Swedish Trade Council in Australia 2006 THE AUTOMOTIVE INDUSTRY  AUSTRALIA Fact Pack
CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul>...
THE MANUFACTURING INDUSTRY IN AUSTRALIA IS SOMEWHAT LARGER THAN THE SWEDISH MANUFACTURING INDUSTRY - manufacturing in gene...
CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul>...
THE AUSTRALIAN PRODUCTION OF CARS AND COMMERCIAL VEHICLES TOTALS SEK 150 BILLION - relatively constant over the last 5 yea...
ALMOST 400,000 VEHICLES ARE PRODUCED IN AUSTRALIA - over 75% of these are passenger cars VEHICLE MANUFACTURERS <ul><li>2 m...
<ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>...
AROUND 340 000 CARS ARE PRODUCED IN AUSTRALIA EACH YEAR  - Majority are larger cars <ul><li>The Australian car production ...
Source: Internet; Interviews THERE ARE FOUR PASSENGER CAR PRODUCERS IN AUSTRALIA - Purchase decisions are dominantly made ...
VICTORIA AND SOUTH AUSTRALIA MAIN HUBS  FOR CAR PRODUCTION Source: Internet; Interviews Bold  =   Country head office *rou...
<ul><li>5-7 years ago, the Australian OEMs sourced almost exclusively within Australia </li></ul><ul><li>Since then, espec...
CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul>...
STRONG INCREASE IN PRODUCTION OF COMMERCIAL VEHICLES OVER LAST FIVE YEARS Commercial Vehicle Production in Australia Devel...
PURCHASE DECISIONS ARE MADE AT COUNTRY HEADQUARTERS ALSO FOR COMMERCIAL VEHICLES MANUFACTURERS Source: Internet; Interview...
THERE ARE 10 COMMERCIAL VEHICLE MANUFACTURING PLANTS IN AUSTRALIA -Victoria main hub for commercial vehicle production Sou...
<ul><li>Australia’s demand for freight is predicted to double over the coming 15 years </li></ul><ul><ul><li>Road transpor...
<ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>...
THERE ARE ABOUT 200 TIER 1 AND TIER 2 AUTOMOTIVE SUPPLIERS IN AUSTRALIA <ul><li>There are over 200 companies focusing on s...
80% OF THE PARTS IN AN AUSTRALIAN MADE CAR ARE MANUFACTURED LOCALLY Source: FAPM, IBIS industry report <ul><li>Cables, bus...
Source: FAPM AMONG T1 SUPPLIERS MOST PURCHASE DECISIONS ARE MADE IN AUSTRALIA  Top 15 T1 Suppliers HQ Campbellfield (Melou...
THE T1 SUPPLIERS ARE LOCATED NEAR THE VEHICLE OEMs -main hub in Victoria <ul><li>Sydney (NSW) </li></ul><ul><li>Dana </li>...
RELATIVELY SMALL NUMBER OF LARGER T2 SUPPLIERS  IN AUSTRALIA Source: FAPM <ul><li>Cables, bus systems, embedded systems </...
Source: FAPM ALSO AMONG T2 SUPPLIERS ALMOST ALL PURCHASE DECISIONS ARE MADE IN AUSTRALIA Top 12 T2 Suppliers HQ, Woodwille...
THE T2 SUPPLIERS ARE LOCATED NEAR THE T1 SUPPLIERS - again, main hub is in Victoria Source: FAPM Bold  =   Head office <ul...
<ul><li>OEMs are continually pressuring their suppliers for lower prices, using global suppliers as benchmarks </li></ul><...
<ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>...
THE AUSTRALIAN PRODUCTION OF MINING AND CONSTRUCTION MACHINERY EQUIPMENT TOTALS ABOUT SEK 10,2 BILLION Earth engaging eq. ...
CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul>...
RECOMMENDATIONS FOR MAKING BUSINESS WITH THE AUSTRALIAN AUTOMOTIVE INDUSTRY Recommendations for making business with the A...
<ul><li>Overview Australian industry </li></ul><ul><li>Australian Automotive industry </li></ul><ul><li>Recommendations </...
STC AUSTRALIA CAN SUPPORT SWEDISH AUTOMOTIVE SUPPLIERS IN MANY WAYS Examples of services STC Australia provides <ul><ul><l...
STC HAS HELPED SEVERAL SWEDISH COMPANIES TO DO BUSINESS WITH THE AUSTRALIAN AUTOMOTIVE INDUSTRY Examples of previous STC A...
