The managing director of the Australian Government’s Advanced Manufacturing Growth Centre (AMGC), Dr Jens Goennemann, told GoAutoNews Premium that the demise of local car production has not eroded the importance of the automotive sector.
He said manufacturing is a job multiplier with the sector’s workforce affecting jobs in other industries by a multiple of 3.8, so one job in automotive directly leads to 3.8 jobs in allied industries including design, logistics, sales, service and support.
Dr Goennemann said that in the past three years, the vehicle body building sector alone has created 1700 jobs.
It has included expansion and new-technology advances by companies including OmniTanker of Sydney and the world-first active wheel alignment system (AWAS) from Melbourne-based Doftek.
He said that few Australians would be aware that the puddle light – the bright light that illuminates the ground under the door on some luxury cars – is an Australian invention and is manufactured in South Australia. The air-actuated differential locker known as the ARB Air Locker is also an Australian design and is also made here.
Australian Bureau of Statistics (ABS) data to the end of the 2019 financial year shows the automotive sector employed 37,000 people and has more than 100 line items with multiple listings in each line.
Dr Goennemann said the ABS interprets manufacturing differently to that of the AMGC that should look beyond production and include R&D, design, logistics, sales and service.
The AMGC now has more than 2200 member companies in its network. About 90 per cent are small-to-medium enterprises (SMEs) with less than 20 employees.
He said that more than 75 per cent of global trade is in intermediate goods such as components and research.
Because of this, the AMGC sees an expanding market for advanced manufacturers that add value at every stage of the process.
Dr Jens Goenneman
Melbourne company Doftek, which has been working on an active wheel alignment system for cars and trucks for more than two years, is now working with car-makers in Europe as potential licensees.
Doftek, started by husband and wife team Dr Geoff and Dr Priscilla Rogers and business partner Dr Paul Dowie, now expects to create jobs for up to 40 skilled workers – five within its own business, five with its suppliers and 30 with its Australian domestic partners.
Mr Rogers said that funding and assistance from AMGC had been vital in getting Doftek on the path to commercialisation.
“Our real-world testing demonstrates that this technology can provide next-generation performance gains to vehicle manufacturers,” he said.
“The funding and assistance provided by the AMGC has allowed us to accelerate our development and commercialisation efforts into global markets, including Europe and Japan.”
Dr Goennemann said that Doftek provided evidence of the impact Australia’s automotive component sector can have on a global scale.
“It is proof that Australia has a strong and innovative automotive component sector exporting hundreds and thousands of components yearly for inclusion into global supply chains,” he said.
“Doftek has designed, engineered, tested and, with our assistance, will now commercialise an innovative automotive solution with global relevance and impact.”
The company said it planned to have OEMs test a prototype unit fitted to their test vehicles once business conditions improve. This was expected to position Doftek as a supplier for future vehicle releases.
The AWAS device, which electronically alters the stance of a vehicle’s wheels on the road to improve tyre contact for better handling or less rolling resistance, could also be sold as an aftermarket product to motorsport enthusiasts.
Mr Rogers said the aim was for Doftek to license the product and hoped production of components would be sourced from Australia.
By Neil Dowling
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