Howard Partners Digital Steel - Attachments.FINAL · 2018-12-12 · Digital Steel: Steel Industry...

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DigitalSteelReportoftheSteelIndustryResearchMappingProject-AttachmentsHowardPartners,December2012

ABSTRACT

ThisdocumentcontainsattachmentstotheMainReport

DigitalSteel:SteelIndustryResearchMappingProject-Attachments

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TableofContentsATTACHMENT1:PROFILEOFTHEAUSTRALIANSTEELINDUSTRY..................................................1OUTPUTINDICATORS................................................................................................................................................................1COMPANYPROFILES..................................................................................................................................................................1

ATTACHMENT2:FIELDSOFRESEARCH(FORS)RELEVANTTOSTEELFABRICATION.................4ATTACHMENT3:AUSTRALIANRESEARCHCOUNCILGRANTSFORSTEELRELATEDRESEARCHPROJECTS................................................................................................................................................................6DISCOVERYAWARDSFORFUNDINGIN2012.......................................................................................................................6Hybridstainless-carbonsteelcompositebeam-columnjointsatambientandelevatedtemperatures...........................................................................................................................................................................6Thebehaviouranddesignofcompositecolumnscouplingthebenefitsofhighstrengthsteelandhighstrengthconcreteforlargescaleinfrastructure...........................................................................................6Durabilityofcarbonfibrereinforcedpolymer(CFRP)strengthenedsteelstructuresagainstenvironment-assisteddegradation................................................................................................................................6Astudyofpull-throughfailuresofthinsteelbattenstoimprovebuildingsafetyandresilienceduringextremewindevents..............................................................................................................................................6

LINKAGE2011AWARDSFORFUNDINGINJULY2012.......................................................................................................7Reducingtheenvironmentalimpactofsteelmakingthroughdirectstripcasting..................................7Recyclinglignocellulosicagriculturalwasteasanironoxidereductantinferrousprocessing.........7Long-spancold-formedsteelportalframes...............................................................................................................7Newgenerationhighefficiencythermoelectricmaterialsandmodulesforwasteheatrecovery.....7BearingcapacitiesofinnovativeLiteSteelbeamsandtheirfloorsystems..................................................8

LINKAGE2011AWARDSFORFUNDINGINJANUARY2012..............................................................................................8Seismicbehaviourofdrive-insteelstorageracks...................................................................................................8Flexiblerollformingofadvancedhighstrengthsteelsheet...............................................................................8

OTHERARCGRANTSIDENTIFIEDTHROUGHWEBSEARCH..............................................................................................8EstablishingIn-DepthUnderstandingofMolecularDegradationProcessesinAcrylicBasedPolymerCoil-CoatingsforDomesticRoofingApplications.................................................................................8AdvancedTestingandStructuralAnalysisforAssessmentandControlofHydrogenDamageinStructuralSteels.....................................................................................................................................................................9Strengthoftwo-waysteelfibrereinforcedcompositeflooringsystems.......................................................9Time-dependentin-servicebehaviourofcompositeconcreteslabswithprofiledsteeldecking........9

ATTACHMENT4:SUMMARYOFCAPABILITYINUNIVERSITIESANDRESEARCHORGANISATIONSRELATINGTOSTEELFABRICATION.........................................................................10DEAKINUNIVERSITY..............................................................................................................................................................10GRIFFITHUNIVERSITY...........................................................................................................................................................12JAMESCOOKUNIVERSITY......................................................................................................................................................13MACQUARIEUNIVERSITY......................................................................................................................................................14MONASHUNIVERSITY............................................................................................................................................................14QUEENSLANDUNIVERSITYOFTECHNOLOGY....................................................................................................................15RMITUNIVERSITY.................................................................................................................................................................15SWINBURNEUNIVERSITYOFTECHNOLOGY......................................................................................................................18THEAUSTRALIANNATIONALUNIVERSITY........................................................................................................................19THEUNIVERSITYOFNSW(UNSW)-...............................................................................................................................20THEUNIVERSITYOFQUEENSLAND.....................................................................................................................................21THEUNIVERSITYOFSYDNEY...............................................................................................................................................21UNIVERSITYOFTECHNOLOGYSYDNEY(UTS).................................................................................................................22UNIVERSITYOFWESTERNSYDNEY.....................................................................................................................................22UNIVERSITYOFWOLLONGONG............................................................................................................................................23ANSTO.....................................................................................................................................................................................25CSIRO.......................................................................................................................................................................................26


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ANFF........................................................................................................................................................................................27DEFENCEMATERIALSTECHNOLOGYCENTRE(DMTC).................................................................................................27

ATTACHMENT5:RESEARCHMODELSFROMOTHERSECTORSANDINTERNATIONALLY.......28AUSTRALIANMINERALSINDUSTRYRESEARCHASSOCIATION......................................................................................28THEAUSTRALIANRURALRESEARCHANDDEVELOPMENTCORPORATION(RDC)FUNDINGMODEL..................28NEWZEALANDHEAVYENGINEERINGRESEARCHASSOCIATION(HERA).................................................................28GERMANFRAUNHOFERINSTITUTES...................................................................................................................................29USNATIONALNETWORKFORMANUFACTURINGINNOVATION(NNMI)...................................................................30UKESRCCOLLABORATIONPROGRAMS............................................................................................................................32CollaborationAwardsinScienceandEngineering(CASE)..............................................................................32IndustrialDoctorateCentres.........................................................................................................................................33

SWECAST...............................................................................................................................................................................34ATTACHMENT6:RELEVANTLITERATURE..............................................................................................36POLICYDOCUMENTS..............................................................................................................................................................36COMMISSIONEDRESEARCHREPORTS.................................................................................................................................36RESEARCHPAPERS.................................................................................................................................................................36JOURNALARTICLES................................................................................................................................................................37INDUSTRYDOCUMENTS.........................................................................................................................................................37PRESSRELEASES.....................................................................................................................................................................37

ATTACHMENT7:EXTRACTSFROMKEYPOLICYDOCUMENTS..........................................................381. ASI:CAPABILITIESOFTHEAUSTRALIANSTEELINDUSTRYTOSUPPLYMAJORPROJECTSINAUSTRALIA-EXCTRACTS..............................................................................................................................................................................38Fabrication............................................................................................................................................................................38Detailing.................................................................................................................................................................................40HotDipGalvanising...........................................................................................................................................................41ProtectiveCoatings............................................................................................................................................................42GratingandHandrails......................................................................................................................................................43QualityandStandards......................................................................................................................................................43WeldingandTesting.........................................................................................................................................................43SteelReinforcing.................................................................................................................................................................44WholeofIndustryCooperation....................................................................................................................................44Safety........................................................................................................................................................................................45Environmentandsustainability...................................................................................................................................45AIPPlansandEPBSguidelines.....................................................................................................................................46

2. DIISR:TRENDSINMANUFACTURINGTO2020......................................................................................................473. HOWARDPARTNERS:THEROLEOFINTERMEDIARIESINTHEINNOVATIONSYSTEM.....................................504. HOWARDPARTNERS:OUTLOOKFORSMALLBUSINESSMANUFACTURINGTO2015......................................515. HOWARDPARTNERS:DIGITALFACTORIES–THEHIDDENREVOLUTIONINAUSTRALIANMANUFACTURING 536. WARRENCENTRE:STEEL–FRAMINGTHEFUTURE...............................................................................................55Thecause:Perceptionofrisksputssteelatdisadvantage...............................................................................55Background:BySandyLongworth.............................................................................................................................56ScopeoftheStructuralSteelIndustry.......................................................................................................................57ImpactofEmergingTechnologies...............................................................................................................................58Existingcommonlyusedtechnology..........................................................................................................................58Emergingtechnologies.....................................................................................................................................................59

7. PM’SMANUFACTURINGTASKFORCE:REPORTOFTHENON-GOVERNMENTMEMBERS..................................62SmarterNetworks..............................................................................................................................................................62THEWAYAHEAD................................................................................................................................................................65SmarterSMEs.......................................................................................................................................................................70Smarterworkplaces..........................................................................................................................................................74

8. NATIONALACADEMIES:MAKINGVALUE–INTEGRATINGMANUFACTURING,DESIGNANDINNOVATION..75


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9. CSIRO:MANUFACTURINGABETTERFUTURE-THEROLEOFSCIENCE,TECHNOLOGYANDINNOVATION75Executivesummary............................................................................................................................................................76StimulatingInnovation....................................................................................................................................................77BarrierstoResearchTranslation................................................................................................................................78Innovationtosupportresponsivemanufacturinginadigitalage...............................................................78

10. INTELLIGENTMANUFACTURING:TOWARDSTHEPROCESSINDUSTRYOFTHE21STCENTURY.....................8211. DIISR:ABSORBINGINNOVATIONBYAUSTRALIANENTERPRISES:THEROLEOFABSORPTIVECAPACITY83


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Attachment1:ProfileoftheAustralianSteelIndustry

Outputindicators

Informationdrawn from theWorldSteelOrganisationStatistical Yearbook2011, about theAustralianSteelindustryisreproducedinthefollowinginformationforinformation

Australia

ProportionofProduction(Product)

World ProportionofProduction(Aus)

Totalcrudesteelproduction 7,296 100.0% 1,417,264 0.5%Ingots 52 0.7% 70,971 0.1%Continuouslycaststeel 7,244 99.3% 1,341,273 0.5%Liquidsteelforcastings 0 0.0% 3,825 0.0%HotRolledproducts 6,327 86.7% 1,381,218 0.5%.Hotrolledlongproducts 1,927 26.4% 537,828 0.4%.Hotrolledflatproducts 4,399 60.3% 703,399 0.6%Railwaytrackmaterial 124 1.7% 9,361 1.3%Heavysections(>80mm) 0 0.0% 31,684 0.0%Lightsections(<80mm) 266 3.6% 52,526 0.5%Concretereinforcingbars 0 0.0% 164,910 0.0%Hotrolledproducts(includingconcretereinforcingbars) 828 11.3% 115,171 0.7%Wirerod 709 9.7% 141,493 0.5%Electricalsheetandstrip 0 0.0% 9,879 0.0%Tinmillproducts 0 0.0% 9,477 0.0%Metalcoatedsheetandstrip 1,575 21.6% 76,288 2.1%Nonmetalliccoatedsheetandstrip 0 0.0% 12,039 0.0%Tubesandtubefittings 251 3.4% 92,317 0.3%.Seamlesstubes 0 0.0% 34,666 0.0%.Weldedtubes 251 3.4% 56,023 0.4%Trade Exportsofsemifinishedandfinishedsteelproducts 1,659 386,839 0.4%Importsofsemifinishedandfinishedsteelproducts 2,597 377,759 0.7%Exportsofingotsandsemis 18 60,619 0.0%Importsofingotsandsemis 53 57,084 0.1%Exportsoflongproducts 79 87,778 0.1%Importsoflongproducts 856 59,696 1.4%Exportsofflatproducts 1,481 191,995 0.8%Importsofflatproducts 993 156,774 0.6%Exportsoftubularproducts 40 38,087 0.1%Importsoftubularproducts 693 25,849 2.7%SteelUse Apparentsteeluse(crudesteelequivalent) 7,323 1,385,779 0.5%Apparentsteeluse(crudesteelequivalent)percapita 340 220 Apparentsteeluse(finishedsteelproduct) 6,612 1,293,538 0.5%Apparentsteeluse(finishedsteelproduct)percapita 102 206

Information about Australian steel producing companies, drawn form reports and other publiclyavailableinformationisprovidedbelow.

Companyprofiles

BlueScopewas spun out of the newly formedBHPBilliton in 2000 and listed as a public company in2002.Sincethepublic listing,BlueScopeSteelhasexpandedfurther intoAsiaandNorthAmerica.TheBlueScopeBusinessissummarisedbelow.



TheBlueScopeBusinessBlueScopeSteelspecialisesintheproductionofflatsteelproducts,includingslab,hotrolledcoil,coldrolledcoil,plateandvalue-addedmetalliccoatedandpaintedsteel solutions.ThesteelworksatPortKembla is the largest steelproduction facility inAustraliaandoneof theworld'slowest-costproducersofsteelproducts.WithinAustralia, theBlueScopeLysaghtbusiness rollformsandsuppliesa rangeof steelbuildingproducts, including roofandwall cladding,steelhouse framing, rainwaterproductssuchasgutteringanddownpipes, fencing, structuralproductssuchaspurlinsand flooringsystems,meshesandwalkways,andhomeimprovementproducts.LYSAGHT®productsaresoldthroughdistributorsandsuppliersAustralia-wide.BlueScopeSteeloperatestheonlyintegratedflatproductssteelworksinNewZealand.InNorthAmerica,theCompanyiswellknownpremiumqualityhotrolledcoilfromits50%JVinNorthStarBlueScopeSteel,Steelscape'srangeofhighqualitymetalliccoatedandpaintedsteelssuchasZ-NAL®,TruZinc®andSPECTRASCAPE®steels,ButlerManufacturingandVPBuilding'srangeofcustomisedsteelpre-engineeredbuildingsforthenon-residentialmarket,includingselfstoragewarehousesaswellasframingandcladdingsystems,ASCProfiles'rangeofinnovativesteelbuildingcomponentsandMetl-Span'smarketleadingrangeofinsulatedsteelpanels.Metalliccoatingandpaintingplantsare locatedinAustralia,NewZealand,China,Thailand,Malaysia,VietnamandIndonesia.Thesefacilitiesarecomplementedbyanetworkofroll-formingfacilitiesacrosstheAsiaPacificregionthatareunmatchedbyanyothersteelcompany.The brands of BlueScope Steel are market leaders in Australia and New Zealand and have a strong presence in Asia. Brands includeCOLORBOND®steel(knownasCOLORSTEEL®inNewZealand),ZINCALUME®metalliccoatedsteel,GALVABOND®andGALVASPAN®steelaswellasthewell-knownLYSAGHT®brand.In Asian markets, BlueScope Steel is continuing to develop branded products tailored to meet specific regional needs, such as CleanCOLORBOND®steelwhichisresistanttotropicaldiscolouration.OthersuccessfulbrandsincludePrimaDesa™steelinMalaysia,andTRUZINC™galvanisedsteelinThailand.BlueScopeSteeliswidelyrecognisedforfosteringthedevelopmentofinnovativesteelsolutionsthroughitsownresearchandthroughstrategicallianceswithworld-leading technical partners. It has led the industrywith value-adding technologies such asmetallic coating. Solid painttechnologyisanotherinnovationcurrentlybeingcommercialised.Thecompanyiscontinuingtoexploreopportunitiestobreaknewgroundinsteelmarkets.OverrecentyearsBlueScopeSteelhasbuiltmanufacturingfacilitiesinanumberofAsiancountriesandthesearenowoperatingefficientlyandgrowingrapidlyinprofitability.ThecompanyislookingtofurtherdeveloptheseestablishedbusinessesandtakeadvantageofthesignificantpotentialforgrowthincountriessuchasChinaandVietnam.

OneSteel was spun out from BHP in 2000when it was almost entirely a domestically focussed steelmanufactureranddistributor.Thecompanyhassubsequently focussedongrowing its resourcebasedbusinesses andnowhas significantmining andmining consumables businesses, aswell as its Steel&Recyclingbusiness.ThecompanywasrenamedArriumin2012.

OneSteel’smanufacturingbusinessisprofiledbelow.

OneSteelManufacturingBusinessWhyallaSteelworks:TheWhyallaSteelworksislocatedinWhyalla,SA,400kmnorth–westofAdelaide.Itisanintegratedsteelworksproducingapproximately1.2milliontonnesofsteelperannumusingironoresourcedfromOneSteel’sironoreminesintheregion.RodandBar:TheRodandBarsectorproducesawiderangeofproductsandservicesforadiverserangeofmarketsincludingtheconstruction,rural,miningandmanufacturingsegments.Productsincludebarandrodforthereinforcingmarket,merchantbar,androdfeedforthewireindustry.TheseproductsareproducedfromfacilitiesinSydney,NewcastleandLaverton.TheEAFandbilletcastingfacilitiesattheLavertonandSydneysteelmillshaveacombinedcapacityofapproximately1.3milliontonnesperannum.Wire:TheWirebusinessconsistsofwiremillsinNewcastleandJindera,NSWandGeelong,VIC.TheWirebusinesspredominantlyservicestheruralfencingmarketsthroughitsWaratahandCyclonebrands,domesticreinforcingandmanufacturingsegments,aswellasOneSteel’sMiningRopebusiness.AustralianTubeMills:TheAustralianTubeMills(ATM)businessmanufacturesstructuralpipeandtubefrommanufacturingfacilitiesatAcaciaRidge,QLD,Newcastle,NSWandSomerton,VIC.TheATMbusinessalsomanufacturesprecision tubeatmanufacturing facilities inSunshine,VICandKwinana inWA.Keymarketsectors forATM products include construction, manufacturing and agriculture, while precision tube is supplied to the Australian manufacturing,automotive,fencingandhomeimprovementsegments.LiteSteelTechnologies:LiteSteelsellsandmarketsLiteSteelbeamsprimarilyinAustraliaandtheUnitedStates.LiteSteelbeamsareauniquecoldformed,dual–weldedrangeofsteelsectionsgearedtodomesticandlightcommercialconstruction.As well as a manufacturing site in Australia, there is also a manufacturing site based in Troutville, Virginia, where the key markets areresidentialandcommercialconstruction.

OneSteel’s Australian Distribution business serves the construction, manufacturing and resourcesmarketswithadiverserangeofsteelandmetalproductsincludingstructuralsteelsections,steelplate,angles,channels,flatsheet,reinforcingsteelandcoilincarbonandstainless,andarangeofaluminiumproducts,pipefittingsandvalves.

ThebusinessdistributesproductssourcedfromOneSteel,aswellasexternallypurchasedproducts.

OneSteelDistributionMetalandISteel&Tube:TheMetalandISteel&TubebusinessprocessesanddistributesabroadrangeofstructuralsteelandrelatedsteelproductsandistheleadingsteeldistributionbusinessinAustralia.Ithas81outlets,includingMidaliainWesternAustralia,whicharesupportedby an extensive dealer network. The business services mining projects and non-residential and engineering construction, fabrication,manufacturingandagriculturalsegments.Reinforcing: Reinforcing steel is used for concrete reinforcement, mining strata control, agriculture and industrial mesh products andreinforcingsteelfibres.Itissuppliedtolargeandsmallbuilders,concreters,form-workers,pre-castersandminingcompanies.OneSteel’sReinforcingpresenceintheconstructionsegmentsisrepresentedbytwoseparateandcompetingbusinesses.OneSteelReinforcingofferstheconstructionandminingsegments,inparticular,asolutionsfocusedofferthroughitsrangeofinnovativereinforcingsolutions.ARC(theAustralianReinforcingCompany)hasleadingmarketpositionsinmostsegmentscomplementedbystrongcustomerrelationships,flexibleoffersanda“cando”attitude.Merchandising:TheMerchandisingportfolio comprisesa rangeofbusinesses thatprocessanddistribute steel andothermetalproducts inAustralia.Thebusinesses includeOneSteelSheetandCoil,OneSteelAluminium,OneSteelCoilCoaters,BuildingServices,OneSteelStainless,



FagerstaandOneSteelPipingSystems.Merchandising consists of approximately 30 sites that source metal and related products from a range of domestic and overseasmanufacturers.Merchandising also operates Oil & Gas, Fabricated Services and distributes products, primarily to manufacturing and fluidconveyancingsegmentsthroughitswideportfolioofbusinesses

Onesteel’s vision is to be a leadingmining andmaterials company through a portfolio ofmining andmaterialsbusinessesthatarediversifiedacrosscommodities,geographiesandmarkets.Itaimstoutiliseitsuniquecustomerrelationshipsandmarketpositions,capabilitiesandinfrastructure,andinvestinginopportunitieswhichprovidethebestreturnonshareholderfunds.

Thereare severalother large steelproducersanddistributors includingOrrcanSteel, awhollyownedsubsidiary of Hills Holdings Limited (steel tube and pipe), Southern Steel and Bisalloy Steels. BisalloySteels is Australia's onlymanufacturer of high-tensile and abrasion-resistant quenched and temperedsteelplateunderthebrandnameof“Bisplate”.Thecompanysuppliesmanufacturersandend-usersinavastarrayofindustriesincludingmining,construction,generalfabrication,pressurevesselanddefence.

MajorsteeldistributorswhoimportoverseasproductfortheAustralianmarketarelistedbelow.

InternationalSteelDistributors

• AdsteelBrokers• AmityPacificPtyLtd• CastleInternationalTradingPtyLtd• Citi-SteelPtyLtd• CMC(Australia)PtyLimited• CroftSteelPtyLtd• FerropacificPtyLtd• GSGlobalAustraliaPtyLtd• JFEShojiTradeAustraliaPtyLtd• Marubeni-ItochuSteelOceaniaPtyLtd(MISO)• MinmetalsAustraliaPtyLtd• Mitsui&CoAustraliaLtd• NewZealandSteel(Aust)P/L• SanwaPtyLtd• SteelforceAustPtyLtd• StemcorAustraliaPtyLtd• SumikinBussanOceaniaPtyLtd• TataSteelInternational• ThyssenKruppMannexPtyLtd• TokyoBoeki(Aust)PtyLtd• ToyotaTsusho(Australasia)PtyLtd• WrightSteelSalesPtyLtd

Source:AustralianSteelAssociation

Many distributors are subsidiaries of global steel producers. The volume and categories of steelimportedisdifficulttoascertain.



Attachment2:FieldsofResearch(FORs)RelevanttoSteelFabrication

Code FieldofResearch ResearchrelevanttoSteelFabrication

303 Macromolecularandmaterialschemistry

ChemicalCharacterizationofMaterialsNanochemistryandSupramolecularChemistryOpticalPropertiesofMaterialsPhysicalChemistryofMaterialsPolymerisationMechanismsSynthesisofMaterialsTheoryandDesignofMaterialsMacromolecularandMaterialsChemistrynotelsewhereclassified

` Artificialintelligenceandimage9iiprocessing

Technologies supplementing or supporting information systems or presentation, such as computergraphics,natural languageprocessing,patternrecognitionanddatamining,virtualandartificial realitiesandrelatedsimulation.Specifically

• AgentsandIntelligentRobotics• ArtificialLife• ComputerGraphics• ComputerVision• ExpertSystems• ImageProcessing• NaturalLanguageProcessing• Neural,EvolutionaryandFuzzyComputation• PatternRecognitionandDataMining• SimulationandModeling• VirtualRealityandRelatedSimulation

Note: Mechatronics for automotive engineering are included in Group 0902 Automotive Engineering;Signal processing and non-manufacturing robotics are included in Group 0906 Electrical and ElectronicEngineering; Geospatial information systems are included in Group 0909 Geomatic Engineering;Manufacturing robotics, mechatronics (excluding automotive applications) and CAD/CAM systems areincludedinGroup0910ManufacturingEngineering.

803 ComputerSoftwareTechnologies related to computer software, software programming, computer languages and softwareoperatingsystems.Thisgrouphastenfields:

• BioinformaticsSoftware• ComputerSystemArchitecture• ComputerSystemSecurity• ConcurrentProgramming• MultimediaProgramming• OpenSoftware• OperatingSystems• ProgrammingLanguages• SoftwareEngineering

OnlyUNSWwasassessedinthiscategory–ratingof4.

806 InformationSystemsCovers

• computerandinformationsystemsorganisation,designandmanagement;• interfaces and presentation, including computer-human interaction, and the application of

psychologytocomputer-humaninterfaces;• webservicesotherthanwebsearch;• traditionalinformationandknowledgesystems;and• systemstheoryandconceptualmodelling.

904 ChemicalengineeringCatalyticProcessEngineeringChemicalEngineeringDesignMembraneandSeparationTechnologiesNon-automotiveCombustionandFuelEngineering(incl.Alternative/RenewableFuels)PowderandParticleTechnologyProcessControlandSimulation

905 CivilengineeringStructuralengineeringTransportengineering(otherthanaerospace,automotiveandmaritimeengineering)WaterandsanitaryengineeringConstructionengineering.

906 ElectricalandElectronicengineering

CircuitsandSystemsControlSystems,RoboticsandAutomationIndustrialElectronicsMicroelectronicsandIntegratedCircuitsPhotodetectors,OpticalSensorsandSolarCellsPhotonicsandElectro-OpticalEngineering(excl.Communications)PowerandEnergySystemsEngineering(excl.RenewablePower)RenewablePowerandEnergySystemsEngineering(excl.SolarCells)SignalProcessing

910 ManufacturingengineeringManufacturingroboticsandmechatronics,otherthantheirautomotiveapplications;FlexiblemanufacturingsystemsComputer-aideddesignandcomputer-aidedmanufacture,alsoknownasCAD/CAMPrecisionengineeringPackaging,storageandtransportation

912 MaterialsengineeringCeramicsscienceandceramicsengineeringPolymerandtextilesengineeringCompositeandhybridmaterialsPhysicalmetallurgyandalloymaterialsFunctionalmaterialsSemiconductorengineering



Code FieldofResearch ResearchrelevanttoSteelFabrication

913 MechanicalengineeringAcoustics,noiseandvibrationcontrol;Mechanicalaspectsofautomationandcontrolengineering;Dynamics,VibrationandVibrationControlEnergyGeneration,ConversionandStorageEngineeringMicroelectromechanicalSystems(MEMS)NumericalModellingandMechanicalCharacterisationTribology(studyofinteractingmovingsurfaces)Energygeneration,conversionandstorage.

914 Resourcesengineeringandextractivemetallurgy

MiningengineeringMineralprocessingPetroleumandreservoirengineeringGeomechanicsandgeotechnicalengineeringassociatedwithminingandmineralextraction.

1007 Nanotechnology

MolecularandOrganicElectronicsNanoelectromechanicalSystemsNanofabrication,GrowthandSelfAssemblyNanomanufacturingNanomaterialsNanometrologyNanophotonicsNanoscaleCharacterisation

1201 ArchitectureArchitecturalDesignArchitecturalHeritageandConservationArchitecturalHistoryandTheoryArchitectural Science and Technology (incl. Acoustics, Lighting, Structure and Ecologically SustainableDesign)ArchitectureManagementInteriorDesign

1202 Building

BuildingConstructionManagementandProjectPlanningBuildingScienceandTechniquesQuantitySurveyingBuildingnotelsewhereclassified

1203 Designpracticeandmanagement

Designhistoryandtheory;Ergonomics;industrialdesign;Digitalandinteractiondesign;Textileandfashiondesign;andVisualcommunicationandgraphicsdesign.

1204 EngineeringdesignEngineeringDesignEmpiricalStudiesEngineeringDesignKnowledgeEngineeringDesignMethodsEngineeringSystemsDesignModelsofEngineeringDesign

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Attachment3:AustralianResearchCouncilGrants for steel related researchprojectsTheAustralianResearchCouncildoesnotprovideakeyword searchcapabilityon itswebsite thatcan provide information about the topic, purpose, researcher involvement in successful grantapplications. This information can be gleaned only by searches of each announcement of grantsawards. This lack of functionality is in contrast to searchable databases in the United States andCanada.

Grantsinformationcanproviderichinformationaboutresearchthatisbeingfundedandundertakenacrosstheuniversitysector.Sampledataforobtainedfor2012announcementsandothersearchesisprovidedbelow.

Discoveryawardsforfundingin2012

Hybrid stainless-carbon steel composite beam-column joints at ambient and elevatedtemperaturesTotalFunding:$430,000.00Investigators:Tao,A/ProfZhong;Han,ProfLin-HaiPrimaryFoR:0905CIVILENGINEERINGAdministeringOrganisation:UniversityofWesternSydneyProject Summary: This projectwill consider the behaviour of hybrid stainless-carbon steel composite beam-columnjointsatambientandelevatedtemperatures.Byincorporatingintopotentialdesigncodes,theresultscan promote the application of stainless steel in structures, thereby increasing Australia's maintenancecapabilityofstructures.

The behaviour and design of composite columns coupling the benefits of high strengthsteelandhighstrengthconcreteforlargescaleinfrastructureInvestigators:ProfBrian;Tao,A/ProfZhong;Mashiri,DrFidelisR;Liew,ProfRichardJ;Han,ProfLin-HaiApprovedProjectTitle:TotalFunding:$400,000.00PrimaryFoR:0905CIVILENGINEERINGAdministeringOrganisation:UniversityofWesternSydneyProjectSummary:Thisprojectwillinvolvethedevelopmentofanovelstructuralcolumnsystemwhichwillbemoreefficient,robustandrequirelessmaintenancethancurrentsystems.Theoutcomeswillinvolveimproveddesignmethodologieswhichwillenable largescale infrastructuretobeenhancedandwill involvetheuseofmaterialswhichimprovesustainability.

Durabilityofcarbonfibrereinforcedpolymer(CFRP)strengthenedsteelstructuresagainstenvironment-assisteddegradationInvestigators: Zhao, Prof Xiao-Ling; Singh, ProfRaman;Bai,Dr Yu; Bandyopadhyay,A/Prof Sri; Rizkalla, ProfSamiHTotalFunding:$380,000.00PrimaryFoR:0905CIVILENGINEERINGAdministeringOrganisation:MonashUniversityProjectSummary:Thisresearchprojectwillchallengeconventionalmethodsofrepairingorstrengtheningsteelstructuresbyusingcarbonfibrereinforcedpolymerwithadvancedepoxy.Theoutcomeofthisresearchistoremovethebiggestbarriertothefullutilizationofsuchadvancedmaterialincivil,offshoreandminingindustry.

A study of pull-through failures of thin steel battens to improve building safety andresilienceduringextremewindeventsInvestigators:Mahendran,ProfMahen;Poologanthan,DrKeerthan



TotalFunding:$320,000.00PrimaryFoR:0905CIVILENGINEERINGAdministeringOrganisation:QueenslandUniversityofTechnologyProject Summary: This project will develop innovative light gauge steel roofing systems with considerablyincreasedwindresistanceandreliabledesignrulesforcold-formedsteelcodesworldwide.ItwillcontributetotheAustraliangovernment'sgoalof increasingbuilding resilienceagainst futureextremeandmore frequentwindeventscausedbyclimatechange.

Linkage2011awardsforfundinginJuly2012

ReducingtheenvironmentalimpactofsteelmakingthroughdirectstripcastingInvestigators:Ferry,ProfMichael;Stanford,DrNicole;Hodgson,ProfPeterD;Laws,DrKevinJ;Quadir,DrMdZ;Fang,DrYuanTotalFunding:$210,000.00PrimaryFoR:0912MATERIALSENGINEERINGPartnerOrganisation(s)BaoshanIronandSteelCoLtdAdministeringOrganisation:TheUniversityofNewSouthWalesProject Summary: This project will investigate direct strip casting of steel, a technology that reduces theenvironmentalfootprintofliquidsteelprocessingbyupto90percent.WiththeindustrypartnerBaosteel,theprojecthopestoexpandtheapplicationofthisprocesstomoresteelgradesandtoalsoassesspossiblenewsteelgradeswithimprovedproperties.

RecyclinglignocellulosicagriculturalwasteasanironoxidereductantinferrousprocessingInvestigators:Sahajwalla,ProfVeenaTotalFunding:$285,000.00PrimaryFoR;PartnerOrganisation(s):MicrobiogenPtyLtd,OneSteelSydneySteelMillAdministeringOrganisation:TheUniversityofNewSouthWalesProjectSummary:Thisprojectseeks to recycleagriculturalwasteasa renewablecarbonresource to replacecoal-basedmetallurgicalcokeasarawmaterialinferrousprocessing.Thisapproachwillleadtoaninnovativerecyclingofthiswaste,whereinnothingiswastedandmaximumvalueisextractedfromagriculturalmaterials.

Long-spancold-formedsteelportalframesInvestigators:Rasmussen,ProfKimJ;Zhang,DrHao;Filonov,MrAlexander;Mysore,MrsKavitha;Sharma,MrSandeepTotalFunding:$135,000.00PrimaryFoR0905CIVILENGINEERINGPartnerOrganisation(s)BlueScopeLysaghtAdministeringOrganisation:TheUniversityofSydneyProject Summary: Novel solutions will be developed for building portal frames in cold-formed steel ateffectivelytwicethespancurrentlyavailable.Economiesarederivedfromusingcold-formedsteel,whichwillbenefit the end consumer and help the Australian steel industry to maintain its position as preeminentproviderofinnovativecold-formedsteelsolutions.

New generation high efficiency thermoelectric materials and modules for waste heatrecovery

Investigators:Dou,ProfShiXue;Li,A/ProfSeanS;Li,DrWenxian;Zhang,ProfChao;Aminorroaya-Yamini,DrSima

Totalfunding:$400,000.00PrimaryFoR:0912MATERIALSENGINEERINGFundedParticipants:APDIDrWenxianLiPartnerOrganisation(s)BaosteelCompanyAdministeringOrganisation:UniversityofWollongongProjectSummary:Thedevelopmentofthermoelectricmaterialsanddevices,andtheirsubsequentuptakebythe steel industry,willbring tremendous socio-economicbenefits in termsofdecreasedoperational costs,a



significantlyreducedcarbonfootprintandwillsetanexcellentexampleforotherindustriesonhowtocomplywithstrictenvironmentalregulations.

BearingcapacitiesofinnovativeLiteSteelbeamsandtheirfloorsystemsInvestigators:Mahendran,ProfMahenTotalFunding:$195,000.00PrimaryFoR:0905CIVILENGINEERINGPartnerOrganisation(s):LiteSteelTechnologiesPtyLtdAdministeringOrganisation:QueenslandUniversityofTechnologyProject Summary: This project will develop accurate bearing capacity design models for the new LiteSteelbeams (LSB) to enable innovative and safe applications of LSBs in various flooring systems in buildings.ImprovedLSBfloorsystemswillalsobedeveloped.ThiswillenableexpansionoftheworldwidemarketforLSBproductsandsystemsbytheindustrypartner.

Linkage2011awardsforfundinginJanuary2012

Seismicbehaviourofdrive-insteelstorageracksInvestigators:Rasmussen,ProfKimJ;Zhang,DrHao;Clarke,DrMurrayJ;Yang,DrDemao;Berry,DrPaulATotalFunding:$202,489.00PrimaryFoR:0905CIVILENGINEERINGPartnerOrganisation(s):DematicPtyLtdAdministeringOrganisation:TheUniversityofSydneyProjectSummary:Thepurposeofthisprojectistostudythebehaviour,analysisanddesignofdrive-insteelstorageracksinanearthquake event. Themain research outcome is the development of scientifically-based guidelines for thesafedesignofdrive-inracksinseismicregions.

FlexiblerollformingofadvancedhighstrengthsteelsheetInvestigators:Hodgson,ProfPeterD;Barnett,ProfMatthewR;Rolfe,DrBernardF;Yang,DrChunhuiTotalFunding:$270,000.00PrimaryFoR:0913MECHANICALENGINEERINGPartnerOrganisation(s);AustralianRollformingManufacturersPtyLtd,BlueScopeSteelLimited,ResearchandDevelopmentCentreofWuhan,Iron&Steel(Group)Corporation,dataMSheetMetalSolutionsAdministeringOrganisation:DeakinUniversityProject Summary: This projectwill develop lightweight automotive components to assist fuel economyandcrashworthinessthroughflexiblerollforming.Thisprocesshasthepotentialtoformcomplexshapesfromveryhigh strength steels in a very cost effective and efficient small scale operation, highly suited to Australianmanufacturing.

