Future of Manufacturing

As the Latrobe Valley moves away from coal jobs, could a green worker’s cooperative offer a solution?

Gregory Patmore, Emeritus Professor of Business and Labour History, University of Sydney. Worker cooperatives may sound like something out of the 19th century, but they still exist in the age of global capitalism. In Spain, for instance, the Mondragon Corporation is a huge worker-run cooperative based around 95 collectives – the largest cooperative in the world. Worker cooperatives produce products or services. But they are run very differently. Workers can become members of the cooperative they work for by buying a share of the business. This gives them a vote in how the business is run and a share of net income, after costs have come out. Co-ops do not have external shareholders – the profits stay with workers. Rather than bosses deciding and workers carrying out the tasks, worker cooperatives are based on democratic principles. Big decisions are discussed and then voted on, and each member gets one vote. They offer a direct way for workers to control their production and shape the economy. In Australia, these models peaked in the 1980s. Most are gone, though a few older cooperatives are still running, such as Tasmanian recycling cooperative Resource Work Collective, founded in 1993. In recent years, there’s been renewed interest in the model. The Earthworker cooperative network focused on Victoria’s Latrobe Valley. The goal: find new types of employment and products in a coal area undergoing transition. Coal plants in the Latrobe Valley provided jobs for generations of workers. Their closure poses real challenges. Pictured: worker hardhats left on the fence at Hazelwood Power Station after it closed in 2017. Dorothy Chiron/Shutterstock How well does the model work? Mondragon is the most well-known example. Founded in 1956 in the Basque region of northern Spain, Mondragon grew and became self-sustaining. It has developed supporting institutions such as research and development companies and even a university. It also established a credit […]

Unlocking the benefits of multi-material drills

Versatile drilling offers a key to more productive manufacturing In January 2025, the World Economic Forum reported that facilities identified as part of its Global Lighthouse Network are achieving remarkable productivity gains of 70%, while simultaneously reducing energy costs by 40% and time to market by 40%. Lighthouses aside, how can all manufacturers raise their productivity, without increasing costs? Here, James Thorpe, Global Product Manager for Hole Making and Composite Machining at Sandvik Coromant, explains how a new drilling tool can enhance manufacturing production goals for multi-material applications. Beyond the Lighthouse facilities, manufacturers across the globe are increasingly tasked with producing parts from a diverse array of materials — from hardened steels and composites to softer metals and plastics — all while striving for uncompromising precision and efficiency. Addressing these challenges head-on requires tooling solutions that not only push the boundaries of traditional drilling capabilities but also streamline operations in an increasingly competitive market. Overcoming pain points Drilling is a fundamental yet technically demanding operation in modern manufacturing. One of the most persistent challenges involves material variability. Manufacturers often work with a wide range of materials, from tough hardened steels to lightweight but ductile metals. Each material presents unique difficulties —hardened steels can cause excessive tool wear, while softer metals may deform under drilling forces. Heat generation and tool wear are also significant concerns in drilling operations. High cutting speeds, prolonged machining cycles and demanding material compositions contribute to excessive heat buildup. This not only accelerates tool degradation but also impacts machining accuracy, leading to surface defects and deviations from required dimensions. Effective heat management solutions, both in tool design and machining strategies, are therefore critical for extending tool life and improving component quality. Another key challenge is chip evacuation. In deep-hole drilling or high-feed applications, inefficient removal of chips […]

Hunter Manufacturing Awards return in 2025 with national recognition and new award categories

Winners to fast-track into new national awards program as entries open across the Hunter, Central Coast and Mid-North Coast The 2025 Hunter Manufacturing Awards (HMA) have officially launched, unveiling a revitalised program designed to spotlight innovation, inclusion, and global competitiveness in one of regional Australia’s most vital industries. Now in its 21st year, HMA continues to celebrate the outstanding achievements of manufacturers across the Hunter, Central Coast, New England and Mid-North Coast regions. But this year comes with a powerful new incentive: a first-of-its-kind partnership with Industry Update’s Australian Manufacturing Awards will see 2024 HMA winners automatically fast tracked as national finalists in the debut of the prestigious new national program. “We’re proud to be raising the profile of regional manufacturers on a national stage,” said HMA Chair Jacqui Daley. “This partnership is a game-changer, it’s about putting the Hunter on the map as a manufacturing powerhouse and giving our winners the recognition they deserve across the country.” In the picture: Some HMA board members. Two new award categories have been launched in response to industry priorities: • Digital Transformation Award – recognising outstanding use of digital technologies to improve efficiency, reduce costs, and drive innovation in manufacturing operations. • Diversity in Manufacturing Award – celebrating businesses and individuals that are fostering inclusive, accessible, and equitable workplaces across the manufacturing sector. “We’re recognising the real forces shaping the future of manufacturing; digital innovation, diverse talent, sustainable operations, and global thinking,” said Ms Daley. “The 2025 awards are about more than trophies, they’re about celebrating the people and ideas that will lead our industries forward.” In the picture: Peter McKinnon, Omnia. The 2025 awards also feature a streamlined entry process following feedback from manufacturers, making it easier for businesses of all sizes to apply. HMA has also introduced new technology to […]

