Innovative Manufacturing

With turnover exceeding $40 billion annually, exports of nearly $10 billion and over 180,000 workers – Queensland’s manufacturing sector is booming. Brisbane is the only region in Australia where manufacturing is expected to grow in employment and output over the next 20 years. Highly innovative in nature, the industry has concentrated on specific niches – advanced manufacturing, machinery and equipment, plastics and metals, packaging and recycling, and marine – to ensure this growth.

Companies have access to the highest quality labour. Brisbane’s major universities have over 15,000 students enrolled in engineering technologies and a further 40,000 are enrolled in manufacturing-related courses at TAFE in Queensland.

Strong industry growth means manufacturers enjoy well established infrastructure as well as solid plans for future road and rail development. The Queensland Manufacturing Institute supports and promotes the sector through R&D and training, whilst earmarked industrial land across Brisbane will provide development opportunity into the future.

Precision manufacturing is a growth sector for the city. Following the population explosion, residential construction growth has fuelled demand for fabricated metal and plastic products. EGR Plastics, world’s leading designer and manufacturer of thermoformed automotive accessories, supplies to companies such as General Motors and Ford Motor Company. While Alphapharm, one of Australia’s largest pharmaceutical companies has its research, production and packaging facilities in Brisbane. In 2006, it supplied more than 2.5 billion tablets and capsules to some 5,000 consumers in Australia, as well as to consumers in more than 60 export markets.

Brisbane has also emerged as a major centre for the production and maintenance of the rapidly expanding super yacht market. With over 252 marine companies and more than 43 per cent of the national industry’s turnover, Queensland is Australia’s largest boat building state.

Key Sectors

Advanced manufacturing

Brisbane’s precision manufacturing sector has a KPMG ranking of first among 11 developed countries for cost competitiveness. Key sub sectors include sheet metal, micro-electronics, robotics and mineral processing technology. Companies to have achieved success in Brisbane include:

• Corbett Robotics, a research, design and manufacturing software business; and
• Advanced Metal Products, Australia’s largest manufacturer of sheet metal components.

Machinery and equipment

Queensland’s booming mining industry is home to some of the world’s largest mining companies. Its substantial growth has created many opportunities for suppliers to service this market. Businesses successfully supporting the mining industry include:

• Volvo Mack, a global truck and parts producer; and
• Sandvick, a machinery and equipment manufacturer.

Plastics and metals

Unprecedented residential construction growth in Brisbane has fuelled demand for associated fabricated metal and plastic products. A leading manufacturer in this sector is EGR Plastics, the largest manufacturer of its core products in the world and supplier to automotive companies such as GM and Ford Motor Company.

Packaging and recycling

The Brisbane City Council represents the third largest single council controlled area in the world, and yet it is well known for its environmental responsibility and innovation. Areas of specialisation are in paper, metal and plastics recycling and packaging. Companies to have achieved success in Brisbane include:

• Astron Plastics, a resin products and recycling service provider, and
• Simsmetal, the largest metals recycling operation in Asia the Pacific.

Why Brisbane for Innovative Manufacturing

Skilled and cost competitive workforce

Brisbane’s excellent education system ensures manufacturers have access to a high quality labour pool. Currently, Brisbane’s major universities have over 15,000 students enrolled in engineering technologies. A further 40,000 are enrolled in manufacturing related courses in Technical and Further Education (TAFE) in Queensland. Labour costs are generally lower than in other Australian capital cities, and labour agreements are the least restrictive in the country.

Proximity to Asia

Brisbane is the closest of Australia’s capital cities to Asia, providing an ideal and politically stable base from which to service this important market. Cost advantages gained from this close proximity to Asia means that Brisbane is perfectly placed as a base for manufacturing.

Availability of cost competitive land

High quality, cost competitive land is available for development close to the Brisbane CBD. Such strategic commercial and industrial grade land can be found at both The Australia TradeCoast precinct and the Industrial Land Corridor west of Brisbane.

Strong industry growth

With growth comes opportunity. The Queensland manufacturing sector has achieved a higher growth rate than all other Australian States over the past decade, and has seen exports grow from $5 billion to $10.3 billion. It is also the only state where increases in sector employment are predicted for the next 20 years.

Stable pro-business governments

Brisbane’s manufacturing sector is set in one of most stable economic, political and social environments in South East Asia. The Brisbane City Council, the Queensland State Government and Federal Government all work together to facilitate investment, and with the Council representing the third largest single council controlled area in the world, market opportunities are in abundance.

Developed infrastructure and R&D

Manufacturers enjoy a well-established infrastructure network in Brisbane, as well as solid plans for the future (including $55 billion to be invested in roads and rail over the next 20 years). Additionally, The Queensland Manufacturing Institute supports and promotes the industry through research and training, and the Brisbane City Council’s clear land zonings will also aid the sector’s development.

Sandvik

The decision to make Australia TradeCoast home for multinational mining equipment giant Sandvik has reinforced Brisbane Airport's status as the rising star of the Australian freight industry and Australia TradeCoast as a burgeoning global trade hub.

Based in Sweden, Sandvik is a leading supplier of tools, machinery and specialist equipment for many varied industries. It has acquired more than 30 companies over the past 10 years, has a workforce of 36,000, and a turnover in Australia of $550 million.

Brisbane Airport Corporation (BAC) managing director and CEO Koen Rooijmans said Sandvik's decision to relocate its Sydney distribution centre to Brisbane Airport was recognition of the 'gateway' role BAC was forging for the airport and Australia TradeCoast.

"It supports the work we have done to establish the right fundamentals of doing business in Brisbane - through efficient planning, quality services, flexible leasing arrangements, and a 'can-do, win-win' approach to business in partnership," he said.

Sandvik is now relocating 100 staff from its Sydney warehouse, Spring Hill head office and Acacia Ridge premises to its new distribution centre and corporate headquarters at Export Park.

From its new 1,660sqm of office space and 5,500sqm of warehouse, Sandvik will continue to supply goods to the mining industry, boosting air freight imports through Brisbane Airport by 300 tonnes a year.

Sandvik's research shows that relocation to Australia TradeCoast and using Brisbane Airport brings freight savings of 25% and significantly improves delivery times, indicating potential savings of many millions of dollars with no need to store surplus stock.

Website: www.sandvik.com.au