5 years ago
DDRESS TO THE 2019 NATIONAL MANUFACTURING SUMMIT
BRENDAN O’CONNOR MP
Good morning, firstly I would like to acknowledge the traditional owners on whose land we meet today. I pay my respects to their elders past, present and emerging.
Thank you for inviting me to come and speak with you today on the importance of manufacturing in this country and the importance of having a world class vocational education system.
The role that both of these will play will ensure that we as a country are equipped to seize the opportunities that manufacturing brings.
And can I say, what a place to host the summit. The Synchrotron is the future of manufacturing – a place of research, innovation, development, potential.
We live in by far and away, from any historical distance you care to choose, in the most remarkable era of human innovation and technological advance humans have hitherto experienced.
And while this is an exciting time, the impacts of technological change on work, life and society brings with it, along with a great deal of excitement, its fair share of anxieties.
But, it’s the responsibility of government to make sure that those profound impacts benefit businesses and workers across the economy.
We need to learn from history!
Just think for a moment about the impact struggling industries have on Australian communities in both the cities and the regions.
Thank you for inviting me to come and speak with you today on the importance of manufacturing in this country and the importance of having a world class vocational education system.
The role that both of these will play will ensure that we as a country are equipped to seize the opportunities that manufacturing brings.
And can I say, what a place to host the summit. The Synchrotron is the future of manufacturing – a place of research, innovation, development, potential.
We live in by far and away, from any historical distance you care to choose, in the most remarkable era of human innovation and technological advance humans have hitherto experienced.
And while this is an exciting time, the impacts of technological change on work, life and society brings with it, along with a great deal of excitement, its fair share of anxieties.
But, it’s the responsibility of government to make sure that those profound impacts benefit businesses and workers across the economy.
We need to learn from history!
Just think for a moment about the impact struggling industries have on Australian communities in both the cities and the regions.
- The closure of Holden in South Australia.
- In this state alone, the closure of the Ford factory in Geelong, Toyota in Altona.
- As recently as this year, manufacturer Dow Chemical’s plant in Melbourne’s West decided to shut its doors, citing rising gas prices as a significant deciding factor. And the Bega cheese factory at Coburg closed as well.
The impact on suburbs, towns and regions is severe, often devastating.
Australia’s manufacturers are facing challenges, but what they need is a government willing to back them. Not one that says we can’t afford a manufacturing industry.
As the new Shadow Minister for Industry, Science and Employment, I want Australia to be a successful advanced manufacturing nation.
Advanced manufacturing has a future in Australia, but it needs a strong partnership with Government to hold its place in the global economy and to attract investment.
As my predecessor Senator Kim Carr, who has a longstanding and strong relationship with the manufacturing industry was right to assert: without a strong manufacturing sector, we won’t be a technologically-advanced society.
At a time where the future of manufacturing is at the forefront of Australia’s consciousness, I am eager to work with industry to advance the debate on how to best prepare ourselves for the challenges that lay ahead.
We are on the cusp of a new industrial revolution, Industry 4.0. We have an obligation to understand the role of manufacturing as we transition to this new era, to support and grow innovative and successful businesses.
And Labor has always supported our manufacturing firms.
I don’t want to be overly partisan, but at a time of great challenges for the global manufacturing industry, the current Government could have saved our car-making companies, but goading the major car manufacturers to leave our shores was a grave mistake.
I believe that if we invest in advanced manufacturing, Australia can be the best in the world.
The outlook for the industry as defined by the current statistics is a mixed report card. For example:
There were 906,000 people employed in manufacturing in the May quarter 2019, down from 951,900 in the May quarter 2017, and
From 2017 to 2018 employment fell in 7 of the 15 subdivisions that make up Australian manufacturing, but
The other sub industries recorded an expansion.
The wage price index for the manufacturing industry is subdued, increasing by just 2.1 per cent in the March quarter, but
The wages outlook is stronger when compared to the wage price index for all private industries, which grew 1.9 per cent over the year to June 2018.
Since recording of the wage price index first commenced, wages have grown at an annual average rate of 3.1 per cent for the manufacturing industry, which was equal to the growth of wages for all private sector industries over the same period.
Manufacturing business expenditure on research and development (BERD) fell 19.3 percent to $3.91 billion in 2015 but it still accounted for almost a quarter of the nation’s expenditure in R&D, the largest of any sector.
You get the picture. There’s plenty of life in manufacturing. Plenty of potential.
There is no doubt in my mind that a strong, diverse and agile manufacturing sector is critical to Australia’s future.
SKILLS DEVELOPMENT AND EDUCATION
To ensure this is the case, we need to address the skills crisis facing this country, by developing an appropriately skilled workforce to drive us into the new era of manufacturing.