Electric hybrid vessel Hunter manufacturing

Advanced manufacturing is driving innovation on the Mid-North Coast

From iconic household brands like Milo to next-generation marine rescue and defence vessels, the mid-north coast is emerging as a powerhouse of advanced manufacturing in Australia. With a $32 million investment into Nestlé’s Smithtown factory, a suite of government funding initiatives, and major contract wins by local manufacturers, the region is proving that world-class innovation can thrive outside capital cities. Jacqui Daley, Chair of the Hunter Manufacturing Awards, says the Mid North Coast is poised for a manufacturing renaissance. In the picture: Carbon fibre crop dusting drone, capable of crop dusting one hectare in two minutes. “We are seeing a powerful wave of innovation driven by local manufacturers who are combining legacy craftsmanship with future-focused technology,” said Ms Daley. In March 2025, the NSW Government launched an $800,000 Regional Manufacturing Pilot Program, focused on boosting productivity and competitiveness across regional manufacturing hubs, including the mid-north coast. The Federal Government has also committed $25 million to help NSW industries adopt low-emission technologies and enhance sustainable practices to support a new era of clean, green manufacturing. “Providing small to medium businesses with access to expert advice to find ways to cut waste, improve efficiency, and deliver better products is a fantastic initiative. The goal is to help local manufacturers become more competitive, reduce costs, and grow stronger businesses, which means more jobs and stronger economies in regional communities,” Ms Daley said. The Mid-North Coast is home to manufacturers with local, national and international reach with Birdon in Port Macquarie building maritime vessels for defence forces in Australia and the US, and a number of other international military forces and government agencies, while AE Gibson & Sons in Kendall continues to lead in the design, engineering and manufacture of special purpose industrial machinery and automation systems. Steber International, a Taree-based manufacturer of premium […]

Negotiate a solid global tariff deal for manufacturing

With the Albanese Government returned to power, Graeme Evans, Regional Vice President AUNZ of Epicor – a leading global business software company specialising in providing Enterprise Resource Planning (ERP) solutions, particularly for the manufacturing, distribution, and aged care industries – says that some of the first jobs to be done is to stick to the promises they made in the previous term and also negotiate a solid global tariff deal for the manufacturing and distribution industry. Graeme explains: What Does The Government Need To Do To Help The Australian Manufacturing Industry? “The Australian manufacturing industry employs around 900,000 workers but has been in steady decline over the past few years. We must plan to boost local manufacturing and safeguard the nation in being more resilient to global shocks. We know that Labor has pledged to continue funnelling more money into its Future Made in Australia plan – with investment including $1 billion in grants for supporting green iron production and $2 billion in grants to support aluminium smelters to switch to renewable electricity – which we support. “The Government must continue to invest in onshore capabilities, have robust procurement requirements in place for projects involving steel and aluminium, as well as negotiate a fair manufacturing and distribution agreement with the US. While the last few years have shown us that global make, move, sell industries are no strangers to disruption, we must find stability and move forward.” How Does The Current Tariffs Impact Manufacturing And Distribution Operations? “Tariffs increase the cost of production inputs, squeezing gross margins for manufacturers and distributors. Companies sourcing heavily from tariff-affected regions must reassess their procurement strategies. Higher costs may also alter the bill of materials, require supplier changes, and influence where production facilities are located. “With regards to the supply chain industry, the combination […]

