Professor Roy Green, Prime Minister’s Manufacturing Taskforce Public Forum 31 August 2012

1. Smarter Manufacturing for a Smarter Australia • Professor Roy Green, Prime Minister’s Manufacturing Taskforce • Public Forum • 31 August 2012 • Radford Auditorium, Art Gallery of South 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 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 1970s 1980s 1990s 1960s OECD 24 Average Source: The Conference Board Total Economy Database and Treasury. Australia

9. Labour Productivity Growth: OECD vs Australia 1970s 1980s 1990s 2000s 1960s OECD 24 Average Source: The Conference Board Total Economy Database and Treasury. Australia

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

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

13. UNIT LABOUR COST COMPARISONS Source: US Bureau of Labor Statistics: Employers Total Costs of Labor Including Direct Pay and All On Costs

15. 2008

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

17. NATIONAL INNOVATION SYSTEM

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

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

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

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

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

29. Panel response and questions