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 Themes

• 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