The future of Manufacturing

in the Albury-Wodonga region – putting your

companies and clusters to work

by

Rodin Genoff (November 2011)

Managing Director, Rodin Genoff & Associates

Copyright Rodin Genoff and Associates

Local

National

Global

GL

OB

AL

Clusters in Action

Denmark‟s Wind Valley

The world’s leading wind energy cluster.

Global market share of 40 per cent and a

combined of turnover of approximately 3

billion euro. Employing 20,000 people the

cluster is mainly concentrated in the

Central Denmark Region. (Source & photo, The Danish

Wind Industry Association )

An industry’s and region’s technology

trajectory comes from the industries it

has...

Case Study One:

City of Playford in Northern

Adelaide

Major Clusters

Defence

Automotive

Food

Horticulture

Engineering

Electronics

Plastics

and

Related Services

Northern Adelaide and

the CBD account for

70% of South Australia’s

manufacturing

output and most of its

R&D.

Knowledge intensive

manufacturing is the

fastest growing area of

world trade.

The City of Playford is

part of the solution to

Adelaide’s revitalisation

rather than being seen

as the problem. MA

NU

FA

CT

UR

ING

PR

OS

PE

RIT

Y

Policy drivers

1960s FDI attraction

1970s Education and skills

1980s ‘Social Partnership’

1990s Local supply chains

2000s Cluster formation

Comit Farm Produce Pty Ltd

L & MG Mercorella Pty Ltd

Freshway Farms Pty Ltd

Universities Universities

Research Institutes e.g CSIRO

Research Institutes e.g CSIRO

Research and Development/ Innovation Institutions

Training Providers Training Providers

Auction Marts Auction Marts Farmers Farmers

Critical linkage - strong Critical linkage - strong

Critical linkage - weak Critical linkage - weak

Weak Weak

No presence No presence

Medium Medium

Strong Strong

Feed Feed

Basic Processing

Customers

End Users

Value Added Processing Fish

Markets Fish Markets

Consumers

Infrastructure/Financial Services

Marketing/ Design

Marketing/ Design

Industry Bodies

Industry Bodies Legislation Legislation Market

Intelligence Market

Intelligence Equipment Suppliers

Equipment Suppliers

Transport and Distribution

Transport and Distribution Packaging Packaging

Rendering/ By Products Rendering/ By Products

Food Cluster Map

Abattoirs Abattoirs

Horticultural &

Specialist Growers

Horticultural &

Specialist Growers

Multiple Retailers Multiple Retailers

Food Brokers Food Food Brokers Brokers

Food Service Food Service

In Mkt Agents/ Distrib’s

In Mkt Agents/ Distrib’s

Specialist Consultants Specialist

Consultants

Key driver Key driver

Overseas Markets Overseas Markets

Value Added Components Value Added Components

Imported Commodities/ Raw Materials

Imported Commodities/ Raw Materials

Cereals Cereals

Vegetables Vegetables

Dairy Dairy

Red Meat Red Meat

Prepared Meats & Fish Prepared Meats & Fish

Meal Solutions Meal Solutions

Gourmet Foods Gourmet Foods

Snacks Snacks

Bakery & Confectionary Bakery & Confectionary

Packaging &

Ready to use

Vegetables

Fish Farming Fish Farming

Breeding Co’s Breeding Co’s Poultry Poultry

Fish Fish

Aust Distributors

Aust Distributors

Discounters Discounters

Independent/ Speciality Retailers

Independent/ Speciality Retailers

Further Processing Outside Region

Further Processing Outside Region

Critical linkage - medium Critical linkage - medium

QA and QA and

Food Safety Food Safety

Fish

Industry

“Australians have never

been strangers to

innovation…

and…Elizabeth … is a

natural location for bright

ideas, energetically

implemented.”

The Prime Minster John Howard and Mayor Marilyn Baker of the

City of Playford, at Priority Engineering’s launch of the $90 million

Innovation Network at Elizabeth West, comprising 14 local and

global firms

BU

ILD

ING

GL

OB

AL

NE

TW

OR

KS

PES – Aust

Engineering &

R&D

German

Engineering

Local

Fabrication

English

Software Malaysian

Trading

House

Local

CADCAM

Local

Engineering Beyond

Automation

STAGE TWO: Global

technology transfer

Local technology

diffusion

Malaysian

Robotics

Local

Engineering G

LO

BA

L T

EC

HN

OL

OG

Y

TR

AN

SF

ER

US

Engineering

Beyond Automation - born global joint venture with “…

combined turnover of $600 million”

“Beyond Automation … is a

product of the City of Playford‟s

industry cluster initiative.”

