1. Bill Petreski
Principal Adviser

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