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Fakta om fordonsindustrin - AUSTRALIA

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Fakta om fordonsindustrin - AUSTRALIA

  1. 1. Swedish Trade Council in Australia 2006 THE AUTOMOTIVE INDUSTRY AUSTRALIA Fact Pack
  2. 2. CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>
  3. 3. THE MANUFACTURING INDUSTRY IN AUSTRALIA IS SOMEWHAT LARGER THAN THE SWEDISH MANUFACTURING INDUSTRY - manufacturing in general is a very fragmented industry <ul><li>The total turnover of the Australian manufacturing industry is SEK 1,701 billion </li></ul><ul><ul><li>the Swedish manufacturing industry’s turnover is SEK 1,357 billion </li></ul></ul><ul><li>There are approximately 140,000 companies within the manufacturing industry in Australia </li></ul><ul><ul><li>1 million employees </li></ul></ul><ul><li>The machine and equipment manufacturing is the second largest industry within manufacturing </li></ul><ul><li>The average cost for an industry worker in Australia is SEK 152 per hour </li></ul>5 largest manufacturing industries in Australia Billion SEK The automotive industry amounts 8% of the total manufacturing industry Source: Australian Bureau of Statistics
  4. 4. CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>Passenger Cars </li></ul></ul><ul><ul><li>Commercial Vehicles </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>
  5. 5. THE AUSTRALIAN PRODUCTION OF CARS AND COMMERCIAL VEHICLES TOTALS SEK 150 BILLION - relatively constant over the last 5 years Vehicles and engines SEK 90 billion Motor vehicle body SEK 13 billion Components and accessories SEK 47 billion billion SEK Production cars and commercial vehicles industry in Australia Export share of production 15 % in 2005 Source: IBIS industry reports; Key Automotive Statistics 2004 (Dept of Industry Tourism and Resources)
  6. 6. ALMOST 400,000 VEHICLES ARE PRODUCED IN AUSTRALIA - over 75% of these are passenger cars VEHICLE MANUFACTURERS <ul><li>2 manufacturers </li></ul><ul><ul><li>GM Holden </li></ul></ul><ul><ul><li>Ford </li></ul></ul>LIGHT TRUCKS (41 000 vehicles) <ul><li>8-9 manufacturers </li></ul><ul><ul><li>Custom Coaches </li></ul></ul><ul><ul><li>Volgren Australia </li></ul></ul><ul><ul><li>6-7 minor body manufacturers </li></ul></ul>BUSES (900 vehicles) HEAVY TRUCKS (6 800 vehicles * ) <ul><li>3 manufacturers </li></ul><ul><ul><li>Volvo Truck / Mack </li></ul></ul><ul><ul><li>Kenworth </li></ul></ul><ul><ul><li>Iveco / International </li></ul></ul><ul><li>Trailer manufacturers </li></ul><ul><ul><li>Maxitrans </li></ul></ul><ul><ul><li>Barker </li></ul></ul><ul><ul><li>Krueger </li></ul></ul><ul><ul><li>Vawdrey </li></ul></ul><ul><ul><li>SX Trailers </li></ul></ul><ul><ul><li>Haulmark </li></ul></ul>COMMERCIAL VEHICLES (48 700 vehicles) PASSENGER CARS (340 000 vehicles**) <ul><li>4 manufacturers </li></ul><ul><ul><li>GM Holden </li></ul></ul><ul><ul><li>Ford </li></ul></ul><ul><ul><li>Toyota </li></ul></ul><ul><ul><li>Mitsubishi </li></ul></ul>Source: Internet; Interviews *excl. Trailers (6000) **incl. SUVs, excl. Utes
  7. 7. <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>Passenger Cars </li></ul></ul><ul><ul><li>Commercial Vehicles </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>CONTENT
  8. 8. AROUND 340 000 CARS ARE PRODUCED IN AUSTRALIA EACH YEAR - Majority are larger cars <ul><li>The Australian car production is concentrated on larger cars </li></ul><ul><li>A strong economy led to an increase in 2003-2004, but recently there has been a slight drop in production due to </li></ul><ul><ul><li>Strong Australian dollar favouring import </li></ul></ul><ul><ul><li>Higher petrol prices favouring smaller imported cars </li></ul></ul><ul><ul><li>New free-trade agreements with Thailand and the US, making import tariff free from these markets </li></ul></ul><ul><ul><li>General tariffs on imported cars has dropped from 15 % to 10 % in 2005 and are scheduled to drop from 10 % to 5 % in 2010. </li></ul></ul>Passenger Car Production in Australia Development the last 5 years Vehicles
