Presentation is loading. Please wait.

Presentation is loading. Please wait.

VICTORIAN GOVERNMENT’S TRAINS, TRAMS AND JOBS FORUM Stuart Thomson CEO – Rail Manufacturing CRC.

Similar presentations


Presentation on theme: "VICTORIAN GOVERNMENT’S TRAINS, TRAMS AND JOBS FORUM Stuart Thomson CEO – Rail Manufacturing CRC."— Presentation transcript:

1 VICTORIAN GOVERNMENT’S TRAINS, TRAMS AND JOBS FORUM Stuart Thomson CEO – Rail Manufacturing CRC

2  Rail manufacturing in Australia has low levels of innovation compared to other sectors and other countries  Less than 1% of those working in rail have R&D or science expertise [ACIL Tasman Railway Industry report 2011]  Many rail businesses lack dedicated R&D resources in-house to help bring innovation to business  The OECD Science, Technology and Industry Scoreboard 2013 found that Australian businesses ranked the lowest in the OECD for collaboration on innovation with public research institutions: WHAT’S THE PROBLEM?

3  Innovation is the key to production efficiency and wealth creation  Innovative Australian businesses that collaborate are:  23 per cent more likely to report increased productivity  24 per cent more likely to report increased profitability  24 per cent more likely to employ more people [Australian Innovation System Report 2015]  Status quo is not an option - manufacturing is rapidly changing – new technology, new materials, robotics and automation  Globalisation: a threat – AND – an opportunity WHY BOTHER WITH INNOVATION ?

4  A viable rail industry needs both strategic public policy & funding – AND – business management with long term vision and commitment to R&D;  Need a solid pipeline of projects (“volume”) to help drive quality:  Procurement of rolling stock by State Governments – including Victoria’s High Capacity Metro Train order of 65 x 7 carriage sets  Renaissance in light rail projects – Gold Coast, Sydney, Canberra, Newcastle Need for harmonisation/standardisation to maximise scale and volume of production: Define and catalogue national industry standards Coordinate a national body to oversee the definition and enforcement of future national rail standards. Provide funding to support standardisation within the industry. HOW DO WE MAKE INNOVATION A PRIORITY ? Funding and support for more R&D projects is already out there – business must take up the opportunities

5 OPPORTUNITIES FOR RAIL Tier 1 Tier 2 Tier 3 Tier 1 Tier 2 Tier 3 Rail Manufacturing : ca. 88 % of revenue = Tier 1: ca. 90% of total businesses exist in Tier 3 Opportunities: Golden era = constant demand Prime opportunity for local companies to invest in the future via innovation

6  Rail has a high level of government assistance – including 5% tariff  Australian Government helps businesses innovate through CRCs program, R&D tax concession, other industry assistance & grants – www.business.gov.auwww.business.gov.au  Innovation is Australian Government priority:  Industry Growth Centre into Advanced Manufacturing – www.amgc.org.auwww.amgc.org.au  National Innovation & Science Agenda – $1.1 billion for more programs & funding for collaboration between research & industry – www.innovation.gov.au www.innovation.gov.au  RM-CRC has an important – but limited mandate: to co-fund research projects to help develop the new technology needed by rail businesses;  In Victoria, 50% local content requirement for procurement of rolling stock + $2 billion in 2015-16 State Budget for train and tram building and maintenance – gives industry confidence;  Victoria’s “Future Industries Transport Technologies Strategy” – a strategic industry policy – backed by $200 million Future Industries Fund. ENABLERS: GOVERNMENT SUPPORTS INDUSTRY & INNOVATION

7 WHAT ARE THE BARRIERS ? RM-CRC has been working intensively with rail businesses and leading researchers to identify co-funded innovation projects  Gap in priorities and culture between business and research organisations  Different time frames – research projects can take years: business wants a commercialised product quickly  Lack of understanding in management about benefits of innovation and investment in R&D  Lack of R&D experts within rail businesses to liaise with  Researchers often can’t articulate the industry benefit or commercial product to be gained from their research.


Download ppt "VICTORIAN GOVERNMENT’S TRAINS, TRAMS AND JOBS FORUM Stuart Thomson CEO – Rail Manufacturing CRC."

Similar presentations


Ads by Google