Engineering Opportunities

An Expert's View about Building Products and Construction in Australia

Last updated: 22 Feb 2011

Australia is known for its strengths in design, reliability, logistics infrastructure, skilled workforce, productive business culture, innovative systems, sophisticated IP protection and world class R&D capabilities.

Sector briefing Advanced Engineering Opportunities in Australia Why Australia? Australia has a proud record of originality in advanced engineering. It is the country that gave birth to the ultrasound scanner, the black box flight recorder and the Bionic ear. Part of this success is due to cross-fertilisation between R&D institutions and the manufacturing sector. They help to commercialise technologies in specialist fields such as advanced composite structures or automotive technologies. As a result, manufacturing currently attracts more than $3.9 billion annually in R&D, or 39 per cent of all business expenditure on R&D. Today, advanced manufacturing accounts for ?Today, advanced around half of Australia?s A$104 billion manufacturing accounts for annual manufacturing output and is one of around half of Australia?s the fastest growing export sectors. A$104 billion annual Find general information on the Australian manufacturing output and is market conditions on UKTI?s website. The one of the fastest growing Doing Business Guide for Australia gives an export sectors.? overview of Australia?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia Australian manufacturing reached A$60 Opportunities 1 billion . Australia is known for its strengths in design, Some industry sectors have attracted particular reliability, logistics infrastructure, skilled attention among overseas high-technology workforce, productive business culture, companies. These include: Boeing and BAE innovative systems, sophisticated IP protection Systems for specialist aerospace components; and world class R&D capabilities. Ford, General Motors, and Toyota in the automotive sector; BASF and DuPont in the Further more improved market conditions are chemicals industry; and Siemens in energy and ahead for the Engineering sector due to the water treatment technology. escalation of recently commenced projects. With an economy transforming due to major Competitive strengths and opportunities exist infrastructure programs now starting to flow, in areas such as synthetic resins, speciality big contracting and engineering firms are firing chemicals, moulded plastics, pigments, in tenders for a piece of the multi-billion dollar coatings, packaging, advanced polymers. action. For small companies this is a chance to work with the big guys and strengthen the Bulk Handling market bottom line. The bulk handing industry covers a wide range Engineering construction levels are expected of companies usually involved in processing a to be maintained by continuing strong demand variety of primary goods. for commodities from developing countries, in particular China and to a lesser extent India. Australia has a heavy dependence on bulk This not only means that additional solids handling operations. While these engineering construction will be needed to operations range across the broad spectrum of expand mining capabilities, but also that the bulk handling field, a major emphasis is on additional port and rail capacity will be the storage, handling and transportation of required to export commodities. The proposed coal, mineral ores and agricultural products, introduction of the Government's Emissions notably grain, in large tonnages. Export Trading Scheme will also create engineering earnings from minerals and agriculture are opportunities as companies implement more very substantial, with those from minerals energy efficient technology. These factors are approximating 50% and agriculture 30%. expected to cause private engineering construction work to expand rapidly over the next 5 to 10 years. Heavy Industry and other non-building construction Today, advanced manufacturing accounts for around half of Australia?s A$104 This sector plays a vital role in the Australian billion annual manufacturing output economy. It provides the foundation on which and is one of the fastest growing export other economic activity takes place. It is sectors. important to recognise that the future economy is, literally, built on the products of the heavy Advanced Materials engineering and infrastructure sector. Australia has a record as an innovator and This industry is mainly engaged in the developer of advanced materials, and has construction of engineering projects or substantial infrastructure in this area. These infrastructure such as: railways, dams, materials can be used to develop new irrigation systems, harbour or river works, components for existing or entirely new water or gas supply systems, oil refineries consumer goods, for the construction and (except buildings), pipelines, and in the on-site packaging industries, for the aerospace assembly of boilers, furnaces or heavy industry and for military applications. electrical machinery from prefabricated Advanced manufacturing has become a prime avenue for inward investment. In 2006, the value of Foreign Direct Investment in 1 Australian Bureau of Statistics, Cat. No. 5352.0, International Investment Position, Table 21a UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia components, or in the general repair of such submission to the Review, Ford Australia noted structures, machinery or equipment that Australia is one of only 15 countries that can take a car from concept all the way to full The mining industry generates around 10% to production. 