SYSPRO APAC CEO Speaks About Remanufacturing in Australia


The Australian Made movement is working to bring manufacturing back to local shores. But for the drive to reshape relations to work, we need to be more competitive against our advanced Asian neighbors. The need for digital transformation across the entire Australian manufacturing sector has never been more important, especially now as a global recession appears to be looming.

According to McKinsey & Company Economic Conditions Forecast, September 2022 Survey inflation, energy prices, geopolitical instability and rising interest rates are reported as potential risks to economic growth in the Asia-Pacific region in the next 12 months. Rising inflation fears have lowered fears of supply chain disruptions to the fifth most cited risk to economies.

Closer to home, Australian Bureau of Statistics’ Monthly Business Turnover Index, August 2022 It found that compared to July 2022, the manufacturing sector recorded a 4.1% increase in turnover. It was among the top three industries out of 13 to record the largest increases in monthly sales. This follows July datawhich found that after posting five consecutive monthly increases, manufacturing turnover fell 3.8%.

As COVID has completely disrupted the market and rising inflation threatens the economy, manufacturers must renew their focus on digital strategies to continue growing their business, being competitive and meeting the increasing demands of the market. Our ability to compete on a global scale will only be achieved if there is widespread adoption of advanced Industry 4.0 technologies, automation and innovation as an opportunity to help companies stay strong.

Strengthening the need to rehabilitate Australian manufacturing

The relocation trend has been stimulated by the desire to prove critical supply chains in the future due to high market demand and the ongoing disruptions caused by the pandemic. What we have learned through COVID is that those companies that already produce goods locally, with advanced manufacturing at their core, have the flexibility to focus quickly and support Australia’s needs.

This flexibility will prove more valuable if we head into a recession. However, the Ai Group’s Australian Manufacturing Performance Index (Australian PMI), September 2022, increased by 0.9 points to 50.2 points in September 2022 (a score above 50 points indicates expansion). September is only the second month of stable results since February. While chemicals, machinery and equipment were among the seven activity indicators that did not shrink, inventories were stable and new orders showed solid growth. Sales, delivery and exports were also moderately positive.

Regardless of what industry and economic data show, it is important that manufacturers do not lose sight of the opportunities that challenges can create. For example, the re-supply trend in recent years has provided opportunities to reduce manufacturing disruptions while maintaining customer satisfaction through better supply chain management.

‘Australian Made’ can be a badge of quality manufacturing

There is strong demand for Australian-made goods, especially since the start of the pandemic. It has opened many people’s eyes to the importance of Australian made products and how we can all play our part by prioritizing Australian products to help strengthen the economy and boost our labor market.

One area with huge potential for the manufacturing sector is batteries, which are expected to increase tenfold over the next decade, according to a report by Future Battery Industries CRC for the Australian government. It revealed that by 2030 the battery industries could contribute $7.4 billion annually to the Australian economy and create up to 35,000 jobs.

The nation is uniquely positioned to capitalize on this growth through the Australian-made battery scheme. We should be able to manufacture batteries locally, given the vast natural resources required, including lithium. Most of these resources are currently shipped overseas for processing. Energy storage systems are in great demand by the rest of the world, so making the most of this opportunity is critical.


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