OtherARCGrantsidentifiedthroughWebsearch

EstablishingIn-DepthUnderstandingofMolecularDegradationProcessesinAcrylicBasedPolymerCoil-CoatingsforDomesticRoofingApplicationsInvestigators:ProfCBarner-Kowollik;DrPJBarkerFunding: 2008: $30,000 2009: $43,500 2010: $31,000 2011: $17,500PrimaryRFCD: 2505 MACROMOLECULARCHEMISTRY Collaborating/PartnerOrganisation(s):BlueScopeSteelResearchAdministeringOrganisation:TheUniversityofNewSouthWalesProject Summary: The national benefit is multipronged: (i) BlueScope Steel will maintain its technologyleadershipthroughcontinuedinnovationbytakingadvantageofthescientificinsightsthattheprojectdeliversfortheintroductionofnextgenerationlonglastingcoilcoatingsforsteel,basedonanenvironmentallyfriendlyproductionprocesses. (ii)Theapplicationofmassspectrometry for theanalysisofpolymerdegradationhasbeenpioneeredbytheCIandBlueScopeSteel.Theprojectwilldemonstratethepowerofthistechniqueand



secure Australia's place at the forefront of molecular polymer degradation research. (iii) The project has astrongeducationalcomponent,trainingaPhDstudentattheinterfaceofapplicationandfundamentalresearch.

AdvancedTestingandStructuralAnalysisforAssessmentandControlofHydrogenDamageinStructuralSteelsInvestigators:ProfEPereloma;DrACalka;ProfDPDunne;DrFJBarbaroFunding: 2008: $80,000 2009: $180,000 2010: $160,000 2011: $134,500 2012: $74,500PrimaryRFCD 2913 METALLURGYCollaborating/PartnerOrganisation(s):BlueScopeSteelLimitedAdministeringOrganisation:UniversityofWollongongProject Summary: Hydrogen offers the potential for reducing emissions in transport and energy generationindustriesasit isalowemissionenergycarrier.However,thereremainquestionsinrelationtotheeffectsofhydrogengasonthestructuralintegrityoflargestructuralsteelcomponents,suchasgasdistributionpipelines.Theprojectaimstoprovideguidanceonthesafeuseofhydrogeninhighpressurevesselsmanufacturedfromlowalloyferriticsteels.This project will increase confidence in relevant safety codes and standards, consequently increasing thelikelihoodoflargescaleuptakeofhydrogenenergytechnologies.

Strengthoftwo-waysteelfibrereinforcedcompositeflooringsystemsInvestigators:ProfMABradford;ProfRIGilbert;ProfSJFoster;MrAFilonov;MrRRatcliffeFunding:2009: $30,0002010: $60,0002011: $30,000PrimaryRFCD:2908CIVILENGINEERINGCollaborating/PartnerOrganisation(s):BlueScopeLysaght,BOSFAAdministeringOrganisation:TheUniversityofNewSouthWalesProject Summary: The construction industry in Australia is introducing efficient and economical long-spanprofiledsteelsheetingforcompositeflooringsystems,andSteelFibreReinforcedConcrete(SFRC)applicationsarebecomingwidespread.Australia is a recognisedworld leader in the researchofboth composite structuresandSFRC.UsingSFRC incompositedecks toeliminateconventional reinforcement isveryefficientandcost-effective,butsurprisinglylittlerelevantresearchaimedattheAustralianindustryhasbeenreported.Comprehensivedesignguidanceismuchneededtoadvancethistechnology.Thisprojectwillgivedesignersconfidenceandexpertisetoadvancethesetechnologies,whilemaintainingAustralianresearchandpracticeincompositestructuresattheforefront.

Time-dependent in-service behaviour of composite concrete slabs with profiled steeldeckingInvestigators:ProfRIGilbert;ProfMABradford;MrsRZeuner;MrGRBrockFunding: 2009: $45,000 2010: $89,000 2011: $82,500 2012: $38,500PrimaryRFCD:2908CIVILENGINEERING Collaborating/PartnerOrganisation(s):FieldersAustraliaPtyLtd;PrestressedConcreteDesignConsultantsPtyLtdAdministeringOrganisation:TheUniversityofNewSouthWalesProjectSummary:Atpresent,thein-servicebehaviourofcompositefloorslabsisincompletelyunderstood,andstructuraldesignershavenoreliablemeanstoassesstheeffectsonstructuralbehaviourofshrinkagewarping,time-dependent cracking, temperature gradients and the influence of prestress on bond-slip at theconcrete-deck interface. This project will, through laboratory testing and theoretical analysis, provide thenecessarydatatodevelopandcalibratemodelstosimulatestructuralbehaviourandproviderationalguidancefordesignengineers.TheprojectwillresultinmoreserviceableandmoreeconomicalcompositefloorslabsinAustralianbuildings,therebyreducingthecostsofconstruction,maintenanceandrepair.



Attachment 4: Summary of capability in universities and researchorganisationsrelatingtosteelfabrication.Thefollowingmaterialhasbeendrawnfrompubliclyavailablesources.Ithasnotbeenvalidatedwiththe organisations concerned. Additional work is required to bring the material into a consistentformat. However, it serves as a base for further development of the research and innovationcapabilitymap.

CurtinUniversity

• TheCorrosionCentreforEducationResearchandTechnology(Corr-CERT

TheCorrosionCentreforEducationResearchandTechnology(Corr-CERT)hasbeenconductinghighqualityresearchandprovidingexpertconsultancyservicestooilandgasindustryformorethantwodecades. The centre's services arediverse and catch the attentionofmanyAustralian and foreigncompanies.Theindustrywillfocusonpracticalproblemsandcontinuetoencourageresearchtofindout optimal solutions. With this broader perspective in mind, Corr-CERT keeps on exploringopportunities of working with industrial partners on challenging research assignments. It hasdevelopedjointprojectsincollaborationwithsomeoftheleadingcompanieslikeChevronAustraliaPtyLtdandWoodsideEnergyLtd.

ThegeneroussponsorshipfromChevronandWoodsidehasestablishedtheChevron-WoodsideChairinCorr-CERT.Thishashelpedthecentretogrowmulti foldsanddevelopnewprojects.Thecentrealsoprovidesin-housetrainingtosponsorsandtoaugmentresearchactivities,verysoon,theCorr-CERTwillberelocatedto'TechnologyPark'.Withhelpfromthesponsors,thecentreisalsoseekingtoexpandindustrialcollaborationwithmajoroilandgasproducersandtheirsuppliers.

Thecentrehasdedicatedstaffanditsresearchlaboratoryiswellequippedwithmodernequipmentto provide high quality customer service. The laboratory conducts testing as per ASTM, ISO,Australian and NACE standards. At present, Corr-CERT is located at building 500, Resources andChemistryPrecinct.

The Corr-CERT has developed close ties with some of the leading national and internationalassociations. It is a member of the ACA technical group steering committee of petroleum andchemicalprocessindustriesandalsoacorporatememberofACAandNACEInternational.

TheCorrosionCentreforEducationResearchandTechnology(Corr-CERT)hasbeenconductinghighqualityresearchandprovidingexpertconsultancyservicestooilandgasindustryformorethantwodecades. The centre's services arediverse and catch the attentionofmanyAustralian and foreigncompanies.Theindustrywillfocusonpracticalproblemsandcontinuetoencourageresearchtofindout optimal solutions. With this broader perspective in mind, Corr-CERT keeps on exploringopportunities of working with industrial partners on challenging research assignments. It hasdevelopedjointprojectsincollaborationwithsomeoftheleadingcompanieslikeChevronAustraliaPtyLtdandWoodsideEnergyLtd.

ThegeneroussponsorshipfromChevronandWoodsidehasestablishedtheChevron-WoodsideChairinCorr-CERT.Thishashelpedthecentretogrowmulti foldsanddevelopnewprojects.Thecentrealsoprovidesin-housetrainingtosponsorsandtoaugmentresearchactivities,verysoon,theCorr-CERTwillberelocatedto'TechnologyPark'.Withhelpfromthesponsors,thecentreisalsoseekingtoexpandindustrialcollaborationwithmajoroilandgasproducersandtheirsuppliers.

Thecentrehasdedicatedstaffanditsresearchlaboratoryiswellequippedwithmodernequipmentto provide high quality customer service. The laboratory conducts testing as per ASTM, ISO,Australian and NACE standards. At present, Corr-CERT is located at building 500, Resources andChemistryPrecinct.



The Corr-CERT has developed close ties with some of the leading national and internationalassociations. It is a member of the ACA technical group steering committee of petroleum andchemicalprocessindustriesandalsoacorporatememberofACAandNACEInternational.

ContactProf.RolfGubnerChevron-WoodsideChairinCorrosionEngineeringDirector,CorrosionCentreforEducationResearchandTechnology(Corr-CERT)SchoolofChemicalandPetroleumEngineeringCurtinUniversityBentley,WesternAustralia6102Phone:+61892667272Fax:+61892662300Email:[email protected],CorrosionCentreforEducationResearchandTechnology(Corr-CERT)SchoolofChemicalandPetroleumEngineeringCurtinUniversityBentley,WesternAustralia6102Phone:+61892669684Fax:+61892662300Email:[email protected]

DeakinUniversity

• ResearchInstituteforFrontierMaterials

Societyisfacingmajorchallengesthatareincreasinglyrequiringstepchangesinmaterialsdesignandperformance.At the same time the impactof theproductionof newmaterials and issues suchasrecycling are also becoming more important. So we now face an exciting new frontier in thedevelopmentofmaterialstomeetkeychallengesfacingusintothefuture.

AsaresponsetothisthematerialsresearchatDeakinUniversityisembracinganewstructurethatwillallowittotacklemorecomplexproblemsofnationalandinternationalimportance,intheareasofenergy,health,environment,aswellasmanufacturing.Ouraimistodevelopnewmaterialsandstructuresthatarenotonlyaffordable,butalsohavealowsocietalcostofmanufacture,usageandrecycling.

The Institute for FrontierMaterials has the ability to process and characterisematerials across allscale lengths, from the atomistic level in the manipulation of interfaces and surfaces through toentire structures. It will also bring together engineering, chemistry, materials science, physics,biology, mathematics and other disciplines to inform the development of these new materialdiscoveriesandengineeringsolutions.

• AdvancedHighStrengthSteelsfortheAutomotiveIndustry

This is a very broad research program that considers both the steel industry as well as theautomotiveindustryaspects.Currenttopicsinclude:

• Formability of dual phase, TRIP and other steels, including the fracture behaviour, FLDconstruction, finite element modelling of the forming strains and springback and advancedmicrostructure-FEAmodelsexaminingstrainpartitioning.

• FatiguebehaviourofTRIPandDPsteelsusingourstraincontrolled30Hzfatiguetesterthatcandobothtensionandcompressioncycles.Thishasincludedexaminingtheeffectofprestrainandanunderstandingoftheevolutionofthedislocationsubstructure.

• CrashBehaviourofAHSS.Thisworkhasledtothedevelopmentofimprovedmodelstorepresenttheconstitutivebehaviourofawiderangeofsteelsundercrashconditions.Wewillbeextendingthis work later this year when the 25m/s tensile frame is commissioned. The objective is todevelopamicrostructurebasedconstitutivemodel.

• BakeHardening of AHSS. The bake hardening response of these steels is very variable andwehavebeenlookingatwhythisisthecaseforTRIPandDPsteels.Byusingatomprobetomography(APT) we have been able to link the level of solute C in the ferrite and the nature of thedislocationstructuretothebakehardeningresponse.

• Thermomechanically produced TRIP steels. This is an ongoing project to understand themicrostructureevolutionandthealloypartitioningandTRIPeffect.AgainwehaverecentlyusedAPTtoexaminethedetailsofalloypartitioning.

• UltrafineGrainedandNanostructuredSteels



Ourworkontheultrafinegrainedsteelsthroughstraininducedtransformationiswidelyknown.Westillmaintainasmallprogramonthis, largelyincollaborationwithNIMSinJapan.Ourrealfocusatpresent is to understand the fundamentals better and in particular the deformation structureevolutionintheaustenitepriortoorduringthetransformation.

Weareconsideringarangeofin-situtechniquesforthisatpresent.Wehavealsoaprogramrelatedto thenewnanostructuredbainitesdevelopedbyBhadeshiaandco-workers.Wehaveproducedarange of structures and are considering their dynamic properties as well as undertaking detailedmicrostructuralcharacterization includingAPT.Anotherproject isconsidering thestrengthductilitybalance of ultrafine structured steels produced by a range of methods. This is linked to a moregeneralprogramonnanostructuredmetals.

• Deformation

Wehavehadanumberofprojectsexaminingthedeformationanddynamicandpostdeformationsoftening behaviour of steels. This has largely involved advanced use of our EBSD equipment toidentifythekeyfeaturesofthemicrostructureevolution.

Wehavealsoexaminedarangeofmodelalloysandrecentlycommencednewworkrelatedtostraininduced precipitation in Nb microalloyed steels, particularly under multi-pass and strip millconditions - areas that have not received much attention to date. We are also interested in thepotentiallossofNbforlatterprecipitationstrengtheningintheproductionofthickplate.

• TextureDevelopment

Mostof thisworkhaspreviouslybeen related towarmrolling.However,withournewthrust intostripcastingthisresearchwillconsideramuchbroaderrangeofconditionsandmicrostructures.

• PhaseTransformations

This is largely linked to theTMCPofAHSSandwill in the future focuson thepotential todevelopadvancedsteelsthroughthestripcastingorothernearnetshapedcastingandTMCProutes.Weareextending theTMCPTRIP steelwork to considerothermuchhigher strengthmicrostructures.AlsooncewehavetheabilitytomakeourownmeltswewillbepursuingotherideasrelatedtostandardTRIPcompositions.

AnotherthrustforthisyearwillbeTWIPsteelsandinparticulardesigningthecompositionsforthebalancebetween forming and crash conditions.Wewould alsobe interested in pursuing researchrelated to the transformationofmore basic TMCPplate and strip steels andusing newmodellingtechniquescombinedwithourexcellentexperimentalcapabilities.

GriffithUniversity

• CentreforInfrastructureEngineeringandManagement

The Centre for Infrastructure Engineering and Management aims to optimise the life cycleperformanceofcivilinfrastructuresystemsthroughproductinnovationandprocessintegration.Theprimaryaimof theCentre is to capitaliseon the collectiveexpertiseof ahighlyqualifiedgroupofengineerssoastoprovidepracticalsolutionsandanswerstothediversechallengesassociatedwiththecreationandoperationofcivilinfrastructuresystemssuchas:

- buildings- roads- bridges- marinefacilities

TheCentrehastwoResearchPrograms:InfrastructureEngineeringandInfrastructureManagement.The InfrastructureEngineeringprogramfocuseson the technicalaspectsof infrastructuresystems,whereas the InfrastructureManagement program focuses attention on themoremanagerial and



strategic issuesconcerningtheoperationofsuchsystems.Bothprogramsarestrongly inter-relatedwithanumberofapparentandcriticalsynergiesexistingbetweenthem.

Researchfocushasthefollowingthreemajorobjectives:

- improvedengineeringdesignmethods;- advancedconstructiontechniquesandtechnologies;and- enhanceddecision-makingmanagerialprocesses.

The structural engineering group has expertise in the design and analysis of reinforced and pre-stressed concreteand steel structures. Serviceability and strengthof concrete structureshasbeenthemainfocusofthegroup’sresearch.

JamesCookUniversity

• CivilandEnvironmentalEngineeringDiscipline

Researchactivitiesinstructuralengineeringareanalytical,numericalandexperimentalinnatureandaredirectedatinvestigationsinto:

- Rehabilitation and retrofitting of timber, steel and concrete structural members using advancedcompositejacketingtechniques

- Strengthofconcrete-filledsteeltubularbeamsandcolumns- Bending,bucklinganddynamicbehaviouroffibre-reinforcedcompositeplates- Non-destructivecharacterizationofflawsincompositestructures- Time-invariantandtime-variantreliabilityanalysisofstructuralelementsandsystems- Reliabilityassessmentofexistingstructuressubjecttodeterioration- Analysisandassessmentofconcretebridges- Soil-pile/structureinteraction- Computermodellingofstructuralbehaviourofhouses

The structural engineering research group has access to latest microcomputers and highperformancecentralcomputingfacilitiesofJCU.Experimentalandtestingworkiscarriedoutinwell-establishedandwellequippedstructural,concreteandmaterialtestinglaboratories.

StructuresLaboratory

The structures laboratory is designed to provide facilities for testing structural components andassemblies under applied load. One of the main features of the laboratory is the reaction floorconsistingofa1.2mthickprestressedconcreteslab towhich the testing rigscanbeattached.Thefloorisdesignedtoallowstructuralassembliesranginginsizeupto25mprestressedconcretebridgegirderstobetestedtofailure.

The laboratory is equipped with an assortment of manual and servo-controlled jacks ranging incapacity up to 1000 tonnes, together with associated measuring devices such as load cells anddeflectiongauges,andloadingframes.Duringtherecentyears,themajoremphasisinthelaboratoryhasbeenonstructuraltestinginrelationtoresistancetocyclonicwindloadsforwhichanumberofspecialpurposetestingrigshavebeendeveloped.

MaterialsTestingLaboratory

The materials testing laboratory houses the major items of equipment used for determining themechanical properties of building materials - concrete, steel, aluminium, timber, compositematerials, etc. The laboratory occupies a floor area of 130 m2 and is located adjacent to thestructureslaboratory.Themajoritemsofequipmentinclude:

- M.T.S.universalservo-controlledtestingmachine-1MNcapacity- Averyuniversaltestingmachine-500kNcapacity,5ranges- Averycompressiontestingmachine-1800kNcapacity,3ranges- Averyuniversalimpacttester-300Jcapacity,2ranges- Izodimpacttester-120lbf/ftcapacity- Instronuniversalservo-controlledtestingmachine-100kNcapacity- Instrontestingmachine-10kNcapacity



CycloneTestingStation

TheCycloneTestingStation(CTS) isthepre-eminent independentauthorityontheperformanceofbuildings in severewindevents. Itworkswithother industrygroups toassess thevulnerabilityofhousesincyclonicandnon-cyclonicpartsofAustralia.Existinghousesandhousesunderconstructionhavebeensurveyed.Full-scalehousesandcomponentshavebeentestedandanalysed.

Usingwind tunnel tests basedon scalemodels and full scalewind loaddata, vulnerabilitymodelsthat estimate damage to a range of house types are being produced. These models incorporateengineering theory and reliability analysis of housing performance. They are validated from postwindstormdamageinvestigations.

TheoutcomesfromthesestudiesarebeingexpandedtoalignwiththeworkattheNationalClimateChangeAdaptationResearchFacility.

MacquarieUniversity

• OptoFab

OptoFabisoneofthe8nationwidenodesthatformANFFwhichprovidesresearchersandindustrywithaccesstostate-of-the-artfabricationfacilitiesacrossAustralia.

OptoFabconsistsoffourcentresoffacilitiesandexpertisebasedatMacquarieUniversity,BandwidthFoundryInternational,UniversityofSydneyandtheUniversityofAdelaidewiththeheadquartersatMacquarieUniversity.

Thelistbelowrepresentsthekeyfacilitiesofferedbythenode.

• Nanosecondlasermicrofabricationfacility• Femtosecondlasermicrofabricationfacility(onalimitedbasis)• Fullcharacterisationsuite• Functionalisednanoparticlefabsystem(DiamondCVD)• GlassFibreSurfaceFunctionalisation

MonashUniversity

• DepartmentofMaterialsEngineering

The ability to understand and manipulate materials and their properties is a key factor in anyindustrialprocessortechnology,neworold.Increasinglynanotechnology,sustainablematerialsandbiomaterialsarebecomingimportantareasofourendeavour.

BecauseoftheenablingaspectofMaterialsEngineering,andthemultidisciplinarynatureoftheskillslearned, our graduates are much in demand in many industrial organisations. Many also go intoresearch,beitinacademia,industriallaboratoriesorgovernmentresearchorganisations

MaterialsEngineeringhasanactivewell-fundedresearchprogramwithextensive,modernfacilities,and a large number of postgraduates and research fellows. The projects range from fundamentaltopicstomanywhichinvolvecollaborationandfundingfromindustryandgovernment.

Ourareasofresearchstrengthinclude:

• nanomaterials,nanoparticulatesandnanocomposites,• solarenergyandphotovoltaicmaterials,• biomaterials,tissueengineering,• functionalmaterials(magneticandelectronic)anddevices,• metalsandalloys(particularlylightalloys),• diffractionstudies,• polymerscienceandengineering,• ceramicengineering,• corrosion,• fractureofmaterials,• productionandpropertiesofcomposites,



• mechanicalproperties,• mathematicalandcomputermodellingofmaterialsandprocesses.

Underpinningallofthesestrengthsisawiderangeoftechniquestoprobematerialstructuresatallsizescales.

• ResearchFacilities

TheDepartmenthaswide rangeofexcellent facilities itselfandaccess toanevenwidervarietyofsophisticated research facilities, including an Atom Probe Field Ion Microscope and some of theworldsmostadvancedelectronmicroscopefacilitiesatitsMonashCentreforElectronMicroscopy.

TheAustralian Synchrotron is 10minuteswalk away across the road fromMonash, and access tomajor synchrotron facilities in Japan, the US and Europe is also facilitated via the AustralianSynchrotron Research Program. Academics also use theOPALNuclear Reactor at LucasHeights inNewSouthWales.

TheMelbourneCentre forNanofabrication is locatednear toMonashUniversity (nextdoor to thesynchrotron)andisprovidingscientistswiththetoolstobuildminiaturedevicesandhavearangeofhighendcharacterisationtools(includinge-beam,variouslithographies,CVDsystemsetc.)

Researchcapabilitiesinclude:

• AdvancedPolymerScienceandEngineering• BiomaterialsandTissueEngineering• ElectronicandMagneticMaterials• EngineeringAlloys• AdvancedLightAlloys• ThermomechanicalProcessing• Corrosion• MaterialsCharacterisation• ModellingandSimulationofMaterialsandProcesses• StructuralandFunctionalCeramics• SolarCells

QueenslandUniversityofTechnology

• InstituteforFutureEnvironments–afocusforscienceandengineering

QUT is developing a new$230million Science and EngineeringCentre andCommunityHubon itsGardensPointcampus,whichisdueforcompletionin2012.

The Institute for Future Environments (IFE), located in thenewScience and EngineeringCentre atQUT Gardens Point and a number of distributed sites, will play a key role in delivering the keyBlueprint3priority-“tobuildQUT’sreputationasaselectivelyintensiveresearchuniversity”.

The Institutewilldeliver interdisciplinarycollaborativeresearchatscalewith focus.The Institute isdedicatedtotransformationandimprovementofinterdisciplinaryresearchperformanceinthefieldsof Science, Technology, Engineering and Mathematics. The establishment of IFE coincides with amajorcapitalinvestmentinphysicalinfrastructureinthenewScienceandEngineeringCentre(SEC).TheCentrewillhousetheInstitute,complexanalyticalresearchfacilities,newteachingandlearningspaces,andcommunityfacilities.

QUT’saimistoestablishaninternationallysignificanthubfortheintegrationofscience,technology,engineering,andmathematicsdisciplines.

RMITUniversity

• TheSchoolofAerospace,MechanicalandManufacturingEngineering



The School is recognised by industry and general community for its work-relevant educationprograms, supreme research facilities, creative real-world project work and robust relations withlocalandinternationalindustryleaders.

TheSchoolhasachievedsignificantsuccessesinadvanceddesignandmanufacturingacrossdifferentapplicationareasandindustrysectors.Capabilitiesinclude:

• sophisticated design of high performance racing cars including alternative racing technologies(solar,hydrogen,electric)

• boldstepsandimpressiveprogressioninenergyconservationandrenewableenergytechnologies• collaborationwiththeUSondesigningandbuildingamilitaryfighterjetengine• leadinginvirtualengineeringtechnologiescapableofsimulatingcomplexsystemsandprocesses• developing novel automotive technologies in collaboration with leading vehicle manufacturers

andsuppliersinAustraliaandoverseas• advancingthecapabilitiesofheavy-lifthelicopterwithadesignthatenablesittoliftbattletanks

fortheAustralianDefenceForce• innovationinsportsengineeringresultingincutting-edgesportstechnologiesforable-bodiedand

disabledathletes

TheSchoolhasdevelopedextensiveandadvancedresearchfacilitiestosupportitsresearchefforts.Researchfacilities,locatedatRMIT’sBundooraEastandCitycampuses,include:

• AdvancedManufacturingLaboratories• AerodynamicsLaboratories• AutomotiveLaboratories• CAD/CFD/CAEEngineeringLaboratory• CompositeandPolymerLaboratory• DynamicsLaboratories• MaterialTestingLaboratory• MeasurementsLaboratory• MechatronicsLaboratory• RapidPrototypingFacility• ThermodynamicsandRenewableEnergyLaboratories

• TheMaterialandManufacturingProcessesGroup(MMPG)

MMPGiscurrentlyrepresentedbyfouracademicstaffandtenpostgraduatestudents.Atthehubofthe research activities of theMMPG are the laboratories forMaterials,Manufacturing Processes,Metrology and Laser-based Measurement, Polymer processing and access to the workshop andlatestcomputersoftware.

Majorresearchareas

• Metalsheetforming• Multi-diameterdrillingperformance• Applicationoflowpowerlaserinmanufacturingindustry• EDMperformance• Compositeandsmartmaterialproperties• Polymerprocessingandtesting• Stressanalysisofengineeringproducts• Designandapplicationofexpertsysteminmanufacturingtechnology• FlexibleManufacturingSystem(FMS)• Servicesavailabletoindustry

SomeoftheareasinwhichtheMMPGisabletoassistManufacturing-basedcompaniesare:

• Scrapreductionormaterialsfailuresduringmanufacturing• Improvingsurfacequalityofaproductsinprocess• Monitoringandin-processmeasurementbylaserwithcustomisedsoftwarecapability• Independentfeasibilitystudyformanufacturingindustry• Training and providing short courses to all level of staff either on site or at RMIT Faculty of

Engineering• Destructiveandnon-destructiveproducttestingandevaluation



• Materialsmodellingandsimulation

MMS aims to develop fundamental relationships between the atomic structure and properties ofmoleculesandbulkmaterialsaswellastheirsurfacesandinterfaces,sothatadvancedmaterialswithenhancedandnewpropertiescanbedesigned.

Current applications include projects in both life and material sciences. Our projects involvesimulations of industrial materials, such as metals, minerals, organic coatings, carbonaceous andnanomaterials,aswellasbiologicalmaterials,suchaspeptides,proteinsandbiologicalmembranes.We are also interested in modelling interactions of engineered nanoparticles with biologicalenvironmentwhichisrelevanttonewtechnologiesfordrugdelivery,tissueengineering,biosensorsaswellasnanosafetyandnanotoxicology.

Electronicstructurecalculations,classicalmolecularmechanicsanddynamics,MonteCarloandothermethodsarebeingusedinthegroup.

Our research is supported by theAustralian Research Council and industry, including BHPBilliton,BlueScope Steel and Cytopia. We work with RMIT’s Health Innovations Research Institute andPlatformTechnologiesResearchInstitute.

Forfurtherinformation,pleasecontactProfessorIreneYarovsky

• AdvancedManufacturingPrecinct

RMITUniversity’sAdvancedManufacturingPrecinctbringstogetherRMIT’sexpertiseandstrengthsininnovativetechnologyanddesign.

We house the latest in industrial platform technologies focusing on additive and subtractivetechnologies, and develop and realise conceptual design and its many iterations, across manydisciplinesofproductandindustrialdesign.

Weprovide companieswithaccess toa rangeof specialisedequipment that canenhanceproductdevelopment and design, drawing on our international reputation for excellence in work-relevanteducationandhigh-qualityresearchthatisengagedwiththeneedsofindustryandcommunity.

Ourspecialisedequipmentprovidesaccesstocutting-edgetechnologythatcanenablecompaniestodevelopnewconceptualproducts,performmultipledesigniterations,ordevelopexistingproducts.

Additivemanufacturing

We can build final products direct from a computermodel in both polymers and high-techmetalalloypowders.Ourstate-of-the-artadditivemanufacturingtechnologiesinclude:

• selectivelasermelting(metal-basedtechnology)• fuseddepositionmodelling(polymer-basedtechnology)• objetmachines(polymer-basedtechnology)• UPrintmachines(polymer-basedtechnology).

Subtractivemanufacturing

The AdvancedManufacturing Precinct houses internationally recognised multi-axis CNC machines(Okuma, Haas and BIESSE) formachining high-performance alloys and composites for engineeringandfurnitureapplications.

Industrialautomation

Robotictechnologygivesoursubtractivemanufacturingcapabilitygreaterdiversityandflexibilityofapplications. We use a range of automation robotics to simulate manufacturing production linesused in the furniture, textile and design industries.We have the latest in CAD software, allowingstudentsandresearcherstodesigncomponentsandmodels.

Partnerships with industry may involve collaborative and contractual agreements, with RMIT'scapabilitiescomplementedwithappropriateindustrycontribution.



Testingandanalysis

The AdvancedManufacturing Precinct allows access to RMIT’s full capabilities. Prototypes can betestedtodeterminelimitationsandspecifications.Testingcaninclude:

• mechanicalanalysis• materialanalysis• systempower• acousticstesting• fatiguetesting• tensiletesting.

Highly accurate digital coordinate measuring machines allow detailed verification for qualityassuranceandreverseengineering.

SwinburneUniversityofTechnology

• AustralianAdvancedManufacturingResearchCentre

TheAustralianAdvancedManufacturingResearchCentre(AusAMRC)isaninitiativeledbySwinburneUniversityofTechnologyandtheBoeingCompanytoresearchanddevelopnewaerospaceandotherindustrysectorcomponentmaterialsandmanufacturingtechnologies.

LocatedatSwinburne'sHawthorncampus,AusAMRC isanopenandcollaborative industryallianceseeking to develop technology-driven solutions to ensure Australian supplier organisations areamongstthemostinnovative,competitiveandcapableintheworld.

ResearchprojectsarefundedbymembershipfeesandthroughpartnershipswithStateandFederalGovernments,aswellasotherleadingresearchorganisations.

CoordinatedbyBoeingResearch&TechnologyAustralia,AusAMRChasbeenestablishedtoresearchanddevelopprojectsthatwillhelpBoeingAustraliaandAustraliansuppliersimprovetheircapabilitytodelivergloballycompetitiveandhigh-qualityBoeingproducts.

BasedonthesupplychainmodelfornewtechnologyresearchAusAMRCwillinitiallyfocuson:

• Highperformancemachiningoftitaniumandaluminiumalloys;• Hybridmetal-compositecomponents;and• Advancedtoolingforintegratedcompositestructures.

AusAMRCworkscloselywiththeinternationallyacclaimedAdvancedManufacturingResearchCentre(AMRC)intheUnitedKingdom.ItwillljoinAMRC'snetworkofworld-leadingaerospacesupplychaincompaniesandkeygovernmentand internationalacademic institutions tobringhighperformancemachiningtechnologiestoAustralianindustry.

In2011AusAMRCwillmoveintoanewAdvancedTechnologyCentreatSwinburneuntilconstructionoftheproposedAdvancedManufacturingCentreFactoryoftheFutureiscomplete.

MembershiptoAusAMRCprovidesanumberofbenefitsincludingtheopportunitytohaveaseatontheBoardandinfluencethedirectionoffutureresearchprojects.Allmemberscanparticipateinandobtaintheresultsofgenericresearchprojects.

AusAMRCispartof“GlobalNet”,agroupofBoeing-engagedresearchcentresaroundtheworld.Thegroup collaborates and coordinates its research efforts, including through an annual conference(2009intheUKand2010inItaly).

AusAMRC is based on and closely allied to the highly successful AMRC (AdvancedManufacturingResearch Centre) at Sheffield University in the UK. The UK's AMRC is a £60 million collaborationamongmorethan40partnerorganisations,comprisingworldleadersintheaerospacesupplychain,keygovernmentofficesandinternationalacademicinstitutions.

• SmartStructuresResearchLaboratory



AusAMRChouses iconic researchequipment related to theUniversity'sareasof researchstrength,includinganewSmartStructuresLaboratory.

The $15 million laboratory is a major three-dimensional testing facility developed for large scaletestingofcivil,mechanical,aerospaceandminingengineeringcomponentsandsystemsandtheonlyoneof itstypeavailable inAustralia.The1.0mthickstrongfloormeasuressome20mx8minplanwithtwo5mtallreactionstrongwallsmeetingatonecorner.

The3Dstrongcellhaveagridoftiedownpoints0.5mapartoverthewholefloorandwallstosecurethetestspecimens,aswellasasuiteofhydraulicactuatorsanduniversaltestingmachinesvaryingincapacity from 10 tonnes to 500 tonnes. The laboratory is serviced by adjacent workshops and ahydraulic pump system located in the basement. The facility is housed in a large architecturallydesignedtesthallabout8mtall,locatedprominentlyatthefrontoftheATCbuilding.

The facility provides support to Swinburne's Centre for Sustainable Infrastructure and provides aregionalandnationalfocusforlarge3Dstaticanddynamictestingwithawiderangeofapplicationsincluding;civil,mining,railway,aerospaceandautomotivecomponents,systemsandinfrastructure.

Thefacilityallowstestingofexistingandnewsystemsandfacilitateinvestigationsofnewmaterialsunderfull-scalerealloadingconditions.

The research outcomes from these tests allow for the verification and calibration of computermodels and simulations in three dimensions and provide significant benefits to both industry andgovernmentindevelopingsustainableandinnovativesolutionstocomplexproblems.

TheAustralianNationalUniversity

• Materials&ManufacturingGroup

TheMaterialsandManufacturinggroupisaresearchandteachingunitwithintheResearchSchoolofEngineeringintheANUCollegeofEngineeringandComputerScience.Ourresearchspansthefieldsof mechanics, advanced materials, and manufacturing technology. A key theme for all researchtopicsistoviewtheprocessasasystemandunderstandtheinteractionswithinthesystemsandtheeffectofvariabilityonthesystemoutput.

Important to the work of the group is its relevance and applicability to industry. Strongcollaborationshavebeenestablishedwithindustrialorganisationswithmanyprojectsbeingpartiallyundertakenwithincompanypremises.

TheMaterialsandManufacturinggrouphasaccesstoanumberoflaboratoryfacilitiesatANUwhichinclude:

• Advancedsystemslaboratory• Advancedmanufacturinglaboratory• Manufacturingworkshop• Materialsprocessinglaboratory• Computationalmechanicslaboratory• Advancedmaterialslaboratory• Materialsteachinglaboratory

Materials&Manufacturinglinks

• ANUCollegeofEngineering&ComputerScience• NationalICTAustraliaLtd• AutomotiveTechnologyCRC• CambridgeUniversity,InstituteforManufacturing• CanonAustralia• CSIRO,DivisionofMaterialsScienceandEngineering• DeakinUniversity,CentreforMaterialandFibreInnovation• FordAustralia• LiverpoolUniversity,DepartmentofEngineering• NanyangTechnologicalUniversity,SchoolofMaterialsScienceandEngineering,Singapore



• TsinghuaUniversity,DepartmentofEngineeringMechanics• QueensUniversity,DepartmentofMechanicalEngineering,Ontario• TianjinUniversity,DepartmentofMechanics• CurtinUniversity,DepartmentofComputerScience• NationalDatabaseforResearchCapabilities&Expertises• NationalUniversityofSingapore• QuickstepPty.Ltd.• SimileSystems• SpecialtyGroupPty.Ltd.• Telstra• VictorianCentreforAdvancedMaterialsManufacturing

TheUniversityofNSW(UNSW)-

• SchoolofMaterialsScience&Engineering

The field of Materials Science and Engineering offers unlimited possibilities for innovation anddevelopment.Attention isbeing focusedondevelopingandprocessingmetals, ceramics,polymersandcompositeswithimprovedproperties.