The Advertiser

Case Study Two:

Central Denmark Region

“values driving transformational

change”

VIS

ION

Crunches the numbers and

re-tells the story.

And creates a new narrative

in an innovative and

compelling manner

Sm

art

C

on

nec

tio

ns

Borsen -

Denmark‟s version

of the London

Financial Times,

Reporting on

Engineering the

Future, written by

Rodin and Genoff

& Associates

Outlines how:

“old” industries

are creating

industries of the

future and in the

process creating

the “smart centre”

of Denmark

Nupark in Holstebro supporting the “smart centre”

Central Denmark‟s, Advanced Manufacturing Cluster, a

leading Scandinavian Innovation Hub

Bringing together, 300 leading engineering & electronics

related companies, employing an estimated 24,000 people

Mapping the Advanced Manufacturing Cluster:

Supply Chains

Laser&Vision

Systems

Mechatronics

NPD Services

FMS, Robotics,

CIM cells

SLA, LOM Bureaus

Tool Design

Systems

Configuration

Modular,

Sub-Assembly

DFM, DFT, DFA

Supply &

Vendor Mgt.

INTELLIGENT MANUFACTURING

SYSTEMS

Machine Tools

Precision

Engineering

General

Engineering

Electrical

Components

Nano-

technologies

Embedded

Technologies

ENGINEERING

Poly-carbonates

Casting

manufacture

Synthetics

Glass & Ceramics

Components &

Processors

PROCESS

Mining

Extraction

INDUSTRY

Chemical &

Petroleum

INDUSTRY

EXTRACTION

UPSTREAM

ADVANCED

MANUFACTURING

OEM

The „Smart Centre‟ - analysing Central Denmark‟s

performance – the most comprehensive regional

study of its kind undertaken in Denmark

The aim of the study:

Understand company performance through

benchmarking best practice

Map “connector companies” in key supply

chains; and then in the next phase of the project

Activate the supply chains and business

networks of these “connector companies” to

realise new research, investment, market and

business opportunities

Nupark in Holstebro supporting the “smart centre”

Image Courtesy of HCP Engineering Services

Customer/Buyer Network: “real time industry

intelligence”

6

17

11

29 20 32 10

46

B1

A

3

43

B2

23

9

C2

C1

5

30

C3

28

C4

C6

C5

31

15

45

27

21

38

35

25

40

(Source, Rodin Genoff & Associates)

Best Practice Ladder Scorecard - in the Central

Denmark Region‟s Advanced Manufacturing &

Engineering Cluster

Org

an

isati

on

al P

erf

orm

an

ce %

Technology & Management Practices Index %

Practices in place & being

converted into Outcomes. Best

20% defined as “Leaders (shaded)

Neither Practices nor Outcomes in

place. Bottom 20% defined as

“Laggers” (shaded)

(Source, Rodin Genoff & Associates)

Leaders

Laggers

Best Practice Leader Programs for Change

LEADER TRANSITION TRANSFORMER

A Staying in front

> Global capacity

> Rapid time to market

> Use and know-how of partners

> Step change in costs

> Mass customisation

> Environmental differentiation

Focus on: New ways to delight

customers

B En-Route

> Delighted customers

> Market driven quality

> AQA wards

> Employee development

> Environmental and social

responsibilities

> Customer resource management

Focus on: Service excellence

C Inhibited

> Promising - Gain executive

commitment

> Flatten the organisation

> Organisation change

> Employee empowerment

> Skills and training

> Teamwork

> Benchmarking

> Measurement and incentives

> Return on Investments

Focus on: Change for performance

CHALLENGED LAGGER

D Something for Nothing

> Quality vision

> Customer & suppliers

> Partnerships

> Cost elimination

> Business process ownership

> Sustainability

Focus on: Effectiveness and

efficiency

E Where to start

> Recognition of status

> Executive Vision

> Customer satisfaction focus

> Employee involvement

> Process improvement

Focus on: Control and predictability

Suppliers‟ Network based on Leader Status

XX

YY

(Source, Rodin Genoff & Associates)

= Sophisticated Demand, for technologically

sophisticated companies = SUPER economic multipliers

& technology spinoffs regionally and nationally = BIG

boost to productivity

Mid

Ju

tlan

d:

Deli

veri

ng

Bu

sin

es

s O

pp

ort

un

itie

s

Identified 35 business networks bringing together

between 150 & 200 companies in the advanced

manufacturing cluster that were willing to develop

new partnership arrangements

This double page feature article on “klynger “or clusters

in Borsen features a story on Stalindustri a local metal

engineering company with around 90 employees.

