posted on November 23, 2011 10:45
The future of Australian manufacturing lies in innovation and hi-tech products
10 November 2011
Julia Gillard has urged Australian manufacturers to embrace innovation as a means to grab their share of the mining boom and pledged $1.2 million in grants to help link them to massive new mining projects.
“Encouraging investment in new technology is essential if Australia is to keep pace with international competition,” AMTIL CEO and Austech Exhibition Director Shane Infanti comments. “We need incentive programs like this ICN project developed, and quickly. We have reached a critical time and we need to implement some measures now.”
“Austech plays its part in showcasing the latest technology and provides a stimulus for investment. A government program around accelerated depreciation or another incentive to invest in capital could provide the final key.”
While Australia continues to be globally competitive in the design and manufacturing of products, Mr Infanti continues to say that “we are slowly falling below par in our investment in technology. The GFC, interest rates, access to finance, order uncertainty and the carbon tax have all played a role in creating an environment where confidence and willingness to invest is being eroded.”
The government has an important role to play in reversing this trend, and AMTIL welcomes the Prime Minister’s call she made last month when touring Hofmann Engineering in Perth, who is making components for mining equipment, describing it as a perfect example of the future of manufacturing.
Australian manufacturers and suppliers will have a greater opportunity to supply the needs of major resources projects as a result of the new initiatives. The Gillard Government will provide over $1.2 million to connect Australian companies with supply opportunities on four of our largest multi-billion dollar projects through the Industry Capability Network (ICN) program.
The four projects ICN providers will now start working on are:
• Woodside’s proposed Browse LNG project in Western Australia
• INPEX’s proposed $25 billion Ichthys LNG project in the Northern Territory
• BHP Billiton’s proposed Olympic Dam mine in South Australia
• LNG projects in the Gladstone area of Queensland with a combined value of $50 billion, that have reached final investment decision.
The Australian Government funding to the ICNs is part of the Buy Australian at Home and Abroad package announced in May to link Australian suppliers with major resources and infrastructure projects.