Austech 2012 - take advantage of the strong Australian dollar

With the dollar now buying US$1.07, manufacturers are concerned about how much longer they can survive. Toyota’s announcement that it will shed 350 jobs has been blamed on the strong Australian dollar, which some commentators say is having a significant impact on the manufacturing industry’s capacity to remain globally competitive.

One positive aspect of the strong Australian dollar is that it means any imported machinery or office equipment is far more affordable.

“The high dollar means it’s a good time to buy an imported machine and most of the high-value, high-precision, latest-technology machines are imported,” comments Ken Richards from Interlease, one of Australia’s largest business finance broking companies. “Therefore, there’s never been a better time to buy; and while exports may be hurting, upgrading to the latest technology and automation may enable companies to reduce overheads and become more cost effective as well as offering greater precision.”

Interlease is sponsoring this year’s Innovate Showcase taking place from 8 to 11 May during Austech 2012 at Sydney Olympic Park. Exhibitors will display the latest manufacturing technology and techniques as well as typical manufactured components in their industry, providing Australian component manufacturers, precision engineering firms, toolmakers, advanced manufacturers and general engineering companies visiting the stand with a unique opportunity to network and discuss their manufacturing capabilities.

“Austech is a premier event for the manufacturing industry and in the current economic environment, making companies aware of the range of options available in the market to finance capital equipment is important,” Richards explains.

“Additionally, most incumbent banks only offer the products they prefer to offer and on the terms they want. As such, some companies may not consider implementing the latest technology as they incorrectly believe it is not cost effective or will be difficult to finance.”

Investment in intelligent manufacturing techniques and prioritising key technologies are crucial if Australia is to avoid losing its competitive edge in manufacturing, Innovate organiser AMTIL (Australian Manufacturing Technology Institute Limited) points out.

“The key to the industry’s survival depends on innovation and ensuring businesses can adapt to the ups and downs of economic change,” says AMTIL CEO Shane Infanti. “While some businesses have had to downsize, many have managed to adjust to the economic conditions by outsourcing, innovation and quality improvement, and introducing new technologies and skills.”

Some experts predict that the Australian dollar will be back in the mid-US$0.90 by the end of the year, so Australia’s exports will be more competitive and will hopefully help our manufacturers who are battling for survival.

“Until that happens,” Infanti says, “take advantage of the currency while you can and invest in new technology and machinery.”