MGA Thermal achieves world-first 24/7 renewable industrial steam

Australian innovation delivers continuous, cost-effective clean steam for industry, positioning MGA Thermal at the forefront of decarbonisation with its groundbreaking latent heat energy storage. After more than ten years of development and breakthrough materials engineering, MGA Thermal’s world-first commercial Electro-Thermal Energy Storage (ETES) system – capable of dispatching industrial-grade steam from renewable energy – has now gone live. Anna Starrett, Mark Croudace, Alexander Post, Erich Kisi, Glen Reynolds. This groundbreaking ETES technology significantly outperforms conventional sensible heat thermal storage, offering a viable pathway to 24/7 renewable heat for industries, effectively replacing reliance on carbon-intensive fossil fuels. MGA Thermal’s utilisation of latent heat means that energy is stored more compactly, both in physical plant footprint and storage temperature range. This serves to make latent heat ETES more space efficient, reliable, energy efficient and affordable than sensible heat storage. The fully operational demonstration plant, unveiled today, has produced steam output while the storage material undergoes a material phase change to release latent heat, establishing MGA Thermal as a unique solution provider in the urgent global effort to decarbonise heavy industry. Steam, the workhorse of industrial manufacturing for centuries, underpins 44% of Australia’s energy consumption in heavy industries alone, with half dedicated to heat generation. Globally, industrial heat accounts for a staggering 25% of energy use and emissions, historically locking industries into carbon-intensive practices. MGA Thermal’s newly commissioned demonstration plant shatters this paradigm by converting intermittent renewable electricity into reliably stored thermal energy, ready for on-demand steam generation. This breakthrough unlocks a tangible route to net-zero industrial operations, with the potential to scale to GWh storage capacities, meeting the vast clean heat demands of the world’s largest production facilities. Located at MGA Thermal’s Tomago site, the compact demonstration unit (12m long, 3m wide, 4m tall) stores 5 MWh of energy with a 500kW thermal dispatch […]

Investment NSW partnership announcement updated

Nominations open for 2025 NSW Export Awards

Nominations are now open for the 2025 NSW Export Awards, which recognise the outstanding contribution exporters make to the NSW economy and celebrate the best of NSW made products, ingenuity and innovation on the global stage. Delivered by the Export Council of Australia in partnership with the NSW Government, the NSW Export Awards will recognise businesses in 14 national categories and four NSW categories. Twisted Healthy Treats won last year in the Agribusiness, Food and Beverages national category. The frozen desserts manufacturer makes frozen yogurt and ice cream from its manufacturing facility in Ingleburn and distributes to supermarkets nationwide and exports to multiple countries including the United States, China, the United Arab Emirates and Malaysia. Amidst a challenging global environment, the theme for this year’s NSW Export Awards is Broaden Your Trade Horizons – emphasising that diversifying export markets is essential to NSW and Australia’s economic growth and trade resilience. The NSW Government is currently developing a Trade and Investment Strategy, which will focus on diversification with clear ambitions to grow exports, attract investment and support businesses in new international markets. Nominations for the NSW Export Awards opened today and will close on Friday 13 June 2025. Finalists are expected to be announced in September ahead of the awards ceremony announcing the winners in October. The winners in the 14 national categories will automatically progress as finalists for the Australian Export Awards, to be held in November. For more information on the NSW Export Awards and how to nominate your business, visit https://export.org.au/nsw-export-awards/. Investment NSW Deputy Secretary Rebecca McPhee: “Exporters are a critical driver of economic growth in NSW, with $142.5 billion worth of goods and services sold abroad in 2023-24, making up 17 per cent of our Gross State Product. “While it’s a challenging global environment, NSW’s exporters are […]

China has moved to curb supply of critical minerals. Can Australia seize the moment?

Marina Yue Chang, Associate Professor, Technology and Innovation, University of Technology Sydney. In the escalating trade war between the United States and China, one notable exception stood out: 31 critical minerals, including rare earth elements, were strategically exempted from tariffs. This was not a gesture of goodwill. It was a tacit acknowledgment of the United States’ deep dependence on China for materials essential to its technological competitiveness, clean energy transition and national defence. Beijing’s response was swift and calculated. China’s Ministry of Commerce announced expanded export controls and a shift in pricing principles. The move reflects China’s long-standing effort to shift rare earth pricing from market supply and demand to pricing based on their strategic value. The impact was immediate. Rare earth exports from China effectively ground to a halt, as exporters awaited approvals under a new, opaque licensing regime. The announcement prompted President Trump to issue a new executive order directing a review of national security risks stemming from the US reliance on imported, processed critical minerals. As global supply chains reel from these disruptions, Australia finds itself in a unique strategic position. As a trusted US ally, it possesses the resources, partnerships and political capital to step into the breach. But can Australia seize this opportunity – or will it come with strings attached? China’s new playbook China’s latest restrictions target seven rare earths – such as dysprosium and terbium – crucial for electric vehicles, wind turbines, fighter jets and missile systems. While stopping short of a full export ban, the policy functions as a chokepoint. It leverages China’s near-total global control of rare earth refining (around 90%) and its monopoly on heavy rare earth processing (98%). Domestically, China’s rare earth sector is dominated by two state-owned giants which together control nearly 100% of national mining quotas. These measures have exposed the vulnerability of Western supply chains. The US has only one operational rare earth mine […]