TheSchoolhasstrongresearchinterestrangingfrommaterialsproduction,includingtheirextractionfromoresand their refining, to thedesign,development,processingand recyclingofmaterials foruseinaerospace,transportation,electronics,energyconversion,andbiomedicalsystems.Advancedmaterials can provide a major competitive advantage in virtually every part of a country’smanufacturingindustry.

BecauseAustralia isa country rich inminerals,materials sciencehasbeendesignatedasapriorityarea for research and development. Examples of recent and significant developments include theemergenceofenvironmentallyfriendlyandeconomicalmetalprocessingmethods;advancedsurfacecoatings;electricalceramics;engineeringpolymers,andadvancedcomposites.

Needtosummarisetheextensivelaboratorycapability.

• CentreforSustainableMaterialsResearchandTechnology

The Centre for Sustainable Materials Research and Technology (SMaRT@UNSW) brings togetherresearchers from the Faculties of Science, Engineering, Built Environment and ADFA toworkwithindustryonthedevelopmentofinnovative,sustainablematerialsandmanufacturingprocesses.

Achieving sustainability targets set by industry has created a need for commercially relevant andgloballysignificantR&D.TheSMaRTCentreworkswithindustrypartnerstodevelopthefundamentalandappliedscienceunderlyingsustainablematerialsandtechnologies.

SMaRTbringstogetherthedistinctiveresearchcapabilitiesofUNSW'sacademicsandatrackrecordofdeliveringresearchandtechnologysuitableforrapidimplementation.

TheoverallaimoftheCentreistodevelopinnovative,sustainablematerialsandprocessesthroughworld-classresearch,withstrongemphasisonenvironmentalandeconomicbenefits.

• Leadscientificandengineeringadvancesinsustainabilityofmaterialsandassociatedtechnologies• Strengthen links with local and international institutions and industries for research into

developing sustainablematerials and associated technologies throughARC LinkageGrants,ARCDiscoveryGrants,IndustryFunds,andvisitingresearchers

• Facilitaterapidtransferoftechnologybyaddressingthescientific&engineeringbarriers.

SMaRT has strong relationships with Industry and Research partners from the metallurgical,materials,building, constructionandmining sectorsacross theglobe.TheCentrehas20academicstaffandpostdoctoralresearchers.

TheCentre alsohas state-of-the-art Research Infrastructure funded through theVice- Chancellor'sstrategicprioritiesfunding,alongwithwell-equippedsustainablematerialslaboratories.



TheUniversityofQueensland

• CentreforAdvancedMaterialsProcessingandManufacturing(AMPAM)

AMPAMprovidesafocusforUQ’smaterialsengineeringandmanufacturingactivities,andthoseofitspartnersinmajorsuccessfulnationalcollaborativeventures.

UQ’scurrentcapabilitiesandthenewfacilitiestobelocatedintheAdvancedEngineeringBuildingatUQ allowQueensland industry to capitalise on emerging trends inmanufacturing researchwhereinnovations inmaterialdevelopmentsaredrivingnewcombinationsofmetals,polymers, ceramicsandcompositesthathavenotbeforebeeneconomicallypossible.

With AMPAM’s industry and researchmembersworking togetherwithin AMPAM the blending oftechnologies and processes will create new unique opportunities for materials development,processingandmanufacturing.

AMPAM is comprised of seven core partnerships with extensive experience in a multitude ofresearch sectors from defence to consumer products. Ourwealth of experiencemeans AMPAM’sfootprint is large and far reaching. Our formal and informal partnerships extend beyond the corecentrestothemanynationalandinternational industryandresearchmembers.Thefollowing linksaretothewebsitesoftheAMPAMparticipantswhereyoucangainanappreciationofthebreadthanddepthoftheirresearchandindustrylinkagesselectionofcasestudiesareprovidedbelow.ThisworkwasperformedatUQorwithinAMPAM'sparticipants.

• ImprovedaluminiumproductionforAustraliansmelters[494KB]• TitaniumtechnologyforAustralianaerospaceSME[297KB]• NewbiodegradableplasticsforAustraliancompany[305KB]• Newcompositesforaerospace[294KB]• IncreasedproductivityforregionalQLDSME[181KB]• Collaboratingoncorrosion[288KB]• ValueStreamMappingwithQLDSME[171KB]• Fire-retardantcompositedevelopedinAustralia[307KB]• AdvancedprocessmonitoringandSMEtechnologytransfer[3.2MB]

Seewww.uq.edu.au/ampam

TheUniversityofSydney

• CentreforAdvancedMaterialsTechnology,UniversityofSydney

The aims of CAMT are to conduct high quality fundamental research in materials science andtechnologyandtopromotecollaborationwithindustryinthedesign,engineering,developmentandmanufacturing technology of advanced materials, which can give a competitive edge to newproductsandprocesses.

Ithasawidelyrecognisedinternationalandnationalreputationforhighqualityresearch,equippedwith state-of-the-art facilities of computing, material characterisation, mechanical testing andprocessing.

The CAMT conducts both fundamental studies, aiming at new discoveries, and applied research,focusingonthedirectsolutionstoindustrialproblems.

• Biomaterialsandfunctionallygradedmaterials

New research activities initiated to develop fibre-polymer functionally graded materials andhydroxyapatitebiomimeticcoatings,ceramicmatrixnanocompositesandmetal-ceramicfunctionallygradedmaterialsfortheAerospaceindustryandBiomaterialsindustry.

• Compositesscienceandtechnology

Include structure-property relationships, manufacturing techniques for thermoplastic composites,thermoforming,interfacecharacterisationanddurabilityanalysis.



• Nanomaterials

Anewclassofengineeringmaterialsconsistingofnano-metrescaleparticlesor fillers.Thecurrentresearch focuses on processing and characterisation of structure-property relationship of severaltypical polymer-based, metal-based and ceramic-based nano-composites to understand thedeformationandfailuremechanisms.

• NanomechanicsandNanotribology

With the rapid development in applications of high-density information storage devices, micro-electro-mechanicalsystems,biomedicaldevicesandwirelessandfibreopticcommunicationsystems,nanomechanics and nanotribology have become increasingly important. The current researchactivitiesareonthemechanicalanalysisofnanomaterialsincludingcarbonnanotubes,mechanismsnanowearandtheeffectofnano-cracksandshearbands.

• Smartmaterialsandstructures

Effort has been made to build "smart" structures using active materials such as shape memoryalloys/polymers, piezoelectric ceramics and polymers, and magnetostrictive composites. Theresearch includes development and characterisation of novel active materials with improvedperformance,developmentofactivestructureswithsurfacemounted/embeddedsensors/actuatorsforvibrationanddampingcontrolandon-linehealthmonitoringornon-destructiveevaluation.

• Theoreticalandappliedfracturemechanics

Covers interface fracture of fibre/matrix system, damage of polymer alloys and blends,microstructure-toughness relationships of polymers, constitutive modelling, micro-damage andmicro-crackpropagation, failuremechanismsofpiezoelectricmaterials, fatigue,effectsof crack tipconstraintandmismatchofadhesivejoint'sgeometry.

UniversityofTechnologySydney(UTS)

• TheCentreforBuiltInfrastructureResearch(CBIR)

CBIRisamultidisciplinaryteamofresearchersfromthefacultiesofEngineering,ScienceandDesign,Architecture and Building. CBIR's nationally and internationally renownedwork focuses on findingsolutions to important global problems in building structures, materials, design, management,improvement,safetyandconservation.

• TheCentreforIntelligentMechatronicSystems(CIMS)

CIMS integrates thedisciplinesofmechanical, electrical andelectronics engineering and computersystems. Its four main research directions are: autonomous robots (operating in unstructuredenvironmentsandforinfrastructuremaintenance,searchandrescue,healthcareandroadvehicles);electricalmachines(newmaterialsandtopologies,systemoptimisation,variablespeedcontrolandcompact, low temperature fuel cells); automotive systems (performance, comfort, fuel efficiency,road safety and emission control); and Human Factors (physiological and psychological aspects ofhuman-machineandhuman-environmentinteraction).

UniversityofWesternSydney

• InstituteforInfrastructureEngineering,UWS

The Institute is currently involved in 13 national grants funded through the Australian ResearchCouncil Discovery and Linkage Grants Scheme which have formed the basis for the majority ofhonours projects in Engineering. Industry partners contributing to the Linkage Projects include aplethoraof leadingNationaland InternationalCompanies,namelyAjaxFasteners,Arup,BlueScopeLysaght, Coffey Geotechnics, Lincoln Electric, One Steel, Penrith Lakes Development Corporation,RoadsandMaritimeServicesandStramitIndustries.



UniversityofWollongong

• BlueScopeSteelMetallurgyCentre

TheBlueScopeSteelMetallurgyCentre(BSMC)wasestablishedin2004,evolvingoutofthepreviousBHP Institute for Steel ProcessingandProducts,whichhadbeenoperating since1995. The centreprovidesopportunitiesforacademicstafftoplayagreaterroleinassistingindustryinenhancingitsbusiness.Italsoenhancestheopportunitiesforindustrystafftomakeacontributiontofundamentalresearchandeducation.

It has built up specialized equipment infrastructure that is shared by theUniversity and companyemployees in a unique arrangement. Since 1997 the Centre has conducted research on 42competitivegrantprojectswithatotalbudgetof$8.92million.

Research activities have been conducted in several key areas focussing on the changing needs ofBlueScope Steel as the company has responded to changes in its commercial environment. ThePrimaryProcessingProgramhas focussedon ironandsteelmakingprocessesaswellasassociatedprocess technologies. The Casting and Rolling Program has concentrated on thin strip continuouscastingtechnology,thermo-mechanicalprocessing,andsteelproductdevelopment.

Thecastingpartofthisprogramcontributedtothedevelopmentoftherecentlycommercialisedthinstrip casting process and will now focus on the physical metallurgy of thin strip cast steel. TheCoatingsTechnologyPrograminvestigatesthebasicscientificandtechnologicalissuesunderpinningfutureadvancesinmetalandpolymercoatingofsteel.

The Centre is multidisciplinary, encompassing physical and process metallurgy, mechanicalengineering,polymerscience,chemistry,andmathematicalmodelling.IthasestablishedstrongandfocussedresearchgroupsandhasattractedatalentedstaffnotonlytotheCentre,butalsototheassociatedteachingdisciplines.

Twomajor applicationsof flat rolled steel arebuildingmaterials (galvanised steel andpre-paintedsteel)andpackagingproducts(tinplate).Intheseapplications,polymercoatings-paintsandlacquers- are used for decorative purposes and to protect the metal substrate from corrosion. Reliableadhesionoftheorganiccoatingtothesubstrateisthereforeveryimportant.

TheBluescopeSteelMetallurgyCentreisconductingaresearchprogramonpolymercoatings,whichis focused on improving our understanding of the mechanical properties of the coatings, withparticular emphasis on adhesion. The research team is concerned not only with the question ofadhesion to themetal substrate,butalsowith theadhesionof contaminantparticles toapaintedsurface.Suchcontaminationtendstodiscolourbuildingsveryrapidly,particularlyintropicalareas,socontamination-resistantpaintformulationsareanimportantfeatureoftheirresearch.

• TheAdvancedStructuralEngineeringandConstructionMaterialsGroup

The Group couples the existing research strengths of structural engineering and constructionmaterials within the School of Civil, Mining and Environmental Engineering at the University ofWollongong.Thefocusofthisgroupistoundertakeadvancedstructuralanalysisandevaluatehighperformancematerialsusedincivilengineeringconstruction.

Muchof the researchundertakenby this grouphasbeen funded through theAustralianResearchCouncilandassociatedindustrypartners.Thegroupconsistsofsixfulltimeacademicstaffmembersandtwovisitingstaffmembers.InadditiontherearenumerousBE(Hons),MastersandPhDstudentsassociated with the group’s activities. The group also has approximately five technical staffassociatedwithitstwostructuralengineeringlaboratories.

ASEACMwasestablished in January2005. Themembersof thegrouphavea very strong researchrecordwithatotalof$5million inNationalCompetitiveGrantsattractedsince2000.Furthermore,themembersofthegrouphaveproducedover300publicationsandsupervisedover150theses inthelastfiveyears.



Fourprimarystrandsofresearchofthisgroupinclude:

• Advancedanalysisanddesignofstructures:Here,weconsiderthenon-linearanalysisofconcrete,steel and composite steel-concrete structures and the behaviour of structures under extremeloading.Wearealsodevelopingnoveltechniquesforoptimisingstructuraldesign

• Highperformanceconcrete:Thisresearchconsiderstheconstitutivebehaviourandapplicationofhigh strength concrete, self-compacting concrete, fibre reinforced concrete and FRP wrappedconcretemembers.

• High performance steels: High performance steel research and applications in civil engineeringconstruction is being conducted using high strength steels, stainless steels and titanium basedalloys.

• Soil-structure interaction investigating the interaction between foundations with soil undervariableloading.

• SustainableBuildingsResearchCentre

Buildingshavemajoreconomic,environmentalandsocialimpactsonourcommunityandtheplanet.Betweenaquarterandahalfofallgreenhouseemissionsresultfromtheuseofbuildings.

The Sustainable Buildings Research Centre (SBRC) will be a multi-disciplinary facility that bringstogetherawiderangeof researchers toholisticallyaddress thechallengesofmakingourbuildingssustainableandeffectiveplacesinwhichtoliveandwork.

Ourmissionistoassistintherapiddecarbonizationofourbuiltenvironment.Thus,amajorfocusoftheSBRCistheretrofittingofexistingbuildings,sincereplacementofexistingbuildingstockoccursatbetweenonly1or2%p.a.TheSBRCbringstogetherresearchers,studentsandindustryto:

• Develop, prototype and test sustainable building technologies and designs for residential andcommercialapplications;

• Performin-depthexperimentalandtheoreticalanalysisofthethermaldesignofbuildings;• Develop architectural and structural design tools to facilitate the inclusionof ecological costing

throughoutthedesignphaseofbuildings(e.g.water,embodiedenergy,carbon);• Investigateday-to-daybehaviourofbuildingoccupants to improveoureffectivenessofbuilding

useanddesignandimprovetheuptakeofenvironmentallysustainabletechnologies;• Developnovelcontrolsystemsandsensortechnologyforimprovingbuildingperformance;and• Developnovelmodellingtoolstoaidsustainabledesign.

ThedevelopmentoftheSBRChasbeenmadepossiblethroughgenerousgrantsfromtheAustralianCommonwealth Government under the Education Investment Fund (EIF) and NSW Trade &InvestmentundertheScienceLeveragingFund(SLF).

As a Living Laboratory, the SBRC will provide a demonstration space for display of sustainablebuildingtechnologiesandcomponentsthatwillbeofbenefittothesustainablebuildingsindustry.

SBRCfacilitiesinclude:

• LargeScaleIntegratedComponentTestingLab• ElectricalPowerQuality,RenewableGenerationandStorageLab• WaterSustainabilityLab• ThermalAnalysisandSimulationLab• RoofTopTestingLab• BuildingPerformanceandMonitoringLab• SustainabilityTrainingHall• CollaborativePartnerSpace

• IntelligentPolymerResearchInstitute

The Intelligent Polymer Research Institute (IPRI) is a key research strength at the University ofWollongongand is the leadnodeoftheAustralianResearchCouncil (ARC)CentreofExcellenceforElectromaterials Science (ACES). Professor Gordon Wallace and his team at IPRI are recognisedinternationallyasworldleadersinthedevelopmentof‘intelligent’materialsandnanotechnology

Researchersworkwithmaterialsinthenano-domain(thatis,withparticlesassmallasonebillionthof a millimetre) where electronic conductivity is vastly higher than in larger structures. Their



challenge is tomakematerials at thesenanodimensions andassemble them into larger structures(microormacro)thatretainthespecialcharacteristicsofthenanocomponents,resultinginimprovedfunctionality.

IPRIisrenownedforexpertiseintheelectrochemistryoforganicconductors;especiallywhenthoseconductorsareusedintheapplicationsofartificialmuscles,photovoltaics,batteries,andbiomedicalapplications.

Newdevelopments innanoscalematerialsoffer thepotential forgroundbreaking improvements inchargegenerationand transfer,whichcanbeused to tacklesomeof thebiggestchallenges facingsociety.Challengessuchasrenewableenergy(plasticsolarcells,lightweightbatteriesandelectronictextiles), sustainable industries (which would benefit from advances in the recovery of preciousmetals and new corrosion protection technologies) and medical science (nerve and muscleregenerationandcellcommunications).

The high quality of research in nanotechnology and materials science at IPRI was recognised,strengthened and rewarded with the establishment in 2005 of an ARC Centre of Excellence forElectromaterials Science (ACES),withpartners fromMonashUniversity, theBionic Ear Institute, StVincentsHealthandtheNSWDepartmentofStateandRegionalDevelopment.$12millionfundingwas provided to form ACES with the aim to concentrate expertise and encourage collaborationamong high quality researchers to maintain and develop Australia’s international standing inresearchareasofhighpriority.

IPRI is situatedat thestate-of-the-artAustralian Institute for InnovativeMaterials (AIIM)FacilityattheUniversityofWollongong’sInnovationCampusanddrawstogetherresearchersfromarangeofdisciplines, including biologists, clinicians, chemists, physicists and engineers. Professor GordonWallace is the Executive Research Director of this ARC Centre of Excellence. The Centre recentlyreceived an additional $7.7million in funding from the ARC from July 2010 toDecember 2013 tocontinue to build on the progress achieved since 2005 in developing electromaterials for use inrelevantapplications.

In addition to the ACES core projects of synthesis, characterisation and modelling of newelectromaterials, energy conversion, energy storage, ethics and bionics, IPRI has related researchactivitiessupportedbyCRCPolymers,DSTO,UniversityofSouthAustralia,andseveralCommercialPartners. IPRI has developed global linkages with research institutions in the USA, Japan, Korea,China, Ireland and the United Kingdom, with a growing international reputation and importantindustrypartnerships.

KeyCompetencies

• Intelligentpolymersandnanostructures• Newelectrodematerialsandfunctionalelectrolytes• Spinningnanostructuredfibres• Electromechanicalactuators• Chemicalandmechanicalsensingnetworks• Nanodimensionalelectrocatalysts• Organicandinorganicbatteries• Nanobiotechnologyandbiomaterials• Cellularinteractions• Medicaldevicesfordiagnosticandtherapeuticuse

ANSTO

• InstituteofMaterialsEngineering

TheInstituteofMaterialsEngineering(IME)isamajorcentreofmaterialsengineeringandexpertiseinAustraliawithamultidisciplinaryteamofscientistsandengineers.



The Institute plays a significant role in maintaining Australia's international profile in the field ofnuclearscienceandtechnologyandenhancing thesustainabilityand internationalcompetitivenessofAustralianindustry.

The Institute’scoremission is to:develop,manufacture,characterise,modelandultimately,utilisematerials in support of the Advanced Nuclear Fuel cycle and next generation power generationsystems.

It also undertakes a number of other research activities, both sponsored and collaborative, andundertakesrelatedprojects includingNationalSecurityResearchwithawiderangeofnationalandinternationalstakeholders.

IMEhasastrongnuclearfocustomostofitsactivities.Italsousestheskillsandexperiencethatisgenerated by such activity to undertake sponsored collaborative research and commercialconsultancyinboththeAustralianandinternationalarenas.

Currentresearch

• Nuclearmaterialsmodelling&characterisation• Nuclearmaterialsscience• Structuralintegrity• Nationalsecurityresearch• Facilitiessupport

CSIRO

• FutureManufacturingFlagship

TheFutureManufacturingFlagshipdrawsontheexpertiseofover300scientistsandengineerswithworld-class capabilities in materials and process sciences, ICT, mathematical and social sciences,economics&design,andisbuildingnewcapabilitythroughclustersandconsortiums.

Oneof11NationalResearchFlagships, FMFwasestablished in2008withan initial focusonnichemanufacturing.SincethentheFlagshiphasgrownsignificantlyandevolvedtoincreaseitsrelevanceto a broader cross-section of manufacturers recognising the common challenges they face. TheevolutionoftheFlagshipalsorecognisedtherolethatCSIROcanplayinbothhelpingexistingfirmsmaketransitionstothefutureandtohelpcreateopportunitiesforestablishingnewbusinesses.TheevolutionoftheFlagshipcoincidedwithasignificantrealignmentandcoordinationofmanufacturingresearchwithinCSIRO,starting inMay2010.ThestrategyoftheFlagshipwasapprovedbyCSIRO’sExecutive inMay 2011 and the FMF has continued to evolve and grow to cover a broad base ofmanufacturingresearch,withafocuson:

• SustainableMaterials–helpingmanufacturersachieveamoresustainableuseofresources• FactoriesoftheFuture–helpingmanufacturersbuildflexibility,agilityandliftproductivity• Transformative Industries – supporting the creation of new business opportunities through

disruptivetechnologyplatforms

The Flagship ‘Focus Areas’ were developed to meet the challenges arising from an increasinglyresource constrained, competitive environment and support manufacturers capture opportunitiespresented by an increasing demand for sustainable products. They look to supportmanufacturersdevelop new, scalable, low cost, efficient manufacturing technologies that leverage informationsciencesandthedigitaleconomy(forexample,Australia’snewNationalBroadbandNetwork)toliftproductivityandworker safety.And, to supportmanufacturerscaptureopportunities throughnewindustrysupplychainsthatleverageAustralia’ssignificantnaturalmineralresourceadvantages.

TheFlagshipdeliversitsresearchthroughfiveindustry-facingThemes,namely:-

• SustainableHighPerformanceMaterials• AgileManufacturingTechnologies• ManufacturingTechnologiesforTransportandMining• FlexibleElectronicsand



• TitaniumTechnologies.

Themulti-disciplinaryprogramofresearchconductedthroughtheseThemesenablestheFlagshiptofulfilitsfourprimaryrolesintheAustralianNationalInnovationSystem.Theserolesbeingto:

• Help existing firmsmake transition to becomemore sustainable and remain competitive in anincreasinglycompetitive,resourceconstrainedworld

• Supportthedevelopmentofnewbusinessesandindustrysupplychains• Help position CSIRO as a global R&D provider by applying Australian science and technological

capabilitiesininternationalmarkets• PlayaTrustedAdvisorroletogovernment,industryandcommunity.

TheFlagshipoperatesonanannualbudgetof$70m,ofwhich$30misexternallysourced.Externalfunding is securedprimarily through commercially contracted researchwith industry,with varyinglevels of co-investment. About 80% of the Flagship’s resources are directed towards researchprojectswithindustrypartners.Theremainingisinvestedinearlystagestrategicresearch.

The Flagship draws scientific and engineering expertise from 340 CSIRO researchers and throughvarious collaborative arrangements, such as Flagship Collaboration Clusters over 150 moreresearchersfromAustralianuniversitiesparticipateinFlagshipprograms.

ANFF

The Australian National Fabrication Facility (ANFF) links eight university-based nodes to provideresearchersandindustrywithaccesstostate-of-the-artfabricationfacilities.Thecapabilityprovidedby ANFF enables users to process hard materials (metals, composites and ceramics) and softmaterials(polymersandpolymer-biologicalmoieties)andtransformtheseintostructuresthathaveapplicationinsensors,medicaldevices,nanophotonicsandnanoelectronics.

Thenodes,which are located acrossAustralia, drawonexisting infrastructure andexpertise. Eachoffersaspecificareaofexpertiseincludingadvancedmaterials,nanoelectronics&photonicsandbionano applications. Our commitment to providing aworld-class user facility is underpinned by thesharingofbestpracticeinserviceprovisionacrossthenodes.

ANFF has undertaken some work with SMEs in relation to powders and coatings, but details arecommercialinconfidence.

DefenceMaterialsTechnologyCentre(DMTC)

DMTCisacollaborativeventurethatbringstogetherdefenceindustry,universitiesandgovernmentresearch agencies to develop new materials and manufacturing technologies that will enhanceAustralia’sdefencecapability. It isAustralia’s firstDefenceFutureCapabilityTechnologyCentre–aFederalGovernmentinitiativebasedonthesuccessfulCo-operativeResearchCentre(CRC)model.

Operational funding of approximately $86 million is drawn from several sources including a $30million contribution from the Federal Government and a combined $9 million from the stategovernments of Victoria, Queensland and New South Wales. Collaborative industry and researchsectorpartnersprovidethebalance.

DMTCdevelops anddelivers newmaterials technologies andmanufacturingprocesses to enhanceAustralia’s defence capability through a by collaborative partnership approach between Defence,defenceindustriesandresearchagencies.

Projects deliver real solutions to Defence across program areas including Air Platforms,MaritimePlatforms, Armour Applications, Propulsion Systems and the recently announced PersonnelSurvivability. These programs provide a governance framework and context for each researchproject involving industry and academic partners, and provide the mechanism for deliveringpractical,measurableresultswithastrongtechnicalunderpinning.



Attachment5:ResearchModelsfromOtherSectorsandInternationally

AustralianMineralsIndustryResearchAssociation

AMIRAInternationalLtdisanindependentassociationofmineralscompaniesthatdevelops,brokersandfacilitatescollaborativeresearchprojects.

Throughthisprocessanumberofcompaniescanjointlyfundresearchandjointlysharethebenefits.ThiscombinedfundingenablesAMIRAtorecruittheworld'sleadingresearcherstoaddressindustryproblemsandopportunitiesandtoconductsustainedresearchwhichleadstothedevelopmentofastrongerindustryresearchbase.

TheAustralianRuralResearchandDevelopmentCorporation(RDC)FundingModel

RDCscommissionagriculturalR&Donacompetitivebasisamongstpublicandprivateprovidersusingfunds from levies on production andmatching Commonwealth grants. They target research andfoster uptake and adoption based on the identified needs and priorities of both industry and theAustralianGovernment.

Themodelhasgivenruralindustrythevehicletonegotiatenewstandardsforinvestment,focussedontriplebottomlineoutcomes.Therearecurrently15RDCs

TheAustralianGovernmentprovidesdollarfordollarmatchingofindustryexpenditureonR&Duptoalimitof0.5percentofeachindustry’sGrossValueofProduction(GVP).

TheRDCmodeltodayisamixofstatutoryandindustry-ownedcompanies.Theindustry-ownedR&Dcompanies are independent corporate entities with expertise-based boards. Theywere formed inresponse to an industry desire to have more control over their affairs and increased flexibility,industryrepresentationandtofostermarketdrivenR&Dthatwillbewidelyadoptedbyindustry.

RDCscanfundR&Dintoeitherproduction(on-farm)orprocessing(off-farm)issuesandareexpectedto fundportfolios of projects that have amix of bothpublic good and industry good componentsgiventhetaxpayercontributions.TheRDCsengagewithadiversityofstakeholdersinasharedvisionofwhatthefuturecanbe,whichisupdatedin5yearplansandreinforcedwitheachoftheannualoperatingplans.

The RDCmodel allows for a targeted approach to R&D fund allocation by industry, where thosefunds are a mixture of government and industry contributions. Further, the model encouragesaccountability,allowinglevypayerstocontributetoRDCstrategiesincludingtheamountofthelevycollected.

Seehttp://www.ruralrdc.com.au/Page/Home.aspx

NewZealandHeavyEngineeringResearchAssociation(HERA)

HERAwasestablished in1978asan industryowned,non-profit researchorganisationdedicatedtoservingtheneedsofmetal-basedindustriesinNewZealand.Whiletheemphasisofitsactivitiesisonheavy engineering, HERA also services wider metals industry interests such as light-gauge steel,stainlesssteels,lightalloysandmetals-basedcomposites.

HERAobtains its income froman industry contribution in the formof a levyon steel andweldingconsumables, PublicGood Science funding for contract researchprogrammes, direct funding fromindustry for specific programs, consultancy work, seminar and course fees, subscriptions frommembersandsalesofpublications.

Themajortypesofbusinessrepresentedare:

• Metal Fabricators: Structural, Pressure Equipment, Stainless Steel, Aluminium, GeneralEngineers,SiteFabricatorsandErectors.

• Designers:Civil,Mechanical,ChemicalEngineers,Architects,andQuantitySurveyors.



• Suppliers: Steel, Special Steel, Stainless Steel, Aluminium and Copper Alloys, WeldingConsumables, Engineering Component Suppliers, Steel Manufacturers, Metal FormingandPre-fabrication.

• Supporting Companies: Construction, Metal Coating/Preparation and InspectionCompanies.

• ManufacturingCompanies:Engineeringproducts

Researchisselectedontheadviceofsubject-specificindustryadvisorypanelsandisusuallyof applied nature with short- tomedium-term implementation. HERA’s research activitiesencompass the areas of structural steel, light gauge steel and composite action,welding/joining,industrycapabilityandmarketing.

HERA incorporates theNewZealandWeldingCentre (NZWC), Inspection&QualityControlCentre (I&QC Centre), Structural Systems Division including the Composite StructuralAssembly(CSA)joint-venture&BridgeDevelopmentGroup(BDG),MetalFormingGroupandtheHERAInformationCentre(HIC).

HERA’sresearchcapabilitiesSteelconstructionresearchthroughitsStructuralSystemsDivision

• Generalstructuralsteelsystemsresearchfordesignofhot-rolledandcold-formedsteelincludingmulti-storeybuildingandbridgeconstruction

• Compositeresearchforstructureshavingmetalsasakeymaterial(suchassteel-concretecompositefloorsandcompositestructuralassemblies)

• Seismicdesignofsteelandsteel-basedcomposites• Fireengineeringdesign• Designforoccupant-inducedfloorvibrations• Structuralreliabilityanddesignassistedbytesting• Sustainabilityandenvironmentalperformanceofsteel-framedbuildings• Durabilityresearchformetals-basedstructures(coatingsystems,corrosion)• SpecialistFiniteElementbasedresearchcapability

• WeldingfabricationtechnologyrelatedR&DthroughtheNewZealandWeldingCentre• Productivityresearchofstandardandemergingweldingprocesses• Weldingengineeringdesignincludingweldingfatigue• Materialsperformanceandfailureevaluation

• Metalsforming(inconjunctionwithAUTUniversityCentreforMetalForming)• Characterisationofmetalsforformingprocesses• Metalformingtechnologyresearch

• Inspectionandqualitycontrol• Nondestructivetestingtechnologiesinmetalsengineering• MetalsengineeringproductivityandQualityAssurance

• Industrydevelopmentresearch• NZmetalsengineeringcapabilityandcapacity• Heavyengineeringbusinessopportunityresearch

HERAstaffhasadditionalexpertiseacrossarangeofmetalsengineeringdisciplinesincludingmachining,casting,metalformingandNZmetalsindustrycapability.HERAalsomaintainsactivelinkstorelatedoverseasresearchinstitutionsandisthereforeabletoextenditsresearchcoverageviathoseorganisationsifneeded.

GermanFraunhoferinstitutes

Fraunhofer-GesellschaftisEurope’slargestapplication-orientedresearchorganization.Itsresearchisorientedtowardconcreteapplicationsandresults.Purebasicresearch,aspracticedatuniversities,isfunded to almost 100 per cent by public grants. Industrial R&D, up to prototype level, is largelyfinanced by private enterprise. The Fraunhofer-Gesellschaft operates in a dynamic equilibriumbetweenapplication-orientedfundamentalresearchandinnovativedevelopmentprojects.

Therearemore than80 researchunits, including60Fraunhofer Institutes,atdifferent locations inGermany.Themajorityofmorethan20,000staffarequalifiedscientistsandengineers.Ithasan€1.8billion annual researchbudget. Of this, €1.5 billion is generated through contract research.Morethan70percentofthisisderivedfromcontractswithindustryandfrompubliclyfinancedresearchprojects.Almost30percent is contributedby theGerman federalandLändergovernments in theformofbasefunding.



OneInstitutethathasparticularrelevancetothesteelfabricationsectorinanAustraliancontextistheFraunhoferInstituteforProductionTechnology

FraunhoferInstituteforProductionTechnologyOnbehalfofourclients,wedevelopandoptimizesolutionsformodernproductionfacilities.Ratherthanconsideringproductionactivitiesasindividualoperations,ourworkinvolveslookingatallproductionprocessesandthelinksbetweenalltheelementsoftheoverallprocessintheirentirety.AppliedResearchandConsultingThetaskoftheFraunhoferIPTistotransferresearchfindingsintoeconomicallyviableanduniqueinnovationsinthefieldofproduction.Itpromotesandconductsappliedresearch,implementsresearchresultsinanindustrialcontext,andprovidesrelevantandeffectiveconsultingservicesforthedirectbenefitofindustry,therebycontributingsignificantlytothecompetitivenessofcompanies.ExcellentandExceptionalTheFraunhoferIPToffersresearchandconsultingservicesofexcellentqualityonthebasisofscientificallyrecognizedproceduresandusingstate-of-the-artfacilities.ItisthegoaloftheFraunhoferIPTtoachievetechnologicalandopinionleadershipinitskeyfocusareaswithrespecttocontractresearchatbothanationalandinternationallevel.ResearchanddevelopmentRightattheearlyphasesofproductemergence-theresearchanddevelopmentphase-wecanuseourexpertisetohelpyouidentifynewtechnologies,createconceptsanddevelopprototypes.Weplaceagreatdealofimportanceongettingyourequipment,materialandprocessestoperformoptimally,givingyourproductsthebestchancesofcompetinginthemarket.PurchasingWhateveryoucannotmakeyourself,youbuyinfromyoursuppliers.Youneedtobeabletorelyonsupplierstoprovidetopqualitygoodsandservicesatreasonableprices,sowetakeacloselookatyoursupplybaseandtheservicesitprovides.Westructurethepurchasingmarketforyou,helpyoutochoosetherightpartnersanddevelopindividualcoursesofactionusingtried-and-testedmethodsinordertooptimizeyourpurchasingcosts.ProductionTheFraunhoferIPTisseenbyitsclientsasanexperiencedpartnerforallissuesrelatedtoproduction-andnotwithoutgoodreason.Whetherwearedeterminingyourstatusquo,analyzingyourproductionconcept,selectingtechnology,designingasystem,ordeveloping,optimizingandimplementingprocesses,youcanrelyonourmotivatedteamofexpertsrepresentingdifferentdisciplinesandmanyyearsofexpertise.Weneverlookatconcepts,technologiesandsystemsinisolation,butseethemwithinthecontextofyourindustrialpractice.ManagementInsomesituations,itbecomesnecessarytocriticallyreviewone’sfundamentalmanagementprocesses,thetechnologystrategyorthestrategicandoperativemanagementasawhole.Weanalyzeyourstructuresandprocessesatallphasesofresearchanddevelopment,purchasingandproductionandhelpyoutodevelopanew,morepromisingapproachwithoutabandoningbestpractices.Weconsideritparticularlyimportantthatyouremployeesstandfirmlybehindanychanges,especiallyinsensitiveareas.The Fraunhofer IPT develops systems solutions for production. We focus on the topics of process technology, production machines,mechatronics,productionqualityandmetrologyaswellastechnologymanagement.Our clients and cooperation partners represent all fields of industry: from aerospace technology to the automotive industry and itssuppliersaswellastoolanddiemakingcompaniesandtheprecisionmechanics,opticsandmachinetoolindustriesinparticular.Theinstitutecurrentlyemploysaround380peoplewhoarededicatedtoapplyingtheircreativitytoarangeofprojects.http://www.ipt.fraunhofer.de/en/Profile.html

USNationalNetworkforManufacturingInnovation(NNMI)

PresidentObamaproposedtheestablishmentofaNationalNetwork forManufacturing Innovation(NNMI)inhisFY2013budget,andformallyintroducedtheconceptonMarch9,2012.ThefollowingtextcontainsextractsfromabriefingpreparedbytheCongressionalResearchServiceinAugust2012(JohnRSargent2012).

• AdministrationProposal

According to theproposal, thepurposeof theNNMI is tobring together industry,universitiesandcommunitycolleges,federalagencies,andregionalandstateorganizationstoaccelerateinnovationby investing in industrially relevant manufacturing technologies with broad applications, and tosupportmanufacturing technology commercialization by bridging the gap between the laboratoryandthemarket.