  9. 9. Source: Internet; Interviews THERE ARE FOUR PASSENGER CAR PRODUCERS IN AUSTRALIA - Purchase decisions are dominantly made at country headquarters Passenger Cars Passenger cars Passenger cars Passenger cars Passenger cars Business HQ, Adelaide (SA), Australia 2,000 Mitsubishi HQ, Melbourne (VIC), Australia 4,500 Toyota HQ, Melbourne (VIC), Australia 5,000 Ford HQ, Melbourne (VIC), Australia 8,200 GM Holden Purchase decisions Employees Manufacturer
  10. 10. VICTORIA AND SOUTH AUSTRALIA MAIN HUBS FOR CAR PRODUCTION Source: Internet; Interviews Bold = Country head office *round off real production <ul><li>Adelaide (SA) </li></ul><ul><li>GM Holden </li></ul><ul><li>Mitsubishi </li></ul>380 Camry Falcon (incl Fairlane) Territory Caprice, Statesman, Commodore Engines Models and focus 30,000 Tonsley Park, (Adelaide, SA) Mitsubishi 100,000 Melbourne (VIC) Toyota 85,000 Broadmedows, (Melbourne, VIC) Ford 125,000 315,000 (engines) Elisabeth, (Adelaide, SA) Port Melbourne, (Melbourne, VIC) GM Holden Production volume* Plant Manufacturer <ul><li>Melbourne (VIC) </li></ul><ul><li>Ford </li></ul><ul><li>GM Holden </li></ul><ul><li>Toyota </li></ul>
  11. 11. <ul><li>5-7 years ago, the Australian OEMs sourced almost exclusively within Australia </li></ul><ul><li>Since then, especially Ford and GM-Holden have increased their global sourcing dramatically </li></ul><ul><ul><li>Currently 80% of content are sourced locally, this is expected to decrease even further to 55% over the coming five years </li></ul></ul><ul><ul><li>Toyota and Mitsubishi are still more focused on working with local suppliers </li></ul></ul>Strong government support Increased import and export Increased global sourcing <ul><li>A stronger Australian dollar, free trade agreements as well as general reduction of tariffs on cars (from 15% to 10% in 2005 and down to 5% in 2010) has led to more competition from imported cars </li></ul><ul><ul><li>As a response, Australian OEMs have significantly increase its export, from 5 bn SEK in 1996 to almost 20 bn SEK in 2005 </li></ul></ul><ul><li>To support the domestic industry, the Australian automotive producers has received more than 10 bn SEK of assistance from the government over the past three financial years </li></ul>THE PASSENGER CAR INDUSTRY IS SUPPORTED BY THE AUSTRALIAN GOVERNMENT Trends within the Australian passenger car industry Source: Internet; Interviews
  12. 12. CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>Passenger Cars </li></ul></ul><ul><ul><li>Commercial Vehicles </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>
  13. 13. STRONG INCREASE IN PRODUCTION OF COMMERCIAL VEHICLES OVER LAST FIVE YEARS Commercial Vehicle Production in Australia Development the last 5 years Vehicles <ul><li>The commercial vehicle production in Australia is dominated by light trucks (mainly so called utes) </li></ul><ul><ul><li>Often purchased by smaller business owners due to versatility and favorable tax treatment </li></ul></ul><ul><ul><li>A strong economy has led to a substantial increase in demand over the last five years for these </li></ul></ul><ul><li>Demand for heavy trucks have also increased significantly due to the strong economy and high levels of business investments </li></ul><ul><ul><li>All local manufacturers of heavy trucks have increased production as a result </li></ul></ul>Source: Internet; Interviews
