The power of manufacturing is no secret, but there is still a lack of understanding and appreciation of the complexity and importance of the sector. Advanced Manufacturing Growth Centre managing director Dr Jens Goennemann looks at how to change that.
Advanced Manufacturing Growth Centre’s (AMGC) recent publication Ten Ways to Succeed in Australian Manufacturing, a report I encourage anyone interested in manufacturing to read, highlighted the issue that often the value and impact of manufacturing goes unrealised.
Section one, Ten Ways to Succeed highlights that while Australians recognise the economic importance of manufacturing, they do not necessarily understand what manufacturing is. Part of that view comes from the fact that manufacturers are so busy doing good work that they do not take the time to tell their story.
As one New South Wales-based manufacturer put it, “We need people to care about the state of manufacturing. Otherwise, despite how innovative we are, or how much we want to collaborate, we will not be given prioritisation.”
If the past 18-months have demonstrated anything, it is that manufacturing capability is crucial to a nation’s ability to respond to a crisis. The food and beverage sector, along with many others, stood up and responded to the pandemic with aplomb. They leveraged their expertise and capabilities to manufacture everything from hand sanitiser to invasive ventilators – a feat virtually impossible if you do not have a strong baseline of capabilities.
If we look at manufacturing as a capability, it is more than production. Manufacturing is present wherever something is being made – be it food, vaccines, or medical equipment. Without manufacturing, or the ability to scale and commercialise, you are a research institution. It is research for research’s sake.
We must take our ideas and commercialise them. Our industry’s success should not be a secret and breakthroughs should not reside in publications alone. I say this because manufacturing is so critical to our present and future.
Sometimes over a barbecue – enjoying the fruits of the food and beverage sectors labours – I hear the point that Australian manufacturing no longer exists. No! This point of view could not be further from the truth. The truth is that manufacturing is misunderstood and misrepresented in the modern context.
Manufacturing is no longer limited to the visual of blue overall-clad workers, with sparks flying in the background.
Manufacturing today is advanced and agile, populated by highly skilled Australians from all professions spanning the disciplines of R&D, design, logistics, production, distribution, sales and service.
Manufacturing today employs more Australians across these disciplines than the official numbers suggest, closer to 1.2 million employees and up to 3.6 times more than that as a consequence. That is correct: one job in manufacturing spurs 3.6 across the economy.
Manufacturing is so important that the federal government now has six National Manufacturing Priorities, with food and beverage one of them.
SUCCESS STORY
Yet, for all the sector’s value, we shy away from telling our story and highlighting our advancements. Take for example a recent recipient of a co-funded grant via AMGC’s Commercialisation Fund, Harvest B.
Harvest B’s story must be told, as the company is about to embark on a plan to manufacture 10,000 tonnes of plant-based protein onshore – a first for Australia. Harvest B’s plans will establish new onshore capability, seek to add value to our abundant supply of local produce and to build and export an in-demand food source across the globe.
The interesting part of Harvest B’s proposal was its five references to either advanced manufacturing or R&D in their opening paragraphs. Harvest B has identified an immediate local market of $150 million ready for their product, and they understand that ongoing investment into R&D will ensure that they stay ahead of the pack as a manufacturer of plant-based proteins.
By staying ahead of the pack, Harvest B has the confidence to look beyond 25 million Australian customers to seek a global customer base of 7.5 billion. By looking beyond our shores, Harvest B is seeking opportunities in a market not worth hundreds of millions, but one worth tens of billions. Embracing advancement and innovation is a central tenet of their business plan, a plan that includes investment and reinvestment in technology, automation, and skilled staff from the outset.
By recognising the efficiency and value that advanced technology, methods and processes can deliver to their business, Harvest B is in a strong position to ‘meat’ their local and global aspirations. Yet for many existing manufacturers, there is a hesitancy to adopting new technologies.
The Ten Ways report I noted earlier found that Australia’s manufacturing industry lagged other industries in its use and perceived importance of digital and other technologies. Some of the reasons cited by manufacturers were that they did not have access to the right information, felt as though they had to commit to an ‘all or nothing’ approach, or quite simply that the company had ‘always done things this way’.
If the past has taught us anything, then it is that manufacturing is constantly evolving. Standing still, while tempting, is not an option. While resisting change may work for the immediate future, it is important to remember that the modern manufacturer of today is just another manufacturer tomorrow.
To become an advanced manufacturer, you do not need to completely upend your business, you just need to look at small ways to have a positive impact on quality, productivity, or value. Getting advice, planning, learning from others, or consulting a research institution can all help manufacturers make significant gains in their business.
Food and beverage manufacturing is critical to all our survival, just as manufacturing is critical to the survival of your business. AMGC encourages you to take that first small step in advancing your business.
This article was first published in the July 2021 print issue of Food & Drink Business, p18.
Dr Jens Goenemann will be in the speaker line-up for the upcoming APPMA Digital Lunchtime Series.
