1. Professor Roy Green, Prime Minister’s Manufacturing Taskforce Public Forum 31 August 2012 Radford Auditorium, Art Gallery of South Australia Smarter Manufacturing for a Smarter Australia

2. SMARTER MANUFACTURING FOR A SMARTER AUSTRALIA Roy Green UTS Business School Prime Minister’s Manufacturing Taskforce

4. WHY MANUFACTURING  Technological change and innovation  External trade and current account  High skill, high productivity jobs

5. Manufacturing employment by state, May 2012 Total manufacturing employment (persons) Manufacturing share of total state/territory employment State/territory share of total manufacturing employment New South Wales272.07.528.5 Victoria311.810.732.7 Queensland170.97.317.9 South Australia74.79.17.8 Western Australia101.87.910.7 Tasmania15.26.41.6 Northern Territory3.02.50.3 Australian Capital Territory3.91.90.4 Australia953.38.3100.0 Source: ABS Cat. No. 6291.0.55.003

6. Contributions to Average Incomes Growth Source: Treasury

7. Australia’s labour productivity growth is below OECD 24 average

8. Labour Productivity Growth: OECD vs Australia 1960s 1970s1980s1990s OECD 24 Average Australia Source: The Conference Board Total Economy Database and Treasury.

9. Labour Productivity Growth: OECD vs Australia 1960s 1970s1980s1990s2000s OECD 24 Average Australia Source: The Conference Board Total Economy Database and Treasury.

10. Australia’s multifactor productivity (MFP) growth is negative

11. Multifactor Productivity (MFP) Growth Source: The Conference Board Total Economy Database and Treasury. Germany Australia UK USA Italy Canada France Japan 1990s

13. UNIT LABOUR COST COMPARISONS COUNTRY CPI % CHANGE Average Annual % Change 2000-2009 MANUFACTURING HOURLY LABOUR PRODUCTIVITY Average Annual % Change 2000-2010 UNIT LABOUR COST Average Annual % Change 2000-2010 UNITED STATES2.50%5.18%-1.41% SWEDEN3.00%4.42%-1.01% FINLAND1.82%4.54%-0.99% GERMANY1.60%1.82%0.23% CANADA2.00%0.891.63% AUSTRALIA3.00%1.93%2.48% Source: US Bureau of Labor Statistics: Employers Total Costs of Labor Including Direct Pay and All On Costs

15. 2008

16. INVESTMENT IN KNOWLEDGE % of GDP 2004 6.8% 6.1% 5.5% 4.7% 4.1%

17. NATIONAL INNOVATION SYSTEM Government and Public Agencies Finance and Venture Capital Research and Education Institutions Enterprises and Workplaces

18. TYPES OF INTERVENTION Supply Side Tools Financial Equity Support Fiscal Tools Public Sector Research Support Training & Mobility Support Industrial Innovation Grants Services Information Provision Brokerage Support Networking Measures Demand Side Tools Systemic PoliciesProcurementRegulation

19. UTS:BUSINESS

20. “Improving management practice is associated with large increases in productivity and output.”

21. Global Management Competence Source: Data collected from interviews conducted by the Australian Management Practices Project Team

22. Global Management Competence Source: Data collected from interviews conducted by the Australian Management Practices Project Team

23. Large, global companies Significant plant autonomy High levels of skill & education Better management is associated with:

24. Australian Management Performance Gaps Operations Metrics Performance Metrics People Metrics Australia Global best

25. Australian Management Performance Gaps Operations Metrics Performance Metrics People Metrics Australia Global best ‘Instilling a talent mindset’

26. SUCCEEDING IN A HIGH COST ECONOMY Roos and Burton, Integrated Innovation Driven by Emerging Technologies, 2012

29. Panel response and questions