand for vehicles that respond to climate change. According to The Australia Institute’s recent report, Rebuilding Vehicle Manufacturing in Australia, this transition presents an enormous opportunity for Australia to rebuild its vehicle manufacturing industry. It leverages Australia’s competitive strengths in renewable energy, extractive industries, manufacturing capabilities, and skilled workers. Australia possesses many of the crucial elements for an electric vehicle manufacturing industry: rich mineral reserves, an advanced industrial base, a highly skilled workforce, and consumer interest. But, according to The Australia Institute, what we lack is an overarching, coordinating and strategic national industry policy. Global experience shows that this is central to an electric vehicle industrial transformation. Australia can play an important role in global electric vehicle manufacturing industries but developing a strategy to realise this will require active government policy responses to both the challenges and opportunities at hand. Australia already has a strong, proud history of automotive manufacturing – it was one of the key drivers of Australia’s economy for most of the 20th century. The 2013 manmonthly.com.au
