Future of Manufacturing

Australia’s Economic Reform Roundtable August 21-25, Canberra – a focus on Productivity

Decades of strong and continuous growth cemented Australia’s reputation as the “lucky country.” Most Australians took this economic exceptionalism for granted. And who could blame them? It was just a fact of life. While economic engines elsewhere faltered with bursting bubbles and financial crises, Australia powered ahead. Yet, around 2016, Australia’s economic engine started running out of puff and is now at risk of stalling. In the golden years (1993–2016), per capita GDP grew at 1.8 per cent a year. The post-2016 growth rate has averaged just 0.6 per cent, and, since 2020, it has been negative. Above decks, many missed the trouble brewing in the engine room. An extended mining boom, strong population growth, and a massive stimulus bump during the pandemic years kept the party going. Optimism prevailed: This is Australia, things are different here, and “she’ll be right, mate.” Up on the bridge in Canberra, lagging indicators masked slowing underlying momentum. Inflation, terms of trade, and immigration propped up headline economic numbers and the budget. At the same time, the passengers—especially older, first-class passengers—were buoyed by some of the world’s highest house prices. Since 2008, the average net wealth of Australians has doubled, remaining on par with the United States as the highest per capita among major economies. As much as 70 per cent of this increase came from property values. Spending by older home-owning cohorts remains healthy, while younger Australians—who have record-low home ownership—are tightening their belts. Now, Australia’s economic doldrums are increasingly apparent. In recent years, living standards in Australia have declined faster than in any other developed economy. Consumer prices, mortgage interest repayments, and income tax have increased sharply. At the same time, Australian real incomes are 2 per cent below their pre-pandemic high, while those of the Organisation for Economic Co-operation and Development […]

Economic Reform Roundtable :Productivity

Australia is holding a roundtable on Productivity this month Lifting productivity is critical to growth in real wages, incomes, jobs and overall living standards. It needs to be done in a sustainable and inclusive way to ensure all Australians can benefit. Recent trends Lower growth in labour productivity has been a longstanding challenge for Australia. Australia’s average productivity growth in the 2010s was at the lowest rate in 60 years . – Reflecting this slowdown, Treasury downgraded its long-run annual labour productivity growth assumption from 1.5 to 1.2 per cent in 2022. – Even small movements in productivity growth will have large impacts on wages and living standards over time. The 2023 Intergenerational Report found that a decline from 1.2 per cent to 0.9 per cent growth per year would reduce per capita real income by more than $10,000 per person in 40 years’ time. This challenge is not unique to Australia, with labour productivity over the past decade slowing in most major advanced economies. A number of countries, including the United States, Canada and New Zealand have also downgraded productivity growth assumptions in official forecasts. Australia’s productivity slowdown has been broad based. Productivity growth in the market sector, excluding mining, has slowed over time. This has been compounded by weaker productivity growth in the non-market sector and mining industry in more recent years. Productivity growth accelerated temporarily during the COVID-19 pandemic before reversing. Productivity returned back to levels observed in 2019 as employment and consumption trends normalised and the labour market recovered strongly. – During this recovery, strong capital growth still did not keep pace with growth in hours worked, resulting in a decline in the capital to labour ratio which has weighed on recent productivity growth. – Treasury and the Reserve Bank of Australia (RBA) are monitoring the […]

While Tech Giants Build Humanoid Robots, This Australian Startup Solves the Harder Problem First

MotionLogic Selected as Finalist in Australia’s First AI and Robotics Sprint NEWCASTLE: Traversal Labs has been selected as a finalist in the inaugural Propel-AIR program, Australia’s first dedicated AI and Robotics Sprint, with their MotionLogic platform. While the world’s largest tech companies pour billions into building humanoid robots, Newcastle-based Traversal Labs has taken a contrarian approach. They’re teaching machines to understand human work patterns first. Their MotionLogic platform transforms ordinary factory video into detailed maps of human motion and interaction. This creates precise training data future robots need to work safely alongside people. “Everyone’s building the robot body,” said Alex McClung, founder of Traversal Labs. “We’re building the robot’s understanding of how humans actually work.” The AI-powered platform analyses camera footage to extract key performance data. It measures motion waste, task breakdowns, safety risks, and ergonomics. Workers’ movements are tracked in 3D space, measuring everything from walking distance to joint angles and tool handling efficiency. Australian Innovation Gains Industrial Traction MotionLogic is already deployed with enterprise clients in the heavy-manufacturing sector, with negotiations underway in the Aerospace, Rail, and Maritime sectors focusing on customers with complex assembly processes. The technology delivers immediate value through process optimization. A typical deployment reveals insights like total walking distance per shift, frequency of awkward postures, and opportunities for improved factory layout. The software provides production staff with detailed visibility into when tools are active versus idle and when workers are engaged in task-time versus non-task-time. But the long-term value lies in robotics training data. “Just as self-driving car companies use real-world driver data to train autonomous vehicles, MotionLogic feeds real-world human work patterns into industrial robot training,” McClung explained. From Ergonomics to Automation The platform’s multi-layered approach captures three distinct layers. The person layer tracks ergonomics and body movement. The tool layer monitors interaction […]