Manufacturing plays a critical role in innovation and we must identify the capabilities and roles the industry plays as well as build and innovate for the future.
As I mentioned previously, we are transitioning to a new era of Industry 4.0. The underpinning factor that determined the success of the three previous industrial revolutions was a workforce that was able to adapt and improve on their current work practices. This is even more critical this time around.
While the skills required to run a mechanical loom or a cotton gin are vastly different from the skills required to write the code that allows a fridge to order milk when you are running low, they are still skills that need to be and can be developed.
So how do we ensure that our manufacturers and indeed all industries have access to a workforce that will allow us to not only use technology to lift productivity in existing industries, but to create new industries that help secure our future prosperity?
As a country we must choose to build a nation rich in educational, training and employment opportunities, with a broad based engine of economic growth.
The recent “Australian National Outlook” released by the CSIRO identified 5 “Key Shifts” as part of its 2060 Outlook vision of an inclusive, resilient and prosperous economy, including an industry shift.
One of the key components of the Industry Shift identified in the report is “to invest in skills to ensure a globally competitive workforce that is prepared for technology-enabled jobs of the future.”
One of the biggest barriers to learning is the effect of the “social gradient”- that is, people from a lower socio-economic background experience lower health, education and economic participation than those from a higher socio-economic background.
Tackling inequality is not just some egalitarian objective. Levelling out the social gradient should be an urgent priority for any government. It is an economic imperative.
We live in an age where the necessity for lifelong learning is overwhelming. That distinguishes our age from all which have preceded us.
Industry, together with government must ensure that our people are best equipped to engage in the jobs of the future.
I am sure it doesn’t come as a great shock to anyone in this room when I say that TAFE and what has been described as a “crumbling” VET system needs reform.
At a time when it is universally accepted that vocational education is the key to setting up people for the jobs of the future, we see a VET system that is in decline.
Six years of funding cuts to education, skills and training has resulted in there being more than 150,000 fewer apprentices and trainees now than when the current Government was first elected.
Governments and industry will need to consult and collaborate intensively to secure our place in the world when it comes to advanced manufacturing. The rapid advances in manufacturing mean we need to act quickly before the divide between countries that embrace investing in skills and those that don’t becomes too great and Australia gets left behind.
Labor took a suite of policies to the election earlier this year that reflects our commitment to supporting and growing our manufacturing industry, including a $1 billion Advance Manufacturing Future Fund.
While individual policies will be revisited and reworked in consultation with industry, the overriding commitment that Labor made to increase investment in research and development, and also to seriously invest in TAFE, remains a commitment. As a nation we must do more than just aim for this, we must realise it.
By investing in R & D, government provides the resources for universities and research institutions to produce results that inspire innovation, private investment and further research and development. Strong investment in R&D allows all Australians to share in the benefits of new industries, new products, good jobs and a higher standard of living.
Manufacturing is a significant employer of researchers, however under the current government spending in R&D has fallen significantly. This is a trend that must be reversed if we are to take our place as world leaders in advanced manufacturing, be it in electronics, wine, food, defence, steel production and fabrication and more.
Lifting skills to ensure the workforce is prepared for the jobs of the future is crucial to future employment security and better wages. It requires bipartisanship and collaboration, none of which can be achieved without leadership, a plan, and vision from the current Government.
We know we face a number of challenges, but Labor is up for it and I look forward to working with you to help us realise this ambition to secure Australia’s manufacturing future.
ENDS
Australia’s manufacturers are facing challenges, but what they need is a government willing to back them. Not one that says we can’t afford a manufacturing industry.
As the new Shadow Minister for Industry, Science and Employment, I want Australia to be a successful advanced manufacturing nation.
Advanced manufacturing has a future in Australia, but it needs a strong partnership with Government to hold its place in the global economy and to attract investment.
As my predecessor Senator Kim Carr, who has a longstanding and strong relationship with the manufacturing industry was right to assert: without a strong manufacturing sector, we won’t be a technologically-advanced society.
At a time where the future of manufacturing is at the forefront of Australia’s consciousness, I am eager to work with industry to advance the debate on how to best prepare ourselves for the challenges that lay ahead.
We are on the cusp of a new industrial revolution, Industry 4.0. We have an obligation to understand the role of manufacturing as we transition to this new era, to support and grow innovative and successful businesses.
And Labor has always supported our manufacturing firms.
I don’t want to be overly partisan, but at a time of great challenges for the global manufacturing industry, the current Government could have saved our car-making companies, but goading the major car manufacturers to leave our shores was a grave mistake.
I believe that if we invest in advanced manufacturing, Australia can be the best in the world.
