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.

1. Master Data

At the foundation of every digital transformation lies one critical asset: data. And not just any data. Data that is trusted, standardised, and strategically-governed.

Crucially, master data (that which is built around materials, machines, processes and products) is what fuels every operational decision, every system integration, and every algorithm-driven insight. For those who are still struggling with inconsistent product codes, disconnected systems, or outdated specifications, that’s not an IT problem. It’s a business risk.

CEOs need to ensure that they are championing enterprise-wide data integrity. Without it, advanced tools like AI, predictive analytics, or automation will only amplify chaos. Strong data governance ensures scale, reduces operational risk and becomes a competitive differentiator in a world driven by digital velocity.

2. Paperless Factories

Here’s the reality: factories that are still running on clipboards, whiteboards, and siloed spreadsheets are playing a dangerous game. Paper-based processes slow down decisions, obscure performance, and make it impossible to react in real time.A paperless operation is not about superficial digitisation. It’s about real-time visibility, speed, and control. When performance dashboards, digital work instructions, and automated reporting are in place, problems get solved faster, compliance becomes easier, and front-line teams are empowered.

But going digital is just the beginning. The real value comes from the analytics; that is, turning data into decisions. Real-time insights that deliver asset performance, quality trends, energy usage, and throughput. It is these that allow leaders to make better calls, faster. And this is where profit margins are made or lost.

3. Integrated Work Systems

Disconnected functions and reactive management practices are a drag on productivity and morale. High-performing factories operate as aligned and integrated systems. This is where daily work, problem solving, and continuous improvement are synchronised across every level of the organisation.

An integrated work system connects strategy to execution. It aligns operations around shared goals: safety, quality, delivery, cost, and engagement And it’s this that enables proactive issue resolution and creates the conditions for sustained excellence.

I want to stress that this isn’t just “lean” with a facelift. It’s the engine that drives cultural transformation.

For CEOs this means fewer surprises and faster recovery from disruptions. It cultivates a leadership culture that is focused, disciplined, and accountable. It’s the kind of operational maturity that investors and markets notice.

4. Advanced Planning and Scheduling Capabilities

There’s a risk if planners are still relying on spreadsheets or legacy ERP tools to navigate today’s volatile supply chains. Modern manufacturing requires advanced planning and scheduling (APS) systems that can model constraints, optimise production flow, and adapt on the fly.

APS allows your operations to stay resilient amid labor shortages, material delays, and fluctuating customer demands. It also enables what-if simulations, real-time rebalancing of priorities, and improved alignment between supply and demand.

From the CEO chair, this means more reliable customer commitments, reduced working capital tied up in excess inventory, and faster time-to-market. All of which directly impact shareholder value.

5. Strategic Automation Plans

The thing to always bear in mind is that automation is no longer about replacing labor—it’s about scaling capability. Whether that can be achieved through robotics, IoT, AI, or machine vision, automation allows you to build resilient, efficient, and future-proof operations.

But automation without strategy is just tech for tech’s sake. What’s needed is a comprehensive automation roadmap: one that starts with pain points, aligns with business objectives, and supports the human workforce rather than bypassing it.

This does not mean that everything has to be automated overnight. CEOs need to ensure that their organisation has a clear view of where automation adds the most value, how it integrates with legacy systems, and what skills your teams will need to succeed alongside it.

Because this truly is a do-or-die moment for many CEOs heading manufacturing companies. These five pillars aren’t just operational enhancements. They’re strategic imperatives. 

They determine your agility, your cost competitiveness, your ability to serve customers, and your readiness for the next disruption—whatever shape it takes.

Manufacturing transformation therefore cannot be delegated solely to operations or IT. It requires executive-level urgency, cross-functional alignment, and long-term investment. As CEO, your role is to set the vision, remove barriers, and lead from the front.

You must choose to lead, or risk being left far, far behind.