  14. 14. PURCHASE DECISIONS ARE MADE AT COUNTRY HEADQUARTERS ALSO FOR COMMERCIAL VEHICLES MANUFACTURERS Source: Internet; Interviews Commercial vehicles HQ, Melbourne (VIC), Australia Busses 250 Volgren Australia HQ, Melbourne (VIC), Australia Light Trucks/Utes 8,200 GM Holden HQ, Melbourne (VIC), Australia Light Trucks/Utes 5,000 Ford HQ, Sydney (NSW), Australia Busses 480 Custom Coaches HQ, Brisbane (QLD), Australia Heavy Trucks 1,300 Volvo Trucks / Mack HQ, Melbourne (VIC), Australia Heavy Trucks 750 Kenworth Heavy Trucks Business HQ, Melbourne (VIC), Australia 450 IVECO / International Purchase decisions Employees Manufacturer
  15. 15. THERE ARE 10 COMMERCIAL VEHICLE MANUFACTURING PLANTS IN AUSTRALIA -Victoria main hub for commercial vehicle production Source: Internet; Interviews Bold = Country head office *round off real production <ul><li>Melbourne (VIC) </li></ul><ul><li>Ford </li></ul><ul><li>IVECO </li></ul><ul><li>Kenwoth </li></ul><ul><li>Volgren </li></ul>200 Busses, 5 models Melbourne (VIC), Perth (WA) Volgren Australia 20,000 Light Trucks / Utes, 4 models Elisabeth, (Adelaide, SA) GM Holden 21,000 Light Trucks / Utes, 1 main model Broadmedows, (Melbourne, VIC) Ford 230 Busses, 7 models Sydney (NSW), Adelaide (SA), Gold Coast (QLD) Custom Coaches 2,650 Heavy Trucks, 11 Volvo models, 11 Mack models Brisbane (QLD) Volvo Trucks / Mack 2,500 Heavy Trucks, 9 models Bayswater, (Melbourne, VIC) Kenworth Heavy Trucks, 5 models Models and focus 1,650 Dandenong, (Melbourne, VIC) IVECO / International Production volume* Plant Manufacturer <ul><li>Perth (WA ) </li></ul><ul><li>Volgren </li></ul><ul><li>Brisbane (QLD) </li></ul><ul><li>Volvo </li></ul><ul><li>Gold Coast (QLD) </li></ul><ul><li>Custom Coaches </li></ul><ul><li>Sydney (NSW) </li></ul><ul><li>Custom Coaches </li></ul><ul><li>Adelaide (SA) </li></ul><ul><li>Custom Coaches </li></ul><ul><li>GM Holden </li></ul>
  16. 16. <ul><li>Australia’s demand for freight is predicted to double over the coming 15 years </li></ul><ul><ul><li>Road transport expected to account for majority of this increase </li></ul></ul><ul><ul><li>The domestic production (as well as import) of light and heavy commercial vehicles is expected to see stable volumes as a result </li></ul></ul>High freight transport demand High level of customization <ul><li>Commercial vehicles in Australia are subject to high levels of customisation </li></ul><ul><ul><li>The Australian market has unique applications, and some of the harshest conditions in the world for commercial vehicles </li></ul></ul>Increased global sourcing <ul><li>The strong trend of global sourcing is affecting also the commercial vehicle industry in Australia and is significantly reducing local content in these vehicles </li></ul>COMMERCIAL VEHICLE INDUSTRY IN AUSTRALIA EXPECTED TO CONTINUE TO BE STRONG Trends within the Australian commercial vehicle industry Source: Internet; Interviews
  17. 17. <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>Passenger Cars and Commercial Vehicles </li></ul></ul><ul><ul><li>Commercial Vehicles </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>CONTENT
  18. 18. THERE ARE ABOUT 200 TIER 1 AND TIER 2 AUTOMOTIVE SUPPLIERS IN AUSTRALIA <ul><li>There are over 200 companies focusing on supplying the automotive industry in Australia </li></ul><ul><ul><li>In addition there are several hundred companies that have automotive companies as customers, but are not focused on this group </li></ul></ul><ul><li>There is a very high concentration of automotive suppliers in Victoria, followed by South Australia </li></ul><ul><ul><li>Mirroring the location of the OEMs </li></ul></ul><ul><li>Most companies have less than 100 employees and are family owned </li></ul>Geographical concentration of automotive suppliers Australian automotive suppliers Source: Internet; Interviews Perth Sydney Adelaide Melbourne Brisbane Low High