Inparticular,theNNMIseeksto“advancetechnological innovationatapacemuchfasterthananyonecompanycouldonitsown,”integrateinnovationresources,improvethecompetitivenessofU.S.manufacturing,andencourageinvestmentintheUnitedStates.

TheNNMIwouldconsistofanetworkofinstituteswhereresearchers,companies,andentrepreneurscan come together to develop new manufacturing technologies with broad applications. Eachinstitutewouldhaveauniquetechnologyfocus.These instituteswillhelpsupportanecosystemofmanufacturing activity in local areas. The Manufacturing Innovation Institutes would supportmanufacturingtechnologycommercializationbyhelpingtobridgethegapfromthelaboratorytothemarketandaddresscoregapsinscalingmanufacturingprocesstechnologies.



TheNNMIwould bemanaged collaboratively by theDepartment of Commerce’s (DOC’s)NationalInstituteofStandardsandTechnology(NIST),theDepartmentofDefense(DOD),theDepartmentofEnergy(DOE),theNationalScienceFoundation(NSF)andotheragencies.

• Funding

AsproposedinthePresident’sFY2013budget,NISTwouldreceiveaone-timeinfusionof$1billioninmandatory funding in FY2013 to be spent over 10 years (FY2013-FY2022).Federal fundswould beused to help establish and support up to 15 Institutes forManufacturing Innovation (IMIs, whichcollectivelywould form theNNMI)ona cost-sharedbasiswith industrial, academic, and stateandlocalorganizationpartners.

EachIMI isexpectedtobecomefinanciallysustainablewithinsevenyears.Fundingfortheprogramwouldbefrontloadedwith$206millioninspendingprojectedforFY2013,andatotalof$839millioninspendinginthefirstfiveyears.15

• StructureandGuidingPrinciples

TheNationalNetworkforManufacturingInnovationwouldbecomposedofcompetitivelyselected,independently managed Institutes for Manufacturing Innovation. Each IMI would have a specificfocusareaandserveasaregional innovationhub.Focusareascould includeanadvancedmaterial(e.g.,carbonnanotubes),manufacturingprocess(e.g.,additivemanufacturing),enablingtechnology(e.g.,nanotechnology),orindustrysector(e.g.,medicaldevices).

Theinstituteswouldbringtogetherlargecompanies,smallandmedium-sizedenterprises,academia,federal agencies, and state governments to accelerate innovation through co-investment inindustrially relevant manufacturing technologies with broad applications. The institutes would befocused on helping to bridge the gap between basic research and product development, providecompanies with access to cutting edge capabilities and equipment, and an environment foreducatingstudentsandtrainingworkersinadvancedmanufacturingskills.

Theinstituteswouldseektoreducethecostsandrisksofcommercializingnewtechnologiesandtoaddressrelevantmanufacturingchallengesonaproduction-levelscale.16WhiletheIMIsareintendedto serve as regional hubs for manufacturing innovation in specific focus areas, collectively theinstituteswouldalsofunctionasanetworkforthesharingofknowledgeandbestpractices.

ThekeyprinciplesthatwillguidethegovernanceandworkoftheNNMIare:

• An interagency programmanagement teamwould define the NNMI’s and IMIs’ organizationaldesign,manageanopenandcompetitiveselectionprocess,andexecutetheawardsprocess.Theteamwouldalsodefinetheselectioncriteriatobeused,incorporatingpublicinput.

• EachIMIwouldintegratecapabilitiesandfacilitiesneededtoaddresscrosscuttingmanufacturingchallenges that, if met, have the potential to retain or expand domestic manufacturing on aneconomicallysoundbasis.

• IMIs would conduct applied R&D and development projects to reduce the cost and risk ofcommercializing new technologies or solve generic industrial problems, conduct education andtrainingeffortsatalllevels,developmethodologiesandpracticesforsupplychainintegration,andengagewithsmallandmedium-sizedenterprises.

• Each IMI would have a core of two or more companies, incorporate industry in agendadevelopment, and have direct involvement of industry scientists and engineers in instituteprojects.

• IMIawardswouldbemadeintheformofgrants,contracts,andcooperativeagreements,possiblyovermultipleroundsofcompetitions.

• IMIproposerswouldbeexpectedtoshowhowfederalinvestmentswouldstimulateinvestmentsbytheorganizationscomprisingthepartnershipand/orfromothernon-federalsources.

• Subsequentfederalsupport foran IMIwouldbecontingentondemonstrationofthisadditionalinvestment,onprogress to self-sustainability, andonprogress towardmeeting thegoalsof theNNMI

TheNNMIissaidtobemodelledaftertheGermanFraunhoferInstitutes,whichsomeconsidertobeakeyfacetofGermany’shigh-techmanufacturingsuccess.



TheCouncilonCompetitiveness,InformationTechnologyandInnovationFoundation,andPresident’sCouncil of Advisors on Science and Technology and other organizations have endorsed the NNMIconcept or proposed a network of U.S.-based public-privatemanufacturing centers similar to theNNMI.

UKESRCCollaborationPrograms

CollaborationAwardsinScienceandEngineering(CASE)• IntroductiontoindustrialCASE

IndustrialCASEprovides funding forPhDstudentshipswherebusinesses take the lead inarrangingprojectswithanacademicpartneroftheirchoice.

TheseaimoftheseawardsistoprovidePhDstudentswithafirst-rate,challengingresearchtrainingexperience,withinthecontextofamutuallybeneficialresearchcollaborationbetweenacademicandpartnerorganisationse.g.industryandpolicymakingbodies.

Benefits to thestudent - IndustrialCASEprovidesoutstandingstudentsaccess to training, facilitiesand expertise not available in an academic setting alone. Students benefit from a diversity ofexperimentalapproacheswithanapplied/translationaldimension.Studentshaveanopportunitytodevelop a range of valuable skills and significantly enhance their future employability; many willbecomeresearchleadersofthefuture.

Benefitstotheacademic/partnerorganisations-IndustrialCASEstudentshipsencourageproductiveengagementbetweenpartnerswhobenefitfromamotivated,high-qualityPhDstudentundertakingcutting-edge research relevant to the organisations' priorities and objectives. The studentshipprovidesopportunitiestoexplorenovelresearchcollaborationsandstrengthencurrentpartnerships.

DefininganexcellentCASEStudentship:

High-qualityproject-Achallenging,feasibleandrealisticallyachievablePhDprojectwhichstimulatesexcellent discovery-oriented research. Through a truly collaborative approach, it provides tangiblebenefitstoallpartners.

High-qualitytrainingenvironment-Throughaccesstodistinctivebutcomplementaryenvironments,partners provide a stimulating framework for research training in the proposed field. Jointsupervisiongivesauniqueandbroadeningperspectiveontheimpactofcollaborativeresearch.

High-qualitystudentexperience -Anenriched integrated trainingexperienceallows thestudent toacquirenovelskillsandexpertise.Thestudentgainsawiderunderstandingof,forexample,appliedresearchorpolicydevelopmentthatwillenhancetheirfuturecareerprospects

IndustrialCASEstudentships

StudentsreceivefundingforafullEPSRCstudentshipfor3.5years(currently~£67,443).CompaniesprovideadditionaltopuptotheprojectofaminimumofathirdoftheEPSRCfunding.Thistop-upis£22,481 over the course of the project. The student must spend at least three months at thecompany,andthecompanypaysanytravelandsubsistencecosts.Projectsshouldbeintheareaofengineeringandthephysicalsciences.

• Howitworks

Acompanyallocatedanawarddefinesaresearchprojectandpicksanacademicpartner.Oncethearrangements for the project havebeen agreedbetween the company and researchorganisation,they can recruit a student. For 2012/13 awards, the earliest start date for students is 01October2012andthelatest01October2013.

CompaniesmayplacethesestudentshipswithanyResearchOrganisationthatalsoreceivesDoctoralTrainingGrantfundingfromEPSRC.Therationaleforthisistwofold:



• toprovideapotentiallybetterstudentexperience(viathestudentbeingpartofalargercohortofindividualsworkinginleadingresearchteamsforexample)and

• to facilitate the strategicuseofall ESPRC’s studentsviaEPSRCworkingwitha smallergroupofcompanies and research organisations, to target training at areas of particular strategicimportance.

HowindustrialCASEawardsareallocated

We allocate awards directly to businesses, primarily using an algorithm based on financialcontributions on EPSRC-funded research. Following a review of the allocation process, all otherroutes to CASE awards have been discontinued in order to target supportmore strategically andefficiently.

• Eligibility

Tobe an Industrial CASE sponsor, companiesmust have an establishedUK-based research and/orcommercialproductioncapability.

Student eligibility requirements for EPSRC Industrial CASE funding are the same as for our otherstudentshipawards,namely:

• ArelevantconnectionwiththeUK,usuallyestablishedbyresidence• An upper second class honours degree, or a combination of qualifications and/or experience

equivalenttothatlevel

EU students may be eligible for a fees-only award (no maintenance grant). Please see studenteligibilityfordetailsandcontactyouruniversitypostgraduateadmissionsofficeforadvice.

• EPSRCfunding

Historically, Industrial CASEs were (and in some cases still are) funded through our collaborativetrainingaccounts.Awardsfrom2009onwardsarefundedthroughIndustrialCASEaccounts.Furtherinformation on this can be found in the Industrial CASE accounts terms and conditions documentwhichisavailabletodownloadontheIndustrialCASElandingpage.

InformationonindividualuniversityIndustrialCASEaccountscanbefoundontheListSchemespageontheGrantsontheWebwebsite.

IndustrialCASEisnotouronlyschemewhereindustrycangetinvolvedwithPhDprojects.CompaniescansponsorstudentsandprojectssupportedthroughEPSRCdoctoraltrainingaccounts(DTA).Ifyouare interested insponsoringastudentthroughthisroute,pleasecontacttheresearchorganisationyouwouldliketoworkwith.

Note:Toactivelysupportandencouragecollaborationthroughthedoctoraltrainingaccountroute,EPSRChas,since2009,settheresearchorganisationthetargetofconverting10%ofits(DTA)fundsintoCASEawards.

ForqueriesabouttheIndustrialCASEscheme,[email protected]

IndustrialDoctorateCentres

IndustrialDoctorateCentres(IDCs)areasubsetofEPSRC’CentresforDoctoralTraining(CDTs).Theseuser-oriented Centres provide the same training environment and features as CDTs whilst alsoincorporatingastrongindustrialfocus.

IDCsareanevolutionoftheEngineeringDoctoratesCentres(EngD)schemeoperatedbyEPSRCsince1992.AspartofsubstantialexpansionoftheCDTscheme,in2009EPSRCdecidedtobothexpandthescopeofthepreviousEngDscheme(tocovertheentireremitofEPSRC)andtoseektorefreshtheportfolioofCentresbeingsupported(toallownewpriorityareastobeidentifiedandsupported-inenergy for example). Thus, the cohort of 19 IDCs represents a mixture of new Centres andcontinuations(albeitinanevolvedform)ofanumberofEngDCentres.

Examples–



• IndustrialDoctorateCentreinAdvancedFormingandManufacture,UniversityofStrathclyde

OurprogrammewillprovideEngDstudentswiththeopportunitytomakeasignificantimpactontheUKformingandforgingindustryandtheUKmanufacturingindustryasawhole.Thiswillbeachievedpredominantly throughaccess to knowledgeandexpertisewithin theAdvancedFormingResearchCentre(AFRC),anditsconnectionswithleadingglobalmanufacturers.Themajorprogrammethemesinclude;ForgingTechnology,AdvancedMaterials,Automation,ProcessImprovement,Micro-systemManufacture,InformationManagement,OperationsManagementandProcessDesign.

• IndustrialDoctorateCentreinMachiningScience,UniversityofSheffield

The IDC focuses on the development of skills and expertise inmachining science. In recent yearssignificantdevelopmentshavetakenplaceinengineeringsciencethatcanproduceastep-changeinmachiningperformance. The IDC is a collaborationbetween the Facultyof Engineering, theAMRCwith Boeing and the Nuclear AMRC and applies high level engineering science to the solution ofindustriallyrelevantmachiningproblems.

• Engineering Doctoral Centre in High Value, Low Environmental Impact Manufacturing, University ofWarwick

OurnewWMGInternationalDoctorateCentrewilldeliverarevolutionarynewdoctorateforthe21stcentury. It will address industrially challenging issues that will enable companies to develop andimplementinnovativeandworldleadingsustainableresearchsolutions.

Our International Doctorate is a four year programme that combines industry relevant research,taughtcourses,internationalvisits,entrepreneurialflairandnetworking.

Driven by research teams that combine industrial and academic experience, we work withentrepreneurial leaders who understand and appreciate that global environments are constantlychanging.Our vision is to create a future generation ofmanufacturing leaderswith the high-levelknow-howandresearchexperiencethatisessentialtocompeteinaglobalenvironmentdefinedbyhighimpactandlowcarbon.

• InnovativeandCollaborativeConstructionEngineering,LoughboroughUniversity

The centre’s research is focusedon these themes: Innovative construction technologies (materialsand construction techniques); Construction business processes (improving value and efficiency indesignandconstruction,collaborativeengineering,knowledgemanagement);Advancedinformationandcommunications technologies (mobile technologies, ICTenabled informationmanagementandcollaborativeworking);Sustainabledesignandconstruction(buildingperformance,energyefficiency,climate change impact on the built environment); and Transport and infrastructure (transportoperations and management, sustainable travel, infrastructure engineering, water and wastemanagement).

SWECAST

http://www.swerea.se/en/Start24/

Working in close co-operation with the Swedish Foundry Association, Swerea SWECAST conductsextensiveresearchandconsultinginfoundry-relatedmatters,includingmaterialstechnology,castingsimulation,processtechnology,energyuseandenvironmentalconcerns.

• Researchonfoundrytechnology

During2010–2015ourfoundrytechnologyresearchisfocusedonfourareas:• Lightweight,multifunctionalcastcomponents• Efficientproductdevelopment• Efficientproduction• Environmentallysustainablemanufacturing

• Strategicdevelopmentprojects



During 2010 – 2011, in collaboration with other Swerea institutes, we are also conducting fivestrategicdevelopmentprojects:

• SwereaWINDMILL. Theobjectiveof thisproject is todevelop leading-edge competenceon theconstruction,manufactureandmaintenanceofwindgeneratorsespeciallyincoldclimate.

• Swerea SME. A combined resource for the support of the product-, process- and businessdevelopmentofsmallandmediumenterprises.

• SwereaPure Steel. Researchonprocess development tominimize internal defects in steel andtherebyincreaseitsperformancecapabilities.

• Swerea EcoDesign. This project is intended to help small and medium enterprises to developproductsandprocesseswithminimalenvironmentalimpacts.

• Swerea Future Car. A preliminary study to determine future needs for research related to theautomotiveindustryofthefuture.

• CastingInnovationCentre,CIC

A national centre for research, development and education concerning cast materials andcomponentsfortheSwedishautomotiveandmachineindustries.

Lightweightcomponents

Swerea Lättvikt is a Swerea programme to help our customers take the leap into lightweightcomponents.During2009-2010,aspecial investmentofSEK20millionhasbeenmadetodevelopworkablesolutionsincollaborationwithselectedcompanies.

Partners

The most important partners of Swerea SWECAST are foundries, suppliers and buyers of castcomponents.Tothelargercompanies,manyofthemmulti-nationals,wecansupplyresearchresultsthatareofhighscientificqualityandoftenborderonbasicresearch.Tosmallercompaniesweoftensupplypracticalassistancewitheverydaytasks.

OtherimportantpartnerswithinSwedenareinstitutionsofhigherlearning,including:• RoyalInstituteofTechnology• LinköpingUniversityInstituteofTechnology• ChalmersUniversityofTechnology• UniversityofSkövde• HalmstadUniversity• JönköpingUniversitySchoolofEngineering

At the international levelwe are currently collaboratingwith several foundry instituteswithin theEuropeanUnion,including:IfGinGermany,ÖGIinAustria,CTIFinFrance,andFRIinPoland



Attachment6:RelevantLiterature

PolicyDocuments

PrimeMinister’sManufacturingTaskforce,ReportoftheNon-GovernmentMembers,August2012

NSW.NSWManufacturing IndustryTaskforce,NSWManufacturing IndustryActionPlan–Draft forConsultation

Victoria. A More Competitive Manufacturing Industry: New Directions for Industry Policy andManufacturing

Sweden.InvestinSwedenAgency,InnovationHotbeds,2006

CommissionedResearchReports

HowardPartners,StudyoftheRoleofIntermediariesinSupportofInnovation,March2007,AReportforDITR

HowardPartners,TheEmergingBusinessofKnowledgeTransfer,DEST,2005

Herman Hauser, The Current and Future Role of Technology and Innovation Centres in the UK:ReportforLordMandelson,SecretaryofStateforBusiness,InnovationandSkills

ACCIC, Howard Parners, Carisgold, Best Practice Processes for University ResearchCommercialisation,DEST,2002

Deloitte, The Business Case for Knowledge Transfer: Prepared for the Business Industry HigherEducationCollaborationCouncil,March2007

ResearchPapers

ATSE.UsingOurResearch–StrengtheningtheUptakeLinks,ATSEFocus,August2011

ATSE.Innovation:TakingAustralia’sTechnologytotheMarketplace,ATSEFocus,August2011

COHE,AbsorbingResearch:TheRoleofUniversityResearchinbusinessandmarketinnovation,April2010

CIHE,CBR,Universities,BusinessandKnowledgeExchange,2008

EIRMA, EUA, EARTO, Proton Europe, Responsible Partnering: Joining Forces if a World of OpenInnovation – Guidelines for Collaborative Research and Knowledge Transfer Between Science andIndustry,October,2009

GroupofEight.TheUniversity-InnovationNexusinSingapore.June2012

GroupofEight.TheUniversity-InnovationNexusinFinland.August2012

GroupofEight.TheUniversity-InnovationNexusinAustralia.February2012

NationalAcademyofEngineeringandNationalResearchCouncil,PartnershipsforEmergingResearchInstitutions–ReportofaWorkshop,Washington2009

NationalCouncilofUniversityResearchadministratorsandtheIndustrialResearchInstitute,GuidingPrinciplesforUniversity-IndustryEndeavours,April2006

NationalCouncil ofUniversityResearchadministrators and the IndustrialResearch Institute, LivingStudiesinUniversity-IndustryNegotiations,April2006

TheWarrenCentre.Steel–FramingtheFuture,2007.



JournalArticles

MarcusPerkmaannandAmmonSalter,HowtoCreateProductivePartnershipswithUniversities,MITSloanManagementReview,Summer2012

RandallWright,HowtoGettheMostFromUniversityRelationships,MITSloanManagementReview,Spring2008.

JohnHHoward,GreatExpectations:DevelopingInstrumentsforEngagementinUniversityBusinessRelationships,September2011

JeremyHowells, Intermediation and the Role of Intermediaries in Innovation, Research Policy, 35,2006

IndustryDocuments

Australian Steel Institute. NSWManufacturing Industry Action Plan: Submission to theNew SouthWalesGovernment

Australian Steel Institute, Capabilities of the Australian Steel Industry to SupplyMajor Projects inAustralia,March2010

SteelSupplierAdvocate(DennisO’Neill)SteelSupplierAdvocate’sReportforAustralianParticipationinLargeResourceandInfrastructureProjects,December2011

PressReleases

GroupofEight.Go8LaunchesResearchGateway,25May2011



Attachment7:ExtractsfromKeyPolicyDocuments

1. ASI:CapabilitiesoftheAustralianSteelIndustrytoSupplyMajorProjectsinAustralia-Extracts

TheAustraliansteelindustryconsistsoftwomainproducers–BlueScopeSteelLtdandOneSteelLtd,supportedbyover200steeldistributionoutlets throughout thecountryandnumerous fabricationandengineeringcompanies.

AccordingtotheAustralianBureauofStatistics,theentireAustraliansteelindustrychain,frombasiciron and steel production though todownstreamusers such as fabricators, employedover 91,000Australiansandgeneratedalmost$29billioninturnoverin2005-061.

The value of iron and steel exports was $1.6 billion for the same period (see figure 1). Steelproduction is performedby BlueScope Steel andOneSteel and concentrated inNSW,Victoria andSouthAustralia

Both steel companies have a combined production capacity of over ninemillion tonnes annually,comparedtodomesticconsumptionsomes

evenmilliontonnes(thesefiguresdonotincludeimportsorexportsoffinishedorsemi-finishedsteelproducts).

Notallgradesof steelareproduced inAustralia -Australiano longerproducesstainlesssteel.Thebulkofsteeluseisintheconstructionsector.

Fabrication

• FabricationOverview

The Australian structural steel sector is about equivalent in capacity to the highly regarded UKfabrication industry at between 1.6 and 2.0 million tonnes per annum but with a focus on theengineeringprojectssector.

Oneofthelargestthesteel industrysectors,Australianstructuralsteelfabricatorshavecommittedheavilytonewtechnologyinrecenttimestomeetthedemandsofnewresourcesandinfrastructureinvestmentsheadon.

Therehasbeenarealincreaseincapability,capacityandcompetitivenesstotakeonmajorprojects.A recent Australian Steel Institute survey, confirmedwith ABS statistics shows $400million havingbeenspentonnewtechnologycapitalequipmentsince2007.

Thisinvestmenttakesinthelatesttechnologyinnewoverheadcranes,platerollingequipment,CNCbeamlines,anglelinesandplasmacuttinglines.

ThefabricatorsareincreasingtheircapabilityandcapacityandinvestinginAustralia’sfuturenotonlybyinstallingnewplantbutalsobykeepingskillsinAustraliatobuildandmaintainasustainablesteelmanufacturingsector.

This investmenthasseen the fabricationsteelprocessingcapacity increasebyclose to30percent.Thesectorhasamplecapacityinreserveandismorecostcompetitiveduetothisrecentinvestmentinautomation.

• GeneralFabrication

TheAustralianfabricationindustryischaracterisedbyaverylargenumberoffabricatorswithatotaloutput of approximately 1.6million tonnes/annum including some product used in repetitionmanufacturinglikelintels,truckbodyandtrailerfabrication.

The medium and larger fabricators (2000–20,000 tonnes per annum) process approximately1.1million tonneswith a large shift from labour-based fabrication toCNC, beam lining, angle lines



andplasmaandgasprofilecutting.A trend is for fabricators to invest indetailingor tohavecloseliaison with detailers to enable the benefits of computer files to drive their CNC equipment.Automotiveprocessing is progressively being applied toplateprofiling, linemarking, identificationmarking,drillingandtappingandwhererequired,weldpreparation.

A characteristic of steel fabrication in recent years has been the move to introduce technologythroughoutthesteelvaluechain,includingprocessingfacilitiesatdistributionlevel.

New and innovative businessmodels are being developedwith better interface in the technologyareas between engineers and detailers and the fabricator, flowing from the UKwe are seeing anemergenceoftheDesignandConstructSteelContractorassuminganincreasedshareofdesignanderectionfortheentiresteelcomponent.

Australian steel’smarket share for the industrial buildingsmarket isworth approximately 120,000tonnesayear,whilstitspercentageofthemulti-storeybuildingsmarketsegmenthasgrownoverthepastdecadefromthreetoabout13percent.

Thismarketsegmentincludesportalframebuildingslikefactoriesandwarehousesandcommercialbuildingssuchasoffices,shops,schools,healthandcivicfacilities.Steelbringsadvantagesinspeedofconstruction,lightweightandreducedfoundationcostsandasmallermanufacturingfootprinttothe construction site as most fabrication is off-site in more secure and safer manufacturingenvironments.

The Australian fabrication industry capacity is extended by the outsourcing of some functions tospecialistprocessorsandcoaters.Acommunityofspecialistsubcontractorsaugmentthefabricationcapacityin:

• Steeldetailing.• Blastcleaning.• Painting.• Galvanising.• Non-destructivetesting.• Gratingandhandrailmanufacture.• Bending.• Transportation.

Fabricatorswilloftenspecialise instructural steel,pipe fabrication,plate fabricationormechanicalfabrication. This has served the industry well, maintaining capability, cost effectiveness andflexibility. In fact, fabricatorsoften specialise in certainmarket segmentswhichmakes themmorecompetitiveandprofitableinthesesegments.

Thispaperassumesthatreferenceto’fabricators’coversallthesedisciplines.

The leading fabrication firms are equipped with state-of-the-art CNC automated fabricationequipmentandareadeptatutilisingelectronic informationdirect fromtheEngineerorDetailer torun fabricationmachines. This improves cost andquality andenables ‘just in time’processinganderection.

• FabricatorQuality

TheAustraliansteelindustryisbasedaroundtheintegratednatureofAustralianStandards.

For example the material specifications of Pipe and Tube (AS1163) and the structural sectionsSpecification(AS3678)feedintothedesignrequirementsofAS4100andAS3600whicharecalledupintheBuildingCodeofAustralia.

Significanttothisstructureistheweldingcode,AS1554.Forspecialpurposewelds,thewelderneedstobequalifiedandtestedandtheequipmentusedcalibratedandapprovedthroughtheproductionoftestedsamples.



Australian fabricatorsmaintaina systemofapprenticeships to renewandupdate the skill levels inthiscountryandtoensuretrainingsothattheskillsetstotherelevantstandardsaremaintained.

Similarly, the importance of a steel structure is dependent on the coating schemewhichmust beapplied onsite or handled well to the site. These requirements defray significant on-costs fromavoidingnotgettingthespecificationrequirementsrightthefirsttime.

Detailing

Australian detailers are widely sought and internationally recognised for application of advancedtechnologies and tight management with established relationships build from work in the US,Canada,EastAsia,theUKandAfrica.

For one, they have led the charge in Building Information Management (BIM), the process ofgeneratingandmanagingbuildingdataacrossitslifecycle.

BIMusesthree-dimensional,real-time,dynamicbuildingmodelingsoftwaretoincreaseproductivityin building design and construction, taking account of building geometry, spatial relationships,geographyaswellasquantitiesandpropertiesofbuildingmaterials.

AustraliandetailershavecometotheforeonresourceprojectssuchtheearlystagesonWoodside’sLNGTrain4andPlutoProject,Worsley’sAluminaExpansion,andmoreextensivelyonvarious ironoreprojectsforBHPBillitonandRioTinto.

Benefits that have been realised from Australian detailers contributing to those iron ore projectsencompass:

• Projectscheduleandcostsavings

Australian-baseddetailerskeepprojectson-timeandon-budgetthrough:

• Parallelmanagingofdesignandmodelingstages.• Delaymitigationduringmodelingaheadofconstruction.• ProjectefficienciesthroughuseofadvancedBIMsystems.• Constructionefficienciesbydevelopingdesignsthatavoidextrarework.• Applyingpowerfulmultidisciplineinspectionandclashdetectiontools.• Achievingefficienciesthroughoptimisinguseofdatacentricinformation.• Maximisingworkloadsoffsite.• UsingBIMtoolstomitigateconstructionissueslikeRFImanagement.

• Improvedsafety

Australiandetailersenhancesafetyduringprojectdevelopmentsby:

• Employing visualisations for training, inductions, construction sequencing and project scope toanticipatepotentialsitehazards.

• Minimisingonsiteworkcommotionbymaximisingoffsitepreassembly.• Deployingpowerfulintelligentmulti-disciplinedclashdetectiontoensurebetterdesignformore

responsibleconstructionandoperatingplant.

• Environmentalcare

SteeldetailersinAustraliahelptosafeguardtheenvironmentthrough:

• Betterplanningthatreducessiteneedsforlay-downareas.• Facilitatingimprovedsitehandlingandlessmaterialwastage.

• Experienceandquality

Australian detailers are typically independent dedicated specialists who bring a higher level ofexpertise thana typicaldetailerassociatedwitha fabricator.Theygenerallyhaveahigher levelofindustryexperienceduetothehighportionofresourceprojectsthancommercialtypeworkandthisexperience provides resource clients with riskmitigation by providing amore professional designverificationprocess.



With close familiarity with advanced 3D systems, Australian detailers mitigate delays and siterectificationcosts.LeadingAustraliandetailersareonrecordforverylowratesofreworkaveragingjust0.01percent.

Withmodularisationbecomingmorepopular,steelsupplyandfabrication is typically fallingonthecritical path and owners are therefore engaging detailers that have high productivity rates,efficienciesandqualitytomitigatetypicalengineeringdelaysandmaintainschedule.

Australian detailers boast a proven track record on a number of large resource projects withproductivityratesoftwotothreetimesthatoflow-costAsianworkshops.

• Technology

OneofthereasonswhyAustraliandetailersleadtheimplementationofBIMtechnologiesisduetotheir advanced knowledge of various 3D modeling technologies as required to maintain acompetitiveedgeagainstlow-costcentres.

They have systems and personnel that understand the complexity of providing accurate data toachievethebenefitsoftheBIMconcept.InadditiontotheindustrystandarddetailingpackagessuchasBocad,ProSteel,StruCadandTeklaStructures,specialisedproprietarysystemsarealsoembraced.

HotDipGalvanising

Hotdipgalvanizingwithahistoryof170years,commandsanunrivalledreputationasacosteffectiveandefficientsystemofcorrosionprotectionforsteelassets.InAustralia,thereareexamplesofhotdipgalvanisingthathavemanagedtosurviveintheharshestconditionsfor130years.Galvanisingispreparedoff-siteincontrolledconditionstoreducelabourcosts,minimisemaintenanceandensureenvironmentalcleanliness.

ThisisofcriticalimportanceinmeetingtheenvironmentaldemandsofmanyAustralianprojects.Inmostcases,thisgiveshotdipgalvanisingacompetitivefirstcostandlifecyclecostincomparisontootherhighperformancecorrosionprotectionsystems.

ThehotdipgalvanisingindustryinAustraliaisexperiencedinthedeliveryoflargeinfrastructureandresourcesprojectsandmostoftheplantsofferlargegalvanisingbathsandstate-of-the-artprocessesbyglobalstandards.HotdipgalvanisingofsteelstructuresforlargeinfrastructureandprocessplanthasbecomemorecommoninrecentyearsandthisgivesAustraliangalvanisersprovenexpertiseinthedeliveryofsuchprojects.

The industry is active in global innovation and technology exchange through the GalvanizersAssociationofAustralia(GAA).MembersoftheGAAhaveaccesstotechnicalexpertiseoncorrosionissues,casestudiesandarepartofaninternationalnetwork.

All of this backup can be utilised by project managers and asset owners in the delivery of theirprojects.TheservicesprovidedbytheAustraliangalvanisingindustryincludeassistanceinthedesignof steelworkanddetailing tomeet the requirementsof superiorcorrosionprotection (eg;meetingAustralian standards or others as required), chamfering/rounding of sharp edges, using the mosteffectivemethods of venting and drainingwork, and designing formaximum corrosion protectionthroughinitialproductdesign.

Due to the large distances often encountered in Australia, the galvanising industry has developedproficiency in overcoming logistical challenges. Experience in transport coupled with thegeographicaldistributionofgalvanisingplants(someinregionalareas)givestheindustryoutstandingcoverageandcapabilityinmeetingtherequirementsofallmajorprojects.

The selection ofmaterials for use in all industries and applications requires innovative design andselection. Infrastructure assets not only need towithstand the rigours of everyday use, but thesedays theyneed to reduce theireconomicandenvironmental impactby reducingmaintenanceandalso their environmental footprint. Designers are beginning to appreciate the fact that galvanised



steel is a material with superior corrosion resistance, abrasion and mechanical resistance andenvironmentallyfriendlyqualities.

Hot dip galvanising provides a robust protective finish and minimises site work and ongoingmaintenance. Its robustnessandability towithstand ’rough’handlingalsoprovidessecurityduringtransport that reduces or eliminates the requirement for final dressing and touch up on site tomaintaincorrosionprotectionintegritypriortoerectionandinstallation–asignificantfactorwhendealingwiththeremotenessofmanyAustralianlocations.

Galvanisingandsteelcombinetoproduceacosteffectivesustainablebuildingmaterialthatistotallyrecyclableandwhichisproventhroughalonglistofsuccessfullocalcasestudies.

ProtectiveCoatings

The use of coatings in the protection of steel substrates from the natural process of corrosionformation is required tominimise thecostand riskassociatedwithcorrosiononmajoroilandgasprojects.

Annual corrosion costs in Australia are generally accepted to be between two to five per cent ofAustralia’sGDP.iAccordingtotheAustralianCorrosionAssociation(ACA),thatcostwasestimatedtobe$28billionin2006.

• WhatisCorrosion?

Therearemanydefinitionsofcorrosion,however,twocommononesare:

• Corrosion is the deterioration of a material, (usually steel), because of a reaction with itsenvironment.

• Thedestructionofsteelbyanelectrochemicalprocessthatisrecognisedbytheformationofrustorpits.

These two definitions bring together the idea of an environment and the electrochemical processwhich are fundamental in understanding corrosion in terms of why it occurs and how it can beprevented.

• Consequencesofcorrosion

As steel corrodes, it deteriorates as more iron oxide is produced. This causes a reduction in thesteel’s structural integrity in termsof its fundamental propertieswhichmake it suchan ideal costeffectiveandreliableconstructionmaterial(ie:tensilestrength,toughnessandflexibility).

Considersteelconstructionssuchasoffshorestructures,stadiumsandbridgesthatmustsupporttheweightofextremeloadingsandprovideasafeworkingenvironmentandthecatastropheofpotentialstructuralfailureduetocorrosion.Whatpricehasthelossoflife?

Thissimple,verynatural,electrochemicalprocesscanbeverycostly!ThelatestfiguresfortheUSAsuggestthatcorrosioncostsapprox$276Billionperyear!

• SpecificationsforMajorProjects

Theonsetofcorrosioncanbeeffectivelycontrolledbyaprotectivecoatingspecificationthatoutlinesa paint system being a product or combination of products as well as appropriate surfacepreparationmethodologies.

Considerationofthespecificationsattheearlystagesofamajorprojectwillassistindeterminingthemostcosteffectivecoatingssolutionsforthelifeoftheasset.

Inselectingacoatingsystemitisimportanttounderstandthe:

• Constructionofastructure.• Environmentandlocation.• Profileoftheprojectandaestheticrequirements.• Expectedlifetimeofthestructurepriortofirstmajormaintenance.



To ensure correct specification and advice is received, certain Australian paintmanufacturers canoffer NACE (National Association of Corrosion Engineers) qualified personnel tominimise risk andcostsassociatedwiththepotentialonsetofcorrosion.

GratingandHandrails

ASImembers,WebforgeandTheGrahamGroupmanufacturegratinginnumerouscombinationsofloadbardepthandthickness,loadbarpitchandcrossrodpitch.

Steel grating is suited to many applications, from light-duty applications (maintenance floors,occasionusage),thoughlight/mediumdutyapplications(residential,lightindustrialoccasionalpublicusage), medium duty applications (mining and commercial, regular or medium industrial usage),heavydutyapplications (heavy industrial,miningand trolleysand industrialequipment),andextraheavydutyapplications(frequentimpactfromtrolleys).

Both companies supply a complete range of mild steel grates in compliance with the load andpermanent set requirements specified in AS3996-1992. Conformance certificates can be supplieduponrequest.TheyarealsocapableofcustommanufacturingMildSteelGratesandFramestosuitspecificclientapplicationsandloadtestaccordingtoAS3996-1992ifrequired.

QualityandStandards

Australia’s two fully integratedsteelmanufacturersOneSteelandBlueScopeSteelhavea longandproud history of manufacturing structural steel in Australia. Both steel companies manufactureproduct to Australian and International Standards, providing a known level of quality with fulltraceability.

