SA’s ambitious advanced manufacturing strategy

By Peter Roberts

South Australia has launched an ambitious Advanced Manufacturing Strategy that aims to grow the sector’s share of the economy from six to 10 percent.

The strategy, launched by SA Deputy Premier and Minister for Industry, Innovation and Science, Dr Susan Close also aims to boost manufacturing’s share of value-added exports from 20 to 25 percent, employment from seven to eight percent of the state’s total, and expenditure on R&D by 25 percent.

Dr Close said: “We want manufacturing to drive greater productivity and complexity in our economy by moving up the value chain, exporting higher value-added goods and services to enable high living standards.”

Backed by a $122 million Economic Recovery Fund, the strategy’s missions are to capitalise on the global green transition, build SA talent and position the state as a partner of choice in an insecure world.

Round 1 will provide $20 million in co-funding grants or loans for industry development projects in Manufacturing Innovation and Regional Tourism Infrastructure Development.

A new approach to industry/public sector innovation centres and districts modelled on the UK Catapult model will be built around six National Collaborative Research and Infrastructure Strategy (NCRIS) projects backed by $25 million funding:

• National Imaging Facility
• Australian Plant Phenomics Facility
• Australian National Fabrication Facility
• Bioplatforms Australia including the Australian Wine Research Institute and the SA Health and Medical Research Institute
• Microscopy Australia
• And the Terrestrial Ecosystem Research Network.

The state has previously brough existing innovation centres together at Tonsley, Lot 14, Adelaide Biomed City, Technology Park, Edinburgh Defence Precinct and the Osborne Naval Shipyard.

“The Flinders University Factory of the Future is an excellent example of a world-class research facility involving researchers working seamlessly with BAE Systems Maritime Australia and other manufacturers to modernise and transform defence through industry 4.0 technologies.

“…Lot 14 will be home to a flagship $400 million Entrepreneur and Innovation Centre and $20 million Innovation Hub, bringing industry, research and entrepreneurs together in a purpose-designed building to drive innovation and commercialisation, focused on the defence, space and critical technologies sectors.”

Ths strategy names as the state’s most prospective industries: Defence and space, Renewable Energy and Green Hydrogen, Critical Minerals and Resources, Food and Beverage, Forestry and Timber, Building and construction and Health and medical.

The strategy outlines a sobering analysis of manufacturing’s decline in Australia, from 9.7 percent of industry gross value-added in 2011-12 to 6.3 percent today.

Manufacturing’s share of GDP today is 5.8 percent compared to the OECD average of 13 percent, and that in countries such as Finland and Germany on up to 20 percent of GDP.

“However in 2021-22 manufacturing grew strongly in South Australia at 10 percent due to higher spending on food, machinery and equipment (and) defence.

“This is the strongest recovery in 32 years and may reflect a recovery from the loss of automotive manufacturing in 2017.”

The strategy identified six growth enablers to achieve its goals:

• Increase private investment by co-ordinating government approaches
• Develop innovation districts and manufacturing precincts
• Focus on improving enterprise and management industry 4.0 capabilities – $33 million for space industry ecosystem development, $4 million manufacturing growth accelerator
• Increased spending on developing new markets – $593 million hydrogen jobs plan, $50 million for Green Iron and a Steel Taskforce
• Development of a skilled and productive workforce – $208.8 million for five new technicnical colleges, taskforce on defence workforce
• And adopt circular economy principles.

Further reading:
Canberra backs Flinders’ factory of the future

Picture: industry/sa.gov.au