Advanced Manufacturing

Adelaide, South Australia is ranked highly as one of the world's most cost-competitive cities for key manufacturing sectors.¹

South Australia is home to the manufacturing operations of many international firms, including BAE Systems, Raytheon, GM Holden, Bridgestone, Kimberly-Clark, Owens Illinois, Alcan, Schefenacker Vision Systems, Siemens VDO, SAAB Systems, Hospira, Schneider Electric, Sola Optical, Novozymes and Electrolux.

South Australia has many advanced manufacturers that support these firms in areas such as systems integration, design and development of new products and materials, and programming and operation of automated equipment. Such firms include Sage Automation, Precise Manufacturing, Alloy Technologies International, and Proen among others.

Advanced manufacturing in South Australia is a diverse industry providing the tools, technologies and engineering services to support the competitiveness of the broader manufacturing sector in:

Overview
Advanced manufacturing Australia-wide in 2004 generated annual revenues of A$2.84 billion and export revenues of A$537 million.  It employed 12,000 people.

The industry has set itself the goal of creating at least five A$100 million revenue companies and 10 A$50 million revenue companies by 2015.  South Australia is ideally placed to support growth given the range of driver industries in its manufacturing sector.

KPMG in its 2008 survey of 102 international cities listed Adelaide as Australia’s most cost-competitive city, making it an ideal investment location for advanced manufacturing operations of all sizes. 

A DOTARS project examining regional competitiveness also confirmed Adelaide as Australia’s most cost-competitive city.

South Australia offers advanced manufacturing companies significant cost savings, access to major markets and investment opportunities to build on core capabilities in these sectors and other fields such as resources and shipbuilding.

Output
• $8,652m in manufacturing gross value added in 2006/07.
• Manufacturing accounts for more than 14 per cent of gross state product.

Exports
• $6.2 billion in manufacturing exports in 2006-07, representing 69% of total goods exports.
• $2.4 billion in elaborately transformed manufactures in 2005-06.
• 30.2% export value growth over four years 2002-03 to 2006-07.
• Top three export commodities in 2006/07 were (1) metals and metals manufactures (as a group) ($1.98bn);  (2) wine ($1.74bn);  and (3) motor vehicles and parts ($980m).
• Key manufacturing export markets include the USA, the UK, South East Asia, China, the Middle East, New Zealand and Canada.

 Source: ABS

Employment
• Manufacturing employed 98,500 (Feb 2008), representing 12.7% of South Australia’s workforce.

 Source: ABS

• From 2001 and 2006, employment grew significantly in the minerals processing and smelting sector, with 1,700 new jobs created in the last two years.
• 1,000 new jobs were created in the electronics industry from 2001 to 2006.

Workforce Information Service

Research and development
• Approximately $299 million spent on manufacturing industry research and development in 2004-05, representing 56% of the State’s total business expenditure on research and development.

Number of businesses  

• 822 manufacturing exporters in 2005-06, or 37% of all State exporters.

Geographic focus
• South Australian manufacturing operations are based largely in Adelaide.

• Several large operations are located in regional areas, including OneSteel’s iron and steelmaking plan at Whyalla, Clipsal’s electrical component plant at Murray Bridge, and Kimberly Clark’s paper mills at Millicent.

Case studies
Alloy Technologies International
Precise Advanced Manufacturing Group
Proen Design Australia
SAGE Automation Ltd

Industry groups
BioInnovation SA
Centre for Innovation
Defence Teaming Centre
Engineering Employers Association, South Australia
Electronics Industry Association
Federation of Automotive Products Manufacturers
ICT Council

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1. KPMG Competitive Alternatives Study 2008.