  19. 19. 80% OF THE PARTS IN AN AUSTRALIAN MADE CAR ARE MANUFACTURED LOCALLY Source: FAPM, IBIS industry report <ul><li>Cables, bus systems, embedded systems </li></ul><ul><ul><li>Australian Arrow </li></ul></ul><ul><ul><li>Bosch </li></ul></ul><ul><ul><li>SiemensVDO </li></ul></ul><ul><li>Power train, exhaust systems, engine parts </li></ul><ul><ul><li>Automotive Components Limited </li></ul></ul><ul><ul><li>ION Automotive </li></ul></ul><ul><ul><li>Nylex </li></ul></ul><ul><li>Cockpit, seats, dash-board, air conditioning </li></ul><ul><ul><li>Air International Group </li></ul></ul><ul><ul><li>Nylex </li></ul></ul><ul><ul><li>SiemensVDO </li></ul></ul><ul><ul><li>Autoliv </li></ul></ul>T1 SUPPLIERS Electrical systems Interior equipment Propulsion Body Running gear <ul><li>Body, glass, lighting </li></ul><ul><ul><li>Hella </li></ul></ul><ul><ul><li>Pilkington </li></ul></ul><ul><ul><li>Schefenacker </li></ul></ul><ul><li>Suspension, brakes, axles, steering, tyres </li></ul><ul><ul><li>Air International Group </li></ul></ul><ul><ul><li>Arrowcrest Group </li></ul></ul><ul><ul><li>Bridgestone </li></ul></ul><ul><ul><li>Dana </li></ul></ul><ul><ul><li>FMP Group </li></ul></ul><ul><ul><li>ION Automotive </li></ul></ul><ul><ul><li>PBR Australia </li></ul></ul>
  20. 20. Source: FAPM AMONG T1 SUPPLIERS MOST PURCHASE DECISIONS ARE MADE IN AUSTRALIA Top 15 T1 Suppliers HQ Campbellfield (Melourne, VIC) Seat belts, air bags 450 Autoliv Australia Country HQ, Mentone (Melbourne, VIC) Lighting eq. and plastic moulding 600 Hella HQ, Richmond (Melbourne, VIC) Powertrain and driveline solutions 2,800 ION Automotive HQ, Somerton (Melbourne, VIC) Interior trim and fuel tank manufacturers 800 Nylex HQ, East Bentleigh (Melbourne, VIC) Brake system solutions 900 PBR Australia HQ, England Glass components 1,600 Pilkington Country HQ, Lonsdale (Adelaide, SA) Mirrors and lighting systems 940 Schefenacker Country HQ, Heidelberg Heights (Melbourne, VIC) Electronic and interior components 350 Siemens VDO HQ, Woodwille North (Adelaide, SA) Steering gear systems and wheels 800 Arrowcrest Group HQ, Ballarat (Melbourne, VIC) Friction material 450 FMP Group Running gear Tyres Electrical Eq. Engine components Electronic components Air conditioning, steering systems and seats Business Country HQ, Fairfiled (Sydney, NSW) 1,400 Dana HQ, Clayton (Adelaide, SA) 1,600 Bridgestone Australia HQ, Germany 1,790 Bosch HQ, Dandenong (Melbourne, VIC) 1,000 Automotive Components Limited HQ, Carrum Downs (Melbourne, VIC) 715 Australian Arrow HQ, Edinburgh (Adelaide, SA) 1,400 Air International Group Purchase decisions Employees Manufacturer
  21. 21. THE T1 SUPPLIERS ARE LOCATED NEAR THE VEHICLE OEMs -main hub in Victoria <ul><li>Sydney (NSW) </li></ul><ul><li>Dana </li></ul><ul><li>Melbourne (VIC) </li></ul><ul><li>FMP Group </li></ul><ul><li>Australian Arrow </li></ul><ul><li>Bosch </li></ul><ul><li>Automotive Components Ltd </li></ul><ul><li>PBR Australia </li></ul><ul><li>Siemens VDO </li></ul><ul><li>Hella </li></ul><ul><li>Pilkington </li></ul><ul><li>ION Automotive </li></ul><ul><li>Nylex </li></ul><ul><li>Autoliv </li></ul><ul><li>Adelaide (SA) </li></ul><ul><li>Bridgestone </li></ul><ul><li>Air International Group </li></ul><ul><li>Schefenacker </li></ul><ul><li>Arrowcrest Group </li></ul>Bold = Head office Source: FAPM
  22. 22. RELATIVELY SMALL NUMBER OF LARGER T2 SUPPLIERS IN AUSTRALIA Source: FAPM <ul><li>Cables, bus systems, embedded systems </li></ul><ul><ul><li>Tyco Electronics </li></ul></ul><ul><ul><li>Forgecast Australia </li></ul></ul><ul><li>Power train, exhaust systems, engines </li></ul><ul><ul><li>Forgecast Australia </li></ul></ul><ul><ul><li>OneSteel </li></ul></ul><ul><ul><li>Orrcon Operations </li></ul></ul><ul><ul><li>Diver Consolidated Industries </li></ul></ul><ul><ul><li>GUD Automotive </li></ul></ul><ul><ul><li>Numetric Manufacturing </li></ul></ul><ul><ul><li>Arrowcrest Group </li></ul></ul><ul><li>Cockpit, seats, dash-board, air conditioning </li></ul><ul><ul><li>Nylex </li></ul></ul><ul><ul><li>Diver Consolidated Industries </li></ul></ul><ul><ul><li>Forgecast Australia </li></ul></ul><ul><ul><li>RMAX </li></ul></ul>T2 