Future of Manufacturing

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 wnterprise 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. […]

EPOC Enviro launch lean and nimble SAFF®10 PFAS remediation technology

Australian company EPOC Enviro today launched the SAFF®10, a compact new PFAS remediation technology developed in response to industry demand and engineered for sustainability. The SAFF®10 joins EPOC’s existing suite of SAFF® PFAS remediation technologies, and is ideal for sites with limited space, accessibility issues, and low or intermittent water flows. Surface Active Foam Fractionation (SAFF®) represents a sustainable approach to PFAS remediation, where a combination of sustainable engineering and biomimicry using air bubbles is used to rapidly ‘foam out’ more than 99 per cent of target PFAS molecules, enabling treated water to be safely returned to the environment. “PFAS pollution doesn’t always happen on a grand scale, and neither should the solution. As the smallest system in our SAFF family, the SAFF®10 is built for places where other systems simply won’t fit,” said EPOC Enviro Managing Director Peter Murphy. “With a trim footprint of just 2.3m x 4.6m, the SAFF®10 is an ‘unboxed’ versatile solution that can be housed in an existing room; positioned into a 20ft container; or mounted on a trailer for sites requiring a mobile solution,” he said. “This versatile alternative runs on EPOC Enviro’s award-winning SAFF® process, so remediators know they’re getting a proven and effective solution that removes target PFAS contaminants without the waste: same clean water outcome, smaller environmental footprint.” The SAFF®10 can comfortably process 75,000 litres a day, even in complex water chemistries and includes both primary and secondary foam fractionation for superior PFAS capture. It’s an ideal technology for remediating target PFAS contaminants in any number of applications including landfill leachates, groundwater, trade waste, mobile and fixed foam deluge system decontamination, spill incident waters, and more. Key features: Throughput up to 10m³/hr Modular, skid-based system Includes dosing capability for enhanced uptake of short chain PFAS contaminants Robust technology capable of managing […]

Why “less is more” may be the trick on ESG

By Paul Eastwood, Managing Partner of Argon & Co As pressure builds around climate action and ESG performance, organisations are feeling the heat. Regulators, investors, customers, and employees are demanding more transparency, faster progress, and deeper commitments. And in a world increasingly flooded with ESG frameworks, standards, and compliance checklists, the instinctive response can be to launch a flurry of initiatives across carbon, diversity, packaging, and human rights. To launch long lists of actions to meet multiple compliance requirements, satisfy different stakeholder groups, follow perceived best practices… But trying to do everything at once rarely delivers the desired impact. This is especially the case for mid-sized organisations, which often lack the dedicated ESG teams or specialised systems to manage the growing volume of expectations. Instead of improved ESG outcomes, doing too much can often lead to fragmented efforts, limited return on investment, and internal fatigue. Teams become overburdened. Leadership loses visibility. The pace of progress slows. Accountability is diluted. And so, even if it may feel counterintuitive, there’s actually a growing case for doing less when it comes to ESG, in order to gain more. Because by narrowing focus to the ESG areas that matter most, organisations can align sustainability with business priorities and deliver outcomes that are clear, credible, and lasting. This is often both more manageable, and also more effective. So how exactly can organisations identify a smaller set of high-impact areas in which to direct ESG efforts that align with business relevance, operational capability, and stakeholder value? What moves the needle, matters The trick is to remember that not all ESG initiatives are created equal. The Pareto Principle – the idea that 20 percent of efforts drive 80 percent of results – dictates that a handful of well-chosen actions can deliver the lion’s share of impact. This […]

Would a corporate tax cut boost productivity in Australia?

