Some of the challenges facing our automotive industry – including a high Australian dollar – are unique to Australia. That’s why it’s important for companies to remember that manufacturing is a global business.
Based in Port Melbourne, Futuris Automotive now has established manufacturing plants in Australia, China, North America, South Africa and Thailand. The company has taken advantage of the global marketplace, supplying seats, trims and upholstery to car manufacturers around the world.
Just as companies shouldn’t limit themselves to one supply chain or region, sometimes it’s the product offering that needs to be varied.
Air International Thermal Systems has traditionally provided air conditioning and climate control systems to auto manufacturers. However, the company’s underlying expertise in thermodynamics has allowed it to move into battery pack designs for electric vehicles.
Businesses that understand what they are truly capable of will be more resilient and adaptable to changing market needs.
AW Bell is a family owned and operated business that has been servicing Australian manufacturers with metal parts for over 50 years. Collaborating with CSIRO through the Researchers in Business program, AW Bell developed a new process that allowed it to fabricate complex, lightweight aluminium parts faster and cheaper than conventional techniques.
This step change in capability has allowed the company to become a supplier to the global defence and aerospace industries. It has even supplied components to the Joint Strike Fighter program.
While it is widely agreed that diversification may offer solutions for our auto suppliers, there remains the small matter of timing.
The typical timeframe for a business to successfully translate an opportunity into reality is five to ten years. With only three years until the closure of the Ford, Holden and Toyota manufacturing plants, this process of translation must be accelerated dramatically. This is where a collaborative networks and harnessing expertise are most needed.
In these times of uncertainty, it is important for our manufacturers to remember there are still exciting opportunities to innovate in our manufacturing sector. The companies that tackle this challenge head on will be the ones that successfully make the transition.
On March 5 CSIRO is hosting a workshop that will bring together automotive suppliers from across Australia to explore opportunities for diversification in the manufacturing sector.
Barrie Finnin leads the Manufacturing Technologies for Transport and Mining theme within CSIRO’s Future Manufacturing Flagship.
This article was originally published at The Conversation. Read the original article.
