Do you remember the promised ‘Manufacturing Hub’ for Rockhampton? “The hubs will assist businesses be more productive and achieve best-practice standards”. It was a state election promise made last year. $30M for Manufacturing Hubs in Cairns, Townsville and Rockhampton. I was excited with this promise, last year writing that the hub would be focussed on adopting and utilising new manufacturing technology and processes; cultivating an advanced manufacturing ecosystem. An ecosystem that sends a strong signal that Rockhampton is at the forefront of innovation in manufacturing. A game-changer for the region.
Surprise, we didn’t hear much about it in the recent CQ coal royalty boosted state budget. Not because it wasn’t included, though you be hard pressed to find a mention of it in the State Government produced ‘Delivering for Central Queensland’ document, but I believe the $30M is to be spread over 4 years to establish the hubs. Assuming equal distribution between the 3 centres and 4 years, Rockhampton could be looking at $2.5M allocation towards its manufacturing hub next financial year to ‘drive’ its economy. Loose change compared to Brisbane’s Cross-River Rail link project.
‘Be patient, good things come to those who wait’. Really; was it a politician that said that?
If manufacturing in Australia is dying because of high costs is a manufacturing hub even a necessity for Rockhampton? Australian manufacturing is actually making a comeback. Ai Group’s Australian Performance of Manufacturing Index May 2018 report indicated 20 consecutive months of growth. Australian manufacturing is even making more money from exports than it did 10 years ago. How can an industry that doesn’t have a local car manufacturer be making a comeback? Diversification, innovation, disruption, R&D, quality reputation and export focus are some of the reasons. Are local manufacturing managers able to master all these skills? Are these the type of skills that could be gained from a manufacturing hub created to achieve best practice standards? If we remain patient it might. Trouble is innovation doesn’t wait for anyone, including Governments. Governments can add to debt and play catch up, but SME’s can’t. What was promised to help our manufacturing businesses be more productive, achieve best-practice standards and create more jobs is a necessity right now.
Let’s assume that $2.5M does actually get spent next financial year in Rockhampton towards a manufacturing hub. Instead of using that for consultant fees, committee expenses and buying some land, could the money be used to host a Manufacturing Expo. A showcase of manufacturing innovation. An opportunity to network, educate and collaborate. Hold it at and in-conjunction with the CQUniversity. The expo could provide further impetus for local manufacturing business managers, workers, clients and university staff to grow an informal hub to share ideas, experiences, access expertise to help grow the local manufacturing industry and create more skilled well-paid jobs. This informal hub could arguably give a better idea of the focus a physical manufacturing hub should have to provide our community better outcomes. Rather than what some southern bureaucrats and consultants come up with, when more of the promised money does eventually finds its way here.
“Manufacturing hubs will support the building of knowledge capital throughout the supply chain, skilling of workers, match appropriately-skilled workers to jobs, and help employers grow their manufacturing business in areas of comparative advantage. Employers will be helped to transition employees into new manufacturing jobs. Manufacturing hubs will be developed in consultation with local businesses, industry, unions and universities. The hubs will assist businesses be more productive and achieve best-practice standards. They will also jobmatch unemployed workers and support businesses”.
It is surprising that an election promise that claims to offer so much is less than 9 months later so modestly mentioned.