Overtheyears,theAustralianStandardsusedforstructuralsteeldesignhavedeveloped,reflectingimprovedunderstandingofmaterialperformance,structuralbehaviouranddesignprocesses.

Sites producing steel in Australia have a quality policy to guide process control to ensure productquality.AllmanufacturingfacilitieshavequalitymanagementsystemsaccreditedtoISO9001:2008.Thisaccreditationisactivelymaintainedandaudited,ensuringamatureandfullyfunctionalsystem.

Manufacturers are committed to the principles of quality assurance, thereby increasing thecustomers’ confidence of the project being delivered to the required quality standards. Steelmanufacturers are active in the development of improved product, fabrication and steel designstandards.

WeldingandTesting

Welding is aneconomicalmethodof joiningmaterials, enabling transmissionof large critical loadsthat may be static and/or dynamic under various conditions (high/low temperature, etc). TheweldingandrelatedtestingindustryinAustraliaishighlysophisticatedandisonpar,ifnotexceedstheservicerequirementsandoutputsofmanysimilarindustriesaroundtheworld.

Industrial applications in Australia are well serviced by specialist and general welding and testingcontractors including experienced andqualified structural steel fabricators, boilermakers, pressurepiping andmechanical contractors. Such contractors have been successfully engaged inmany andvariouscomplexandhigh-profileweldingapplicationsbothinAustraliaandabroad.

Complex and economical welded fabrication has been readily achieved with Australian weldingcontractors. Such positive outcomes have been due to rigorouswelding, certification, testing andinspection as embraced by the local industry via Standards Australia, International Institute ofWelding(IIW),InternationalStandardsOrganisation(ISO)andothernationalstandards(ASME,etc).Thedevelopmentandutilisationofsuchstandardshastakenplaceformanyyears.



SteelReinforcing

TheSteelReinforcementInstituteofAustralia(SRIA)isanationalnon-profitorganisationprovidingahighqualitytechnicalsupportandinformationservicetotheAustralianbuildingindustryontheuseof reinforcing steel in concrete, primarily reinforcingbar (Rebar) and reinforcingmesh (Reomesh).SRIA is funded and supported by the vast majority of the manufacturers and suppliers of steelreinforcingusedinAustralianconstruction.

The SRIA offers practical solutions tomeet the diverse and ever changing needs of theAustralianbuildingindustry.TheorganisationactivelysupportsandencouragestheuseofAustraliancapabilityandquality intheprocessinganduseofreinforcingsteel inconcreteinanincreasinglycompetitiveglobalmarket.

WholeofIndustryCooperation

• Workingtogether

Thesteelvaluechainhasaverylongandproudhistoryofcooperationandbandingtogethertogetthejobdoneinthemostefficientway.Thevaluechainisverystronglylinkedfrommanufacturertodistributortofabricatorascustomersandsuppliers,eachofwhomworksseamlesslywiththevariousotherassociatedlinksincluding,engineers,architects,designdetailers,painters,galvanisers,erectorsandotherstoensurethatasolutionisdeliveredtotheend-users’satisfaction.

The Australian Steel Institute (ASI) also has long established links with a number of key industrybodies that supports the steel industry including; Engineers Australia, the Architects Institute ofAustralia, the Australian Industry Group, the Building Products Innovation Council, and other keyassociationswhointeractwiththesteelindustry.

TheASIandtheindustryingeneralalsoworkcloselywiththetradeunionmovementandthespecificrelevantunionsthatworkwithinthesteelsectorincludingtheAustralianWorkersUnion,AustralianMetalWorkersUnion,NationalUnionofWorkersandtheConstructionForestryMiningandEnergyUnion.

• SteelIndustryInnovationCouncil

Recently the Australian Federal Government’s Minister for Innovation, Industry, Science andResearch, Senator the Hon. Kim Carr established the Steel Industry innovation Council, under theguidanceofhisownGovernmentDepartment.TheCouncilincludesseniorrepresentativesfromthesteelmanufacturers,theASI,tradeunionsandtheacademicandresearchcommunity.

The Council supports the long term sustainability and competiveness of theAustralian steel valuechain. This includes boosting demand for Australian steel and looking at innovation to supportinternationalcompetitiveness.

TheCouncilisaforumforsteelindustrystakeholderstoformawhole-of-industryperspectiveonkeyissuesandasacollective,presentsitsadvicetotheMinister.TheCounciloperatesatahighstrategiclevel to identify and address impediments in achieving the goal ofmaintaining a competitive andsustainableindustryinanincreasinglyglobalmarketplace.

To achieve the goal of maintaining our international competitiveness into the next decade, theCouncil promotes innovation for the Australian steel industry. This includes promotion ofimprovements in the steel value chain, from the raw steel production stage; right through tofabricationofthemanyformsofend-usersteelproducts.

AnotherkeyresourceandappointmentbytheMinisteristheSteelSupplierAdvocate(theAdvocate)toprovideleadershipandactasachampionfortheAustraliansteelindustryinthemarketformajorsteelconsumingprojects.TheAdvocatealsoworksalongtheAustraliansteelvaluechainwiththosefromthemajorproducersto fabricationbysmallandmediumsizedenterprises (SMEs)to improve



their competitiveness and coordinate support from the Industry Capability Network, EnterpriseConnect,AustradeandotherGovernmentagencies.

Safety

TheAustraliansteelindustryensuresthesafetyofitsemployeesisitsNumberOnepriority.

All Australian steel manufacturers conform to the Australian Standard AS 4801 which sets outrequirementsforimplementing,auditingandcertifyingOccupationalHealthandSafetyManagementsystems.

Whilst all the industry companies work diligently on safety individually, the ASI also convenes aNationalIndustrySafetyCommitteethatisrepresentedbyallsectorsofitsmembership.

ThisisunderpinnedbyStatesafetycommitteesconsistingofallindustrysectorssuchasfabrication,coatings, transport, distribution, manufacturing and industry suppliers. The vision of thesecommitteesissimple-ASaferSteelIndustry.

These committees aim to cultivate a healthier and safer steel industry through promotion safetyleadership,educationalsupportandsharinginitiatives.Theircoreprinciplesarethat

• Allinjuriesandwork-relatedillnessescanandmustbeprevented.• Managementisresponsibleandaccountableforhealthandsafetyperformance.• Employeeengagementandtrainingisessential.• Workingsafelyisarightofemployment.• Excellenthealthand safetyperformanceatwork supportsexcellentbusiness resultsandhealth

andsafetymustbeintegratedinallbusinessmanagementprocessestobolsterthat.

Environmentandsustainability

TheAustraliansteelindustrytakesitsenvironmentalandsustainabilityresponsibilitiesveryseriously.The two Australian steel manufacturers BlueScope Steel and OneSteel have environmentalmanagement systems to ISO14001 and are party to a convention on sustainable developmentestablished through World Steel, the international steel institute representing the major steelmanufacturersandsteelassociationsglobally.

That policy lists the commitments made by its member companies to address the economic,environmentalandsocial sustainabilityof theirbusinessesand toengage inconstructiveandopendialoguewiththeirstakeholders.

Elevenindicatorshavebeendevelopedtomeasureeconomic,environmentalandsocialperformanceto systematicallymeasure progress in steel’s sustainable development. Thesemeasurements nowformthebasisofTheSustainabilityReportof theWorldSteel Industry–Steel: theFoundationofaSustainableFutureandareactingasbenchmarksinthedriveforworldsteelindustryimprovement.

These steelmanufacturers are alsomembers of the ClimateActionGroupwhich seeks to providecarbonbreakthroughsbythesharingofdataandtechnologies.

TheASIisalsoamemberofWorldSteelandisworkingtoprovideaglobalapproachtosustainability.

World Steel has joined the United Nations Environmental Program (UNEP), is a member of theInternationalLifeCycleBoardandhasreleasedgloballifecycledatatoenabletheimpactofsteelinaglobal sense to be included into Life Cycle Analysis (LCA)models so that preliminary estimates ofsteelincarbonimpactstudiescanbemade.

Locally, the ASI has beenworking through the venue of the Building Products Innovation Council(BPIC)tounderstandandagreeonprocessesandmeasuresforLCAtodeterminetheenvironmentalimpactsofallbuildingsystemmaterials.Thisthree-yearprojectwillbeconcludedinapproximately12months(early2011).



TheaimistoprovideuniversallyagreedinformationuponwhichtheAustralianconstructionindustrycanproducethelowestlong-termenvironmentalimpacts.

Australian steel’s environmentalmovement is given industry-wide thrust through thework of theASI’s dedicated Sustainability Committee which comprises sustainability experts, including thosefrom the major Australian steel producers, who meet regularly on initiatives supporting steel’simprovingenvironmentalperformanceandtopromoteadoptionofthelatestsustainabilityadvancestomembers.

Acleanerindustry

Australiansteelmanufacturersandsupplychainaretakingsustainabilityseriouslyandaredevotingconsiderableresourcestounderstandingandminimisingenvironmentalimpactsfromoperationsanddesignandoperationoftheirproducts.

CurrentlyinAustralia,itisestimatedthat82percentofallsteelproductsarerecoveredfrombuildingdemolition ranging from95percent for structural steel (worldclass recovery) to70-80percent forreinforcingsteel.

Anestimated2.6to2.8milliontonnesofsteelisavailableforrecyclinginAustraliaeachyear.Thisisimproving as the scrap value increases. In a report recently commissionedbyHyder for the2007-2008financialyear,only299,681tonnesof2.6milliontotaltonneswasdisposedofinlandfill,whileamassive2.54milliontonneswasrecoveredforrecycling.

In Australia about 2.7million tonnes are recycled annually, a substantial part of the eightmilliontonnesproduced.Continuousimprovementineco-efficiencyduringproduction,worldclassrecyclingratesandproductdevelopmentcombinedwithdesignflexibilityandinnovationensurethatsteelwillcontinue tomakeapositivecontribution to the life cycleperformanceof thebuiltenvironment inAustralia.

Australia’s rigorous environmental standards and industry strides are matched by the steel mills’widespreaduseofcleanertechnologiestosavepreciousresourceslikewaterandenergy.

AIPPlansandEPBSguidelines

• AustralianIndustryParticipationPlans

Major infrastructure and resource projects in Australia source a significant proportion ofmanufacturedcomponentsandcapitalequipmentfromoverseaseventhoughlocalcapabilityexists.Governmentwantstoencouragethemaximumlevelof localcontent ingoods,servicesand labourformajorprojectswherethesearecompetitiveinprice,quality,anddeliveryrequirements.

To address this issue, Federal and StateGovernmentshavedeveloped Industry ParticipationPlans(IPPs).Thepurposeoftheseplansistoencouragemajorprojectproponentstoprovidefairandequalopportunity to local business to supply. It must be emphasised that IPPs do not mandate thatAustralianbusinesstenderswillbeselected.

ThepolicyintentofIPPsisto:

• PromoteAustraliancapability.• MaximiseopportunitiesforAustralianindustry,especiallysmalltomediumenterprises(SMEs)to

participateinmajorprojectsinAustraliaandoverseas.• Toadoptanationalapproachtomajorprojects.

• AIPFrameworkisFTAandWTOcompliant

State and Territory Industry Participation schemes have been developed to be consistent withAustralia’s national and international obligations, including the Australian Industry ParticipationFramework (AIPF)and theAustraliaNewZealandGovernmentProcurementAgreement (ANZGPA).Furtherdetailsareavailableatwww.apcc.gov.au.



Otherfactorsinfluencingthepolicydevelopmentoftheseschemesinclude:

• TheWorldTradeOrganisation(WTO).• AustralianNationalCompetitionPolicyandotherCommonwealthLegislation.• OthertreatiesandFreetradeAgreements.

• AustralianIndustryParticipationFramework

The Australian Industry Participation Framework (AIPF) has been signed by Australia’s IndustryMinisters and gives effect to their commitment to provide Australian industry will full, fair andreasonableopportunitytoactivelyparticipateininvestmentprojects.Theframeworkencouragesallspheres of government to adopt a coordinated approach to maximising Australian industryparticipationininvestmentprojects,bothinAustraliaandoverseas.

• EnhancedProjectBy-lawsScheme(EPBS)

TheEPBSisaCommonwealthGovernmentprogramwhichprovidesanavenuefordutyconcessionsin certain circumstances for imported eligible goods, including machinery, equipment and theircomponents,forprojectsapprovedundertheScheme.AccesstothebenefitsofthisreliefissubjecttothetermsofItem71andthepolicyandadministrativecriteriasetoutinthoseGuidelines.

AllapplicationsfordutyconcessionundertheEPBSareassessedagainstindustrypolicyobjectivesasdetermined by the Government. The Minister for Innovation, Industry, Science and Research isresponsiblefortheunderlyingpolicyguidelinesandadministrationoftheEPBS.

TheEPBSisadministeredbyAusIndustryonbehalfoftheMinisterandpolicyadviceisprovidedbytheIndustryandSmallBusinessPolicyDivisionandtheManufacturingDivisionoftheDepartmentofInnovation,Industry,ScienceandResearch.

TheTariffActimposesdutiesoncertainimportedgoods.Schedule3totheTariffActestablishestherateofduty tobepaidongoods imported toAustralia.Undercertainconditions, theGovernmentmay grant duty concessions in respect of particular imported goods. Schedule 4 to the Tariff Actoutlinesthedutyconcessionsavailable.

Sections 8 and 18 of the Tariff Act provide the authority for goods specified in Schedule 4 to beimportedataratebelowthatsetoutinSchedule3.TheitemscontainedinSchedule4providethelegalbasisfortheconcessionalentryofcertainimportedgoodsinprescribedcircumstances.

Determinations topermit theconcessionalentryofeligiblegoodsunder theEPBSaremadeundersection273oftheCustomsAct1901.

The EPBS duty concession is directed at eligible goods including machinery, equipment and theircomponents. Goods such as spare parts beyond the commissioning of the project and generalconsumablessuchaspaints,lubricants,fueletcareineligibleundertheEPBS.

2. DIISR:TrendsinManufacturingto2020

§ FutureManufacturingIndustryInnovationCouncil,TrendsinManufacturingto2020,DIISR,September2011

Executivesummary

Australian manufacturing is a diverse and vibrant industry that plays a significant role in theeconomy.Theindustryemploysclosetoonemillionpeopleanditsoftotalindustrygrossvalue-addwas10percentin2010-11.Inaddition,manufacturesaccountedforonethirdofAustralianexports.



Manufacturingisalsoanimportantdriverofinnovationinindustry–beingresponsibleforaquarterofresearchanddevelopmentamongbusinesses.

The industry is faced with both challenges and opportunities. Some of these are shorter term'shocks',whileothersarelongertermtrends.Some,suchasglobalisation,ageingworkforceandthesmallsizeoftheAustraliandomesticmarkethavebeenrecognisedforsometime.Othersaremorerecent, including requirements for low carbon production, the impact of terms of trade and theassociatedriseintheexchangerateoftheAustraliandollar.

Global 'megatrends' resulting from population growth, economic growth, urbanisation, peakresources and societal changes are contributing both opportunities and threats over themediumterm.

Technology,suchasinformationandcommunicationtechnologiesandemergingtechnologies,isalsodriving'disruptive'changes,providingmajoropportunitiesandchallengesinproductandproductioninnovation which will enable the Australian manufacturing industry to respond positively to thechallengesandopportunities.

A robust manufacturing sector of the future requires firms that are not only technologicallysophisticated, but are also agile, adaptive, and efficient. This is only possible in firms that areknowledgeable,innovativeandwellmanaged,andwhichhaveaccesstoskillsaswellascapital.Suchassets provide the absorptive capacity needed by successful firms to embrace new knowledge,technologyandinnovativepracticestoincreaseproductivityandcompetitiveness.

Thus,theresilienceorrobustnessofAustralianmanufacturingliesinfirmsthat:

• recognisethattosucceedinthehighvalue-add,lowvolumeproductsinwhichtheyarelikelytohavea competitiveadvantage, theymustbundleproducts and services to sell solutions, ratherthansimplytangibleproducts;

• have thecapability to identify,design,develop,makeandsellproductsandservices thatare indemand;

• operatewithhighefficiencyandproductivity,allowingthemtooptimisetheuseoftheircapital–human,intellectualandmaterial;

• havetheabilitytomaximiseleveragefromstrongandsustainablepartnershipsthroughlocalandglobalsupplychains;and

• thatseekmarketsinemerginggrowtheconomies,bothbypartneringinglobalsupplychains,andbymeetingdemandsfromtheirgrowingmiddleclassesforhighvalueaddnicheproducts,ratherthanlowcostcommodities.

Finally,thereisoftenatendencytoviewtheinnovationneedsofanindustrythroughasectorallens.Amoresystem-wideapproachtobuildinganinnovationsystemisrequired.

Policies and programs that support the development of knowledge, skills, competencies andcapabilities thatcanbeeffectively translatedacross industrysectorsare likely tocontribute to thefuturerobustnessofAustralianmanufacturing.

Australian manufacturers operate in an increasingly competitive global environment is constantlychanging,wheremanyfactorsthataffectthefutureofmanufacturingareoutofthedirectcontroloffirms.AgoodexampleofthisistheimpactofcurrencyexchangeratesthatareputtingpressureonAustralianmanufacturersnow, in termsofexportcompetitiveness.Furthermore,a rangeofmega-trendsappearstobeincreasinglyimportantandmayremainineffectoverthemediumtolongterm.

AchievingarobustAustralianmanufacturingsectorinthefuturewillrequireambitiousvision,soundstrategy and development of capabilities for manufacturing companies to stay competitive,profitableandsustainableoverthelongterm.

A robustmanufacturing sectorof the future requires firms thatarenotonly technologically savvy,but are also agile, flexible, adaptive, and efficient. This is only possible in firms that areknowledgeable,innovativeandwellmanaged,andwhichhaveaccesstoinformation,technologyandinnovativepracticesaswellascapital.Moreimportantly,firmsneedtohavetheabsorptivecapacitytoembracenewknowledge,technologyandinnovativepractices.



Thus,theresilienceorrobustnessofanindustrysectorwilldependontheabilityofitsfirmstoadaptquicklytomeetchallengesandcaptureemergingopportunities.Thisrequiresthatfirms:

• Recognise that to succeed in the high value-add, low volume products in which Australianmanufacturingislikelytohaveacompetitiveadvantage,theymustbundleproductsandservicestosellsolutions,ratherthansimplytangibleproducts.

• Have the absorptive capacity to embrace the latest technological and business processinnovationsthatprovidecompetitiveadvantage.

• Have ready access to knowledge and world class capabilities that allow innovation and rapidadaption to changingmarket needs, tapping into innovative practices and building sustainableandprofitablepartnershipsbothdomesticallyandglobally.

• Havethecapabilitytodesign,develop,makeandsellproductsandservicesthatareindemand.• Operatewithhighefficiencyandproductivity,allowingthemtooptimisetheuseoftheircapital–

human,intellectualandmaterial.• Haveresilienceinalowcarbonandresource-constrainedeconomythroughresourceefficiency.• Havetheabilitytomaximiseleveragefromstrongandsustainablepartnershipsthroughlocaland

globalsupplychains.• Securesupplyofresourceinputsandskills,bydirectacquisition,partneringorengaginginglobal

supplychains.• Harness technology and business process innovation that provides differentiation and

competitive advantage. The continued evolution of ICTs, such as cloud computing, providesopportunitiesforenhancingfirmproductivity,marketingandproductandservicedelivery.

• Possess the organisational flexibility to rapidly adapt to changing market needs – includingchangingtheirmixofskillsandproductiontechnologies.

• SeekmarketsinthegrowingBRICcountries,bothbypartneringwiththeminglobalsupplychains,and by meeting demands from their growing middle classes for niche and bespoke consumerproducts.

Globalcompetitivenessrequiresworldclasscapabilitiesthatareeffectivelyutilised.Akeyimperativeis to ensure capabilities in supply chains for those sectors that are important to achieve a robustfutureforAustralianmanufacturing.

ThereisabroadconsensusthatAustraliaisnotderivingthefullbenefitsofourresearchinvestment;especially frompublicly funded research.Hence it is imperative to improve the strategic alignmentbetweentheoutputfromresearchorganisationsandindustry/marketdemands.Thiswillonlycomeaboutthroughgreaterengagementandlinkagebetweenprovidersandusers(andpotentialusers)ofresearchtoensurethatthereisanappropriatebalancebetween'push'fromresearchorganisationsand 'pull' from firms that can benefit from research. Understanding trends and potentialopportunities in the futurewill alsobe crucial in establishingaglobally competitivemanufacturingsector.

There isoftenatendencytoviewtheinnovationneedsofan industrythroughasectoral lens.Thisneeds to shift to a more system-wide approach to building an innovation system that supports arobust future for the entire Australian manufacturing sector. It would appear that policies andprogramsthatsupportthedevelopmentofknowledge,skills,competenciesandcapabilitiesthatcanbeeffectivelytranslatedacross industrysectorsare likelytocontributetothefuturerobustnessofmanufacturing.

The future robustness of Australian manufacturing is also dependent on how well firms operateacrosscomplexglobalsupplychains.Thisrequiresnotonlycomprehensiveknowledgeofemergingmarketneedsbutalsolocalisedknowledgetofacilitateadaptabilitytochangingenvironmentalandlegislative landscapes in export markets. In particular, Australian firms need to be aware ofenvironmentallegislationthatisincreasinglybecomingoperational.Thispresentsbothachallengeaswellasanopportunitytotapintoanemerginggreenerglobaleconomy.

Havingaccesstoworld-classcapabilitiesandknowledgeisimportantforafirm’sfuturecompetitiveadvantage.However,itisequallyimportantthatafirmhastheabilitytoabsorbnewknowledgeandtranslateitintopractice.Industry,theresearchcommunityandgovernmentneedtodeveloppoliciesandinitiativesthatraisethecapabilitiesandcapacityoffirmstoabsorbinnovationinallitsforms,toensurethatmanufacturingfirmsofthefutureareadaptive,agileandinnovative.



3. HowardPartners:TheRoleofIntermediariesintheInnovationSystem

A survey conducted by Howard Partners found that companies rated as ‘important’ or ‘veryimportant’thefollowingreasonsforaccessingintermediaryservices:

• Technologyacquisition—allcompanies.• Accessingfundingandsupportforinnovationprojects—63percentofcompanies.• Producttestingandscaleup—50percentofcompanies.• Productdevelopment—38percentofcompanies.• Amediatorwithbodiesalreadycollaborating—25percentofcompanies.• Brokeringatransactionbetweentwoparties—19percentofcompanies.

Thesurveyandinterviewsalsofoundthatthreequartersofcompanieshadbeencontacteddirectlyby the intermediary organisation to offer intermediary support. This finding reflects a lack ofknowledgewithincompaniesofintermediaryorganisationsandwhattheycando.

Surveyedcompaniesdidnotidentifyanyimmediatebenefitsfromintermediariesintermsofrealisedincreases inprofitability,productivity,employmentornewproductsentering themarket. Severalcompaniesadvisedofexpectedincreasesintheseperformancemetricsoverthenextfewyearsasaresultofintermediaryservices.

Surveyedcompaniesreportedanumberofindirectandintangiblebenefitsofintermediaryservices,including enhanced strategic management capabilities and business culture (five companies),enhanced innovationcapability (11companies)enhancedcollaborationandnetworkingcapabilities(14companies)andincreasedaccesstoknowhowandbestpractice(10companies).

These findings point to the importance of the personal/professional contribution of intermediaryservices and intermediary staff to building business capability. The extent towhich this enhancedcapability will be reflected in future economic outcomes is uncertain at this stage. However, thestrategicmanagementandinnovationliteraturepointstothecloseassociationbetweeninvestmentincapabilityandbusinesssuccess.

A major finding emerging from the interviews undertaken as part of the Study was thatintermediaries need to have excellent communication skills and be exceptionally well networkedacross industry and the research sector, aswell as possessing reputation, integrity, and credibilitywith business, research organisations, and government program managers. They must alsounderstandhowaresearchorganisationworks—intermsof itsmission, itsstructure,systems,andprocesses,andthewayitmeasuresitsachievementsandrewardssuccess.

The survey and interviews found that the ability of an intermediary to provide funding for smallcollaborations is highly regarded by participating companies and other stakeholders. The fundingarrangementprovidesflexibilityandspeedinrespondingtocollaborationopportunities.

TheStudyreviewedsomeintermediarysupportprogramsinEuropeandNorthAmerica.Therangeofprogramsvariesinstructureandintheformofsupportprovided:

• Anumberofprogramsprovidesupport forbrokering roles, suchas theCanadian IRAPprogramandtheEuropeanInnovationRelayCentre(IRC)program.

• Several programs provide funding for collaborations, such as the UK Knowledge TransferPartnerships(KTP)program.

• There are also many networking support programs that operate at the state/regional level inFederalsystems(oratthe‘national’levelinsmallEUstates).

Itisclearthatagreatdealhasbeenlearnedfromthepilotprogramsandthereisanopportunitytogo to a next stage in providing support for intermediary roles that meet the technology andknowledgeaccessneedsandrequirementsofAustraliancompanies,particularlySMEs.Suchsupportcouldconsiderthefollowingpossibleactionsandinitiatives:

• Selection, through competitive tender, of a panel of accredited intermediary organisations, toprovidetherangeof intermediaryservicescurrentlyprovided inthepilots. Selectionshouldbemadeonthebasisofknowledgeoftechnologies,theirnationalandinternationalnetworks,theircommunicationskills,andtheirabilitytoworkwithSMEsandresearchorganisations.



• FundingSMEstoacquireintermediaryservicesfromaccreditedintermediaryorganisationsonthebasis of an identified need to access and/or acquire business relevant and applicabletechnologies/and or knowledge capabilities through collaboration arrangements. The fundingdecisionshouldbemadebyanindependentthirdparty.

• Access to knowledge not being limited to scientific and technical knowledge—it should alsoincludeknowledgerelatedtoindustrialdesigncapabilities.

• Intermediary services should focus on: articulating technology need; finding Australian andinternational partners; advising on sources of innovation financing;management of intellectualpropertyrights;marketing;andprovidingassistancewithcontractnegotiations.

• Support for the formation of an intermediary information and knowledge network to enableregionallybasedintermediaryorganisationstoshareandaccesstechnologiesandknowledge.

AstheStudywasorientedtowardstheroleofintermediariesintheAustralianinnovationsystem,itdidnotlookindetailattheroleofResearchandTechnologyOrganisations—afeatureoftheBritishandEuropean systems. Theseorganisationshavebeen formedby industry/tradeassociations andhavebeen closely involved in the establishment andoperationof an ‘interface’ between researchorganisationsandbusiness.

RTOs exhibit a wide variation in their genesis, longevity, modes of governance, and sources offinance(EuropeanResearchAdvisoryBoard).However,thisformoforganisationhasbeenthemainfocusofscholarlyresearchonintermediariesinthesecountries(Howells2006;Howellsetal.1998;HowellsandJames2001).

In Australia, few industry associations have taken an active role in national innovation systems.Associations such as AEEMA stand out but most industry associations take on a lobbying role inrelationtoinnovationandfocusmoreonindustrialrelationsagendas.

4. HowardPartners:OutlookforSmallBusinessManufacturingto2015

Executivesummary

Business growth and development is fundamental to employment growth and national economicprosperity.

Thiscanonlybeachievedifbusinessisinternationallycompetitiveandcapableofsustainingworld-class levels of performance. This applies to all business – large and small. By helping individualbusinesses to succeed, the Government can help improve the competitiveness of the nation as awhole.

Inmanufacturing,withtheprogressiveremovalofprotectionoverthelast20years,theperformanceof

Australia’s large businesses has been foundwanting. By contrast, Australia’s small businesses areproving to be innovative, dynamic and responsive to opportunities and challenges. In the currentenvironment,with the slide in the valueof theAustraliandollar relative to theUS dollar, and theprogressive freeing up of the international trading system, there are major prospects formanufacturing.

Manufacturingintheyear2001ischaracterisedasbeing:

• Globalised, in the sense that awide rangeof functions fromR&Dandmarketing toproductionanddistributionarenowundertakenonanintegrateglobalbasis

• Knowledgebased– itwill involve grater applicationof sciencebased technologies inprocessesandproducts

• Networked,inthatthecoordinationofthesefunctionsmakeintensiveuseofelectronicnetworksandofvirtualandgeographicalclustersofexpertise

• Customised,inthatmethodsofproductionmustallowfordetailedcustomisationofproductstomeettheneedsofindividualmarketsandindividualconsumers

• Digitised, in the sense that many of these processes, and particularly final production, arecontrolledbyadvancedcomputerssystemsthatlimittheneedforhumanintervention



Itwillalsoreflectbusinesstrendstowardscooperationandcollaborationonaregional,nationalandglobalbasis.These influenceswillhaveamajor impactonthewaymanufacturing isundertaken inthefuture.

Thisstudyhas lookedatsmallbusinessmanufacturing inNSWin2001tounderstandthestrategic,commercial andmanagement issues that they face. It has then brought a vast array of research,knowledgeandexpertisetounderstandthechallengesandopportunitiesfacingthesefirmsin2015.Arangeofscenariosand

Australia’s smallbusinessesareproving tobe innovative,dynamicand responsive toopportunitiesandchallenges.

As part of the assignment we have sought to obtain the views of successful an innovative smallbusinessmanufacturingcompanies.Companieswereidentifiedfromthefollowingsources:

• TheABL/IndustryScienceandResourcescasestudiesofinnovativecompanies• ThenomineesforAustralianExportAwards• Companiesthathavereceivedventurecapitalfunding.

ThesecompaniesarelistedinAppendix5.Thesuccessstoriesofthesecompaniesaredocumentedinanumberofsources.Theirsuccessreflectsanumberofcharacteristicsassociatedwith“innovation”andarereferencedthroughouttheReport.

Theoverwhelmingfindisthatsmallbusinessmanufacturingdoesnothavetobebigtobeglobal.Infact,we argue that small businessmanufacturing has distinct advantages over the larger firms. Inareas such as the ability to change business direction quickly, enter newmarkets, develop highlyspecialisedskills,knowledgeandexpertise forawelldefinednichemarket, formstrategicallianceswith both competitors and colleagues, adopt new technology, and be close to the customer, arewithin the power of the small business manufacturer and it is a power that may have and willcontinuewithgrowinggusto,toexploit.

In particular, the study found that electronic commerce makes personal relationships evenmoreimportant.

Small business manufacturers must “get on a plane” and travel to their potential markets, andengagetheirmarkets.Theymustunderstandtheircustomersbetterthantheircompetition.Havingasuperiorproductthatiscosteffectivetoproduceandwellpricedisnotenough:

inotherwords,beingcompetitiveisagiven.Thefuturewilldemandthesmallbusinessmanufacturertoidentifyandcarveoutasmallnichemarket.Businesseswillbecomesmaller,highlyspecialisedandcontinuouslyresearch,developandinnovatetostayahead.

Inthetechnologyenvironment,businessownersandmanagersneedtounderstandthattheInternetis,fundamentally,ameansofcommunication.Itallowsforthetransmissionofdigitisedinformationvery quickly over long distances. It also allows for close collaboration between suppliers andcustomers–butalmostparadoxicallyrequiresthedevelopmentandmaintenanceofamuchcloserpersonalrelationshipwithcustomers.

Small business manufacturing does not have to be big to be global. In fact, small businessmanufacturinghasdistinctadvantagesoverthelargerfirmsinaglobalenvironment

The future will demand the small business manufacturer to identify and carve out a small nichemarket.Businesseswillbecomesmaller,highlyspecialisedandincreasinglytechnologybased

Thereareanumberofspecificattributesandcharacteristicsthatmanufacturingbusinesseswillneedto develop to meet emerging challenges and opportunities in the “information economy”. Theseinclude:

• Information technology competence - small businessmanagers will find that over the next 15years they will have to fully embrace information technology in the management of their



business. Information technology is now recognised for its strategic importance as well as itscontributionstooperationsand“backoffice”support.

• Technology awareness and access – managers will need to identify the sources of technologycompetence and capability that may assist in business development and growth. Stategovernmentawarenessanddiffusionprogramsand industryassociation initiatives can facilitatethisprocess.

• Access tocompetent,expertand independentadvice– investment in information technology–both hardware and software- can be expensive. Many people selling information technologyproductsandsolutions,particularlyatthesmallbusinessendofthemarket,haveneveractuallyworkedinabusiness.

• Adviceshouldbesoughtfrombusinessassociationsandthroughindustrynetworks.

Accesstofinancetofundbusinessdevelopmentandexpansionhasbeenanongoingissueforsmallmanufacturingbusinesses.Therecanbenodoubtthatthisissuewillcontinuetobeofimportance.Investors, whether providing equity or debt, are interested in what is now termed the “valueproposition”–howvaluewillbecreatedthroughtheproductivityof thecapital investment that ismade. In addition to this fundamental issue of return on investment, investors also look at otherfactorssuchastherisksandhowthesewillbemanaged,commitmentto innovationandcontinualproductdevelopmentandtheactualmarketabilityofnewtechnologyproducts.

Small businesses, and even large businesses, no longer maintain, or wish to maintain all of thecapabilitytheyrequiretomeetcustomerneeds.Moreover,formanyreasonssmallbusinesseswanttostaysmall–theydonotwanttotaketherisksassociatedwithmajorcapitalinvestmentdecisionstoincreasecapacityinamarketplacethatisbecominguncertain.

Tomeet new business challenges, small businesses are increasinglyworking in local, regional andevennetworkswherecapabilityissharedandaccessedonacollaborativebasis.Smallmanufacturingbusinesses should explore every opportunity to participate in regional and national businessnetworksasabasisforsharinginformationandknowledgeaboutmarketopportunities,technologydevelopments and business practices. One of the most important issues for the future of smallmanufacturing business will be demonstrating a “value proposition” and the capacity to managebusinessrisk

In the emerging business environment, businesses will need to develop “alliance “competence –that, a capacity to work in cooperative and collaborative arrangements based on reciprocity andtrust. Over the next 15 years alliances between small businesses, small and large businesses andbetween small businesses and research organizationswill become central to business activity andsuccess.Themanagementofalliancesisanythingbuteasy.Theyrequireextreme,andoftentotallyunaccustomedclarityinrespectofobjectives,strategies,policiesandrelationships.

In the context of alliances, partnerships and networks, the next 15 years will require thedevelopmentandmaintenanceofnewformsofbusinessorganization–newwaysofdoingbusinesswill need to be explored with a sharing of risk and reward between parties. In this “virtual”environmentmanagementandleadershipwillbecomemorecriticalforsuccess.

5. Howard Partners: Digital factories – The Hidden Revolution in AustralianManufacturing

Throughitscapacityto integrateandblendanumberofknowledgeintensivetechnologies, ICTcanenable Australia’s traditional manufacturing base to be competitive in a global environment.Innovative use of ICT can result in new sales channels, new product capabilities and productdifferentiation. ICT canalso reduce costs, increaseproductivity and improve thebase for strategicdecision-making and risk management. These results should be reflected in enhanced businessperformance–asindicatedbysustainedprofitabilityandviability.

A distinction is often made in the manufacturing sector between information technology, whichrelatestothecorporateandbusinessactivitiesofacompany,andprocesscontrol,whichrelatestothe management of production activities. As process control devices move from electrical to



electronic(andfromanaloguetodigital)instrumentation,andincorporatemoreintegratedcircuitrywith a capacity to generate very substantial amounts of information, the technological distinctionbetweenICTandprocesscontrolbecomesblurred.

ThestudyconfirmsthepervasivenessofICTthroughoutthemanufacturingindustry.ThescopeofICTembraces:

• Corporate systems that are oriented towards enterprise resource planning (ERP), supply chainmanagement(SCM)andcustomerrelationshipmanagement(CRM).

