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Busting the myths around Australian manufacturing
WELCOME TO
- Richard McIndoe
High labour costs make Australian manufacturing
uncompetitive
MYTH #1
It’s not all about labour costs…
• Chinese labour costs are rising… so is political risk…
• Scalability, flexibility and product quality are as
important
• Australia competes well in automation and
engineering
REALITY #1
Australia doesn’t have the
hi-tech experience to be
globally competitive
MYTH #2
Australia has the talent…
• Australia has globally competitive technology manufacturers eg CSL
• Australian universities attract top global talent in STEM courses
REALITY #2
The Australian market is
too small to justify a local
manufacturing presence
MYTH #3
Niche market with global visibility…
• Australia leads the world in residential solar installation
• The world is watching how Australia manages the clean energy transition
REALITY #3
• Too much hand wringing about protecting existing manufacturing
• Not enough support for building new, hi technology manufacturing
• Not enough belief that we can compete on a global stage
• Let’s talk about energy...
THE PROBLEM
ENERGY EFFICIENCY TECHNOLOGY:
LOCAL PROBLEMS, GLOBAL OPPORTUNITIES
HOME UTILITIES CONSUMPTION IN JULY 2020WORKINGFROM HOMESTATISTICS 46% of Australians are working from home
Electricity usage +27%
Day time home internet usage +15% to +23%
Evening consumption +23%
Gas consumption +7%
Water consumption, no change
WFH increases utility costs by $1,400 a year
Consumers want to do something about their utility costs and carbon footprint
BUT
Consumers lack a trusted source of information on their energy usage.
CUSTOMERFEEDBACK
edgeConX ENERGY MONITORING SOLUTIONS
SIMPLE, USEFUL ENERGY INFORMATION
• Easy to follow tracking of main energy usage in the home
• Allows you to control your electricity budget
• Delivers energy and CO2 savings of 20%+
• Advice on right sized solar, lowest cost tariff
• Gives power back to the customer
SMART BRAINFOR THE HOME
Philippines
Pros• Labour – 90% lower wage costs• Established electronics experience• Tax free economic zone
Cons• Minimal smart manufacturing or value added• Language and cultural issues• Covid issues - lockdown and delivery problems
CURRENTMANUFACTURING
ONSHORE MANUFACTURINGOPTION
Victoria, South Australia
Opportunity
• 5-year manufacturing contract for over $100 million
• 120 full time technology manufacturing roles
• 500+ full time installation roles
• Significant export opportunity
What we found…
Pros• Strong quality control
• Innovative, agile approach to design and development
• Design for scalability to reduce labour costs
• Lower failure rates due to higher automation
• Lower supply chain risk
• Zero language issues
Cons•Labour rates – net 20% price increase
AUSTRALIAN MANUFACTURING
How can the government help?
Customer incentives“Lily, it’s not just about solar and wind!”
Financing Low-cost equipment and working capital loans
TaxationSimple taxation for small businesses
TrainingJob assistance for apprentice trainingCoordination of universities and business needs
PRLet’s Buy and Export Australian!
MANUFACTURINGOPTIONS
-
THANK YOU
Contact Us
0478 332 298
Richard.McIndoe@edgeelectrons.com
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