Overview
The Australian Advanced Manufacturing (AM) industry is a key part of the overall Manufacturing Industry Supply Chain. Its role is primarily supplying design, tooling, advanced manufacturing technology and equipment to local and international key customer industries such as Automotive, Appliances, Mining, Aerospace and Defence.
Advanced Manufacturing industry can be characterised by seven sectors:
- Precision engineering
- Machine tool manufacture
- Cutting tool manufacture
- Die/mould manufacturing
- Robotics and other automated equipment for manufacture
- General engineering
- Design for manufacture
In 2004-05, Australia’s Manufacturing Industry as a whole contributed 11 per cent to Australia’s Gross Domestic Product at a value of A$88.3 billion.
Manufacturing exports were A$67.4 billion and the industry employed 1.1 million people.
The manufacturing sector share of GDP is declining compared to other sectors despite average annual growth over the last five years of 2.5 per cent. Regardless of the decline, the sector remains of critical importance to Australia in terms of employment and foreign trade.
There are limited statistics on the Advanced Manufacturing industry, however, the Advanced Manufacturing industry fits within the broader industry segment of Industrial Machinery and Equipment. This is the second largest sector of Australian manufacturing with an annual income of approximately A$12 billion, wages of A$2.4 billion and an industry contribution to GDP of A$4 billion in recent years.
The sector generates approximately A$500–A$550 million annually from exports, which represents approximately 18 per cent of total revenue. Goods are mainly exported to the USA, NZ, Europe, Japan and the UK.
Source: The Commonwealth Governments Advanced Manufacturing Action Agenda 2006
What are the key opportunities?
Exports for Advanced Manufacturing are often based upon capabilities developed at the product level rather than the industry or national level. Australia’s competitive advantage is based on skills and the development of technologies, particularly in relation to niche products as opposed to wage rates or other economic conditions.
For example, Australian companies in the local Machine Tool and Tool making industries have demonstrated sustained export success through niche specialisation and from developing advanced technological capabilities. This has enabled them to compete successfully at an international level.
Key global growth sectors for niche producers in the major Advanced Manufacturing segments of precision engineering and automated equipment for manufacture include:
Automotive parts manufacturing industry
The Australian Tooling Industry is a long established supplier to both local and global vehicle manufacturers. The Australian industry has built a strong reputation as a niche supplier of complex, world class quality tooling at relatively low costs compared to US and European competitors. The industry’s competitiveness is driven by technology with strong R&D investment, innovative design, flexible manufacturing processes, and leading edge capital equipment for highly efficient production.
Aerospace
Australia’s Tooling Industry is now a major supplier of Advanced Aerospace Tooling Systems to the global market. The industry has successfully developed specialist niche capabilities in Composite Cure and Aero-structure Assembly tooling through a long history supporting a range of military and commercial aircraft programs.
Integration of Australian Tooling companies into global supply chains has led to high levels of participation in commercial and military programs including; Boeing 787, Airbus A350 and Joint Strike Fighter (JSF).
Other sectors of opportunity include:
- Appliances
- Mining
- Defence
- Marine
- Medical and scientific instruments
- Renewable energy
Where are the key opportunities?
Traditionally the USA is Australia’s major market but newer markets such as India are proving to be emerging markets.
Priority markets with the greatest opportunities for Advanced Manufacturing industry include:
Please see the list of industry country profiles for the advanced manufacturing industry at the end of this overview.
How can we help you?
With a network of over 140 overseas locations in more than 60 countries backed by highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.
Useful contacts
Austrade’s automotive and advanced manufacturing team contacts
Leigh Wilmott
Senior Export Adviser – Advanced manufacturing
Tel: +61 3 9648 3170
Email: leigh.wilmott@austrade.gov.au
Government contacts
Business Victoria Manufacturing - www.business.vic.gov.au
CSIRO Manufacturing & Materials Technology (CMMT) - www.cmmt.csiro.au
Department of Innovation, Industry, Science and Research – www.industry.gov.au
Department of Innovation, Industry and Regional Development (DIIRD) - www.diird.vic.gov.au
General industry contacts
Tooling Australia - www.toolingaus.com.au (Peak industry body)
Australian Manufacturing Technology Institute Ltd – www.amtil.com.au
Last updated: 19 Dec 2007
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