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Manufacturing – Analysis and Comment
The Productivity Commission will today release the preliminary report of its inquiry into Australian automotive manufacturing industries, ensuring the future of car manufacturing in Australia continues…
The Abbott government has made its first move to assist the regions affected by Holden’s planned closure. A high-profile taskforce, to be led by prime minister Tony Abbott and include two other federal…
Now that Ford and Holden have announced the 2017 closure of their Australian manufacturing and assembly operations, what are the prospects for the industry and its key remaining participant, Toyota? Unlike…
For many decades, Australians have regarded a local car industry as a demonstration of our domestic capability. Sometimes, we have paid dearly for our enthusiasm. In the late 1970s, import quotas limited…
General Motors has confirmed it will cease manufacturing in Australia from 2017, citing a “perfect storm of negative influences”. GM chairman Dan Akerson said these forces include “the sustained strength…
“Building cars in Australia is just not sustainable.” That was GM Holden managing director Mike Devereux, announcing the closure of Holden. Ominous words for Toyota as well. Toyota responded that Holden’s…
General Motors Holden has confirmed speculation it will withdraw from car production in Australia by the end of 2017. The announcement by Holden comes after days of sustained public speculation and calls…
The idea of further government support for the ailing automotive industry (AKA the Holden problem) generates considerable political and economic debate. For economists and business academics, it comes…
The controversy over the BAE Systems decision on warship building has been dominated by myth, emotion and pleading. Arguments are raging about English versus Scottish jobs, about shipbuilding as a key…
In 1977, George Lucas’ Star Wars introduced us to R2-D2, an intelligent bot that embodied modern assistive robotics: he could anticipate needs and perform a number of tasks with minimal instruction. Almost…
It’s not easy being a small business in the current manufacturing environment. The face of manufacturing is changing, and businesses are eager for technological advances that could give them a competitive…
In both the US and UK, policymakers have been excited to see a small but significant increase in manufacturing activity and exports. While growth in manufacturing jobs has been sporadic, the creation of…
3D printing stocks jumped early this week following analyst Kenneth Wong’s assertion that the market could triple in the next five years. But why the sudden attention? The possible economic impact of 3D…
Volkswagen Brasil has announced its plan to terminate production of its iconic Type 2 bus, better known to many as the Kombi van. Boasting the longest commercial production line of any vehicle since manufacture…
Australia’s ailing car manufacturing industry will receive a A$200m funding boost. And all cars in Commonwealth fleets will have to be Australian-made. The policy was announced today by Kim Carr, Minister…
“By international standards our support [of the automotive industry] is modest, so we have to work hard to attract the new investment.” – Industry minister Senator Kim Carr, Lateline, 22 July. The idea…
The decision to terminate the statutory formula method under the fringe benefits tax regime will have significant ramifications on the car industry, the local car manufacturing industry and employment…
With the Rudd government announcing a faster conversion to a market-driven carbon price, it should be time to review the assistance provided to emissions-intensive, trade-exposed industries such as raw…
“Under this [Labor] government we’ve seen one manufacturing job lost every 19 minutes.” - Opposition industry spokeswoman Sophie Mirabella, Q&A, 1 July. The Conversation contacted Mirabella’s office…
Australia is facing increasingly stiff competition from developed economies all vying for a share of the growth pie in the East and South Asian region, where Australia has integrated its value chain activities…
It is not the first time in Australia’s economic history that a prevalent sector reaches its peak and gives way to a rapidly developing new one. However, while the mining and education sectors have apparently…
Manufacturers across the world rely on economies from the scale of production to drive down unit cost. This “mass production” approach, focused on efficiency and uniformity of product, is feasible when…
There will be a lot of debate as to why Ford now finds itself in the situation it is in. Ford CEO, Robert Graziano, cited economies of scale as the primary factor that made continuing to produce cars in…
“You’ll never see Japanese cars in an RSL car park.” That was Bill Bourke, Ford Australia’s sales supremo of the ’60s. Bourke was wrong. Dead wrong. In 2016, Ford will cease manufacturing in Australia…