Cairns Steel Fabricators worked on the V8 Supercars project.

QMI Solutions -- providers of industry and innovation expertise, and government-subsidised services for the Queensland manufacturing industry -- has moved to assist industry in the area to help beat the temporary economic hurdles  impacting regional business..

Mr Walker is optimistic that Cairns industry is on the road to recovery - particularly in light of almost $10billion in "projects on the go" identified in Tropical North Queensland - but is realistic about the challenges that remain and highlights the nation's need for a broad industrial base that's competitive and vibrant.

"In order to reduce unemployment rates and take advantage of new opportunities, we need to ensure small to medium manufacturers are equipped with the skills to be more competitive, win new business and retain and train staff to ensure Australian manufacturers can be counted among the best in the world," Mr Walker said.

Mr Walker also suggested manufacturers should make the most of existing resources and benchmark their skill base. By identifying and eliminating any wasteful processes, he said, products and services get to market quicker, and investing in up-skilling staff will offer a competitive edge, particularly during new business bids.

"If you do this well, you free up cash and other resources that can be allocated to other parts of the business like staff retention and new business development," Mr Walker said. "Developing an action plan to deal with continuing challenges is a great way to give some clarity and visibility to the company's strategy for dealing with current issues, and QMI Solutions has a number of low cost, low risk ways to help."

CAIRNS STEEL FABRICATORS EXPERIENCE

Cairns Steel Fabricators (CSF) is a local company that has worked with and implemented a number of QMI Solutions' initiatives over the years. The company, which was established in 1979, is a specialist in structural steel fabrication and erection, and North Queensland's mining industry accounts for a large portion of their market.

General manager Sean Adams said working with QMI Solutions really helped them at a time of major growth and expansion.

"During Australia's minerals boom a few years ago, demand for our product went through the roof. QMI helped us deal with the demand growth and manage our increased production capacity through various processes which streamlined our operation and upskilled our workers. With a more efficient operation we were also able the better weather the storm of the GFC," Mr Adams said.

"We saw quantifiable results almost immediately after implementing QMI's programs. Also, because the programs involve directly working with and training our workers, one of the biggest positives was that everyone felt they had contributed which helped them take ownership of the best practice principles the business adheres to."

In March 2008, CSF undertook QMI's Value Stream Mapping and Lean Training course.

"We found this extremely helpful and would highly recommend it to other companies out there," Mr Adams said. "The QMI Solutions team has a wealth of experience across a range of areas to help identify issues and provide solutions."

Mr Adams also said QMI Solutions' continuous improvement program helped put the company in great shape to win work.

"You need to have the right practices in place so you can be sure you can confidently bid for, win and deliver on your contracts," Mr Adams said.

"Our confidence in our strategy has been backed up by our success in winning contracts to supply into stages three and four of Lavarack Barracks, the V8 Supercar project, Abbott Point and the William McCormack building, all worth a great deal in committed revenue to the company."

QMI Solutions' Mr Walker said CSF is an excellent example of a company that is constantly looking to improve and remain competitive despite rising unemployment challenges in the region.

"CSF's work practices are constantly honed and refined and management consults regularly with staff at all levels," Mr Walker said. "They are a great example of what can be done when continuing challenges are met head on with the support of management and staff."

QMI Solutions' ICN division works closely with project owners, such as those mentioned, to ensure suppliers like CSF are considered when it comes to allocating the work packages. Companies looking for work would benefit from ICN‟s supplier opportunity list, which is updated weekly on its website at www.icnqld.org.au, or from viewing a list of upcoming projects at www.heirg.com.

In the 2008/09 financial year, QMI Solutions was involved helping Queensland industry win $545million worth of work, $15 million of which went to regional Queensland companies. Additionally, QMI Solutions helped Queensland manufacturers achieve $32.5million in increased sales, $1.1million in increased exports, $6.8million in cost savings, $7.8million in investment effects - all of which equates to the creation and retention of over 6,900 jobs.

More than one million people - about 10 percent of all workers in Australia - are employed in Australia's manufacturing sector which was hit hard by the global financial crisis but is beginning to recover, Mr Walker said.

Manufacturing employment fell by 29,100 over the 12 months to August 2009, having recovered some lost ground in the most recent quarter.

However, Mr Walker said, the longer term challenges remain which will mean continued pressure on the manufacturing sector.

QMI Solutions - formerly the Queensland Manufacturing Institute - is headquartered at Brisbane Technology Park.

www.qmisolutions.com.au

Information sourced from the transcript of the Commonwealth Treasurer, Australian Industry Group Working Breakfast, 5 November 2009. For more information or to organise interview opportunities contact: Linda O‟Sullivan Rowland. 07 3229 4499 or 0412 136 524 and linda.osullivan@rowland.com.au.

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