Ai group miicrc intro
- 2. Manufacturing • Manufacturing makes significant contributions to the Australian economy, accounting for 8% of GDP and employing around 941,000 people (8% of total employment). • Modern manufacturing has established extensive linkages across the economy both as suppliers to and as purchasers from other businesses including in extractive industries, agriculture, utilities, construction, the services sector and other manufacturers. • Manufacturing has also developed capabilities that are important contributors to Australia’s food security and defence capabilities.
- 3. SETTING THE SCENE INVESTMENT IN NEW TECHNOLOGY 80% invested in new technologies – amounting to an average annual spend of $25-billion, or 21% of total investment. 71% of those who invested in new technologies did so in an effort to improve productivity, ultimately contributing an estimated 16% of the productivity gains. High performing businesses spent 28% of their investment expenditure on new technology, close to 8% more than low performing businesses.
- 4. • The Australian manufacturing industry has undergone major tectonic shifts driven by the pressures of a high dollar, high labour costs and diversion of investment to mining and resources. • But manufacturing in Australia is transforming not disappearing. • Investment in new technologies and business model innovation are two key drivers for successful business transformation and for the future sustainability and global competitiveness in manufacturing.
- 5. INVESTING IN NEW TECHNOLOGY 11 22 33 44 55
- 6. MANUFACTURING IS TRANSFORMING Manufacturing businesses investing in automation or control equipment and robotics as well as electronics and systems integration. Far from relying on ‘off the shelf’ technologies however, businesses are customising technology to meet specific needs. Close to 25% developed new technologies internally through R&D. Only 4% reported that their acquisition of new technologies occurred as a result of collaboration with research organisations. All Computer Hardware 47.1 Other machinery and equipment 35.8 Automation or control equipment 19.5 Software 19.3 Electronics and systems integration 15.2 Telecommunication equipment 10.4 E-commerce software 10.4 Instrumentation 15.2 Telecommunications systems 8.7 Robotics 5.9 Security and surveillance 4.3 Businesses were able to select multiple reasons for their investment. As a result, the numbers in the table will not sum to 100.
- 7. THE REVELATION! $9.4 Billion invested in Science and Research annually under assumption that this investment converts into disruptive technology to transform existing businesses or create start-ups Business owners will drive commercial outcomes from innovation and productivity and key infrastructure such as NBN. New model is required that focuses on Enterprise & business owner to provide vertically integrated top down approach for investing in new technology. Investment, Business owners & Entrepreneurs Network of Businesses & Facilitation Applied Research (Technology) Education and Training 4% >$25 Billion Spent on R&D $9.4 B Start-up?
- 8. The CRC is a collaborative entity