The outlook for the industry as defined by the current statistics is a mixed report card. For example:
There were 906,000 people employed in manufacturing in the May quarter 2019, down from 951,900 in the May quarter 2017, and
From 2017 to 2018 employment fell in 7 of the 15 subdivisions that make up Australian manufacturing, but
The other sub industries recorded an expansion.
The wage price index for the manufacturing industry is subdued, increasing by just 2.1 per cent in the March quarter, but
The wages outlook is stronger when compared to the wage price index for all private industries, which grew 1.9 per cent over the year to June 2018.
Since recording of the wage price index first commenced, wages have grown at an annual average rate of 3.1 per cent for the manufacturing industry, which was equal to the growth of wages for all private sector industries over the same period.
Manufacturing business expenditure on research and development (BERD) fell 19.3 percent to $3.91 billion in 2015 but it still accounted for almost a quarter of the nation’s expenditure in R&D, the largest of any sector.
You get the picture. There’s plenty of life in manufacturing. Plenty of potential.
There is no doubt in my mind that a strong, diverse and agile manufacturing sector is critical to Australia’s future.
SKILLS DEVELOPMENT AND EDUCATION
To ensure this is the case, we need to address the skills crisis facing this country, by developing an appropriately skilled workforce to drive us into the new era of manufacturing.
Manufacturing plays a critical role in innovation and we must identify the capabilities and roles the industry plays as well as build and innovate for the future.
As I mentioned previously, we are transitioning to a new era of Industry 4.0. The underpinning factor that determined the success of the three previous industrial revolutions was a workforce that was able to adapt and improve on their current work practices. This is even more critical this time around.
While the skills required to run a mechanical loom or a cotton gin are vastly different from the skills required to write the code that allows a fridge to order milk when you are running low, they are still skills that need to be and can be developed.
So how do we ensure that our manufacturers and indeed all industries have access to a workforce that will allow us to not only use technology to lift productivity in existing industries, but to create new industries that help secure our future prosperity?
As a country we must choose to build a nation rich in educational, training and employment opportunities, with a broad based engine of economic growth.
The recent “Australian National Outlook” released by the CSIRO identified 5 “Key Shifts” as part of its 2060 Outlook vision of an inclusive, resilient and prosperous economy, including an industry shift.
One of the key components of the Industry Shift identified in the report is “to invest in skills to ensure a globally competitive workforce that is prepared for technology-enabled jobs of the future.”
One of the biggest barriers to learning is the effect of the “social gradient”- that is, people from a lower socio-economic background experience lower health, education and economic participation than those from a higher socio-economic background.
Tackling inequality is not just some egalitarian objective. Levelling out the social gradient should be an urgent priority for any government. It is an economic imperative.
We live in an age where the necessity for lifelong learning is overwhelming. That distinguishes our age from all which have preceded us.
Industry, together with government must ensure that our people are best equipped to engage in the jobs of the future.
I am sure it doesn’t come as a great shock to anyone in this room when I say that TAFE and what has been described as a “crumbling” VET system needs reform.
At a time when it is universally accepted that vocational education is the key to setting up people for the jobs of the future, we see a VET system that is in decline.
Six years of funding cuts to education, skills and training has resulted in there being more than 150,000 fewer apprentices and trainees now than when the current Government was first elected.
Governments and industry will need to consult and collaborate intensively to secure our place in the world when it comes to advanced manufacturing. The rapid advances in manufacturing mean we need to act quickly before the divide between countries that embrace investing in skills and those that don’t becomes too great and Australia gets left behind.
Labor took a suite of policies to the election earlier this year that reflects our commitment to supporting and growing our manufacturing industry, including a $1 billion Advance Manufacturing Future Fund.
While individual policies will be revisited and reworked in consultation with industry, the overriding commitment that Labor made to increase investment in research and development, and also to seriously invest in TAFE, remains a commitment. As a nation we must do more than just aim for this, we must realise it.
By investing in R & D, government provides the resources for universities and research institutions to produce results that inspire innovation, private investment and further research and development. Strong investment in R&D allows all Australians to share in the benefits of new industries, new products, good jobs and a higher standard of living.
Manufacturing is a significant employer of researchers, however under the current government spending in R&D has fallen significantly. This is a trend that must be reversed if we are to take our place as world leaders in advanced manufacturing, be it in electronics, wine, food, defence, steel production and fabrication and more.
Lifting skills to ensure the workforce is prepared for the jobs of the future is crucial to future employment security and better wages. It requires bipartisanship and collaboration, none of which can be achieved without leadership, a plan, and vision from the current Government.
We know we face a number of challenges, but Labor is up for it and I look forward to working with you to help us realise this ambition to secure Australia’s manufacturing future.
ENDS