Isaac Gross, Lecturer in Economics, Monash University The first term of the Albanese government was defined by its fight against inflation, but the second looks like it will be defined by a need to kick start Australia’s sluggish productivity growth. Productivity is essentially the art of earning more while working less and is critical for driving our standard of living higher. The Productivity Commission, tasked with figuring out how to get Australia’s sluggish productivity back on track, is pushing hard for corporate tax cuts as a key part of their plan for building a “dynamic and resilient economy”. The idea? Lower taxes will attract more foreign investment, get businesses spending again and eventually boost workers’ productivity. Commission chair, Danielle Wood, said last week while the commission wanted to create more investment opportunities, it was aware this would hit the budget bottom line: So we’re looking at ways to spur investment while finding other ways we might be able to pick up revenue in the system. The general company tax rate is currently 30% for large firms, and there’s a reduced rate of 25% for smaller companies with an overall turnover of less than A$50 million. What the textbooks and other countries tell us The Productivity Commission’s theory makes sense: if you make capital cheaper and you should get more of it flowing in. A larger stock of capital means there is more to invest in Australian workers. This should make us more productive and help boost workers’ wages. And looking overseas, the evidence mostly backs this up. A meta-analysis of 25 studies covering the US, UK, Japan, France, Germany, Canada, Netherlands, Sweden, Italy, Switzerland, Denmark, Portugal and Finland found every percentage point you slice off the corporate tax rate brings in about 3.3% more foreign direct investment. Other research shows multinational companies really do move their operations […]

Do or die: Why “transformation at scale” is now a must for Australian manufacturers

By Paul Eastwood Australian Managing Partner of global management consultancy, Argon & Co Australian manufacturers can’t survive on a BAU basis. The game has changed and it’s no longer about incremental improvements in the world of manufacturing – it’s about transformation at scale. So this is a wake-up call for CEOs: if your factories don’t have key capabilities embedded in their operating model, your business could be obsolete before the decade is out. And the reason for this relates to a number of coalescing factors. Stiff competition from countries with lower labour costs and larger industrial bases – think China, India, and Vietnam – combined with Australia’s high wages, energy costs, and regulatory burdens are creating enormous cost pressures. Only transformative changes like automation, digitisation, or shifting to advanced manufacturing can offset these pressures. Events like COVID-19 exposed Australia’s weak sovereign capabilities, and occurred at roughly the same time that sustainability demands shot up from consumers, investors, and governments. Both of these factors call for reimagined supply chains, not just optimising existing ones. And massive technology shifts caused by the rise of Industry 4.0 and innovations based in AI, robotics, IoT, and 3D printing mean the industry is evolving fast. There’s no time to watch and see. Because in just a short time, the winners and losers within the manufacturing sector will become apparent. But it’s not all doom and gloom. If you want to be a technology winner – one with an intelligent, connected and adaptive factory – there are five pillars that aren’t just operational enhancements but strategic imperatives. Below are the five key elements that separate future-ready enterprises from those still playing catch up – i.e. the losers. Master Data At the foundation of every digital transformation lies one critical asset: data. And not just any data. […]

ON Accelerate 9 showcases national innovation potential in deep tech

CSIRO, Australia’s national science agency, celebrated the progress and achievements of its latest ON Accelerate cohort at a showcase in Melbourne yesterday. ON Accelerate tackles the barriers that hold deep tech research back, fast-tracking breakthrough ideas into real-world applications and market-ready ventures. The showcase highlighted the incredible strides made by the 11 deep tech teams since the three-month program began in April. Each team was selected for their groundbreaking solutions and ideas at the cutting edge of technology, including drug development, healthcare delivery and sustainability. The ON Accelerate 9 cohort has collectively reached several key milestones, including over $33.8 million in grant funding and capital investment, demonstrating their potential to address critical market needs and drive financial progress. Each of the 11 teams achieved technology validation through the program, with their accomplishments ranging from advancing novel medical treatments and diagnostic tools to developing sustainable industrial solutions. Dr Jen Taylor, Executive Director of Future Industries at CSIRO, highlighted the impact of this year’s cohort in industries vital to Australia’s future, including biotech and healthcare innovation. “We’re incredibly proud to support the next wave of Australian researchers endeavouring to solve society’s most critical challenges,” Dr Taylor said. “Establishing connections with the broader innovation ecosystem, including mentors, investors and customers, is crucial for success, yet no easy feat, and continues to be a key barrier impacting Australian research translation. “We’re committed to breaking down these barriers and unlocking pathways for success, ensuring this cohort continues on its impressive growth trajectory to boost Australia’s global research competitiveness and contribute to future economic growth.” Dr Brennan Mills of I-VADE, from Edith Cowan University, was announced as the ON Accelerate 9 recipient of the esteemed 2025 Stanford Australia Foundation Hawkins Ueland & CSIRO ON scholarship. The scholarship offers an ON Accelerate alum the opportunity to […]

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Future of Manufacturing