Fuel and fertiliser for the future: regional hydrogen and ammonia power Aussie farming

Hiringa Energy, Sundown Pastoral Company and the NSW Government have announced Financial Close has been reached on their Good Earth Green Hydrogen and Ammonia (GEGHA) project. GEGHA has satisfied all development milestones, with construction scheduled to begin in October this year. This achievement highlights the sustained opportunity for Australia’s green hydrogen industry, proving right-sized, demand-led projects can succeed. The GEGHA project is an integrated solar energy to low-carbon hydrogen and ammonia operation. Once complete the plant will be located adjacent to Sundown’s Joint Venture Wathagar cotton ginning facility, near Moree NSW. GEGHA will produce up to 4,500 tonnes of low-carbon ammonia annually, displacing high-carbon fossil fuel-based nitrogen fertilisers and removing up to 17,000 tonnes of CO₂-equivalent emissions each year – the same as taking 6,500 passenger cars off the road or planting half a million trees. GEGHA fertiliser will be consumed by Sundown to support production of its positive net-zero, traceable Good Earth Cotton, with excess supply also available for other regional growers. In addition to ammonia production, the facility will supply ~224 tonnes of green hydrogen per annum for direct use. Green hydrogen is set to be consumed as part of Hiringa’s heavy-vehicle refuelling network, as well as on-farm to displace diesel in irrigation pumping, further decarbonising the agricultural supply chain from paddock-to-port. “Getting the green light for green fertiliser production isn’t just about producing low-carbon ammonia,” says Hiringa co-founder and CEO Andrew Clennett. “It’s a model for overcoming the obstacles that have held back the establishment of these new green industries. By strategically partnering with Sundown Pastoral Co, we’re anchoring demand with supply to meet the immediate needs of the agricultural sector.” Transforming supply chains GEGHA will offer East Coast Australia’s first green fertiliser supply, delivering regional producers with competitive, stable pricing for their fuels and feedstocks. […]

China’s greening steel industry signals an economic reality check for Australia

Cristoph Nedopil, Director Griffith Asia Institute, Griffith University Australia has flourished as an export powerhouse for decades. Much of this prosperity has been driven by the nation’s natural endowment with two important raw products for producing steel the traditional way: iron ore and metallurgical coal. Worth more than A$100 billion in 2024, Australia’s iron ore shipments to China make up about 55% of everything we export there. But a transformation has been taking place in China’s steel industry, which is under intense pressure to decarbonise. Earlier this year, Beijing formally expanded its national emissions trading scheme to cover steel production. And just this month, it issued another decree requiring steelmakers to increase their share of green energy in steel production. Prime Minister Anthony Albanese’s recent visit to China may have looked like a celebration of normalised diplomatic or trade ties. Behind the scenes was a quiet but critical economic pivot. Australia’s economic future depends on whether it can green its exports fast enough to meet the decarbonisation needs of its biggest market. A greener China In China, no new permits for coal-based steelmaking appear to have been issued since early 2024. However, China has been approving new, greener steelmaking capacity, using electric arc furnace (EAF) technology, the main low-emissions technology in steel. These furnaces use high-voltage electric arcs, powered ideally by green energy, to melt scrap steel or what’s known as direct reduced iron (DRI). Through that process, they limit carbon emissions by reducing the use of thermal coal for electricity and metallurgical coal for iron making in blast furnaces. In total, China has now installed enough electric arc furnaces to produce more than 160 million tonnes of steel annually. That’s about the same as the total steel output of Japan and the United States combined. China’s current 10% share of steel production from electric arc furnaces still remains below the country’s 15% target. But […]

