What is Advanced Manufacturing and Industry 4.0?

There is a huge misconception around what manufacturing is in Australia, so for many, the concept of advanced manufacturing is even more mind-bending.

Definition of Advanced Manufacturing

The Australian Advanced Manufacturing Council defines advanced manufacturers as globally-oriented and innovative manufacturers, in general sharing the following characteristics:

High Intellectual Property component; high knowledge base

Dependent on global supply chains

The only public sector support needed is at the Research & Development phase through tax credits or leveraging public/private partnerships. Advanced manufacturers tend to be engaged in collaborations with universities, the CSIRO and other research institutes.

Advanced manufacturers sell to a global market and compete on distinctive qualities. The domestic market is not a constraint.

These manufacturers constantly innovate to remain competitive. They leverage the latest thinking in technology and materials.

They produce high margin products.

And they have smaller capital and labour footprints but are higher paying, and provide higher quality work.

Advanced manufacturers are involved in the development of new markets, new products, new technologies and new ways to manufacture existing products.

Industry 4.0 and beyond

In the context of advanced manufacturing, we have also seen a huge shift in technology capabilities including autonomous robots, simulation technology, system integration, the Internet of Things (IoT), cybersecurity, cloud computing, additive manufacturing, augmented reality and big data.

Industry 4.0 has been a driving force for advanced manufacturing.

The workforce in manufacturing is diversifying