1. Advanced Manufacturing in Australia Towards increased Competitiveness and Growth Overview of our Growth Centre Operating Model

2. Every manufacturer can, and should, become advanced through changes to mindset, value chain scope and processes. Common characteristics include: –High value products and associated services, –Short runs/ high customisation – mass customisation –Full scope value chain –Specialised manufacture – high quality, narrow tolerance –Export oriented – integrated into global supply chains –Customer and value focus – design led and compete on value not price Advanced Manufacturing is a way of operating rather than an industry classification. Advanced Manufacturing = Competitive 2

3. Manufacturing is changing…and quickly Competitive manufacturers focus on pre and post production (intangible) activities Pre-production intangible Production tangible activities Post-production intangible MANUFACTURING ACTIVITIES VALUE ADDED 1970s 2000s R&D Logistics: purchase Production Marketing Logistics Pre – or after – sales service Source: Veugelers 2013 3

4. Our industry consultation confirmed this manufacturing value add profile The overarching objectives of the Growth Centre programme were ranked by the enterprises consulted: 1.Improving engagement with international markets and access to (almost universally digital) global supply chains 2.Improving the management and workforce skills 3.Improving engagement between research and industry, and within industry, to achieve commercialisation outcomes 4.Reducing unnecessary and over burdensome regulations 4

5. 1.Industry led – emphasis on engaged enterprises (not observers) 2.Focus on engaging Australian companies with global supply chains and (therefore) markets 3.Engagement and collaboration on projects and programmes 4.Achieving all Growth Centre objectives by bridging the commercialisation “valley of death” 5.Public : Private funding gives way to Private : Public funding over 4 years to enable sustainability Our Growth Centre operating model has 5 key elements 5

6. Bridging the commercialisation “valley of death” is at the heart of our model Our Growth Centre will operate in TRLs 4-7 and balance the traditional funding and priority vector 6 Research Development Commercialisation TECHNOLOGY & MANUFACTURING READINESS LEVEL INVESTMENT INVESTMENT Government & Universities TRL & MRL 1-3 Private Sector TRL & MRL 8-9 Gap TRL & MRL 4 – 7 Traditional vectorGrowth Centre vector

7. The Growth Centres initiative provides the impetus and national scale for the Growth Centre vector 7

8. Our members will engage on projects and build our footprint in global supply chains 1. Innovation session To ensure relevancy and market demand for product 2. Project calls drafted Using member insight 3. RFPs published To membership 4. Proposal submitted By members 5. Proposals vetted Member-led review team & funding recommended 6. Winners announced Funding awarded 7. Projects conducted With regular updates to full membership 8. Final outcome Project output pre-competitive IP accessible to membership Member driven FINISH START Member driven 8

9. Our Advanced Manufacturing Governance model will target the Growth Centre vector Board Members Chief Executive Officer Members, Partners and other industry participants Chief Financial Officer Marketing & communications ProgrammesHuman resources Connections for Growth Hubs for Growth Future Jobs for Growth Commercialisation for Growth Risk and audit committee Reforms for Growth Compete for Growth Innovation and Technology Advisory Group Membership and engagement 9

10. The Value proposition of Growth Centre membership is strong TierContributionBenefits, involvement and IP accessTarget Tier 1: Large multi-national organisations $100,000  Able to appoint 1 member of Innovation and Technology Advisory Group (capped at 10)  Full access to all IP for both R&D and Commercialisation without royalty/ license fee payable  Option to, depending on relevance, lead and staff key Growth Centre projects Target of 20 members to raise $2m per annum Tier 2: Research organisations /Universities $50,000  Able to appoint 1 member of Innovation and Technology Advisory Group (capped at 10)  Full access to all IP for R&D purposes (only) without royalty/ license fee payable.  Option to, depending on relevance, staff key Growth Centre projects. Access to IP for Commercialisation with royalty payment. Target of 20 members to raise $1m per annum Tier 3: Mid-sized organisations $10,000  Collectively able to appoint at least 3 members of the Innovation and Technology Advisory Group.  First and last right to staff Growth Centre projects and collaborate first hand with Tier 1 and Tier 2 Members.  Access to IP for R&D and Commercialisation on payment of royalty/ license fee. Target of 50 members to raise $500,000 per annum Tier 4: Small organisations $1,000  Collectively able to appoint at least 2 members of the Innovation and Technology Advisory Group  First right to staff Growth Centre projects and collaborate with Tiers 1, 2 and 3 members on these projects Target of 100 members to raise $100,000 per annum 10

11. Manufacturing Export intensity increases Manufactured Products/ Services value (and associated margins) increase Manufacturing industry growth rate stabilizes and then grows Demand for STEM skill-based jobs increases IP Relevance and sharing increases National psyche on manufacturing industry increases What does Advanced Manufacturing Growth Centre success look like 11

12. Advanced Manufacturing in Australia Towards increased Competitiveness and Growth Overview of our Growth Centre Operating Model