It seems the odds are stacked against manufacturers at the moment with the strong Australian dollar and the high labour costs of operating in Australia.
These two factors are often cited in reports of manufacturers collapsing and others moving their operations offshore.
But today I’ve spoken to three manufacturers who are not only surviving, but are actively thriving in these less than ideal conditions.
Textor Technologies, Anca and Clipsal are all great examples of Aussie manufacturers which are giving it a go.
All three compete on a global level by investing in top technology to remain price competitive.
They are defying the trends by manufacturing in Australia and Phillip Butler, the head of Textor, can even see a silver lining for manufacturers in the high Aussie dollar.
These manufacturers understand what it is like to be a successful manufacturer in a high cost economy rather than holding their breath and hoping for the dollar to fall.
Hope is not the best strategy, given experts are predicting the strong dollar is set to continue despite the drop in Australia’s terms of trade because it is now seen as a safe haven currency.
Textor, Anca and Clipsal have followed the lead of the Nordic countries and Germany by turning to a new wave of manufacturing which focuses on technology and innovation.
They stand in stark contrast to mass manufacturers that are not connected to global supply chains and which have not analysed the market.
With Australia coming off the back of the mining boom, as a country we need more manufacturers like Textor, Anca and Clipsal which are looking ahead, not to the past.
Cara Waters is the editor of SmartCompany. Cara was previously a senior reporter at the Financial Times website FT Adviser in London and has also worked for The Sunday Times.