Does AI actually boost productivity? The evidence is murky

-John Whittle, Director, Data61, CSIRO There’s been much talk recently – especially among politicians – about productivity. And for good reason: Australia’s labour productivity growth sits at a 60-year low. To address this, Prime Minister Anthony Albanese has convened a productivity round table next month. This will coincide with the release of an interim report from the Productivity Commission, which is looking at five pillars of reform. One of these is the role of data and digital technologies, including artificial intelligence (AI). This will be music to the ears of the tech and business sectors, which have been enthusiastically promoting the productivity benefits of AI. In fact, the Business Council of Australia also said last month that AI is the single greatest opportunity in a generation to lift productivity. But what do we really know about how AI impacts productivity? What is productivity? Put simply, productivity is how much output (goods and services) we can produce from a given amount of inputs (such as labour and raw materials). It matters because higher productivity typically translates to a higher standard of living. Productivity growth has accounted for 80% of Australia’s income growth over the past three decades. Productivity can be thought of as individual, organisational or national. Your individual productivity is how efficiently you manage your time and resources to complete tasks. How many emails can you respond to in an hour? How many products can you check for defects in a day? Organisational productivity is how well an organisation achieves its goals. For example, in a research organisation, how many top-quality research papers are produced? National productivity is the economic efficiency of a nation, often measured as gross domestic product per hour worked. It is effectively an aggregate of the other forms. But it’s notoriously difficult to track how changes in individual or organisational productivity translate into national GDP per hour worked. […]

DroneShield's current in-house production facility in central Sydney

DroneShield to invest as it expands manufacturing capacity

DroneShield will invest an initial A$13M in a major new R&D and manufacturing facility, triple the size of its current facility, as it expands its annual manufacturing capacity to $2.6BN by the end of 2026. The company’s largest facility is expected to open in December 2025 and will feature advanced in-house production, testing and warehousing capabilities. The existing production floor in Alexandria,central Sydney will be converted into an additional R&D area for the Company, resulting in a 5,530sqm total R&D area. It follows DroneShield securing a $61.6M European military contract followed shortly by $9.7M million Latin American and $11.7M Five-Eyes R&D deals. ‘In response to rising threats and multiple wars taking place across the globe, Australia’s allies are increasing investment in modern defence capabilities. We are stepping up to meet this demand by investing in state-of-the-art facilities here and abroad, and in sovereign Australian skills development to provide the most modern and effective counter-drone capabilities in the world. Our new facility in Alexandria will epitomise the value Australian engineering can bring to a changing geopolitical landscape’, said DroneShield CEO Oleg Vornik. R&D and Manufacturing Capacity Expansion DroneShield is committing to invest $13 million in a significant R&D and manufacturing capacity expansion New dedicated 3,000sqm of own production space (3x the floorspace of the current production facility) Addition of 2,500sqm to the R&D area in its headquarters, for engineering and lab space Together with planned expansions to its Australian contract manufacturing, and plans to set up contract manufacturing in Europe and the US, the current $500 million annual manufacturing capacity is estimated to expand to $2.4 billion, by the end of 2026 The expansion in Australia is concurrent with DroneShield’s European and US manufacturing initiatives, against the backdrop of record global demand The $13 million amount refers to 5 years of initial […]

Robotics, automation and supply chain challenges to headline at Sydney-based industry conferences

CeMAT Australia and Industrial Transformation Australia will host the largest gathering of professionals in manufacturing, warehousing and logistics. The Dome at Sydney Olympic Park will host the co-located CeMAT Australia 2025 and Industrial Transformation Australia 2025 events from Tuesday 22 to Thursday 24 July. Over three days attendees will have access to a range of expert-led sessions from local and international presenters, and will be able to connect with 200 exhibitors across both events. The Australian Forklift Championships will be hosted as part of CeMAT Australia with the official battle taking place on Wednesday 23 July and additional corporate teams and live demonstrations happening on Thursday 24 July. Agenda highlights for CeMAT Australia 2025: Opening keynote – State of the Nation | Julian Brancaccio, Supply Chain & Logistics Association of Australia Special unveiling – Rise to New Dimensions: Introducing AeroBot – the Future of AI-driven Fulfilment | Michael Kemeny, KNAPP Australia Green is the new lean – Why Carbon-Smart Supply Chains is the Next Competitive Advantage | Claire Bull, Extolla View the full agenda here: https://www.cemat.com.au/agenda Agenda highlights for Industrial Transformation Australia 2025: Keynote – Megatrends shaping the next decade of Advanced Manufacturing Australia’s big move in the evolution of industry 4.0 | Henrik von Scheel, Industry 4.0 Originator Keynote – The Future of Manufacturing: Operate to Grow | John Broadbent, Realise Potential Robotic Picking & Handling Using Vacuum Technology | Michal Vigoda, Schmalz Australia View the full agenda here: https://www.industrialtransformation.com.au/agenda 2025 Exhibition CeMAT Australia, Industrial Transformation Australia, and the Processing & Packaging Pavilion – powered by APPMA, will host over 200 exhibitors showcasing the latest innovations in intralogistics, robotics and automation, warehousing, supply chain management, and materials handling. The events will also feature leaders in advanced manufacturing, and distributors and importers of packing and processing machinery serving key sectors […]