15% of industry activity and approximately one-quarter of the demand for private sector Aero contractors. Engineering construction work on Australia?s aerospace industry employs more mining projects ranges from initial mine and than 20,000 highly skilled people and offers dam construction, removal of overburden, world-class capabilities and innovative design and installation of plant and equipment, technologies at competitive prices. A recent transport systems and the construction of KPMG study found Australia had the second mineral processing facilities.. lowest costs in aircraft parts manufacturing of 11 countries, and significantly lower than the Funding comes mainly from the State US, UK, Japan and France. governments which hold responsibility for the delivery of essential services and public Australia?s reputation for quality in high infrastructure. technology applications has drawn many of the world?s leading aerospace companies including: Automated equipment for manufacture Boeing, BAE Systems, EADS, Smiths, GKN, Northrop Grumman, Thales and Saab; a Australia?s broad and diversified manufacturing number of specialist SMEs and most major industry is served by a large range of airlines specialised automation and robotics system suppliers able to deliver innovative and MOTORS, GENERATORS AND OTHER efficient automation solutions for any ELECTRICAL EQUIPMENT processing, manufacturing, handling, assembly MANUFACTURING or packaging requirements. This industry is mainly engaged in Multi-disciplinary engineering teams, with manufacturing electric motors, generators, expertise in software design and robotics electricity transmission or distribution applications, enable development of integrated equipment, switchgear, transformers or other advanced automation systems with proven electrical machinery, equipment, supplies or manufacturing technologies and processes. components. This class also includes units mainly engaged in manufacturing powder, Engineering Services and R&D paste or crystal soldering or welding flux. The expertise of Australian firms in design for Precision Engineering manufacture ensures that manufacturers and suppliers can develop world-class products with The precision engineering and automation increasingly sophisticated technology. A industry forms the backbone of the number of global firms, including GM Holden, manufacturing sector, providing the machines, Schefenacher and Robert Bosch have tools and equipment needed to produce all established R&D facilities in Australia to serve manufactured goods. The industry covers their international networks. tooling, machine tools, cutting tools and precision components. Automotive The Australian automotive industry The Australian precision engineering industry is encompasses a wide range of activities a clean, high-technology industry with vertical including vehicle production, component and horizontal networks among professional production, tooling and design and subcontractors and suppliers. Through engineering. It is an important part of the collaboration and networking between Australian economy, employing over 64,000 specialist firms and partnerships with research people and accounting for almost 6 percent of establishments, precision engineering manufacturing employment. Value added to companies create innovative and technically the sector totals more than $5.6 billion, advanced solutions, and new technologies to representing 5.6 percent of the manufacturing meet emerging demands. sector?s industry value added and 0.6 percent of gross domestic product (GDP). In its UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia Tooling Australian precision machine tool builders have developed globally competitive solutions for many specialised and niche production processes. Among these companies, a number are recognised as international industry leaders in their specific fields. The industry also comprises a broad, strong capability in special purpose machine design and construction and the integration and tooling of CNC machinery and other standard equipment to provide turnkey production systems. If you have any questions on the opportunities above, contact the UKTI Australia advanced engineering contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to advanced engineering business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia Major events and activities UKTI contacts The 5th Annual Australian Bulk Handling Leah Gartner Awards 2010 Trade & Investment Manager Contact: Contact here British Consulate-General Sydney Email: Tel: (0061) 0448 9332 73 Web: Email: Time: November 2010 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Australian market business in the Australian market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Australia, with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Australian market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Advanced Engineering opportunities in Australia
Posted: 20 January 2011, last updated 22 February 2011

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Engineering Opportunities   By UK Trade & Investment