SUPPLIERS Electrical systems Interior equipment Propulsion Body Running gear <ul><li>Body, roof, glass, doors, lighting etc. </li></ul><ul><ul><li>OneSteel </li></ul></ul><ul><ul><li>BlueScope Steel </li></ul></ul><ul><ul><li>Nylex </li></ul></ul><ul><ul><li>Forgecast Australia </li></ul></ul><ul><ul><li>Orrcon Operations </li></ul></ul><ul><ul><li>RMAX </li></ul></ul><ul><ul><li>Diver Consolidated Industries </li></ul></ul><ul><li>Suspension, brakes, axles, steering, tires </li></ul><ul><ul><li>OneSteel </li></ul></ul><ul><ul><li>CMI Operations </li></ul></ul><ul><ul><li>Numetric Manufacturing </li></ul></ul><ul><ul><li>Forgecast Australia </li></ul></ul><ul><ul><li>Diver Consolidated Industries </li></ul></ul>
  23. 23. Source: FAPM ALSO AMONG T2 SUPPLIERS ALMOST ALL PURCHASE DECISIONS ARE MADE IN AUSTRALIA Top 12 T2 Suppliers HQ, Woodwille North (Adelaide, SA) Engine component parts 600 Arrowcrest Group HQ, Port Kembla (Wollongong, NSW) Flat steel products 2,800 BlueScope Steel HQ, Brunnswick (Melbourne, VIC) Passive electrical and electronics connectors n/a Tyco Electronics HQ, Maribyrnong (Melbourne, VIC) Rigid Cellular Plastics n/a RMAX HQ, Salisbury (Brisbane, QLD) Steel tube 500 Orrcon Operations HQ, Sydney (NSW) Steel pipe and tube 500 OneSteel HQ, Sommerton (Melbourne, VIC) Plastic moulding 800 Nylex Cast and extruded components Filters Non - ferrous forgings Metallic fasteners Suspension and brake components Business HQ, Adelaide (SA) n/a Numetric Manufacturing HQ, Tottenham (Melbourne, VIC) n/a GUD Automotive HQ, Melbourne (VIC) n/a Forgecast Australia HQ, Melbourne (VIC) n/a Diver Consolidated Industries HQ, Flemington (Melbourne, VIC) 650 CMI Operations Purchase decisions Employees Manufacturer
  24. 24. THE T2 SUPPLIERS ARE LOCATED NEAR THE T1 SUPPLIERS - again, main hub is in Victoria Source: FAPM Bold = Head office <ul><li>Adelaide (SA) </li></ul><ul><li>Arrowcrest Group </li></ul><ul><li>Numetric Manufacturing </li></ul><ul><li>Sydney (NSW) </li></ul><ul><li>OneSteel </li></ul><ul><li>Melbourne (VIC) </li></ul><ul><li>CMI Operations </li></ul><ul><li>Diver Consolidated Industires </li></ul><ul><li>Forgecast Australia </li></ul><ul><li>GUD Automotive </li></ul><ul><li>Tyco Electronics </li></ul><ul><li>RMAX </li></ul><ul><li>Nylex </li></ul><ul><li>Wollongong (NSW) </li></ul><ul><li>BlueScope Steel </li></ul><ul><li>Brisbane (QLD) </li></ul><ul><li>Orrcon Operations </li></ul>
  25. 25. <ul><li>OEMs are continually pressuring their suppliers for lower prices, using global suppliers as benchmarks </li></ul><ul><ul><li>3-8% annual reduction in prices expected for the coming two years </li></ul></ul>Increased focus on R&D and Engineering Outsourcing Price reductions <ul><li>To maintain profitability, most suppliers are outsourcing production of basic or semi-processed input, mainly overseas to low cost countries </li></ul><ul><ul><li>80% of suppliers expect to increase outsourcing in the coming two years </li></ul></ul><ul><li>To compete with supplier from low cost countries, Australian suppliers are increasing its focus on value added activities like engineering and R&D to better meet the demand of the OEMs and add additional value to their products </li></ul>Trends within the Australian automotive supplier industry THE AUSTRALIAN AUTOMOTIVE SUPPLIERS ARE CHALLENGED BY CONSTANT DEMANDS FOR PRICE REDUCTIONS FROM THE OEMS Source: Internet; Interviews
  26. 26. <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><ul><li>Passenger Cars and Commercial Vehicles </li></ul></ul><ul><ul><li>Commercial Vehicles </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>CONTENT
  27. 27. THE AUSTRALIAN PRODUCTION OF MINING AND CONSTRUCTION MACHINERY EQUIPMENT TOTALS ABOUT SEK 10,2 BILLION Earth engaging eq. SEK 3,8 billion Wholesale sales SEK 2,8 billion Concrete & asphalt mixers SEK 0,64 billion billion SEK Production Mining and Construction Machinery Equipment in Australia However, no production of construction equipment vehicles exist in Australia Source: IBIS industry reports Other specialised eq. SEK 1,8 billion Services, repairs, adjustments SEK 1,3 billion