The CEO is quoted as saying that through the creation of

new business networks “this project is helping my

company to double its turn over”

“Mr Genoff in his report describes how clusters

support innovation and local growth…and…how this

project is making connections for some 300

companies”

Mid

Jutland: D

eliv

ering

Busin

ess O

pp

ort

un

itie

s

Creating New Investment Opportunities:

Joint Venture created to build a new production

and design hub - incorporating engineering,

prototyping and design partnerships with leading

Danish industrial design houses in Copenhagen –

announcement forthcoming

“Next Phase:

Building on

Success”

Rolling out the New

50 million DKK

(AUS$12 million)

Central Denmark

Business

Networking

Program

Using results of a

successful pilot

study to create

new policy and

program initiatives

Denmark‟s “smart centre” - making smart global

connections

Case Study Three:

Aalborg‟s business networking

program in Northern Denmark -

Integrating the dynamics of the

engineering, ICT, software and

environment industries

“a region‟s technology

trajectory comes from the

industries it has”

Case Study Four:

Mackay in Northern Queensland

“a regional innovation hub”

Continue to do what we‟re good at eg

general engineering, fabrication etc

OR

can we integrate our engineering

capabilities with software, automation

and control systems etc

Perth Adelaide

Geelong

Melbourne &

Gippsland

Wollongong

Sydney

Newcastle

Brisbane

TE

CH

NO

LO

GY

DIF

FU

SIO

N

NW WA

Northern

Queensland

Forge collaborations across

Australia within & between clusters

of core competencies - this will

strengthen the industrial fabric of

Nth Qld as a centre of best practice

while creating knowledge intensive

jobs across Australia & the region

Bring the rest of Australia to Northern Queensland –

& take Northern Queensland to the rest of Australia

NW WA

End Users

Mineral Exploration

Mineral development,

production and rehabilitation

Downstream

Metal Smelting

Non-metals

processing

Metal Refining

Non-metals Marketing

Metal Trading

Non-metals

Dist.

Metal Marketing

Metal Dist.

Metal Fabrication Industries & End

Users (eg. aerospace,

automotive, ship building,

whitegoods etc)

Upstream

Other End Users (eg. infrastructure,

building & construction,

chemical, pharmaceutical,

energy sector other

manufacturing)

MINERALS AND MINING CLUSTER

(Source Rodin Genoff & Associates: Adapted Ontario’s Mineral Council)

Venture capital financing

Venture/equity/ other financing

Exploration services and contracting

Mine-site services and contracting

Equipment and service suppliers

(compressors, aircraft, trucks, line-cutting, claim

staking, prospecting analytical)

Specialised technology services (geological,

geophysical & geochemical surveys, diamond drilling,

remote sensing, diagnostic, CAD and simulation

software)

Engineering Services (design and build machinery

& equipment; tooling, automation & robotics)

Construction (structures, surface facilities, intelligent

buildings) Mining services (surface,

underground)

Plant & Equipment (vehicles, mining

equipment and supplies)

Specialised services (drilling, blasting,

engineering, analytical, metallurgical, EMPS

industries, accounting, HR) Engineering Services

(design and build machinery & equipment; tooling, automation & robotics)

Specialised Institutions and Associations and Knowledge Infrastructure (eg. Academic Institutions, Training Centres, TAFE, Industry Associations, Financial Institutions, Environmental non-governmental organisations)

Specialised technical and other services (eg.

