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Advanced manufacturing capability overview

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Australia's advanced manufacturing industry has established an international reputation for its strengths in design, quality, safety, reliability, sophisticated IP protection, customer service, innovative systems, and world class R&D capabilities.

The sector accounts for around 50 per cent of Australia's total manufacturing output and serves a diverse range of industries including aerospace, automotive, mining, machinery, defence, tooling, instruments, chemicals, plastics and appliances.

In 2004-05, Australia's manufacturing industry as a whole contributed 11 per cent to Australia's Gross Domestic Product at a value of $88.3 billion. Manufacturing exports were $67.4 billion and the industry employed 1.1 million people.

Manufacturing business expenditure on R&D totalled $3.3 billion in 2004-05. More than $9 billion was invested on new plant and equipment and foreign investment in manufacturing grew by 6.5 per cent to $23.1 billion.

There are limited statistics on the advanced manufacturing industry, however, in 2004-05 the estimated annual revenue was $2.84 billion, export revenue was $537 million and the industry employed some 12,000 people.

Advanced manufacturing segments

Advanced manufacturing tools, technologies and engineering services are predominantly, but not exclusively, found in the following industry segments:

  • Precision engineering
  • Machine tool manufacture
  • Cutting tool manufacture
  • Die/mould manufacturing
  • Robotics and other automated equipment for manufacture
  • General engineering
  • Design for manufacture

Export markets

In 2004-05, the export value of Australia's advanced manufacturing industry was estimated at $537 million.

Goods are mainly exported to the US, but New Zealand, Germany, Japan, India and the UK are also major export markets.

Exports are set to increase as a result of investment in new technology, innovation, industrial relations reform and a reduction in tariffs.

In 2005, the Australian Department of Industry, Tourism and Resources (DITR) set out an international action agenda for Australia's advanced manufacturing sector. 

By 2015, the DITR wants to see at least five $100 million revenue companies and ten $50 million revenue companies in Australia’s advanced manufacturing industry committed to integrating small to medium enterprises into global supply chains.

Areas of expertise

Automotive parts manufacturing industry

The Australian Tooling Industry is a long established supplier to both local and global vehicle manufacturers. It has built a strong reputation as a niche supplier of complex, world-class quality tooling at relatively low costs compared to its 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 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 of 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 such as Boeing 787, Airbus A350 and Joint Strike Fighter.

Other sectors of expertise include:

Innovation success stories

Well known Australian innovations in advanced manufacturing include:

  • Pioneering optical lens technology
  • The ultrasound scanner
  • Efficient solar and fuel cell technology
  • Next generation recyclable packaging
  • High speed passenger ferries
  • Polymer banknotes
  • Advanced nanomaterials
  • Advanced composite structures
  • The bionic ear
  • The black box flight recorder

(Sources: Australian Bureau of Statistics, Advanced Manufacturing Action Agenda 2006, IbisWorld 2006, Department of Industry, Tourism & Resources)

For more information please visit:

www.cmmt.csiro.au – CSIRO Manufacturing & Materials Technology
www.industry.gov.au – Department of Industry, Tourism & Resources
www.diird.vic.gov.au – Department of Innovation, Industry and Regional Development
www.amtil.com.au – Australian Manufacturing Technology Institute Ltd

 
(Last updated: 19 Aug 2007)

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