  28. 28. CONTENT <ul><li>Overview Australian Manufacturing Industry </li></ul><ul><li>Australian Automotive Industry </li></ul><ul><li>Australian Construction Equipment Industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>
  29. 29. RECOMMENDATIONS FOR MAKING BUSINESS WITH THE AUSTRALIAN AUTOMOTIVE INDUSTRY Recommendations for making business with the Australian automotive industry Australia is an easy country to do business in – English is spoken and the business culture is very similar to northern Europe’s Respect should be have for the geographical distance and time difference Local support and/or presence in one form or another often a prerequisite for success Australia is more hierarchical in it’s decision making than Sweden – establishing contacts on the right level is essential Although purchasing decisions generally are made locally, global connections with the OEM parent companies are more or less a prerequisite for successfully winning business with them in Australia (e.g. GM in US, Toyota in Japan) Given Australia’s geographical isolation, although local production is no longer necessary for local success, local engineering and warehousing capabilities is still seen a major advantage from the OEM and T1 suppliers perspective The geographical isolation also creates a need for efficient supply chain management to be able to compete effectively (e.g. understand long lead time sourcing, operate HUB concepts to reduce transport costs) Source: Internet; Interviews 3. 2. 1. Country specific 3. 2. 1. Industry specific
  30. 30. <ul><li>Overview Australian industry </li></ul><ul><li>Australian Automotive industry </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>CONTENT
  31. 31. STC AUSTRALIA CAN SUPPORT SWEDISH AUTOMOTIVE SUPPLIERS IN MANY WAYS Examples of services STC Australia provides <ul><ul><li>Tailor made market research to provide answers to the most important questions the Swedish company needs to understand when entering or expanding on the Australian market </li></ul></ul>Market Analysis Aquisition screening <ul><ul><li>Screening of the Australian market to identify potential acquisition candidates and compiles profiles on these. STC also often assists in initial negotiations and operational due diligence. </li></ul></ul>Company establishment <ul><ul><li>STC handles all the administrative and legal requirements for setting-up a local subsidiary, including contacts with the authorities. Once the company is up and running, STC can also handle the ongoing administrative and financial issues, as well as provide hands-on business support </li></ul></ul>Partner search <ul><ul><li>Identification and qualification of potential Australian partners (e.g.an agent or distributor) for the Swedish supplier, utilising STC’s extensive network and experience from similar assignments </li></ul></ul>Customer Roadshow <ul><ul><li>STC identifies the most important customers on the Australian market and contacts these to create an interest for the Swedish supplier. A roadshow is planned where the Swedish suppliers visits the customers with the highest potential to initiate concrete business discussions </li></ul></ul>
  32. 32. STC HAS HELPED SEVERAL SWEDISH COMPANIES TO DO BUSINESS WITH THE AUSTRALIAN AUTOMOTIVE INDUSTRY Examples of previous STC Australia clients within the automotive industry One of the world’s leading producers of heavy trucks, buses and industrial and marine engines.. One of the world’s leading suppliers of trucks, buses, construction equipment and power systems for marine and industrial use, PROFILE COMPANY

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