Manufacturing Development Opportunities for the North Launceston 26 August 2015.

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Presentation transcript:

Manufacturing Development Opportunities for the North Launceston 26 August 2015

What is HunterNet? Established in 1992 as a not for profit Co-Operative. Network of over 200 Manufacturing, Engineering and Specialist Service Companies (75,000 + FTE’s). Active in positioning SME’s into Infrastructure & Asset Management, Energy & Resources, Defence, & Advanced Manufacturing supply chains. Providing support services in areas including: Business development Business systems and processes WHS & Training Marketing & Communications Innovation Business Improvement Subsidiary Group Training Company Employing Apprentices & Trainees

Current Economic Climate The economic downturn has hit the Hunter Region Hard Over 8,000 jobs lost in the manufacturing sector alone (source : HRF) Over 4,000 jobs lost in the regions mining sector (source : Australian Mining May 2015 Edition) Multiplier effect has exacerbated these losses throughout supporting industries & service companies Hunter Unemployment currently at 6.7% and participation rate has fallen to 61.7% (source : HRF) During 2014/15 over 20 HunterNet member companies ‘shut the gates’ HNGTC apprentices & trainees have fallen by 70%.

What Created the Perfect Storm? High Australian Dollar/Falling Commodity Prices Productivity and efficiency challenges Globalisation Price competition from lower labour cost countries Insufficient investment in diversification and Innovation Not surprisingly HunterNet faced similar challenges to Tasmania – Shifts in industrial activities/technologies/markets/funding sources/skills requirements/political climate. Resources Sector - No one thought the party would stop!

How Did We Respond? Diversified revenue streams/funding Revised industry sectors of focus Increased the value-add to member companies Improved member company satisfaction Strategic Projects of National Significance Supply Chain Engagement Diversified HNGTC offerings = STRATEGIC GROWTH

We Used to Look like This …..

Now We look like this ….

Discussion Points – HunterNet Responses to Common The mes Skills – Support Platforms/HNGTC Business Planning & Development – Strategic Planning Framework/BVG Knowledge & Market Intelligence – Opportunity Pipelines Promotion of Industry Capability – member capability databases and focussed promotion/positioning Dependencies on Key Customers – Diversification driven by strategic projects (eg. ABE), Introduce primes into the equation! Collaboration – Supply Chain Participation Projects/Joint Tendering Innovation – Smart Specialisation