Politicians and business mavericks worldwide have been warning us, with increasing urgency, that countries like Australia need to “adapt to a globalized world.” What does this mean for the average person employed in manufacturing jobs? Well, for one thing, it means this: paying closer attention to customer demands, and providing a level of quality and customization that China and other East Asian manufacturing giants simply cannot.
Australia’s Manufacturing Role in a Global Marketplace
If it’s any consolation, Australia is far from alone when it comes to the daunting question of how to compete with Chinese and other Asian manufacturing interests. (To most, however, this means very little. What matters instead is the methods by which Aussies can actually compete in what increasingly seems like a playing field tipped to whomever is able to offer the cheapest raw materials and labour sources.)
As more and more manufacturing jobs get shipped overseas, keeping Aussie manufacturing alive has become a seemingly impossible chore. One of the lone “beacons of hope” has been the area of custom manufacturing.
While nearly all Australian manufacturing concerns struggle to compete with China’s low prices and mass manufacturing of imported goods, Aussie manufacturing concerns have taken a lesson from Germany, focusing instead on high-quality manufacturing based on a smaller-scale kind of manufacturing designed to meet more specific needs.
The Downfall of Aussie Manufacturing
A quick glance at Australian manufacturing numbers doesn’t provide a pretty picture – far from it, as a matter of fact: While unpleasant, the distinct downturn in Aussie manufacturing is a subject that can’t be ignored: from the year 1965, the employment rate in this industry has plummeted from a healthy 30.5% to a staggeringly low 7.8% in recent years.
Labor leaders have called upon the Australian government to intervene and fix this growing issue.
The “German Model,” and How Aussies Can Adopt It
Despite seemingly insurmountable odds, Germany has managed to stay ahead of the curve with their myriad factories and manufacturing concerns.
So, just what is this German model to which we’re told to strive? Should we all start eating more sauerkraut and wear lederhosen? Not exactly…
The German manufacturing process is focused on research and innovation, as opposed to sheer output. In fact, they devote more than $3 billion per year on improving their manufacturing sector, allowing them to stay ahead of the curve when it comes to innovation and quality in the manufacturing sector of the economy.
This model strives not for competition, per se; compared to China, any efforts to this end would be quite futile–especially given the low wages and, frankly, low-quality they rely on to produce their massive amounts of consumer goods.
Rather, it seeks to offer customizable, high-quality goods. Is this the new definition for what “Australian Manufacturing” means? Only time will tell.
What the New Era of Aussie Manufacturing Means for Companies
The focus on customization and quality, as opposed to mere output, means the dawn of a new day for Australian manufacturing concerns. Many factories (actually, most, if we’re being completely honest) struggle to understand what this new era means.
Here are a few of the most prevalent changes, as we see them:
- Increasing levels of productivity in factories
- Improving efficiency, while keeping a steady eye on the quality of goods being manufactured
- Reducing costs
- Improving safety measures currently in place beyond government-mandated standards
- Full compliance with all relevant Australian WH&S laws and regulations
It’s an uphill battle for any country attempting to fight the behemoth that is Chinese manufacturing, but if Aussies have proven anything through the years, it’s that they’re up for a challenge!