The Challenges Faced

by Australian

Manufacturers

Mainpac

Address: Suite 201, 10 – 12 Clarke Street,

Crows Nest, New South Wales, Australia

2065

Phone: Australia - 1300 624 672,

International +61 2 9779 1160

Email: info@mainpac.com.au

The manufacturing industry of Australia experienced a large-scale decline

over the past couple of years. This drop then created

huge gaps that were excitedly filled by hungry

businesses. At the same time, the issue also brought

attention to what was apparently a hollowing-out of

Australia’s traditional manufacturing sector, which now

accounts for only 6% of total economic output.

This year, the industry is still in muddy waters and is

expected to battle a couple of hurdles. The issue

concerning manufacturing skills is creating quite a gap

in the workforce, a void that is challenging the sector’s

strength. A problem regarding healthcare costs is also

putting a strain in the commercial viability of products.

At a Crossroads

The country’s manufacturing sector is at a

crossroads. Experts predict 2016 as its tipping point,

the watershed year. Before the sector reaches this

point, however, it first has to realise the challenges

and battle each one by one.

While some of the difficulties are external, such as

healthcare costs and environmental concerns, the

biggest challenge is an internal problem that needs

addressing before it eats up the entire system. A

recent survey identified planning as the most lacking

in Australian manufacturing.

A Lack of Planning

46% admitted planning as their biggest internal challenge, while 18%

identified sales. Another 18% called out product design and development

while 9% pointed out production and another 9% said warehousing and

supply chain.

It is crucial that players in the

manufacturing industry understand

how these challenges impinge on

their goals and what shifts in

thinking and action are necessary.

To fulfil the high hopes of 2016, the

industry of manufacturing has to

shift from a traditional internal view

to one that highlights demand.

A Change in Focus

Better focus on planning means

a better eye at the end goal.

Ensuring the process goes

smoothly in all levels will allow

for the delivery of services that

exceeds customer

expectations. Today’s

customers are not only more

demanding, but also more

critical in their reception and criticism.

Experts owe this change in customer perception to the shifts in social and

demographic trends. Consumers today have higher expectations. To survive

the bumpy ride this year, manufacturing industries need to plan and build a

clear, demand-focused strategy.

2016 should look good. It is pivotal the industry take this bad turn to turn up

the right corner.

References:

http://www.mainpac.com.au

http://www.manufacturingglobal.com/leadership/226/6-challenges-facing-

the-global-manufacturing-sector-in-2015

http://www.cincom.com.au/wp-content/uploads/2013/09/Challenges-in-

Australian-Manufacturing-Whitepaper.pdf