• Manufacturing systems such as product lifecycle management (including computer assisteddesignandmanufacture(CAD/CAM))andprocessexecution(suchassupervisorycontrolanddataacquisition(SCADA)systems).

• Controlsystemsforprogrammablelogiccontrollers(PLCs),robotsandotherhardwareembeddedinmachinesandequipment

• Monitoring and surveillance systems used in relation to functions such as security, health andoccupationalsafety,andthebuildingandworkenvironment.

• ExtensiveincorporationofICTinproductsandservices.

Thepervasiveroleof ICTinmanufacturinghasbeenlargelyoverlookedincontemporarydiscussionand commentary relating to the information and knowledge economy. For example: ICT enableddevicesusedinproductionoperationsareusuallydescribedas‘controlhardware’andthesoftwarethatdrivesthemas‘processcontrolsystems’;productionmachineryandalargerangeof industrialequipment that incorporate ICT hardware and software, including precision tools and weldingdevices,arerarelydescribedascomputerequipment.

Whilsthavingthetechnicalcharacteristicsofcomputers, these ICTenableddevicesandequipmentdonotlooklikecomputersinthattheydonothavescreens,keyboards,miceandotherperipheralsattachedtothem.

Commonmeasures of ICT intensity in industry are frequently based on counts of the screens andkeyboards–presupposinganofficeparadigmandaservicessectororientation.ICTintensitydefinedin terms of programmed processing units would provide a better indicator of integrated orembeddedICTacrossallindustrysectors.

Given the pervasiveness of ICT, the potential for ICT enabled productivity and performanceimprovement goes far beyond electronic commerce and merchandising across the Internet.However,thestudyindicatesthataswithalltechnologies,theimpactofICTinmanufacturingderivesfromthewayinwhichtechnologiesareadopted,appliedandusedinbusinesscontexts.

• ICTapplications

ICT is embedded in tools andequipmentused for cutting,mouldingand joining. Inmanyof theseareas, thehigh levelsofaccuracyandprecisionrequired incutting,shaping,mouldingandweldingcanonlybeachievedbymachinerythathasembeddedICTdesignandcontrolsystems

In broad terms, ICT applications in manufacturing include the following (National Academy ofSciences2003a):

Hardware–

• Computers and processors – workstations, mainframes, servers, personal digital assistants,programmablelogiccontrollers(PLCs),barcodereaders.

• Communicationsdevicesandinfrastructure–telephone,localareanetwork,wideareanetwork,wirelessnetworks,radiofrequencyidentificationdevices(RFIDs).

• Actuatorsoreffectors– robotarms,automatedgroundvehicles,numericallycontrolledcutters,micro-actuators.

• Sensors–dimensionalgauges,machinevision,tactileandforcesensors,temperaturesensors,pressuresensors.

Software–



• Commodity products, acquired ‘off the shelf’ – such as operating systems, enterprise resourceplanning (ERP) systems, customer relationshipmanagement (CRM) systems, supervisory controlanddataacquisition(SCADA)systems,decisionsupportpackages.

• Differentiable and customisable products – such as process models and algorithms, businessprocessconfigurations.

• Software for the storage and management of intellectual property – including customerinformation, business capabilities and procedures, resources, designs, formulas, recipes,configurations,analyses.

• Optimisationsoftware–includingartificialintelligence.• Embeddedfirmware.

Adoption and use of ICT applications have, in effect, changed the orientation of manufacturingoperationsfrompredominantlymechanicalandelectrictoelectronicanddigital.

In addition, ICT makes it possible to transmit, store and process larger amounts of data andinformation and to access a broader range of knowledge sources. In this context ICT is a coretechnologyinmanufacturinginthesensethat itcanbringinformationandotherknowledgetothekeyfunctionsofdesign,productionanddistribution.

As digital networks and more powerful computing allow companies to collect, communicate,exchangeandanalysedatamorequicklyandcheaplythaneverbefore,manufacturingbusinessesareabletoadoptabroaderrangeofapproaches(strategies)tothemanagementoftheircorefunctionsand processes (Hagel and Singer 1999). This can lead to better informed business decisions andreducelevelsofuncertaintyandrisk.

6. WarrenCentre:Steel–FramingtheFuture

Thecause:Perceptionofrisksputssteelatdisadvantage

Usingcasestudiesofmulti-storeyCBD,suburbanandindustrialparkdevelopments,earlyassessmentidentifiedfiverootcausesaffectingthesteel-frameconstructionindustry’sperformance:

• lackofstrongleadership• inabilitytoprovidereliablyaccuratecostestimates• nonintegratedsupplychain• inabilitytoarticulatethevaluepropositionforsteelframing• poortake-upandintegrationofproventechnology.

Australia has an efficient, competitive and well-established concrete-framing industry. Bycomparisononeof theearliest insightsof theSteel–FramingtheFutureprojectwasthatbuildersanddevelopersconsideredtheuseofsteeltobeafarriskieroptionthanconcrete.Theperceptionofhighrisk2wasbasedon:apparentpricevolatility,pooraccesstoconsistentlyreliabledataimpactingon costs and estimates, concerns about safety on site, confusion about steel’s sustainabilitycredentialsandexposuretoadditionalsupplychaincomplexity.

Otherfindingsspecifictothesteel-framedvaluechainthatemergedoverthecourseoftheprojectincludedthefollowing:

• Decisionmakersinthepreliminarydesignphaseofconstructionrarelyconsideredasteel-framedsolutionunlessitwasastipulationofthedesignorifconcretewasnotviable,andwhenselected,rarelyinvolvedfabricatorsatthedesignstage.

• Engineers were largely unaware of the improvements brought about by modern fabricationtechnology.

• Fewprojectsexploitedthebenefitsofanintegratedsteeldesignandmanufactureprocess,whichcansignificantlyreducebothcostandtimetocompletion.

• Theaccuracyofcostestimating for steel-framedstructuressuffered froma lackof reliablecostdata and an absence of regular communication between quantity surveyors, fabricators andengineers.



• There was a lack of critical-size fabricators providing the builder/developer with pricing anddeliveryconfidence.

Therewerealsogeneralconstructionvaluechainissueswhichcontributedtotheproblem:

• Adversarial contract structures, with parties locked into fixed price contracts, provided noincentivetocollaboratetoachievebetterresultsduringtheconstructionprocess.

• The take-up of 3D modelling and 3D documentation, enabling broad and accurate access toprojectinformation,ispoor.

These and other insights from thework of the Steel – Framing the Future teams suggested threedriversofchange:

• Communication:Articulatesteelframing’svalueproposition inacompellingwaytothedecisionmakers early in a project’s development cycle. Share commercial information where that canimproveefficienciesandreducerisks.

• Collaboration:Developrelationshipswithinandalongthesteel-framedvaluechainanddevelopeffectivecollaborationmodels,andagreedframeworkswithinwhichtoquote,shareinformationandmodels,sharerisksandshareprofits.

• Capability:Continuouslyimproveproductivity;adoptproventechnology,inparticularautomationandmanagementsystemsinthefabricationprocess;embraceinnovation.

Muchofthisisnotnew.OthersectorsoftheAustraliansteelproductsindustryarebenefitingfromthesetechnologies,asareoverseascompetitors.

Theproject foundoverwhelminglythatthesteel-framedvaluechainsufferedfromabrokenvalue-delivery systemacross itsmanydisconnectedparts,which, ifmended, couldoffer real advantagesovertheconcretealternative.

Thisproject foundnewtechnologiescanbeapplied tosteel- framing thatmake iteasier todesignandalter,andallowbuilderstofullycapitaliseonthenewcollaborativebusinessmodelsdeliveringsteel-framedstructurestothemarket.

The proposed steelwork-contracting model consolidates the value chain to give a single point ofresponsibilitythatreducesrisk,ensuresaflowfromonepartofthebuildingprocesstothenextandretains rather than loses innovative processes and experience. Virtual buildings are designed in adigitalspaceandkeyplayerssuchasfabricators,quantitysurveyorsandestimatorsareabletogiveaccuratecostforecastsusingsharedvalue-chaininformation.Whilethesepracticesarefarfromthenorm,theirexistenceamongsttheemergingKeyLeadersshowsthenewdealwithsteelisreal.

Since the inception of the Steel – Framing the Future project the share of steel in multi-storeybuildingsinAustraliahasrisenfrom3percentto13percentandmanyinitiativesputforwardintheprojectdocumentsarebeingadopted.TheexperienceofsomeoftheAustraliansteelconstructionsector’sinternationalcounterpartsshowsthe‘sizeoftheprize’foradoptingtherecommendationsofthisprojectissubstantial.Somesupplychainparticipantsarewellunderwayintheirtransformation,while others make incremental movements and the cost of steel framing, in real price terms,continuestofallworldwide.

If this continues, as is the objective of this project, the future of steel in Australian buildingconstructionwillbesecured.

Background:BySandyLongworth

Australia’s fabricated steel output is predominantly resources and industrial in form, i.e.approximately 65 per cent being resources and industrial with 35 per cent building construction.Whythen,hastheSteel–FramingtheFutureprojectelectedtofocusonthebuildingsector?Suchacoursewasadopted,afterconsiderabledebate,primarilybecausethemulti-storeysectorcontainedhighlevelsofrepetition.

Theerectedcostofthisformofbeamandcolumnconstruction(stickconstruction)shouldthereforebeinthelowercostquartile,beingrelativelysimpleandrepetitive.Furthermoretherewasarelativevalue proposition to be advanced, given the competitor pre-stressed and pre-cast concrete



alternatives:afactornotatallclear-cutwithmostindustrialstructuresthatgenerallyembracesteelsolutionsasasinglecandidate.

Inthepastdecadetherehavebeensignificantadvancesmadeindesigndocumentationanddetailingsoftware, 3D modelling, NC output and fabricating shop automation by way of beam linesincorporatingautomatedcutting,coping,drillingandwelding.Automation,atalllevelsoffabrication,is being driven by the more capital-intensive industries, such as shipbuilding, heavy mobile plantmanufacture,bridgeandinfrastructureconstruction.

Thebuildingstructuresfabricatorshavetraditionallybeenslowtotakeuptechnologypioneeredbythemorecapital-intensiveindustries. ItbecameapparenttotheSteel–FramingtheFutureprojectpromoters that therewas ongoing potential for significant reduction in fabricated steel real coststhrough these technology advancements. Structural steel therefore has the potential to remaincompetitive,whichfurtherendorsedtheneedtorestoreitsmarketposition.

There has been, in parallel with design and fabrication technology advances, development ofstructuralsteelmetaldeck,whichhasopenedupthefieldofcompositeconstruction.Therenewedinterestinfireengineering,withafocusonperformance-basedoutcomes,hasalsobeenasignificantcatalysttotheenhancedcompetitivenessofmulti-storeycompositeconstruction.

Itbecameapparent,afterTheWarrenCentre’sconsultationwithsectorsofthebuildingconstructionindustry,thattherewasa lackofknowledgeofthebenefitsofcompositesteelconstruction.Therewas one narrow well-informed sector of the industry and another sector, which freely admittedlackingtheexperiencedpersonneltoconfidentlyadoptastructuralsteelcompositesystem,choosingtoworkinconcrete.

TheTechnologyGrouphadnotbeenable,inthetimeavailable,toidentifysuitableexpertviewsonthe direction of technology developments, specifically relating to steel erection. Research anddevelopmentofself-positioningsteelcomponentgrippersandself-aligningandsecuringconnectionsareclearlyareasthatwillimprovesteel’scostpositionandworkplacesafety.

ScopeoftheStructuralSteelIndustry

ByAnthonyNg, inSteel–FramingtheFuture,theWarrenCentre,2007,OneSteelMarketMills forTheWarrenCentre

It is appropriate in considering the structural steelmulti-storey building sector to understand themarketdistributionofproductandwhatarethedrivers.

Thismarket sector of the steel industry is characterised by the involvement of a steel fabricator.Typicallythesteelfabricatorwillbecontractedbytheclienttosupply,fabricate,deliverandinsomecaseserectthesteel.

Themarketsegmentstowhichasteelfabricatorwillsupplyitsservicescanbebroadlydividedintothefollowing:

• miningandresourcesstructures• factoriesandwarehouses• domesticconstruction(houses)• single-levelofficesandretail• multi-levelofficesandretail• education,healthandsocialbuildings• transportandinfrastructure.

Moststeelfabricatorswillhaveapreferenceorspecialtyinoneofthesemarketsegments.However,giventhateachsegmenthas itsowncyclethat isnotnecessarilydependentor inphasewitheachother,afabricatorwillofferservicestothesegmentbasedondemandfrommarketforces.



ImpactofEmergingTechnologies

SandyLongworth,Impactofemergingtechnologiesonsteelfabricationfortheconstructionindustry,inSteel–FramingtheFuture,theWarrenCentre,2007

Steelfabricatingprocessesforbuildingconstruction

Themajorprocessesare:

• Cleaning:typicallybysomeformofblasting,whichmaybedonebeforeoraftermostoftheotherprocessesdependingontheextentofworkbeingdoneonthatcomponent.

• Cutting and profiling: sawing is themost commonly usedmethod for cut-to-length beams andcolumns.Oxycuttingandplasmacuttingarebothwidelyusedforcuttingplatesforweldedbeamwebsandflanges,andprofilingtheendofbeams(alsoknownascoping).

• Bending/forming:bendingpresses toproduceacamberare sometimes incorporated intobeamlines.Rollformingisalsocommonlyusedforlightersections.

• Drilling/punching: holes for bolted connections are usually made by drilling, but occasionallypunchingisfoundtobemoreefficient.

• Welding: fully automatedwelding is used for the production of beams and columns fabricatedfromthreeplates,usuallywiththesubmergedarcweldingprocess.Mostotherwelding isdonewithhand-held,semi-automaticgasmetalarcwelding(GMAW).

• Machining: load-bearing end faces of columns are often machined by milling to achieve thedesiredtolerances.

• Protecting: steelwork is spray-painted or metal-sprayed for corrosion, and usually withintumescentpaintforfireprotection.

• handling: although this is a non-value-adding process, the awkwardness of handling large steelcomponentsandtheimportanceoftimelysupplytositedemandthatcloseattentionbepaidatthetimeofdesigntocomponentormodulesize,erectionhandlingandsequence.

Existingcommonlyusedtechnology

ExistingCommonlyUsedTechnologyBeamlinesaredesignedforprocessingcolumnsandbeams.

Beamlinesaredesignedforprocessingcolumnsandbeams. InAustraliathereareanestimated40beamlines,with14onorder.Thevastmajorityofbeamlineshaveasawforcut-to-length,includingamitre capability, andhole drilling or punching capability. It is common to have dedicated in-lineblasting facilities for cleaningof regular shapes,while cleaningof irregular shapesand coatingaremanualoperations.Severalbeamlinesincludeoxyorplasmacuttingforcoping(profiling)

Severalbeamlinesincludeoxyorplasmacuttingforcoping(profiling)theendsofthebeams.

Markingsarealsomechanicallyengravedonthebeamsforidentificationandtraceability.

Whilst the majority of these beam lines do have CNC capability, the machine controls do notgenerallyprovidefordownloadofdatafromsteeldesignpackagesatpresent.

ThereareatleastthreebeamlinesinAustraliaforproductionofbeamsbyweldingthreeplates.Oneof these, at BlueScope Steel in Unanderra, welds one side of the web to both flanges using twotandem submerged arc heads at one station. Theweb is in the flat position. The beams are thenturnedover, and theother sideof theweb-to-flange joins aremade in a second identical station.Whileveryproductive,thisconfigurationisnotsetupfortheproductionofasymmetricalbeams.

Theothertwobeamlinesmakebothfilletweldsbetweenoneflangeandthewebinonepass.Thesecond flange iswelded inanotherpass,and it is thereforerelativelyeasy tomakeanasymmetricsectionintheselines.

Theweldedbeamlinesaretypicallypartialpenetrationwelds.Thatis,thefilletweldsoneithersidedonotpenetratethefullthicknessoftheweb,leavingthesurfacebetweenthewebandtheflangeunweldedatthecentreoftheweb.

ThemajormarketforallthisequipmentinAustraliahasbeenforinfrastructureprojectsratherthanbuildingconstruction.Innovativebuildingdesignincorporatingslim-floorconstruction,chilledbeamsandlargespanscouldchangethis.



Virtually all other components, such as cleats and stiffeners, are welded with hand-held, semi-automaticGMAWprocesses.

Themajorityofbeamlinesarewithfabricators,butsomesteeldistributorshavealsoinstalledbeamlinestoprovidepartialpre-fabrication.

Emergingtechnologies

Hole-drilling

Newdesignsoflow-vibrationmachinetoolsandadvancementindrilldesignhaveresultedinmajorreductions indrillingtime,tothepointwherea26mmdiameterholecanbedrilled in12mmplateliterallyinseconds.Asaresult,CNCsingletooldrillingstations

arereplacinggangdrillinginsomeapplicationsbecauseofthegreaterflexibilityoffered.

Newweldingpowersourceinverter

Inverter technology development has reached the point where high power (1000amp+) weldingpower sources are now readily commercially available. As well as much more efficienttransformationofhighvoltagemainssupplytolowvoltageweldingcurrent,withmorethan95percent power factor, these new inverters allow much greater flexibility in the welding currentwaveform. Until now, submerged arc welding processes commonly used tandem arc for greaterweldingspeeds.TheleadwirewassuppliedwithDCpower,whilethetrailingwirewasACtoavoidelectricalinterferencebetweenthetwoarcs.Additionalwirescanbefedintotheweldpoolbutitisdifficulttoachievestableconditions.

With the advent of new waveform control, new configurations are possible that may allow fullpenetrationwelds to be achieved inwelded beam fabrication, and require smaller external filletswithproportionalincreasesinweldingspeeds.Theresultshouldbehigherqualityweldedbeamsatlowercostduetolesswirebeingusedandlowerpowerconsumption.

Laserandhigh-definitionplasmacutting

Lasertechnologycontinuestoadvancerapidly,butisamajorcapitalexpense.Theenergyconversionisalsoquitepoor.Despitethesedisadvantages,lasercuttingisfindingmoreandmoreapplicationinmetalfabricationduetotheveryrapidandpreciseparallel-sidedcutthatcanbeachievedwithveryhighsurfacefinish.

In the automotive industry, laser cutting has displaced press trimming and punching in manyapplications due to the flexibility with which shapes can be produced. Could there be similarpotentialforbuildingconstruction?

Duetotheenergydemand,mostapplicationshavebeenforlightgaugemetals,butlasercuttingisnowbeingusedinshipbuildinginEuropeforcuttingsteelupto20mmthick.

Plasma cutting, where an arc is used to remove metal rather than weld it, has been a popularalternativetothemoretraditionaloxy-cuttingprocess.But likeoxycutting,plasmacuttinghashadthedisadvantageofproducingawedge-shapedcut,andasurfacefinishsimilartooxycutting.

High-definitionplasmacutting,wherethetwocutsurfacesaremuchclosertoparallel,improvestheprecisionofthecutandthesurfacequality.Althoughstillnotaspreciseaslasercutting,itisamuchmoreeconomicalprocessandarguablysuperiortooxycuttingathigherspeeds.

Laser/laserhybridwelding

Laserweldingallowsdeeppenetrationandveryprecisewelds,andtheheatsourcecanbedirectedinto tight area locations. These advantages have allowed joint configurations not possible before.However, aweld requiring 4kW requires an input power of approximately 340kWwith a Nd:YAGlaser,comparedwithapproximately4.2kWwitharcwelding.Laserweldingalsorequiresveryprecisefit-upasnofillermaterialisaddedandtheweldpoolissmall.



Laserhybridwelding,wherealaserisusedinconjunctionwithanarcweld,overcomessomeofthesedisadvantages.Itisbeingusedincreasinglyintheautomotiveandshipbuildingindustries.

Bothlaserandlaser/GMAWhybridweldinginconjunctionwithrobotscanbeusedforweldinginallpositions.Itispossibletoweldconnectionstolargecomponentsthataredifficulttomovewiththisprocess.

Robotics

According to the Robotic Industry Association, there are an estimated 158,000 robots in use inmanufacturingintheUSalone.ThenumberofrobotsinuseinJapanisbelievedtobeevenhigher.Themajorindustryuseisautomotive,wheresmallcomponentsandhighrepetitionareideallysuitedto robotic production. The Japanese construction company, Obayashi has, however, applied thesystemtotheautomatedbutt-weldingofbeamsandcolumnsinitsautomatedbuildingcontrolandbigcanopysystems(So&Chan2002).

Robotsare ideallysuitedtocuttingandweldingofcomplexthree-dimensionalshapeswherethereare a large number of identical parts to be processed. Robots also have application in cleaning,paintingandhandling.Thegreatestlimitationhasbeenthesizeoftheworkingenvelope,butrecentinnovationsarechangingthis.

The need for greater efficiency as a matter of survival has seen greater use of robots in theshipbuildingindustry,particularlyinEurope.Thishasdriventhedevelopmentoflargemanipulatorsandgantrymountingofrobotstoaccesslargecomponents,asshowninFigure9.

More recently there has been progressive introduction of gantry fabrication in Europe in theconstruction fabricating field. Figure 10 illustrates the use of gantry robot plant for constructionsteelworkfabrication.

In Australia automated fabrication, excluding the application of beam lines, but utilising gantryrobots has yet to be adopted for construction steelwork fabrication. The technology is howeverbeing applied very effectively by Austin Engineering Limited in the fabrication of complex heavymining buckets and associated components aswell as large off-highway dump truck trays. Austinstates in its2006annualreport, ‘The introductionof theroboticweldingsystemhasbeenofgreatassistanceincounteractingthecriticalskillshortageinWesternAustralia’.

Automation with robots generally offers better quality for operations such as welding since theparameters are more precisely maintained than can be achieved with manual welding. Higherwelding speedsandgreaterduty cyclesensureadramatic increase inproductivity, typicallyof theorderof300percent.

Apartfromthecapitalcost,themajordisadvantageisthattheroboticoperationsrequiremuchmoreprecisejiggingandtighterparttolerancesthanmanualoperations,sincecorrectionfortheseerrorsismuchmoredifficult.However,thisinturnleadstobetterquality.

Typically, in the automotive industry the welding sequence is taught to the robot controller bymanuallydrivingtherobotarmthroughthecycleandsavingvariousprogrampoints.Asthiscanbeatime-consumingexercise,ittendstolimittheuseofrobotstorelativelylongruns.

Recent improvements to some robot controller software have made the programs much moreintuitiveandeasiertolearnanduse,therebymakingshorterproductionrunsmoreattractive.Thisisadevelopmentlikelytohaveappealtothebuildingfabricatingindustry.

Softwarealsoexiststhatallowstherobottobeprogrammedoff-lineintheconvenienceoftheofficeusing thedesigndrawingdata.Thishas thepotential tomake thechangeover for short runseveneasier.However,fromtheauthor’sobservationthistechnologyisnotyetbeingwidelyusedalthoughitwouldseemtohavegreatpotential.

An example of one company taking full advantage of robot technology in building construction isConXtech in the US. It has designed a system that allows virtually all welding to be done at its



fabricatingplant, allowing self-locating slots to locate thebeamsonto the columnson site,beforethebeamsareboltedtogethertoproduceamomentconnectionsuitableforuseinareaswithhighprobabilityofseismicactivity.

DesigndataisdirectlyconvertedintomanufacturingdatawithproprietarysoftwareforCNCcuttingand drilling. In addition to using CNC milling and drilling to produce the end plates, and a CNC-controlled beam line to cut the columns and beams to length, robots are used to weld theconnectionstothebeams.Morethan10,000oftheseconnectionshavebeenused inconstruction(TheFabricator2005).

Robots for building maintenance, condition monitoring and security are being developed or areunder consideration (Spencer 2004) (Weston& Burdekin 2000) and are already in use for façadecleaningonatleastonehigh-risebuildinginEurope(Elkmannetal2006)andbuildingconstructioninJapan(Tayloretal2003).

Frictionstirwelding

Frictionstirwelding(FSW)wasdevelopedintheearly1990sbyTWIintheUKandhasbeenwidelyused to join aluminium and other non-ferrous alloys. The technology uses mechanical forces tocreateaplasticstateinwhichthesurfacesofthepartstobejoinedcanbemixedtogetherwithoutreachingaliquidstate.Thishassignificantadvantagesforweldingalloysthataretoovolatileforarcwelding.

The process produces high-integrity joins at high speed with little residual thermal stress. Theprocessdoesnot requirewelding consumablesor joinpreparation, and cost savingsof a factorofthree or more are claimed in comparison with arc welding process, ignoring establishment cost(Tayloretal2003).Themaindisadvantageisthehighcapitalcostoftheequipment.

Informationtechnology

The potential to integrate the designmodel with the CNC commands for beam lines and roboticwelding, cutting, cleaning and painting offers an exciting opportunity to improve the efficiency ofsteelfabrication.SoftwarealreadyexiststhattranslatesdesigndataintoaformatthatcanbeuseddirectlybyCNCbeam lines,CNCcuttingmachinesand robots,and this technology is findingwiderappeal.

The opportunity to create new connections and component design that is conducive to fullyautomated,high-volumeproduction,asperConXtech’s innovation,alsohassignificant implicationsfor the construction industry. Automation on the shop floorwith electronic linkage to design anddetailsourceshasthepotentialtocatalyseinnovativeconstructionideasandslashproductioncycletime.

Thechallengenowishowtotakefulladvantageoftheseinnovations.

Costcomparisonandimplicationsofemergingtechnologies

TherealcostoffabricatedsteelintheUKhaseffectivelyfallenbynearly50percentoverthepast25yearstoaround£1500/tonneorA$3750/tonne(Thomasetal1999).ThishasgivensteelstructuresasignificantpriceadvantageintheUKasshowninFigure13.UnfortunatelyasimilarcomparisonforAustralianconditionsisnotavailable.

Australiahasnotbenefitedfromimprovements inefficiencyandfabricatingtothesamedegreeastheUK,wheredesignershavemoreflexibility,particularlyinsectionselection.

It would be fair to say that Australia’s concrete industry is more efficient than the UK’s.Notwithstanding this, for similar grid layouts andbuilding types, it hasbeenestablished that steelcomposite construction in metropolitan areas is marginally (10 per cent) cheaper than post-tensionedconcrete(Marjoribanks2006)



Arguably, for steel fabrication to gain significantmarket share from a highly competitive concreteindustry, fabrication costswill need tobemore competitive relative to theUKdespite themarketsize being smaller. To achieve this, the industry must take full advantage of the technologiesavailable.Theauthorsbelievethis isachievablewithinthesteelvaluechainandwillresult insomerationalisationandconsolidationwithintheindustry

Conclusion

Ifsteelistomakesignificantinroadsintoareasoftheconstructionmarketcurrentlymetbyconcrete,it must be able to offer greater economic benefit. Whilst there may be other design and timingadvantagestosteel,costwillremainanimportantfactor.Giventhatindustrypracticesforconcreteconstructionaremoreefficient inAustraliathanintheUK,andgiventhemorefavourabletaxationtreatmentofconcreteinAustralia,itisreasonabletoassumethatdespitethesmallervolumes,steelfabricationcostswillhavetobelowerinAustraliatobecompetitiveintheconstructionmarket.Thiswillrequireadoptionofworld’sbestpracticeandthelatesttechnology

7. PM’sManufacturingTaskforce:Reportofthenon-GovernmentMembers

ReportoftheNon-GovernmentmembersforthePrimeMinister’smanufacturingTaskforce,August2012

Note:Reportisverygoodonhowbusinessmightbeabletoaccesscapabilitythatexistsinresearchorganisationsandindustry–butdoesnotaddressissuesabouthowuniversitiesparticularlycanworkmoreeffectivelywith industry. Much isbeingdone intheareaofworkbased/integrated learning,Faculty Advisory Committees, university engagement with business – but there are constraints –institutionalandfinancial.

Arguably,Australianeedsanewformofhighereducationinstitution–thepolytechnic–modelledontheEuropeanversions.

SmarterNetworks

Collaboration and networks are critical to manufacturing innovation and competitiveness.Collaboration representsa fundamental challenge forAustraliadue toourconstraintsof scaleandgeography.

In Australia, collaboration is more serendipitous than systemic. In a world where personalrelationships and social norms of collaboration are among the most critical characteristics ofsuccessfulinnovationindustriesandregions,wearelacking.Thereisconsiderablescopetogenerategreater value from our public investments in science and research by improving incentives forcollaborationandcreatingmorecollaborativemindsetsamongresearchersandbusinesses.

A new Smarter Australia Network, supported by an online platform, could leverage high speedbroadband to expand systemic opportunities for collaboration among and between businesses,researchersandgovernments.

Toprovideapracticalfocusforsuchcollaborations,andtobuildcriticalmassaroundourcomparativeadvantages,thenon-governmentmembersoftheTaskforceproposenewInnovationHubstodevelopsolutionsforglobalvaluechainsandforgenewmodelsofworkingtogether.

Thenon-governmentmembersoftheTaskforceproposeanationalhubpathfinderprojectonfood,anareainwhichAustraliaenjoysnaturaladvantagesintheAsianCentury.

Formanufacturingmorespecifically,astrategyisproposedtoensurethatmanufacturingcapabilitiesandknowledgediffusionarebothdeveloped.

The non-governmentmembers of the Taskforce propose a review to develop aDesign InnovationStrategy,sothatAustraliacantranslateitsengineeringstrengthsintoanewnationaldesignedgeandbringdesignthinkingintobusinessstrategy.



§ INDUSTRYANDRESEARCHWORKINGTOGETHERTOBOOSTPRODUCTIVITY

Australia needs to develop better connections between manufacturing firms and the research-education sector. A primary concern of the non-government members of the Taskforce is thetenuousnatureof linkagesbetween industry and research inAustralia. Examplesof good linkagesbetweenresearchandindustryareencouragingandareexemplarsofhowbusinessescanbegrownwithresearchinput.However,thesearetheexceptiontothenorm.

Foroverthreedecades,Australiahasperformedbelowaverageininternationalmeasuresoflinkagesbetween industry and research. This is in contrast to competitor nations where manufacturingbusinesses, largeandsmall,notonlyhaveregular interactionwith the researchsectorbutactivelydrive the research agenda. This occurs across manufacturing sectors – high, medium and lowtechnology.ForAustralianmanufacturerstocompeteinternationally,linkageswiththeresearchandeducationsectorareacrucialpieceinthepuzzle.

Consultationswithstakeholdershaveshownthatthisisacomplexandmulti-layeredproblem.Chiefamong these is that of differing cultures and drivers. Research organisations fulfil many roles, ofwhichengagementwith industry isoneandof varyingpriority. Some researchorganisationsplaceprimacy on basic research which may, in the short to medium term, appear to have limitedcommercialapplication.

ForAustralia to improve, reciprocalbenefitsmustbederivedandrecognisedbyboth the researchandeducationsectorandindustry.Thedevelopmentofstrongrelationshipsbasedonunderstandingmutualneeds,andcapabilities,canleadtonotonlymoreinternationallycompetitivebusinesses,butalsotoconsiderablehighstandard, leading-edge,andnationally-competitivegrantfundedresearchwithhighacademicmerit.Theseneedtobecometheruleratherthantheexception.Generally,theprimary source of recognition of an academic’s research achievement is by peer-reviewedpublicationofresearchoutcomes,preferablyinahighlyrankedjournal.

Publication performance has traditionally been the key consideration in an academic researchergainingpromotion,andsoitisanimportantdriverofbehaviour(ie.the‘publishorperish’mantra).Ontheotherhand,theconductofappliedresearch,suchastodirectlyaddressanindustryproblem,willgenerallynotinvolvesuchleading-edgeresearch,andsomaybeviewedbyresearchersasbeinglessvaluableincareerprogressionterms.

Even where collaborative, industry-focused research is involved, perhaps to solve a longer termindustry problem, commercial considerations may inhibit rights to publish, and so diminish theacademicmerit,makingitlessattractivetoresearchers.

Anumberofmeasuresareinplacethatneedtobesignificantly improvedupontobuildAustralia’sperformance in this area. The non-governmentmembers of the Taskforce also believe that othermeasures could be implemented to address the structural and cultural barriers existing betweenindustryandresearchers.This includes involvingstudents indrivingcreativesolutions inabusinesscontext.

§ EXCELLENCEINRESEARCHAUSTRALIA

ExcellenceinResearchAustralia(ERA)identifiesandexaminesthequalityofresearchacrossthefullspectrumof research activity, identifies areas of excellence, emerging areas and opportunities forfurtherdevelopmentandallowsinternationalcomparisonstobemade.

While this is a laudable and important initiative, this work needs to be taken to the next level.Further work needs to be undertaken to measure the impact and application of research forindustrial transformation, not to diminish the drive for excellence but to complement it, and tounderstandtheextenttowhichresearchinstitutionsareabletorespondtodemand-ledapplicationanddevelopmentofresearch.

The non-governmentmembers of the Taskforce are of the view that amore significantweightingshouldbeplacedonthemeasurementof the impactandapplicationof research.Without this the



ERA will not facilitate more meaningful relationships with end users, will not develop youngresearchersandengineerswithagreatercapacitytoworkwithinindustry,andwillnotdeliveronthegovernmentinvestmentinresearchanddevelopment.

§ INDUSTRIALTRANSFORMATIONRESEARCHPROGRAM

TheIndustrialTransformationResearchProgramaimstosupportqualityR&DpartnershipsthatwillhelptransformAustralianindustries.TheProgramwill:

• Focus on research areas that are vital for Australia’s future economic prosperity, such asengineering, materials science and nanotechnology, communications, robotics, chemicalengineeringandbiotechnology.

• SupportIndustrialPhDstudentsandresearcherstogain‘hands-on’,practicalskillsandexperienceintheseimportantareas.

• Fosterimportantpartnershipsbetweenbusinessanduniversities.

To achieve this, the Program will fund Industrial Transformation Research Hubs and IndustrialTransformation Training Centres. Without these, the program will have little impact onmanufacturingcompetitivenessandproductivityofthesectorandthebroadereconomy.

While the non-government members of the Taskforce strongly support the government’s recentannouncement of the Industrial Transformation Research Program, it believes that the Programneeds to be implemented with maximum impact. To achieve this, two outcomes need to beachieved.Firstly,theProgramneedstobetargetedtocreatecriticalmasstocreatestrongresearchandinnovationprecincts.Thereisariskthatprogramfundingwillbespreadtoothinly.

Program criteria should be developed to ensure that research hubs and training centres aresustainable and will grow, including as part of global research networks. Secondly, the Programneedstobeimplementedsothatithasastrongbusinesscreativityandproblem-solvingfocus,withoutcomesforbusinessaccuratelymeasuredtoensurethattheProgramisachievingitsgoals.

§ COOPERATIVERESEARCHCENTRES

A CRC is an organisation formed through collaborative partnerships between publicly fundedresearchers and end users. CRCsmust comprise at least one Australian end-user (either from theprivate, public or community sector) and one Australian higher education institution (or researchinstituteaffiliatedwithauniversity).

The non-government members of the Taskforce note that there are some very successfulmanufacturingrelatedCRCsbutisoftheviewthatthetimingofco-fundingrequirementscanrestrictindustrycollaboration.

Although it is understood that theCRCProgramhasbeen recently reviewed, thenon-governmentmembersoftheTaskforcebelievethatthegovernmentshouldconsiderwhetherfurtheradjustmentstogovernancestructuresandprocessescanbemadetoestablishmoreagile,moregloballyorientedcollaborativepartnershipsthroughtheCRCProgram.

§ RESEARCHERSINBUSINESS–BUSINESSPEOPLEINRESEARCH?

ThisReporthasidentifiedtheResearchersinBusinessInitiativeasanessentialandpracticalmethodof ‘bridging the gap’ by directly supporting the placement of researchers within businesses. ThisapproachhasproventobeparticularlybeneficialtoSMEsandtotheresearchers.