Sandvik Coromant to make debut at Australian Manufacturing Week

For the first time, metal cutting and manufacturing solutions expert Sandvik Coromant will be present at Australian Manufacturing Week (AMW). Taking place May 6 to 9, 2025 at the Melbourne Exhibition and Convention Centre (MCEC), Sandvik Coromant will join its software partners, Vericut and Mastercam, to provide an advisory service to visitors looking to optimise their machine investment and tool management strategies. AMW aims to showcase the latest advancements in the manufacturing sector, bringing in over 150 exhibitors and thousands of visitors. The exhibition is split into different zones from machine tools and additive manufacturing, to manufacturing solutions and robotics and automation. Sandvik Coromant will be in the Manufacturing Solutions Zone, exhibiting from stand MS360. To give visitors a complete solution overview, Vericut and Mastercam will share the stand with Sandvik Coromant. This collaboration will provide visitors with the opportunity to explore the latest advancements in digital manufacturing, machine investment strategies and process engineering. Sandvik Coromant will have an advisory booth to consult visitors on how to optimise their current machining challenges, offering solutions for complex components and providing support for new projects. At the stand, Manufacturing Wellness, a term coined by Sandvik Coromant in 2023, will be at the forefront of discussions. The concept revolves around eight essential habits, including taking a holistic approach, reducing waste, investing in automation and benefitting from strong partners, and acts as a framework for improving operational resilience and future-proofing the manufacturing industry. Sandvik Coromant’s entire offering will be visible through interactive digital displays. The stand will demonstrate Sandvik Coromant’s CoroPlus® Tool Supply inventory software, installed into the Robocrib TX750 vending machine, a popular solution in Australia and surrounding Asia. This all-in-one tool management software is used to efficiently manage and track assets and equipment by automating the tool supply process. It uses real-time […]

Matthew Addley, Senior Director, Product and Industry Market Strategy, Infor

Q&A: What’s in store for Australian manufacturers for the rest of 2025?

By Matthew Addley, Senior Director, Product and Industry Market Strategy at Infor Outlook for the Australian manufacturing sector for the rest of 2025 It has been a tumultuous first quarter for the manufacturing sector, as trade policies and tariffs have driven up raw material and component costs, creating a ripple effect across the global supply chain. More specifically, the recent imposition of a 25% tariff on all steel and aluminium imports into the US has hit Australian manufacturers hard as they grapple with higher interest rates and subdued demand in 2024. However, reducing interest rates to 4.10% could bolster business confidence and drive demand as the year progresses, opening up markets and investment opportunities for Australian manufacturers struggling to recover in a post-COVID world. How are Artificial intelligence and generative AI impacting the manufacturing sector? Generative AI (GenAI) is set to reshape Australian manufacturing, driving innovative integration, operational efficiency, and data insights, transforming productivity and revenue. We expect that distribution leaders will adopt AI, robotics, and IoT to enhance industry-specific processes, data, and ways of working. Research by KPMG indicates that over half of Australian (58%) and global (64%) CEOs view Gen AI as a top investment priority to gain a competitive edge for their businesses. How will the changes in global policy affect supply chains, demand, and long-term investment in manufacturing? Global policies and geopolitical risks can instantly influence supply chains. We have seen this with the recent 25% tariffs on steel and aluminium imports to the US, sending shockwaves through the global industry. This will impact production costs for many items, especially those with global supply chains, such as connected machinery & equipment, smartphones, laptops, servers, and other electrical and electronic products. Having considered the rising cost pressures, manufacturers are anticipated to adopt new, agile technologies and sustainable […]

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Future of Manufacturing