Media Release
Embargoed: 10.00am Tuesday, 23rd September, 2008
STATE GOVERNMENT ANNOUNCES $4 MILLION GRANT
FOR VICTORIA’S MANUFACTURING INDUSTRY
“If Australia is to remain a viable manufacturing nation it is critical that it moves from its
current reliance on traditional manufacturing to value added, knowledge-based advanced
manufacturing,” says Brad Dunstan, VCAMM CEO
The Victorian Government today announced an initial grant of $4 million to assist Victoria’s
manufacturing industry in accessing research and development.
The grant to be paid over four years to the Victorian Centre for Advanced Materials
Manufacturing (VCAMM) will consolidate the state’s position as Australia’s leading provider of
research and development services for small to medium enterprises (SMEs) working in the
advanced manufacturing sector.
Brad Dunstan, CEO of VCAMM, says the funding will help to turn around the attitude of SMEs
from a continual cost-reduction philosophy to one of knowledge-based manufacturing, where
value-adding will cement their place in the global marketplace.
“Not only will this help to keep the ‘family farm’ in Australian hands, but its workers as well,” Mr
Dunstan said.
The grant will make it easier for SMEs to bolster their existing research and development
budgets. Under the arrangement, VCAMM could match their contribution up to dollar for dollar,
then apply to the Federal Government-funded Advanced Manufacturing Cooperative Research
Centre for an additional grant equal to the combined amount.
VCAMM’s key stakeholders – including major universities and the CSIRO – will match this with
an additional amount of in-kind R & D support. Effectively, SMEs could leverage their own
contribution by over 400%.
Mr Dunstan said the Victorian Government’s commitment was courageous and timely, and he
called on other State Governments to follow Victoria’s lead.
He said the manufacturing industry has emerged as a significant contributor to the Victorian and
Australian economies. Manufacturing exports are $87 billion and the industry employs 1.1
million people. About 30% of that activity is in Victoria
“Australia’s manufacturing industry is heavily exposed to global trade and is forced to compete
with imports and with products of other manufacturing nations in its increasingly important export
markets,” Mr Dunstan said.
“In order for the industry to survive and prosper, given the highly competitive environment it
faces, it requires a focused effort to grow exports by establishing and maintaining competitive
advantages.”
Mr Dunstan said the world’s manufacturing is centralised around China and other nations where
the cost of labour is significantly cheaper than in Australia. He believes Australia needs to
reassess its strategy and focus on areas of manufacturing that are not easily translated to these
low labour cost environments.
“The harsh facts are these: in Australia the sector’s growth is around 2 to 3 percent per annum
which is well below average for OECD countries,” he said.
“If Australia is to remain a viable manufacturing nation it is critical that it moves from its current
reliance on traditional manufacturing to value added, knowledge-based advanced
manufacturing.
“VCAMM will be pursuing emerging opportunities with Victorian manufacturers in key sectors,
including automotive, aviation, biomedical, defence and energy, connecting them to resources to
enable them to take their ideas and inventions to new markets.”
In addition to funding support, VCAMM plays an important role in mentoring companies to
ensure that their research is focused, relevant and cost-effective. It currently has more than $20
million of projects under management, which is likely to increase significantly as a result of the
grant.
Since its creation in 2002, VCAMM’s support has been directly responsible for the growth of
more than $30 million of SMEs including MicroHeat Technologies Pty. Ltd., Cytomatrix Pty. Ltd.
and HARD Technologies Pty. Ltd. The return to the Australian economy far outweighs
VCAMM’s investment.
Its funding has been responsible for the creation of more than 20 PhD scholarships at Victorian
universities, and more than 75 highly-skilled positions in industry. It has also contributed more
than $7 million towards equipment for its research providers, including Direct Metal Deposition
technology at Swinburne University of Technology, Quickstep composite process forming at
Deakin University, and a suite of advanced X-ray source and analysis equipment at La Trobe
University, Monash University and the CSIRO.
Mr Dunstan paid tribute to the Hon. Theo Theophanous, Minister for Industry and Trade, and the
Hon. Joe Helper, Minister for Small Business, and the Department of Innovation, Industry and
Regional Development.
“The Victorian Government’s support has been long-standing and critical to the success of our
advanced manufacturing industry,” he said.
Ends
Media enquiries:
Brad Dunstan, CEO
Victorian Centre for Advanced Materials Manufacturing
Tel:
0418 988 096
Email: brad.dunstan@vcamm.com.au
Michael Krape, Senior Consultant
Mann Promotions
Tel:
0403 135 880
Email: michaelkrape@krape.com.au
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