Transportation, logistics, metallurgy, materials

science, materials handling, diagnostic, CAD and simulation software,

EMPS industries)

Engineering Services (design and build

machinery & equipment; tooling, automation &

robotics)

Business services (eg. marketing, sales, accounting, stock

brokerage, insurance and risk management, HR,

EMPS industries)

Building & Construction

Building & Construction

Mining

Design

Mineral Processing

Energy

ICT &

Electronics

Software

Transport Storage & Logistics

Food Processing

ENGINEERING &

ENGINEERING SERVICES

Knowledge Institutions

Engineering and Engineering Services

Industries – linking clusters and

capabilities – regionally and globally

(Source, Rodin Genoff & Associates, Main Game Report, August, 2010)

MAIN Game Mining Cluster Project

in Mackay - Outcomes to date:

Eleven companies agreeing to participate in

meetings to progress JV and new partnership

opportunities

New Partnership and JV arrangements

include:

JV between an engineering services company

and a leading Australian industrial designer to

commercialize a new product

JV between small engineering companies to

integrate capabilities to win larger projects

and generate economies of scale

Creation of 2 new research centres in larger

companies through partnerships with overseas

customers and universities

INV

ES

TM

EN

T

AT

TR

AC

TIO

N

Mackay Engineering

Services Company

German Electronics Company

Leading Australian Industrial

Design Company

Creation of new scanning technology and joint venture

for global markets by Mackay Company

Distribution into global markets

and end customers

Group Engineerings Scanning Device, collaboration

with Proform , Brisbane and SICK Electronics

Germany

Group Engineering teams

up with Rob Geddes...as part

of MAIN business networking

program

So how do we create a joint

venture or business network?

Phase 1:

Identifying

Business

Opportunities

Phase 2:

Assessing

Readiness

Phase 3:

Selecting

Companies

Phase 4:

Developing

Joint Ventures

Phase 5:

Planning &

Implementation

Phase 6:

Media Launch &

Marketing

Creating

New

Networks

6 Phases to Creating New Business Alliances

A c

olla

bo

rative

fu

ture

An A

ME

Clu

ste

r

Policy drivers Phase 1 - Identifying Opportunities:

Major Tasks:

Understand the industry in which the business

operates

Be aware of changes and trends in industry

such as out-sourcing, major new contracts,

increased demand, or economic change

Find ways to take advantage of opportunities

presently outside the reach of the individual

firm

Plan to convert opportunities into business

outcomes through working with others

An A

ME

Clu

ste

r

Policy drivers Phase 2 - Assessing Readiness: Major

Tasks

Determine business‟ expectations from

networking

Determine each business‟s corporate values

Understand the core competencies of the

businesses wishing to network

Determine the business activity where

networking will apply

Make a decision: go alone; outsource;

collaborate; acquire new company to build

capacities and capabilities

An A

ME

Clu

ste

r A

n A

ME

Clu

ste

r

Policy drivers

Phase 3 - Finding & Selecting

Partners: Major Tasks

Establish criteria that potential partners

must meet to achieve strategic fit

Use intermediaries to search for potential

partners; such as industry associations,

business advisers, government and

finance sector

Establish the strategic fit of partner(s)

and how this will be used in networking

An A

ME

Clu

ste

r

Policy drivers Phase 4 - Developing Networking

Plans & Relationships: Major Tasks

Establish trust - build and manage

relationships between the parties

Agree on business strategy and business

model

Undertake an feasibility analysis of objectives

and the structural approach

Establish Codes of Conduct, Ethics, Policies

and Rules

Develop legal agreements between parties

An A

ME

Clu

ste

r

Policy drivers

Phase 5 - Planning &

Implementation: Major

Tasks

Develop an operational business plan

Implement the business plan as a

group

Monitor and benchmark progress

An A

ME

Clu

ste

r

Policy drivers

Phase 6 – Launch New

Initiative: Major Tasks

Develop a media and communications

plan

Organise a high profile launch

Pop the champagne corks

WIFM?

$767.5 billion of Engineering and

Infrastructure Projects underway or in

planning across Australia

843 projects valued at $20 million plus

(source, Deloitte Investment Monitor, BRW, 12/18 March 2011)

Adelaide

Geelong

Melbourne &

Gippsland

Wollongong

Sydney

Newcastle

Brisbane

TE

CH

NO

LO

GY

DIF

FU

SIO

N Albury

Wodgong

a

So make the connections – And

forge collaborations across Australia

within & between clusters of core

competencies & project

opportunities...

It‟s your future, grab it!

Coal and

Gas

“The world is moving

so fast these days that

the man or woman who

says it can‟t be done is

generally interrupted

by somebody doing it.”

Elbert Hubbard

Thank you so much

&

All your comments &

questions are welcome

© Rodin Genoff & Associates

WWW.rodingenoff.com