Inkeepingwith thenotionofbuilding researchand industry linkagesand theneed for reciprocity,further measures should be introduced to bring industry into research institutions. Industryexperiencecanbecrucialtothelearningexperiencesoffuturegenerationsofstudents,whethertheyremaininresearchormoveintothebusinesssector.

Thiscouldbeachievedthrougharangeofmechanisms.Othercountrieshaveintroducedmodelstofosterthecreationofadjunctrolesforbusinesspeoplewithinresearchinstitutions,andforstudents



to work on short projects with industry. There would be significant value in the governmentinvestigatingthosemodelsandsupportinglocalmodelsthatbestfittheAustralianenvironment.

The non-governmentmembers of the Taskforce also note the role ofmultidisciplinary ‘innovationanddesign(living)labs’inuniversitieswhichprovideaframeworkforcreativestudentengagementwithindustrychallenges,aswellaspromotingstudentventuresandentrepreneurship.ThiswouldbeafruitfuldirectionfortheStudentsinBusinessprogram,whichiscurrentlyconfinedtoidentificationofinternshipopportunities.

THEWAYAHEAD

Thenon-governmentmembersoftheTaskforceproposetwofirststepstoaddressingtheseissues:

1. Formalongoingdialogue

A formal and ongoing dialogue should be established between industry and the research andeducationsector.Thepurposeofthisdialoguewouldbeto:

• Promote greater understanding of each other’s cultures and structures, including areas ofcommoninterest.

• Betterunderstandhowmutualbenefitcanbederivedfromclosercollaboration.• Identifybestpracticeexamplesinternationallyofresearch/industrycollaboration.• Improvetheperformanceofuniversitytechnologytransferofficesincommercialisingideas.• Supporttheestablishmentofinnovationlabsattheinterfaceofindustryanduniversities.

2.Directlyincentivisingindustry-researchlinks

The research sector is the source of new and applied knowledge and innovation for Australianindustry(largeandsmall)andisakeyreasonforMNEstoinvest/re-investinAustralia.

Inahighcosteconomy,ourSMEswillbecompetingonthebasisofdifferentiatedsolutionsratherthanprice,andtheresearchsectorcanassistinhelpingSMEsdevelopthese.

nordertoaddressdeficiencies incurrent industry-research links,thenon-governmentmembersoftheTaskforcerecommendthatthelackofincentiveintheresearchsectorforcollaboratingwiththemanufacturingindustrybeaddressedbyintroducingaresearchimpactmeasuretiedtofunding,andthat consideration be given to diverting amodest proportion of current research funding streamsinto third-stream fundingaimedexplicitlyatknowledgeexchangebetweenusersand the researchsector,ashassuccessfullyoccurredintheUnitedKingdom.

§ SMARTERAUSTRALIANETWORK–ANEWPLATFORMFORGROWTH

As discussed, the social and information networks that underpin collaboration and innovation inAustraliaareweak.Wherecollaborationoccursit isusuallybasedonexistingrelationships,existingnetworksandexistingmarkets.GivenAustralia’sscaleandgeographyconstraints,thereisaneedtoconsidermoresystemicoptionstoboostcollaboration.

The Smarter Australia Network would connect precincts and other centres nationally through acollaborativeandopenonlinenetwork.Thiswould leverage thebenefitsofhigh speedbroadbandandstepboldlyaheadoftheglobaltrendtowardscollaborativeandopeninnovation.

The Smarter Australia Network would provide Australian businesses the opportunity to connectlocally,nationallyandpotentiallyglobally,withaspecificfocusonindustryvaluechains.

TheNetworkwouldbevirtualandviral,makingiteasyforparticipantstoopt-inandcommunitiestoself-organise as they see fit. It would show struggling businesses ‘what good looks like’, help toestablishpeergroupsinareassuchashighgrowthfirmsorhighperformingworkplacesandenable‘SMEclustering’options.

New sources of business collaboration and innovation include (in increasing order magnitude)companyresearchdevelopmentexclusivelygeneratedbyinternaldevelopment);opentogetherwitha well-established network suppliers, academics, consortia, etc, long-term, trust-based, stable



relationship); mass Innovation reaching out to larger external participants lead users, specialists,enthusiastsetc)whocancontributeonmorevariableself-definedbasis).

While virtual collaboration is no substitute for personal relationships, it provides an idealenvironment for firms to engage wider user networks and communities, an approach currentlyconfinedtohighperformingfirmsasillustratedinFigure5.1.

The SmarterAustraliaNetworkwould encompass all levels of collaboration outlined in Figure 5.1,whilewithin this innovation hubswould provide a focal point on those industries and capabilitiesthatcangeneratethemostvalueforthenation.

The networkwould be a platform that empowers industry networks (such as Industry InnovationCouncils and the Industry Capability Network), applied research networks (such as theCommonwealth Scientific and Industrial Research Organisation (CSIRO)), the Defence Science andTechnology Organisation (DSTO), Rural Research and Development Corporations (RRDCs),Cooperative Research Centres (CRCs)) and regional networks (such as the Regional DevelopmentAustralianetwork)–encouragingbottom-upaswellassystemiccollaboration.

Thenetworkwouldbedesigned from theoutset to focuson innovation, andparticularly businessinnovation. Its connectionswouldnot tostopatborders– theNetworkwouldbeamechanismtoshowcaseAustralia’sstrategicdirectionsandcapabilitiestotheworld,andconnectustothe98percent of knowledge generated elsewhere through links with international research, business andgovernmentcommunities.

§ INNOVATIONHUBS–BUILDINGCRITICALMASS

Hubswouldbenational resourcesof global significance,built on regional comparative advantagesand competitive strengths. Their scalewould involveagencies and stakeholdersworking toattractglobalinvestment,researchandtalent,andconnectwithglobalvaluechains–offeringparticipantsaspringboardintoAsianandothermarkets.82

Policyadvocacyisarguablythecriticalfactorinattractingforeigndirectinvestment.83

Whereglobalcompetitiondemandsit,governmentsneedtosendtheclearsignaltomultinationalsand to other governments that Australia will compete with a coordinated whole-of-governmentsapproach – that we are serious in our intent to build critical mass around our comparative andcompetitiveadvantages.

Whileinvestmentsupportinsuchareasalreadyexists,atbothCommonwealthandstatelevels,itisad-hoc and disconnected from strategic national priorities. To remedy this, the CommonwealthshouldconsideraStrategicInvestmentFacilitywithanabilitytoco-investineconomicallysignificantactivities in line with national priorities. In particular, this Facility should leverage the profile ofinnovationhubstoattractTier1manufacturingfirmstoanchorvalueaddingbasesinAustralia.

Beneficiaries of such support would be required to be active participants in the supply chainenhancement strategies that all hubswouldbe required to publish, thus supportingnewpaths tomarketforAustralianSMEsthroughlargerfirms.84

Hubs would generally address major economic and societal needs – with a whole of value chainapproach that crosses manufacturing-services-systems divides.85 They would build on and learnfromtheexperiencesofothernations.

Thepositioningof theUKCatapultCentresdiscussed in SectionThree isbetweenmarketpull andtechnologypushasshowninFigure5.2below.

With Australia having a smaller scientific base, a more applied model of innovation and a clearpicture ofmajor opportunities are required. It is therefore proposed that Smarter Australia HubswouldberelativelymorefocusedthanUKCatapultCentresonmarketpull.



ThecritiqueofSingapore’s ‘high-tech’ innovationpathisalsorelevanttoAustralia.Witharangeofexistingstrengthsthatoffercomparativeandcompetitiveadvantages,SmarterAustraliaHubswouldbebuiltontheseexistingstrengths.However,hubswouldalsoconsiderpotentialalongsiderevealedadvantages.86Thisdualfocusrecognisesthatcomparativeandcompetitiveadvantagesaredynamic,andwouldbeacountertotheshort-termbiasofAustralianmanagement.

Onthesecriteria,candidatesforprecinctswouldincludetherelatedopportunitiesinfood,forestry,resources, engineering, health and the environment, aswell as national defence. Capability-basedhubs (and networks to disseminate knowledge) could also be considered for manufacturingtechnologiesanddesign.

ThefocusandlocationofSmarterAustraliaHubsshouldbedeterminedbasedonatotalassessmentofAustralia’scapabilitiesand industrystrengths,andtheirpotential tosolveourexistingproblemsandseizeouremergingopportunities.Hubswouldhostmoderntechnologyandequipment,butalsocritically the people, organisations and relationships needed for problem solving. They wouldconnectleadingtechnologywithleadingpracticeinmanagement,designandmarketing.

Hubs would not operate under the existing rules, cultures and incentives of existing researchfacilities. Rather they would enjoy governance autonomy, be led by business, and have flexibilitywithoperatingmodelstodiscoverwhatrulesworkbestforcollaborationandinnovation.

Thiscarriessignificantadvantagesfortheskillsagenda,asitcreatesanopportunityforexistingandprospectiveresearcherstopursueanalternativecareerpaththatinvolvessolvingpracticalproblems,makingadifferenceandbeingrewardedfortheirachievementsonamoreflexiblebasis.

Hubswouldalsoprovideaspacetoconsideroptionstobetterintegratetheworkofstudentteams,across scientific,managerial and creative disciplines, into the task of practical problem solving forindustry. Overseas evidence suggests that thesemodels can be awin-win, as students discover apassionforpracticalinnovation,whilefirmsareintroducedtonewideasandnewtalent.87

The national footprint of innovation hubs would reflect not only existing strengths but also theaspirationofabroad-basedeconomy,encompassingallmajorcities.

Thiscouldalsoextendtosmallerhubsfornarrowerregionalspecialisations.

Hubsbasedon regional specialisation arenot only how regions successfully compete, trade, growand evolve; they are also how Australia can build a broad-based national economy that supportsmanysuccessfulindustriesandregions.

§ MANUFACTURINGCAPABILITIES

Earlier inthisreportweemphasisedthatthere isastrongcaseforfocusingonappliedknowledge.Morethaneverintoday’shigh-costenvironment,manufacturersneedtobeabletovalueadd.Thisrequiresbusinessandgovernmenttofocusoninnovation.

There is also a need to recognise that it is business, based on market needs, that drives mostinnovation.Thisisdespitethefactthatthevastbulkofourinnovationpoliciesreflectanoutdatedsupply-sidewayofthinking.

Finally,thisreportemphasisesthatthereisaneedfornewskillsetstoabsorbknowledge,butalsonewmindsetsthatsupportconstructiverelationshipswithinworkplaces,researchorganisationsandgovernmentagencies–andacrossallthree.Thisisaboutrelationships,notrules.

An important mechanism to help realise this focus on applied knowledge and building thecapabilities ofmanufacturing firms is the proposed establishment of aManufacturing TechnologyInnovationCentre(MTIC).Thenon-governmentmembersoftheTaskforcewelcometheMinisterforIndustryandInnovation’sinvitationtobepartoftheduediligencefortheManufacturingTechnologyInnovationCentre.



WeproposeanewcommitteebeestablishedthatwouldbechairedbyaseniorbusinessleaderwithaDeputyChairbeinganeminentpersonfromtheprivatesectorabletohelpundertakeatwostagedue diligence process of the funding and activities of those entities (CSIRO, universities, CRCs,AustralianResearchCouncil (ARC)etc.)withrelevantconnectionstoappliedknowledgeapplicationanddisseminationinAustralia.

This review committee would, among other things, test the non-government members of theTaskforce’sviewthattherearedeficienciesinthemanufacturinginnovationsysteminAustraliathatneedtobeaddressed.Thereviewprocesswouldreporton:

• Whodoeswhatandwherearethekeyentitieslocated?• Whoare their clients, both at Commonwealth, State and Territory level andwithin the private

sector,andwhataretheirengagementstrategieswiththeirclientsandhowsuccessfulhavethesebeen?

• What is the current balance of support for science based R&D versus production technologyadoption and adaption, and non-technological knowledge adoption and adaption (eg. design,businessmodelchange)?

• What is the most effective contribution the Manufacturing Technology Innovation Centre orNetwork can make and what role should be played by agencies such as QMI and EnterpriseConnect?

• Whether current funding of manufacturing innovation is sufficiently strategic to ensure thegovernmentandthesectoraregeneratingthebenefitstheyshould?

• HowandwhetherTheManufacturingTechnologyInnovationCentre(MTIC)orNetworkcouldbea Smarter Australia Precinct (though potentially involvingmultiple sites given the tendency formanufacturing subsectors to cluster in different locations), bringing together globally andnationally relevantmanufacturing technologyandexpertise,withan innovationagendadefinedbytheneedsofindustry?

• How and whether the ARC’s Industrial Transformation Research Hubs would form part of aManufacturingandTechnologyInnovationNetwork,operatingasappliedknowledgecentresthatconnectwiththeMTIC,EnterpriseConnect,QMIandotheragencies?

The non-governmentmembers of the Taskforce note that other industry sectors have functional,strategic innovation systems (mining, agriculture) underpinned by effective interaction betweendemandandsupply forces.Wenote thatother countries (eg.Germany)haveclearlydefined rolesandresponsibilitieswithintheirmanufacturinginnovationsystemsandthatthesesystemsappeartoworkwell.Manufacturingdeservestohavethesamebothforitsowncompetitivefuture,andalsotoensurethetaxpayerreceivesfullbenefitfortheirinvestments.

The non-government members of the Taskforce stress the need to consider the range ofmanufacturing initiatives as one package, and to do so from the perspective ofwhat can supportbusinesses to collaborate and innovate. In that respect it is imperative that the establishment ofMTIC isworked inwith other developments in the innovation system such as CSIRO’s plan for itsmanufacturingprecincthighlightedbelow.It isalsoimperativethattheproposedSmarterAustraliaNetwork is one interconnected virtual reality across the innovation system rather than a series ofsilosandisolatedislandsofexcellence.

§ HOW CSIRO AND MONASH MAY DEVELOP THE AUSTRALIAN MANUFACTURING AND MATERIALSINNOVATIONPRECINCTINCLAYTON,VICTORIA

In response to Australia’s need for a more connected, globally recognised and sustainablycompetitivemanufacturing industry,MonashUniversityandCSIROareworking together throughastrategicrelationshipagreementtodeveloptheAustralianManufacturingandMaterials InnovationPrecinct(AMMIP)inClayton,Victoria.

ClaytonformsanaturallocationfortheAMMIP,asitiswithintheSouthEastmetropolitanregionofMelbourne,whichhousesasignificantnumberandrangeofadvancedmanufacturingcompanies,theAustralianSynchrotronandtheMelbourneCentreforNanofabrication.

ThevisionforAMMIPistoactasahubforawidernetworkofinterconnectedindustryandresearchbased facilities (eg. National Food Innovation Hub, Queensland Manufacturing Institute, design



innovation collaborationwithQueenslandUniversityofTechnology, SwinburneUniversityNationalFaculty ofDesign andAdvancedManufacturingCentreon itsHawthorn campus, RMIT’sAdvancedManufacturing Precinct), that can translate know-how and promote the development of existingAustralian manufacturing companies, as well as the growth of new companies across Australia,includinginregionalcentres.

CSIROiscommittedtothesuccessofAMMIPanditsabilitytoprovide innovativetechnologiesandboost the competitiveness of Australian manufacturers, and is therefore actively seeking capitalinvestment in-excess of $10 million from non-government sources (eg. application to ScienceIndustry Endowment Fund, Universities, industrial investment) to assist with the realisation ofAMMIP.

Inordertoactasahubandbringtogetherthewidercapabilitynetwork,AMMIPmustbesuccessfulin working in a virtual way across Australia. This will require the implementation of broadbandnetworksandnew tools for collaborationat adistanceor ‘telecollaboration’,whichwill transformthe way we work. Many innovative tools to facilitate telecollaboration already exist around theworld,which canbe leveragedand combinedwith variousCSIRO-developed tools to allowdesign,modellingandotherservicestobeprovidedonline.Thesetypesofproductivity-enhancingservicescanbedeliveredonlineanywhere,anytime.

CombiningtheseserviceswithhighdefinitionvideoconferencingandtoolsfordatacollaborationwillallowmanufacturinganddesignteamstodynamicallyformandworktogetheracrossAustralia.Forexample,CSIROcomputationalmodelling capabilityhasbeenused tooptimiseprocesses includingmetal castings, milling and bio-mechanics. Other online capabilities could include risk modelling,supplychainlogisticsandtransportoptimisation.

Through its ‘hub and spoke’ collaboration model, AMMIP will bring together advancedmanufacturingfacilitiesfromaroundthecountrycreatingscaleandconnectionandanenvironmentinwhichtheproposedManufacturingTechnologyInnovationCentre(MTIC)couldbehosted.WhilsttheMTICcouldbehousedatAMMIP,itscrucialindustry-ledfocuswouldstillbemaintainedthroughthe proposed establishment of a Board of Governance with leading multinational corporations,representatives of leading SMEs, Enterprise Connect, Queensland Manufacturing Institute,universitiesandStateGovernments.

FinallyAMMIPisalsoproposingtohouseanew‘openaccess’FactoriesoftheFutureinitiative.TheFactories of the Futurewould be a facilitymade available to industry on an open access basis toprovideadvancedprototypingandproductioncapabilitytoAustralianIndustry.

Thefacilitywillbesupportedbyresearchanddevelopmentfromtherelevantresearchagenciesanddesigned to be a reconfigurable multi-user facility for manufacturing companies for designinnovation, micro automation, advanced processing and additive manufacturing with industry,complemented by technical advice and R&D services to assist firms’ process and productdevelopmentandbusinessmodelinnovationneeds.

§ ANEMERGINGAUSTRALIANADVANTAGE:DESIGN

Asdiscussed,designisacriticalenablerofproductivityandinnovation,andhasbeenshowntoplayasignificant role in the growth of firms and sectors. Building on a strong engineering tradition,Australia can and must succeed in design if its manufacturing industries are to create thedifferentiatedproductsandservicesthatconsumerswantandarepreparedtopayfor.

AspectsofAustralianindustrialdesign,particularlythosestemmingfromastrongengineeringbase,areworldclass.Similarlyourrelatedmarketingandbrandingcapabilitiesareworldclass.

Untilrecently,Australianindustrialdesignhasprimarilybeenfocusedonefficiencyconceptssuchasleanmanufacturingand resourceproductivity.However, todaydesign isevolvingasabroaderandmorecompellingconceptforbusiness.



Design shouldbe seenasaubiquitous capability for innovation.Thenon-governmentmembersoftheTaskforcepropose that theCommonwealthGovernment commissionan independentpanel toadvise on the changes needed to maximise the potential of design thinking on innovation inAustralia. This review would consider implications for design research, design education, designpractice,nationaldesigncollaborationandtheabsorptivecapacityoffirms,andwouldinvolveopenengagementoftheentiredesigncommunity.

Thenon-governmentmembersoftheTaskforcealsoconsiderthatthatthedesignthinkingapproachformsignificantelementsofthecurriculumoftheproposedAustralianLeadershipInstitute.

Figure5.3,basedontheworkofProfessorGöranRoos,capturesthisemphasis.

§ IMPLICATIONSFORROLESANDRESPONSIBILITIES

The scale of change implied by the proposal for Smarter Australia Network requires that such aninitiativebeledbyournationalgovernment,andintegratedintoournationaleconomicstrategyandglobal brand positioning. However, the network and innovation hubs need a prominent role forindustrytoreflectthenewemphasisonappliedknowledge.

More broadly,while this is a national approach, it is also about building regional specialisation inordertobuildabroad-basednationaleconomy.Assuch,individualhubsshouldhavealargeelementoflocalstewardship,shouldinvolveStateGovernmentsaspartners,andshould(generally)bebasedaround local universities. This approach has a number of implications for the roles of variousstakeholders:

• Formanufacturingbusinesses, itwouldmeanarebalancingofthenational innovationsysteminsupportof theirpracticalneeds, a requirement toengagemoreactively in collaboration, andaneedtobetterconnectlargeandsmallfirmsthroughvaluechains.

• Foruniversities, itwouldmeanagreaterfocusonappliedresearch inareasrelevanttoregionaladvantages,supportingnewspaces forresearcherstodevelopsolutionsbeyondtheconfinesofexisting rules and incentives, and reclaiming their public role as bearers and transmitters ofvaluableknowledge.

• Forpublicly-fundedresearchorganisations(PFROs)suchasCSIRO,DSTOandCRCs,itwouldmeana more coherent and collaborative role within an open national innovation system, and theopportunitytoleverageinternationalreputationsfornationalbenefit.

• ForCSIROspecifically, itwouldmeanastrongerandbroader leadershiprolewithinthenationalinnovation system, including in support of the Smarter Australia Network, requiring greatersystems,managerialandcreativeskills,andapartneringethosinbusiness-ledInnovationHubs.

• ForGovernments,CommonwealthandState, itwouldrequireanewdegreeofcooperationandfocus,withboth recognising theneed toharness local specialisation,national coordinationandglobal engagement. Itwould also require the redirection of existing funding to this aim, and achange in the incentive structures for funding and research to support applied knowledge.However,thelargestimplicationisfornationaleconomicstrategy,whichwouldspecificallyaspireto build a broad-based economy underpinned by the strength of numerous industries acrossnumerousregions.

SmarterSMEs

Apackageofmeasures to support smarter SMEs is designed to improveaccess to knowledgeandresources for SMEs, and to support those with the commitment and potential to grow into thegloballyorientedmedium-sizedfirmsAustralialacks.

This includes a more cohesive and streamlined business interface that draws on all relevantresourcestohelpmanufacturingSMEs–anenhancedEnterpriseConnect. Italso includespracticalandprovenmeasures tostrengthenthe limitedcontributionresearchersandgovernmentagenciescurrentlymaketoinnovationinSMEs.

Most successful manufacturing companies and their leaders understand that success or failuredepends on their own commitment to growth.91 The schemes proposed here involve mutualobligations and a spirit of partnership. Participating firms in these programs need to co-fund



activities and need to agree to share their experienceswith others. In return, policywill bemoreheavilyfocusedontheirspecificneedsforgrowthandserviceswillbemorejoinedupthancurrently.

§ ENTERPRISECONNECT–FOCUSEDONVALUEADDINGFORSMEs

The non-governmentmembers of the Taskforce consider it important that Enterprise Connect befocusedoneffectiveandefficientserviceprovision.Tohelpachievethis,itisrecommendedthatitbeestablished as an entity with similar or greater management and operational flexibilities as areenjoyedbyAustradeandCommercialisationAustralia.

The non-government members of the Taskforce also recommend that Enterprise Connect beupgraded,itsfundingtosupportmanufacturingfirmsbesignificantlyincreasedanditsrelationshipsand connections with other agencies be formalised. This will help Enterprise Connect exercisegreater leverage and capacity in assisting manufacturing firms meet the competitiveness andproductivitychallengestheyface,specificallyEnterpriseConnectshouldbeconfiguredas:

• An entity with similar or greater management and operational autonomy as that enjoyed byAustradeandCommercialisationAustralia.

• The ‘one front door’ for SME support, with a series of partnership agreements with otheragenciestoensurethatbusinessesreceiveappropriatesupport.

To achieve this, the government should carefully consider the option ofmerging ormore closelyintegrating the operations of Enterprise Connect and ICNL Ltd. The Minister for Industry andInnovation and theMinister for Trade and Competitiveness should play amore active role in theprioritisation of joint activity between Austrade, Enterprise Connect and the Industry Capabilitynetwork.

WhilecontinuingtoreporttotheMinister,suchanarrangementwouldenableEnterpriseConnect–beyondprovidingabaselevelofservicethatreflectsgeneralmarketfailures–todedicateresourcestothoseareasitbelieveswilladdmostvalue.

Importantly, greater integrationwith ICNLandanewapproach to co-operationwith the state ICNnetwork would help leverage up the rich architecture of resources that exist (supply advocates,national sector managers, the formal and tacit knowledge of the staff of the ICN and EnterpriseConnectnetworks).

This architecture is not currently delivering the high level impact it is capable of delivering. Itcurrently lacks strategic co-ordination and the kind of collaboration that helps industry winmoreinternational business opportunities by connecting up the getting access and getting competitivefunctionsoftradeandindustrypolicy.Australiacandobetterthanthis.Wemustdobetterthanthis.

AreconfiguredEnterpriseConnectwouldideallyinvolve:

• ■ContinuingtobethefrontdoorforbusinesssupportservicesforallSMEs.• ■ Working with other agencies interacting with SMEs (such as Austrade, Commercialisation

Australia,SupplierAdvocatesandstate-basedproviders)toensurethatthereis‘nowrongdoor’forbusinessesseekingsupport.

• ■ Complementing the Manufacturing Technology Innovation Centre (MTIC) and the IndustrialTransformation Research Hubs, and providing input to those measures that emphasise theappliedknowledgeneedsofSMEs.

• ■Reprioritisingtime,supportandservicestowardsthoseSMEsitassessesashavingthehighestpotential to value add, subject to those firms demonstrating a commitment and potential togrow.

• ■ Actively promoting and prompting industry supply chain initiatives, such as under its SupplyChain 21 (SC21) offering where primes and SME suppliers work together to lift quality andproductivity, with scope for modest incentives to de-risk experimental collaboration for largefirmsandSMEs.

• ■ Continuing to refer to Austrade, Commercialisation Australia and other specialist providersthosefirmsthatneedmorespecialistadviceonexpandingintointernationalmarketsorfinancingdevelopment.



• ■ Connecting SMEs to specialist providers and policies to support access to technology,managerial and creative capabilities (through linkages to programs such as Leadership 21 andUlysses).

• ■Identifyandworkwithindustriesfacingtransitionindemandingvaluechainstotransformtheircapabilitiestoalignwiththeneedsofrelatedvaluechains.

The non-governmentmembers of the Taskforce propose a business-focused approach, through a‘one front door, no wrong door’ philosophy across all government agencies providing businessservices. This would include commitments to making knowledge, resources and market insightavailableviatheBusinessEntryPoint,serviceagreementsthatsupportcollaborationandinformationsharing,andco-locationofphysicalofficeswherefeasible.

The objective of these proposed changes is to ensure that the existing suite of activities withinEnterprise Connect that support manufacturing activities are enhanced and attract additionalresources so that it can help drive the systematic upgrading ofmanufacturing SME capability andmanagementskills,bettersupplychainlinksandperformance.Thisincludessegmentingitsexistingclient base and, in partnership with other agencies, identifying and supporting high growth highperformancefirms,athemethathasbeencentraltothisreport.

Better interactionbetweenEnterpriseConnect, itsmanufacturingclientsandtheresearchsector isalso essential. Asmanufacturing firms upgrade their capabilities, they need to plug into differenttypes and sources of assistance at different times. They face real transaction costs, so EnterpriseConnectandrelatedservicesneedtocontinuetoensuretheyaddressthesetransactioncosts.Thenon-governmentmembersof theTaskforce stronglybelieve thatgovernment supportneeds tobejoinedupandclientfocused,nottransaction/KPIfocused.Whenitisjoinedupandclientfocused,itcandeliverenormousvaluetoSMEsatverylittlecost.

§ IMPROVINGRESEARCHERRESPONSIVENESS–MAKEITEASIERFORSMEsTOACCESSKNOWLEDGE

Asdiscussed,thenon-governmentmembersoftheTaskforceareconcernedwiththeimplicationsofAustralia’ssupply-sidemodelforinnovationforthemanufacturingsector.Thereisaneedtodevelopnew mechanisms that encourage researchers to directly assist SMEs in tackling their practicalinnovationchallenges.

OnesuchmechanismemployedbyanumberofnationsandregionsaroundtheworldisInnovationVouchers. InnovationVoucherswould increasetheengagementbetweenknowledgeprovidersandSMEs.While the immediate focus is to raise theSMEsproductiveand innovativecapacity,awidergoal is to increase linkages between SMEs and providers by creating new spaces that encouragecollaboration.

Vouchers would also be used to enable the identification of good providers. To minimise thetransaction costs for SMEs and knowledge providers, brokerage support would be available toconnect SMEs and relevant researchers. Red tape involved in administration should be minimal.Vouchers would be redeemable for activities intended to introduce new technologies, products,processes or services, or significantly improve those currently existing. The value of the voucherscouldvary,withvouchersforinnovationactivitiessuchas:

• Accessing facilities for specialised measuring equipment, e-research, supercomputers, ornanofabricationaswellasaccessingdesignexpertise.

• Accessing process improvement expertise and other technical assistance by drawing on theexpertiseofstaffintheresearchortechnologydiffusionfacilities.

• Accessing skillsanalysis,workforceplanninganddevelopmentexpertiseas it relates tobuildingfirmcapability.

• Trialproductionrunsorprocessestodemonstratetechnicalconcepts.• Validation or demonstration of the technical capabilities of the product, process or service,

includingscale-up,stabilityorreproducibilityofaprocess.• ImplementationofnewtechnologyandImplementationofnewbusinessmodels.

Thepurposeofvouchers is torefocusresearcheffortonhelpingbusinessestosolvetheirpracticalproblemsthroughdirectrelationships.



§ SMARTERPARTNERSHIPS–MEETINGSOCIETY’SNEEDSTHROUGHINNOVATIVESMEs

Thenon-governmentmembersof theTaskforce recommendthat theCommonwealthGovernmentintroduce a whole-of-government Small Business Innovation Research (SBIR) or Smart SMEs styleinitiative. It also recommends that the Commonwealth, through COAG, actively encourage StateGovernmentstodeveloptheirownversionsofsuchprograms.

Smarter Partnerships would see the Commonwealth itself becomes a more effective partner inAustralia’smanufacturingSME innovationeffortby introducingan initiativeacrossCommonwealthagencieswith significant researchneeds.This couldbeeitheraSBIR-style initiative that requiresasmall percentage of the external research for SMEs, or an internalmarket approach that enablesgovernmentagenciestobidforprojects.Tacklingdiscretechallengescanenablegovernmentstotapintodistributedexpertiseinarangeofareaswheregovernmentalonelackscapability.

InnovativeSMEscanbeparticularlyadeptatdevelopingsolutionsforgovernmentagencies.Globallyand inAustralia,programshavebeendevisedtomeetthemultiplebarriers to innovationandfirmgrowth,while also improving policy outcomes. Examples include the USA’s SBIR program and theVictorianGovernment’sSmartSMEsMarketValidationProgram,asdescribedinBox5.4.

It is telling that both programs are very heavily oversubscribed. These programs support pre-commercial collaboration, and help to address finance, skills, product development and uncertaindemandrisks,thusenablinggrowth.

Evaluationsofsuchprogramsrevealbenefitsforbothparticipatingdepartmentsandfirms,whoworktogether to translate ideas into practical solutions. But above all, they contribute to systemicinnovationcapabilitiesandoutcomes.Forparticipatingfirms,SmartSMEsisregardedasabetterwaytopartnerwithgovernment,asitinvolvescollaborationindefiningtheproblemandprovidesaccessto practical insight that is otherwise very hard to access. And it generates commercial gains –throughnewIP,newnetworks,newmarketsandnewexports.

For government agencies, early collaboration around experimental concepts can avoid larger costblowoutsatalaterstage.Forexample,inthereviewsofSBIR,thiswasthemajorbenefitcitedbytheUSA’sNavy.Suchprogramsenablegovernmentagenciestodrawondistributedexpertiseandapplyittoadiversesetofcomplexchallengesthatgovernmentagenciesknowtheycannotmeetalone.

§ ACCESSTOCAPITALFORSMEs

Well-established gaps in early stage finance markets, including venture capital, have widenedconsiderably in the post GFC environment. Government programs to meet these gaps, such asInnovationInvestmentFunds,havelimitedcoverage.Further,theseprogramshavenotaffectedtheunderlying problem that Australia lacks a vibrant venture capital market and that it is likely tocontinuetolackthis.

Other small economies such as Israel, Denmark and Chile have met similar scale challenges bydevelopingtheirownventurefinancemodels.Theyhaveadoptedvariousfinancing,stage-gateandgovernance processes to maximise impact, ensure cost-effectiveness and (particularly) leverageprofessional management. The non-government members of the Taskforce are conscious that awider range of start up and SME finance needs are not being adequately catered for, with thecovenantsandotherrequirementsattachedtoloansinmanycasesunacceptable.

The non-governmentmembers of the Taskforce therefore recommend that a Canadian-style loanguarantee scheme be considered for its applicability to the Australian context. Parallel schemesoperate in the automotive industry and will soon operate through the Clean Energy FinanceCorporationtoassistmanufacturerswishingtodiversifybutfacingaccesstocapitalissuesbecauseoftheperceivedrisk.



§ IMPLICATIONSFORROLESANDRESPONSIBILITIES

ToliftthelimitedcontributionsresearchersandgovernmentsinAustraliamaketoSMEinnovation,thesuiteofmeasuresproposedplacegreateremphasisonthedemand-side,whilealsorecognisingthat it is ultimately relationships between demanding customers and responsive suppliers thatgenerateinnovation.BuildingSMEconnectionsandcapabilitieswouldimplychangeforallactors:

• SMEs,inreturnforgreatersupportinaccessingcapital,developingcapabilitiesandmanagingtherisksandcostsofproductdevelopment,willneedtocommittochangethemselvesandembracemorerigorousmanagementsupport.

• LargefirmsreceivinggovernmentsupportwillneedtocommittogoodfaitheffortstostrengthenSME engagement in their value chains, recognising that the breadth and depth of these valuechainsultimatelyaffectstheirownperformanceandopportunities.

• Researchers will need to adapt to mechanisms that refocus relationships of solving practicalproblemsforbusinesses,withthisimplyingamoredirectandcollaborativepartnership.

• GovernmentswillneedtorecognisethatastrongpoolofinnovativeSMEsisintheirinterestsandthatofthewidereconomy.Thispoolcanhelpovercomethesystemiclackofmedium-sizedfirmsandthepracticalneedforgovernmentagenciestotacklenewchallengesthattheycannotmeetalone.

Smarterworkplaces

Torecognisethatproductivitygainsareultimatelyrealisedinworkplacesandfirms,anewnationalpartnershipforSmarterWorkplacesisproposed.Thisrequiressustainedcommitmentfromindustry,unions,employeesandgovernmenttobuildthemanagerialandworkforceskills–andtheinnovationculture–thathighperformanceworkplacesdemand.

Thiswouldinvolveanewpartnershipandnationalconversation–withemployerorganisationsandunionsassumingresponsibilityandsteppinguptolead–thatcannotonlyhavepractical impact inworkplaces, but also start to shift cultures towards collaboration and innovation, and maintainmomentumbeyondpoliticalcycles.

§ ANEWNATIONALPARTNERSHIPFORSMARTERWORKPLACES

One renownedworkplace expert recently argued that Australia stands a chance of being aworldleader inmanagement andworkplace practices. Given the large gap between that aspiration andpractice,thissuggestsverysignificantscopeforgains.

Thenon-governmentmembersoftheTaskforcesubmitthatsmarterworkplacescandeliverbusinessproductivity, rewarding work, and a stronger economy and society. Change needs to addressmanagementandworkforcecapabilities,andculturalattitudes.

Thenon-governmentmembersoftheTaskforcealsorecommendshowcasinggoodpracticetohelpdevelopawidernationalconversationonhighperformingworkplacesasanewelementofeconomicpolicy.

§ WORKPLACECAPABILITIES

Improved management practice opportunities would be made available through a nationalexpansion of program offerings through Enterprise Connect. As is currently the case, this wouldinvolvearangeofserviceprovidersandencouragehealthycompetitionovertime.

In addition, the non-government members of the Taskforce note the potential for improvedmanagementeducationthroughtheproposedAustralianLeadershipInstitute.

§ RESEARCHERSINBUSINESS

Giventhesignificantculturaldividesbetweenresearchandindustry,thenon-governmentmembersof the Taskforce recommenda significant effort to expand take-upof theResearchers inBusinessprogramasafirststeptoovercometheculturalbarriersbetweenresearchandindustry.