Rockwell Automation’s ROKLive 2025 brings the connected enterprise to life on the Gold Coast

Manufacturing, mining, utilities, food and beverage, and broader industry learn from practical hands-on displays at flagship event ROKLive 2025 will include more than 50 hands-on lab sessions designed to enhance knowledge and skills in topics like artificial intelligence, digital transformation, machine performance optimisation, and operational efficiency improvements. Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, has unveiled its programme for ROKLive 2025 on the Gold Coast, from July 29-31. The event will bring more than 500 industry professionals together to explore innovative solutions to complex production challenges and to discuss strategies for achieving greater efficiency, resilience, agility, and sustainability. “ROKLive is our biggest event in Australia and New Zealand, and what really sets it apart are the hands-on lab sessions where participants can gain practical experience with the latest technologies. This year we have more than 50 of these across the three days,” said Adrian Giecco, regional director, South Pacific, Rockwell Automation. “Other highlights include the Connected Show Floor, an expanded and dynamic exhibition space featuring the latest Rockwell Automation and PartnerNetwork™ solutions, as well as the FIRST Robotics League Competition,” said Giecco. The FIRST Robotics League Competition will see aspiring young engineers and programmers demonstrate their skills in robotics, highlighting the future of STEM and Automation in Australia and New Zealand. New product launches ROKLive 2025 will also see the launch of a series of new Rockwell Automation products, which will be displayed for the first time in Australia: ControlLogix 5590, a Next Gen Controller, and one of the most significant upgrades in a decade to one of Rockwell Automation’s core products, designed for higher performance, enhanced redundancy, expanded motion/network capabilities, and built-in safety and security. PointMax I/O,built from the ground up leveraging learnings from more than 20 years of development, Pointmax I/O is a […]

Nexobot selected as finalist in Australia’s first AI and Robotics sprint

Nexobot has been selected as one of six finalists in the inaugural Propel-AIR program, Australia’s first dedicated AI and Robotics Sprint. The Melbourne logistics company will now compete for the opportunity to work with and alongside MassRobotics in Boston, the global epicentre of robotics innovation, with its low-cost parcel sorting platform. Proven Technology with Growing Demand Nexobot enables regional and small-scale logistics operators to automate parcel sorting for the first time through the world’s lowest-cost robotics solution. “We’re not a deep-tech company—we’re a wide-tech company,” says Dominic Lindsay, Founder and CEO of Nexobot. “Our goal isn’t to serve the top 1%, it’s to give thousands of small Australian businesses access to robotics that save labour, improve accuracy, and enhance safety from day one.” While established players deploy sorting robots achieving 1,000+ parcels per hour with 99% accuracy, these solutions require substantial infrastructure investments and technical expertise. Nexobot’s breakthrough delivers comparable performance over 99.9% accuracy through simple, modular systems that regional operators can actually afford and implement. The system cuts worker walking distance from 40 metres per carton to just 6 metres, while boosting sorting throughput from 80 items per hour manually to 500+ items per hour automated. Seasonal Peak: Premium vs Pay-per-Carton Major logistics providers use premium robotics solutions to handle seasonal peaks. These systems typically require million-dollar investments and dedicated technical teams. Nexobot’s pay-per-carton model eliminates capital barriers, making automation accessible to 250+ regional logistics operations across Australia. Nexobot’s first live deployment operates in regional Victoria out of Warragul, where the system delivers measurable improvements in productivity, safety, and sorting accuracy. Commercial Traction Regional logistics operations represent over 250 potential deployments in Australia alone, that mirror the successful Warragul implementation. Additionally, developing economies across Southeast Asia, Africa, and Latin America offer strong demand where traditional automation remains commercially unviable. […]

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Future of Manufacturing