As thisbrings researchers into firmsona local basis, thepersonal relationships that are critical tocollaboration can start to develop. This form of proximity is difficult to replicate other than on apersonal basis, making this program a model that could ultimately underpin stronger knowledgeflowsbetweenresearchandindustry.

A common barrier to the ability of SMEs to develop differentiated solutions is a lack of skilledworkers. The number of researchers engaged in innovative activities in Australian manufacturingrevealsasignificantdisadvantage,asshowninFigure5.4.

8. NationalAcademies:MakingValue–IntegratingManufacturing,DesignandInnovation

NationalAcademies–September2012

Manufacturingisinaperiodofdramatictransformation.ButintheUnitedStates,publicandpoliticaldialogue is simplistically focused almost entirely on the movement of certain manufacturing jobsoverseastolow-wagecountries.Thetruepictureismuchmorecomplicated,andalsomorepositive,thanthisdialogueimplies.

Afteryearsofdespair,manyobserversofUSmanufacturingarenowmoreoptimistic.ArecentuptickinmanufacturingemploymentandoutputintheUnitedStatesisonefactortheycite,butthemainreasonsforoptimismaremuchmorefundamental.ManufacturingischanginginwaysthatmayfavorAmerican ingenuity. Rapidly advancing technologies in areas such as biomanufacturing, robotics,smartsensors,cloud-basedcomputing,andnanotechnologyhavetransformednotonlythefactoryfloor but also the way products are invented and designed, putting a premium on continualinnovationandhighlyskilledworkers.

A shift inmanufacturing toward smaller runs and custom-designed products is favoring agile andadaptableworkplaces,businessmodels,andemployees,allofwhichhavebecomeaspecialtyintheUnitedStates.

Futuremanufacturingwillinvolveaglobalsupplyweb,buttheUnitedStateshasapotentiallygreatadvantagebecauseofourtightconnectionsamonginnovation,design,andmanufacturing,andalsoourabilitytointegrateproductsandservices.

TheNationalAcademyofEngineeringnormallyconductsstudiesattherequestofgovernmentanddelivers its conclusions to the requesting agency. In this case, the NAE has been sufficientlyconcernedabouttheissuessurroundingmanufacturing—andsufficientlyexcitedbytheprospectofdramatic change—to take action on its own. On June 11–12, 2012, it hosted a workshop inWashington,DC,todiscussthenewworldofmanufacturingandhowtopositiontheUnitedStatestothriveinthisworld.Theworkshopsteeringcommitteefocusedontwoparticulargoals.1

First, presenters and participantswere to examine not justmanufacturing but the broad array ofactivities that are inherently associated with manufacturing, including innovation and design.Second,thecommitteewantedtofocusnotjustonmakingthingsbutonmakingvalue,sincevalueisthequalitythatwillunderliehigh-payingjobsinAmerica’sfuture.

The workshop opened with presentations on the changing nature of manufacturing, design, andinnovation; the futureofwork; building the ecosystem formanufacturing, design, and innovation;and manufacturing for sustainability. The remainder of the workshop consisted largely of twoextendedbreakoutsessions,followedbyreportsofthebreakoutdeliberationstotheentiregroup.

9. CSIRO:ManufacturingaBetterFuture-theRoleofScience,TechnologyandInnovation

CSIRO, Manufacturing a Better Future: the role of science, technology and innovation, Canberra,2012.



Executivesummary

Globally, the manufacturing industry is increasingly dependent upon innovation to remainsustainableandcompetitivethroughincreasedproductivity,customisedproductsandaccesstonewmarkets

Australia’s high dollar, wage costs, distance from global markets and high proportion of small tomediumsizemanufacturersrequiresittorapidlyadaptifitistopositioncompetitivelyfornewAsia-Pacific and other regional market growth in technology, health care products, energy , greenchemistryandfoodproductinnovationandexport.However,currently,Australianmanufacturingisonlyamiddle-rankinginvestoranduserofadvancedinnovation,inhibitingitscapacitytorespondtorapidglobalchange.

Australia has natural endowment in food and resources. These sectors offer a uniquelyAustralianplatform for growth in manufacturing innovation and the opportunity to recapture a globalleadership position built on a sustainable comparative advantage. Nevertheless, a sustainedcompetitive advantage inmanufacturing increasingly requires advanced digital design, automatedprocessing,highspeedbroadbandaccessandthecapacitytosimultaneouslyoptimiseandcustomiseproductmanufacturingandproductdistributionnationallyandglobally.

Increasingly,economicgrowthwillneedtobebalancedbyenvironmentalresponsibility,asthecostofmanagingenergy,water,materialsandlabourbecomeincreasinglyexplicit.Meetingthisobjectiveforgreengrowthwillseetheneedformoresustainablemanufacturing.

StimulatingandsustaininginnovationiskeytotheadaptationofAustralia’smanufacturingindustryto these requirements. By mapping comparative advantages and competitive requirements,innovationopportunitiesemergeasfollows:

• Stimulation of innovation through improved connections between research development andindustry application. Whilst Australia has significant strengths in R&D, the translation andabsorptionofthatR&Dintoindustryneedsimprovement.Linkagesbetweenresearchinstitutions(bothpublicallyfundedresearchorganisationsanduniversities)andmanufacturersarealsolow.

• Sustainedinnovationtomoderniseourexistingmaturemanufacturingindustryandskillsbasetooperatecompetitivelyacrossarangeofsectorsthrough:

o Fasterdiscoveryandimproveddesigntoenhancetheresponsivenessoffirmstodynamicmarketconditions

o Development and introduction of new enabling technologies formass customisation –such as additive manufacturing and advanced, automated processing, which canpotentiallyliftproductivity

o Leveragingoffnationalinfrastructure,suchashighspeedbroadbandtopromoteregionaldistributedmanufacturing

o Encouraging a better understanding of supply chains, value creation and resourceconstraintstosupportthelinkingofcompaniesintocompetitiveandsustainablesupplychains

• ConcertedpartneringtounderpintherenewalofAustralia’s foodmanufacturingsector throughconsumerinsightsandproductinnovationforexports.Enhancednetworksandcapabilityinfoodscience,engineering,pilotplantscale-upandadvancedlogisticscandeepenlinkagesbetweentheglobalscalefoodindustryinAustraliaandtheproximalAsianconsumermarkets.

Models for achieving this integration and collaboration are set out in the paper, including theconceptofaNationalFoodInnovationHubandNetworktoanchorfoodmanufacturingatscale,withfood pilot plant and processing centres in Victoria and Tasmania. Additionally, opportunities forincentivisinglinkages,knowledgesharingandskillsdevelopmentbetweenindustry(particularlysmalltomediumenterprises),publicallyfundedresearchorganisationsanduniversitiesarepresented.

UnderpinningallthesepriorityareasformanufacturinginnovationisarequirementforplatformR&Dcapabilities at scale, based on connectivity and collaboration across all players in the NationalInnovationSystem.AGlobalManufacturingInnovationPrecinct isproposed,withahubcentredonan advanced manufacturing technology centre (focussed on automated processing and additive



manufacturing)atClayton,MelbourneandaspokeinGeelongforsmarttextiles,WerribeeforfoodprocessingandperhapsSwinburne(Hawthorn)forindustrialdesign.

StimulatingInnovation

The consequence of these shifts has been captured in Terry Cutler’s 2008 review, VenturousAustralia27.Thisreviewdiscussedtheincreasingcomplexityandchallengesoftranslatinginnovativeadvancesinscienceandtechnologyintoindustry.Twocriticalissuesemerge:

• For Australia to capitalise on its inherent capacity for R&D it needs to remain an attractivedestinationforresearchtalent.

• For the manufacturing sector, this places an onus on maintaining scientific excellence inmanufacturingR&D.

• Without the ability to translate, transfer and apply scientific capabilities within industry,Australian manufacturing cannot advance towards a sustained and globally competitivemanufacturingbase.

It is this ability to translate, transfer and apply science that offers an opportunity for significantimprovementinsupportofare-invigoratedmanufacturingsector.Therearemanyexamplesofcloseand enduring connections between R&Dorganisations in Australia and the companies they serve.Nevertheless, in an analysis of submissions to the review of the NIS in 2008, whilst the contentidentified a “consensus about the high value of innovation and its contribution to economic andsociallife”,ithighlightedthat“itisadisconnectedsystemwheretherearefewbridgesbetweenitsmajorplayers”.

Evidence supporting this view is also reflected throughout the most recent Innovation SystemsReportreleasedin201129.TheAustralianIndustryGrouphasalsoindicatedthat,“lessthanfivepercentofbusinesses reportedthat theyobtained informationaboutnewtechnologies fromresearchinstitutions” and “only six per cent ofmanufacturers collaboratedwith publically funded researchorganisations(PFRO’s)aspartoftheirinvestmentinnewtechnologiesoverthepastthreeyears”30.

This lack of connection is of concern since Australia’s research and development is largelyundertakenbytheseorganisationsanduniversities.ThisR&Dcapabilityislargeandincludes44

CooperativeResearchCentres(CRCs),15RuralResearchandDevelopmentCorporations(RDCs),40Universities,andanumberofPFROs, themostsignificantof thesebeingCSIRO.Thecapabilities inthese institutions are increasingly being coordinated in collaborative ventures aimed atmanufacturing,suchas:

• BuildingindustryskillsinGreenChemistryatMonashUniversity31• BioplasticsatSwinburneUniversityofTechnology• RoboticsattheUniversityofSydney32• HydrogenStorageattheUniversityofQueensland33• FoodProcessingpilotplantatCSIRO34• SynchrotroninMelbourne35• CentreforIntelligentMechatronicSystemsatUniversityofTechnologySydney36• ArtificialIntelligenceGroupatTheUniversityofNewSouthWales37• AustralianInstituteforNanoscienceattheUniversityofSydney38• AustralianFutureFibresResearchandInnovationCentreatDeakinUniversity39• ManufacturingTechnologyTrainingCentreinBallaratattheUniversityofBallarat40• ARC’srecentprovisionof$249millionfortheIndustrialTransformationResearchprogram41.

Despite signs of a gap between the science and innovation of Australian PFRO’s/Universities andmanufacturing companies’ uptakeof technology, KnowledgeCommercialisationAustralasia’s (KCA)recent Commercialisation Metrics Survey Report offers some positivity. Their findings indicate agrowing improvement intechnologycommercialisationacrossAustralia. Itstatesthat inareassuchas resourcing for commercialisation, intellectual property protection, licensing activity, start-upcompany formation and capital raising, that the connections between PFRO’s and industry arestronger42.



Nevertheless, various nations with large manufacturing industries, such as Germany, show muchgreater connections between PFRO’s and industry and can produce highly innovative andcompetitivemanufacturedproductsforexportmarkets.

TheFraunhoferexample43exploitsarangeoffactorsthatcontributetosuccessfulconnections–inparticulartheestablishmentofacriticalmassofcapability,aclearfocusinkeyareasofinnovation,SME’sdeterminedtotakefulladvantageofthescienceandtechnologyavailableandaculturewhichviews innovation as an intrinsic part of competitiveness. Whilst Australia can learn from these,EuropeanculturesandsystemsarenotalwaystransferabletotheAustraliancontext.TherearesomebarrierstoresearchtranslationinAustralia,whichmustbeaddressed.

BarrierstoResearchTranslation

Barriers to research translationAustralianmanufacturingorganisations spanawide rangeof sizes,skilllevelsandappetitesforengagingwithresearchorganisations.Somecompaniescanberegardedasdynamicinseekingandusingknowledgeandthesemayhavealargerratioofacademicallyskilledpeople,whilstotherswithalowerratiomayberegardedasstatic44,inthatthereisalowerlevelofinterestinabsorbingnewinformation.

Theability of theorganisation to transfer knowledge is the crucial factor thatwill enable them tolearnandadaptnewinformationfortheirbusiness.This ‘absorptivecapacity’maysometimesbeachallengeforthesmalltomediumenterprisesector(SMEs),whichmakeupthegreatestnumberofmanufacturingcompaniesinAustralia.

SMEscanfinditdifficulttoevaluatethevalueofservices45andassessthedifferencesamongserviceproviders46.Hence, access to science, development and innovation canbedifficult for those veryorganisationsthatarebestplacedtomakeuseofit inindustry–smalltomediumenterpriseswiththedriveandenergytobringnewideastothemajorindustryplayers.Thekeychallengeslieinthreemainareas:

• Project size and risk: In developing a project with a company for the first time, cost cansometimesbean issue,asthere isgenerallyapoorunderstandingofthetruecostandvalueofresearch activity. The inevitable size and risk means that SMEs are not able to engage in theprocessandhencereapthepotentialrewards.

• The human factor: Entrepreneurship, mutual trust and the alignment of individual goals andrespect are highly significant in a successful technology transfer47. However, researchorganisations and industry organisations have very different performancemeasures,which canmake it difficult to align these cultural aspects. Other challenges also exist around the lack ofknowledgeofIPanditsuses,aswellasthedifferentbureaucraticsystemsofoperationbetweenorganisations of different sizes, especially if there are multiple stakeholders involved. ThesefactorscombinedcanbecomeacauseforconfusionandabarriertomakingthechoicetoengageinR&Dprojects.

• Market pull/technology push: A significant barrier to successful transfer of knowledge resultsfrom misalignment between market pull and technology push. Technology push refers to thedevelopment of general purpose or platform technologies despite no clear and establishedrelationship to apply the technology to meet a particular market need. On the other hand, amarketpull approach ismuchmoredirectedat a commercial outcome. The linkageof the twofostersthebestscientificoutcomes—bothproblemandfutureoriented.

These barriers can be overcome by understanding the cultural differences that drive them andencouraginglinkagesbetweentheresearchandentrepreneurialcultures.

Innovationtosupportresponsivemanufacturinginadigitalage

Whist by nomeans the only route to heightenedproductivity, innovation has a significant role toplay in unlocking Australia’s competitive strengths for the contemporary market place – boththrough the incrementalevolutionof currentpracticeand through thedevelopmentofdisruptive



processesandoptionstoenablechangetothenatureofmanufacturingandcreateanewparadigmforthedeliveryofmanufacturedproductstocustomers.

§ Newmaterialsandprocesstechnologies

The discovery and manufacture of new materials using advanced processing techniques offers asolution tomany of the trends inmanufacturing relating to optimisation,more from less and theincorporationofsmartfunctionality.Asproductlifecyclesbecomeincreasinglyshorter,theabilitytomanufactureandadaptrapidlybecomescriticalformaintainingacompetitiveedge.InanAustraliancontext, this potential for flexible, scalable production enables evolution from a reliance oninefficientbatchprocessingtechniques,whichrequirecapitalintensiveinfrastructurethatisdifficulttojustifyduetothelackofmarketscale.

Science and technology developments that canwork towards this flexibility, cost effectiveness andresponsivenessaresummarisedonFigure5andinclude:

• Acceleratedmaterials discovery: using robotic enabled facilities capable of producingmaterialsand/orcompletinghundredstothousandsofparallelexperimentsatatime

• Additivemanufacturing:asuiteofprocessingtechniqueslinkingthedigitalandphysicalworldsbydirectlytranslatingdigital(design)informationtothedesiredprototype,toolorproductionpart

• Advanced processing: technologies such as continuous flow processing leading to substantiallysmaller,cleaner,saferandmoreefficientchemicalprocesseswithwideapplicationinanumberofindustries,includingfinechemicalsandfood.

§ Towardsmasscustomisation

Severaltrendspointtowardstheincreasingblurringofthelinebetweenmanufacturingandservices,coupled withadrive towardsmass customisation (seeFigure5). Theability to rapidly respond tochanging consumer needs and to customise product and service offerings in multiple marketsbecomesacompetitivestrength–onealreadyalludedtoinadditivemanufacturing.

Acoreenablingaspectofthisinnovationwillbeincreasedcollaborationamongstplayersthroughthemanufacturing supply chain to enable advanced design, automation and simulation through theconvergenceofthecreativearts,science,engineeringandICT,thelatterleveragingthepowerofthebroadbandnetworktodevelopFactoriesoftheFuture.

• Resourcesustainability,valuecreationandsupplychains

A key aspect of any contemporary industry is themanagement and use of labour,water, energy,materials andwaste,many of which also have added environmental and social costs attached tothem. Initiativessuchas theOECD’sGreenGrowthstrategy59havebeendevelopedto respondtothese changes, emphasising the need to balance future economic growth with environmentalresponsibility.

Technologycanplayacriticalroleinenablingtheefficientmanagementofthesepreciousresourceswithincreasingattentionbeingpaidtothecostandpotentiallyembodiedenergy/carbonalongthesupply chain. Encouraging a better understanding of supply chains, value creation and resourceconstraintsisanimportantinnovationtomoderniseandextendtheAustralianmanufacturingsystemforthe21stcentury.

This is likely to have an increasing effect on the value created and extracted by amanufacturingcompany,suchthatmarketscanbeaccessedorpotentiallydeniedbasedonperformanceintermsofresource management through the product lifecycle60. Increasingly complex supply chains areemerginginresponsetothesecompetingeconomicandenvironmentaldriversonbusiness.

ForAustralianmanufacturers,theglobalisationandnetworking61ofsupplychainscreatespressuretomaintain supplies to and frompartners locally and internationally. The complexities involved indealing with the dynamic nature of supply chains62 as companies manage the move to smallervolume, mass customisation, will significantly increase. There is opportunity to achieve efficiency



gains63 and address these challenges through the application of newmethods ofmonitoring andcontrol,bothintheproductionprocessandinthemanagementandlogisticsofsupply.

Adaptive Supply Networks achieve efficiency gains64 through the application of newmethods ofmonitoring and control, both in the production process and in the management and logistics ofsupply.Businessescancooperatively identifyandadapt tochallengesalongsidetheirsuppliersandpartners. These technologies can deliver an enduring competitive advantage by improving thecoordinationof jointactivitiesandbybalancingbothsharedand individualobjectivesamongst thepartiesinthesupplynetwork,tobringefficiencyandharmonyindecision-making.

Thisapproachhasalreadybeeneffectivelyimplementedinsteelmanufacturingforsteelcoilexport,in wine to manage grape harvesting and wine production and in health in relation to patienttransfer65.

§ SmartInformationSystems

The potential contribution to Australian manufacturing In 2003, the Productivity Commissionestimated that ICT application impacted national productivity growth by 0.2 percentage points, asignificant amountwithin the context of Australianmultifactor-productivity (MFP) growth of 1.8%perannumduringthe1990s.ImpactsobservedinmajorICT-adoptingsectors,suchasfinancialSmartInformationSystems,wereevenmorepronounced.

One recent report estimates that the adoption of smart technology in energy, water, health andtransport and the roll-out of high-speed broadband could add more than 70,000 jobs to theAustralian economy and 1.5% to the level of Australia’s Gross Domestic Product within a fewyears66.

Thisimpactcanbeachievedinanumberofways.Forexample:

• Customerdatabasescanbeminedtogleaninsightsaboutpreferencesandbehaviours,leadingtoenhanced service offerings, reduced customer turnover and newbusiness and/ormanagementapproaches

• Inventoryandassetmanagementsystemsareusedtoprovideabetterunderstandingofthelevelof rawmaterialsused, thecostofmanufacture, theamountofwasteproduced, thenumberofdays inventory iskept,supplierpricesandsellingprices.Such ‘simple’ reportingsystemscanbeextendedtoincludemodellingandscenarioplanningtooptimisetheproductionprocesses,ortosupportcustomisationofproductstospecificcustomerpreferences

• Plantandequipmentusedinaproductioncanbefittedwithlowcostsensorstoprovideaviewofoperatingperformanceandhighly localisedoperating conditions.Whennetworked, this canbeextended to provide a real time understanding of the entire production process. Individualproducts or subassemblies can be fittedwith radio tags andmicro-devices to offer ameans oftracking and recording the whole lifecycle of the product. The ‘cloud’ also provides a newparadigm fordeliveringcomputing resources tomanufacturersondemand, ina similarmannerthat utilities provide water, electricity or gas. Cloud computing architectures and softwareinfrastructureenablesclientstointeractwithcomputingserversandstoragebyprovidinglayersofservices:

• Software as a Service (SaaS) provisions complete applications as a service, such as CustomerRelationshipManagement(CRM)andemail

• Platform-as-a-Serviceprovidesasoftwareplatformfordevelopingotherapplicationsontopofit.AnexampleofsuchaplatformistheastheGoogleAppEngine

• Infrastructure-as-a-Service (IaaS) provides an environment deploying, running and managingvirtual machines and storage. IaaS provides incremental scalability (scale up and down) ofcomputingresourcesandnearlyunlimited,ondemandstorage.

Simplerepetitivetaskshavelargelybeenaddressedbyautomationinmanufacturingenvironments.Many complex tasks still require human involvement and in some casesmaybeperformedunderhazardous conditions. The ability to remotely control equipment delivers benefits by removingpeople fromhazardousand inhospitableworkingenvironments, aswell asprovidingopportunitiesforincreasingefficiency,productivityandprofitabilityinmanufacture.

Traditionally, remote operation in industry has involved video being transmitted to a remoteoperator, who makes decisions based on the visual evidence and responds by commanding the



equipmenttotakeaction(i.e.tele-operation).Unfortunately, formanymanufacturingapplications,this typeof interfacedoesnotoffer thehumandecision-maker sufficient situational awareness toeffectivelymaintainmanual production levels. Thismeans that there has been, until now, limitedeconomic benefit for remote operation of manufacturing equipment over traditional in-situoperation.

Smart Information Systems potential exists for amuch higher degree of automation or improvedsituationalawarenessforaremoteoperator.

§ Attributesofasmartinformationsysteminnovation

Technology-led Smart Information Systems innovation is important not only through the directapplication of discoveries, but also by enabling the uptake of innovation and discovery madeelsewhere67.ThisisparticularlytrueforICT,whichisfrequentlyassociatedwithinnovationinotherdomains. Inall cases,weare looking todevelop ‘Smart’ InformationSystems forbusinesseswhichare differentiated from ‘Ordinary’ Information Systems in that theymust meet the following keyrequirements:

• Scalability:Dramaticincreasesinthesizeofanetworkorinthelevelofusehavealwaysbeenasource of complexity. For example, the number of actual devices connected to the Internet isexpected toclimb toover50billionby202068.Smart InformationSystemsmustbecapableofrisingtothechallengeofaccommodatingdramaticallyincreasingusage

• Interoperability: Any Smart Information System should enable mediation between differentprotocols, as well as mediation between multiple providers and devices. Smart InformationSystemsmustoperate inamanner thatshields theenduser fromtheunderlyingcomplexityofthenetwork

• Adaptability: Smart Information Systems should not be solely aimed at mitigating present-daycomplexity. Rather, such Smart Information Systems should be designed to adapt to newdevelopments in public good, commerce and communications as they occur, and be flexibleenoughtomeettherealityofaconstantlyevolvingformandfunctionality

• Availability: As critical transactions within a Smart Information Systems (such as legal, supplychain, and financial transactions) are processed across digital infrastructure, and as thatinfrastructure becomes the basis for increasingly high-value and high-volume transactions, theservicemustmaintainhighlevelsofreliabilityandavailability.However,sincedesigndecisionstoincrease availability and reliability frequently come at the expense of adaptability, thisrequirementwillgenerallyposeasignificantchallenge

• Security: The key role that Smart Information Systemsplay in coordination, control, and safetycan make them a target for individuals who have an interest in disrupting the underlyingcommunications and informationmanagement. Therefore Smart Information Systemswill needtobebuiltinamannerthatmakesthemexceptionallyresistanttophysical,logical,network,andsocialengineeringattacks

• Visibility: The intelligent collection, correlation, and interpretation of data in multiple formatsfrom multiple sources are generally at the heart of any Smart Information System. A SmartInformationSystemthereforemustbeabletoprovidevisibilityintousage,trends,andanomaliesthroughouttheentireoperatingnetworkaswellasanylargernetworkofwhichtheyareapart.

§ Barrierstoimplementingsmartinformationsystemsinmanufacturing

Challenges remain however, even in a fully connectedmanufacturing process. New and emerginguses of technology with increased reliance on electronic delivery of critical and commerciallysensitive information carry concerns around security and privacy. There is a need to increaseconsumerandbusinessconfidencethroughimprovedsolutionsforprivacyprotection,e-securityandtrustedcomputing.

Unfortunately, the linksbetweenscience, technologyandSmart InformationSystems innovation ispoorlyunderstoodinmostsectorsinAustralia.Aggravatingtheseproblemsarealarmingdeclinesinthenumberofstudentschoosingcareersinmathematicsandcomputerscience69.

Criticalissuestoaddressinclude:

• AfocusonraisingawarenessofSmart InformationSystems inthemanufacturingsectors.Oftensmallorboutiquemanufacturersarenotawareoftherangeorpotentialofinformationrichtoolsorsystems



• ProvidingassistancetoSMEstointroduceSmartInformationSystemsintotheiruniqueprocesses• FosteringlinksbetweentheNationalInnovationSystemandSMEs• DevelopingaworkforceskilledinuseofSmartInformationSystems• Addressing“ICTliteracy”withintheeducationsystemtodevelopearlystageunderstandingofthe

roleofICTwithinmanysectorsoftheeconomyincludingmanufacturing.

10. Intelligentmanufacturing:Towardstheprocessindustryofthe21stcentury

IntelligentManufacturing(IM):Towardstheprocessindustryofthe21stcentury(Steel:akeypartnerin the European low-carbon economy of tomorrow, European Steel Technology Platform, March2009.)

Fourmaintopicsareaddressed:

• The intelligentmanufacturingprogrammeofESTEPcanbothcontributetoaglobaloptimizationofenergyproductionandhighstandardsofqualitywithinthesupplychain

• Steelcanoffer“holistic”economicsolutionsnotonly forenergyefficiencybutalso forallotherareasofsustainableconstruction

• Through light-weight solutions and innovativemethods for complex components associated tosurfacetechnologies,steelcancontributeto“greencars”

• New high-performance steels and engineering can bring solutions for sustainable energyexploration,transportationandproduction(oil,gas,powergenerationandrenewables)

As all these initiatives require the creative thinking and continued dedication of researchers andskilled personnel the role of education and training towards a skill intensive industry is alsoaddressed and the document suggests future European initiatives, in particular the creation of aEuropeanhigheducationandtrainingschoolforsteelrelatedmatters.

Increasing the use of intelligent technologies inmanufacturing is one of the 3major partnershipsinitiatives in theRecovery Planof the EuropeanCommission. It is also amajor R&D themeof theESTEPplatformanditsobjectiveshaverecentlybeenupdated(roadmaptobepublished).

Whathasbeendonesofar:

Foralongtime,processR&DperformedbytheEuropeanindustrysucceededtoenhancethecontrolof each step of the very complex steel production chain. It has been done by developing newsensors,e.g.surfaceinspectiondevicesornondestructivetechniquesformeasuringbulkproperties,by modelling the numerous processes and process/product related properties, by improving thequalityofproductsandincreasingtheproductivityoftheindustrialtools,whosereliabilityhavebeenupgraded.

Itallowedahighlycompetitiveindustrytodevelop,whichistoplevelwiththeJapaneseandKoreansteelindustriesintheWorld.

Nevertheless,thesituationisstillfarfrombeingoptimal.Thepracticaloperationsarenotstateoftheartformanyreasons:lackofreliabilityofsensorsanddata,difficultiestoimplementinpracticenewsolutions, etc. The distance between R&D and practical diffusion of the innovation is alwaysunderestimated!

Moreover,thebiggestchallengeistointegrateinacoherentway,allthedevelopmentsrealizedbypeopleworkingeachintheirownfieldofexpertise.Thisglobalintegrationandoptimization,allowedbythehugedevelopmentinIT,willbethekeypointforthefuture.

Futureinitiatives

TostrengthenthelongtermcompetitivenessoftheEuropeanindustry,innovationisalsorequiredintheproductionprocessesandmanufacturingtechnologiesinordertoachievethehigheststandardsofquality, just in timedelivery atminimal costwithhighproduction through safeand sustainableprocesses.Atplant level, theobjective is toachieveglobalmodellingand integratedcontrolof theglobalproductionchainsupportedbyafullyintegratedITsystem.



For steel, Intelligent manufacturing is the progressive building of an integrated control ofmanufacturingchainsincludingalltechnologicalaspects(utilizationofsensors,processcontrolloops,IT systems, production scheduling …) with the addition of intelligence provided by modelling,advanced control, diagnostic tools, advancedmaintenance concepts, optimization and simulation,expertknowledge,artificialintelligence.

Thisconceptmainlydevelopedindiscretemanufacturingisbeingextendedtohigh-energyintensiveprocess industries. IMwill lead to theglobalcontrolof thewholeproductionchainsupporting thesustainable manufacturing deployment. High-Tech SMEs will be associated to develop newinnovativefunctions.

Moreover, the steel sector has discovered the benefit of more compact lines with very shortresponsetimesandextendedrangesofcapability.Theseshorterproductionroutes, integratingtheoperationsfromliquidstageuptofinalshapewhilstavoidingthemostoxidizingprocesses,arebeingconsideredandinvestigated(towardsscalefreeprocesses).

Beside important savings in energy and rough materials, great flexibility is needed in the wholeproductionchaintocopewiththeexpandingrangeofproductsthatwillhavetobesuppliedatlowcost. Intelligentmanufacturingtechnologyshouldcontributetodevelopingthesemoreflexibleandlowerrawmaterialandenergyconsumptionprocesses.

This IM programme is fully in line with the sub-programme Intelligent Manufacturing of theManufutureplatformand the3rdR&Dmajorpartnership initiative “factoriesof the future”of theEuropeanRecoveryPlan.

11. DIISR:AbsorbingInnovationbyAustralianenterprises:TheroleofAbsorptiveCapacityAReportpreparedforDIISRin2007containsanumberoffindings.

1. Innovation isbecoming increasingly important as adriverof competitiveness.At the same timefirms are becoming more specialized as industries move away from vertical integration towardsnetworksofproduction.Asaresultofthisspecialisation,firmsarelesslikelytoholdknowledgeandcapabilitiesrequiredforinnovationin-house,andmustincreasinglylookoutsidefornewknowledge.

2.Justasfirmsarebuildingproductionnetworks(orsystems)involvingclosecooperativelinkswithotherfirms,soalsoaretheybuildingnewinnovationsystemsinvolvingmoreexternallinks.Buildingrelationshipstoaccessdistributedknowledgeandcapabilitiesisakeyissueforfirmmanagers.Newknowledgeoftencomes from interactionsandcollaborationwithother firms,especially customersandsuppliers.Researchorganizationsareanothersourceofnewknowledge,althoughtheyinteractwithfirmslessfrequently.

3. Absorptive Capacity involves a firm's intent and ability to recognize opportunities presented bynewknowledge.Firmsneedafoundationof inhouseknowledgethatallowsthemtorecogniseandevaluatenewknowledge.Butrecognitionaloneisnotenough;itneedstobealliedwithaneffectivestrategy/capabilityforexploitation/implementation.

4. Firmsmay develop Absorptive Capacity through explicit measures, such as hiring trained staff,R&D activities or establishing strategic alliances. Absorptive Capacitymay also develop as the by-productofotherbusinessactivities, forexamplethrough learningassociatedwithproblemsolving,innovation,andcollaborationforotherpurposes.

5. Firms can more easily add to knowledge and diversify in areas in which they already have aknowledgebase.Firmsalsolearnfromotherfirmsmosteffectivelywhenthepartnersaresimilarintermsofstructure,humanresourcepoliciesandknowledgebases.Thusafirm'scapacitytoabsorbnewknowledgeevolvesover timewithina specificorganisational andknowledge context For thatreasonscientificknowledgeshouldnotbeconsideredasa'publicgood'inanysimplesense,asonlysomeindividualsandorganisationsarecapableofusingit.

6.Firmsfaceparticularchallengesinexternalknowledgeacquisitionwhere:



• they have few linkages with the firms or organisations from which they seek to acquireknowledge;

• thefieldsofknowledgeandinnovationarenewtothefirm;and• thepaceofchangeintechnologyisrapidandunpredictable.

7.ThemorefirmsfacesuchchallengesthegreatertheneedtostrengthenAbsorptiveCapacitywithpurposeful strategies and sustained investments, and often organisational and managerialinnovations,toraisethecapacitytolearnandinnovate.Itisworthnotingthatfirmswithmorehighlyqualifiedmanagerstendtoinvestmoreintrainingandestablishmoreexternallinks.

8.Knowledgethatisrelevantforinnovationincludesbothcodifiedknowledge(knowwhat)andtacitknowledge(knowhow),withtheformerbecomingrelativelymoreimportant.Mechanismsthataresuitableforacquiringoneofthesetypesofknowledgemaynotbeaseffectivefortheother.Codifiedknowledgeiseasiertotransferthantacitknowledge,whichisgenerallyembodiedinpeople.

9.ThereisasubstantialoverlapbetweentheliteratureconcernedwithAbsorptiveCapacityandthatconcerned innovation more generally. Innovation research extensively covers the issues ofidentification and assessment of new knowledge, its acquisition and integration with existingknowledge,andthedevelopmentofcapabilitiesformanagingtheseprocesseswithinfirms.

Absorptive Capacity is an important part of a firm’s innovation capabilities and hence itsdevelopmentisadimensionofinnovationmanagement.

10. Absorptive Capacity is largely situation-specific. It is a function of the relationship betweencapabilities,structures,routinesandpoliciesparticulartoafirm.ForthisreasonitisnotpossibletodevelopasetofreliablestandardindicatorsofAbsorptiveCapacity.

11.OnlyasmallproportionofSMEsaredynamic(i.e.constantlyadaptingandchanging)intermsofinnovationandgrowth.

12. Although clusters are sometimes suggested as a means of stimulating innovation in SMEs,without the capabilities to absorb anduse knowledge,membershipof a network is of little value.Thuscluster-basedinter-firmlinksdonotguaranteeknowledgeacquisition.

13.Internationally,thereisanextensiveandincreasingrangeofprogramsaimedatreducingbarriersto capability development, innovation and growth in SMEs. These initiatives are influencedby theperceptionthatSMEscanplayavitalroleininnovationsystemsbutthatsignificantmarketfailureslimittheirdevelopment.

14. There is increasing interest in evaluating these programs and in developing internationalinitiativestoshareexperienceinSMEprogramdesignandimplementation.

15.SMEstendnottoseegovernmentagenciesascredibleassistancedeliverymechanisms.

16.Our reviewof selected successful programs suggests a set of functional criteria for a programfocusedonstrengtheningAbsorptiveCapacityinSMEs:

• befocusedonthemoreinnovation-activeSMEscommittedtogrowth;• be located near to firms, be linked into local networks, and be integrated into national

informationandsupportnetworks;• have a strong emphasis on developing innovation capabilities, along with technological and

marketknowledge,butinassociationwithaspecificdevelopmentobjective,usuallylinkedtoaninnovationproject;

• havearequirementthattheSMEscontributeasignificantshareofoverall• costs;• provideaccesstoabroadspectrumofcredibleexperiencedprofessionaladvisoryservices;• facilitate the development of linkages to local, national, and international information sources,

serviceproviders,potentialbusinesspartnersandresearchorganisations;• have a broad portfolio of services (e.g., advice, finance, networking) but a flexible delivery

customisedtotheneedsoftheSME;and• delivery throughcapableexpertswhoworkwith the firmtodevelopaneffectiveandsustained

combinationofobjectiveperformanceassessmentandflexibledeliveryofservices.



Seehttp://www.innovation.gov.au/INNOVATION/REPORTSANDSTUDIES/Pages/AbsorbingInnovationbyAustralianEnterprisesTheRoleofAbsorptiveCapacity.aspx

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