SA an ideal model for Industry 4.0 transformation

South Australia is ripe for the challenge to progress as industry and employment enters a state of transformation. The closure of production line automotive manufacturing has signalled a new era, with a raft of local businesses swiftly embracing digital industrialisation as the Industry 4.0 technological revolution quickly gathers global momentum – and several progressive companies emerge as shining lights to lead the way.

This paints an optimistic picture for future jobs and industry opportunities in SA according to Professor John Spoehr, Pro-Vice Chancellor (Research Impact) at Flinders University, and director of the Australian Industrial Transformation Institute.

He has seen rapid change to the state’s business and employment landscape during the past three years, propelled by an understanding across local industry that it is now crucial to act swiftly. This is attracting new industry, fresh international investment, new types of employment and new opportunities to the state.

Realising that an employment vacuum could impose widespread economic damage to a city – with former automotive towns such as Detroit providing an ominous example – Prof Spoehr says Adelaide is proving itself a nimble adaptor of technological innovations to drive new industry.

Professor John Spoehr says Adelaide is adapting to technological innovations to drive new industry.

Running apace with international development levels is ensuring that more opportunities for high-skill, high-pay employment is already occurring.

“Any fears that a digitised workforce must imply a jobless future is not the reality facing SA’s workforce,” says Prof Spoehr.

“It’s a time of great possibility and progress, and SA can provide a model for successful industrial transformation in Australia.”

Prof Spoehr examines this as editor and co-writer of South Australia – State of Transformation, a new book that issues an independent assessment of SA’s current economic, social and political landscape, while also exploring options and policy needs to lay the strongest possible path ahead.

He points to the adoption of Industry 4.0 technologies in manufacturing by such companies as Micro-X, based at the Tonsley Innovation District, which is manufacturing lightweight portable X-ray machines (primarily used in disaster zones and emergency situations).

It has quickly won international orders for its products, and to meet demand the company has employed and re-trained many former Holden workers, building on their skill set to quickly provide Micro-X with an experienced and capable hi-tech manufacturing workforce.

“Micro-X has been very clever to make best use of an already skilled workforce of former Holden employees, showing how to be nimble at harnessing local skills, people and resources,” says Prof Spoehr. “For a young company, it has a very bright future.”

Inside Micro-X’s manufacturing facility at Tonsley Innovation District, a former automotive factory. Photo: Micro-X.

Redarc at Lonsdale, which manufactures advanced electronics that specialise in increased towing safety for off-road and heavy vehicles, has been one of the state’s most enthusiastic adopters of Industry 4.0 manufacturing technology.

The company’s transformation during the past 18 months under chief executive Anthony Kittel has been remarkable, resulting in collaborative robots being part of a holistic manufacturing plant expansion.

“These companies are addressing technically complex problems, and as a consequence they are generating high-skill, knowledge intensive and high wage jobs,” says Prof Spoehr. “This is the form of employment that we need more of to help underpin high living standards in SA.”

SAGE Automation, a leader in systems integration, automation solutions and data services to industry, is working across a raft of different industries, including defence, mining, transportation, logistics, utilities and manufacturing. Prof Spoehr says SAGE is helping local companies to take advantage of the digital revolution.

He notes that SAGE’s location within the Tonsley Innovation District has been transformative for the company, providing great benefits through its proximity to other innovative tech companies along with Flinders University researchers and leading students, with whom it has entered numerous collaborations.

A bird’s eye view (Dec, 2017) of the former Elizabeth Holden site, which has now been transformed into Lionsgate Business Park.

“This shows that the collaborations between universities and companies should be stronger in SA, because this will help accelerate the uptake of innovations in industry – and this is the crucial step forward.”

These leading businesses are also guiding the transition from old manufacturing to dynamic new tech industries and specialist manufacturers at the Tonsley Innovation District and Lionsgate Business Park in Elizabeth, both former automotive manufacturing plants.

The success of these districts also points to a promising pathway for current development of a new hi-tech industry hub at Lot Fourteen, within the former Royal Adelaide Hospital site in Adelaide.

“It shows that strong commitment and vision can transform sites into advanced manufacturing precincts,” says Prof Spoehr.

“Manufacturing employment did grow in SA during 2018, but now there has to be double the support for emerging SMEs (Small and Medium Sized Enterprises) to remain at the cutting edge of what is happening globally.

“Australia must be a champion of innovation in both our services and manufacturing sectors – and SA can play a leading role.”

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REDARC Electronics recharges Adelaide’s south with jobs, factory expansion

Advanced manufacturing company REDARC Electronics has come a long way since its beginnings in the late ‘90s, as an eight-person business operating out of a tin shed in Adelaide’s southern suburbs.

Fast forward more than two decades and the Lonsdale-based company has expanded its product offerings from just voltage converters to a range of vehicle power solutions manufactured by a local workforce and exported across the world.

REDARC recently completed its 15th consecutive year of an average 20% growth. It’s also recently diversified into the defence and medical device industry, and has grown to have 180 FTEs on the books with plans to recruit more.

Managing director Anthony Kittel says the company has a five-year plan to reach $100 million in sales, employ more than 250 staff, and also complete a factory expansion allowing for a boost in exports.

The $20 million expansion of its Lonsdale factory began in 2017 and will see the company grow its workforce and penetrate new markets including defence and medical devices.

REDARC Electronics managing director Anthony Kittel.

New state-of-the-art machinery and specialist testing equipment are currently being installed, with the company on the look out for workers with various expertise.

“REDARC are planning to hire electronic engineers, computer systems engineers, project managers, sales, business development and marketing staff while also providing traineeship and apprenticeship opportunities,” Anthony says.

“REDARC are heavily involved and committed to the community by nurturing and developing the skills of young people as they enter the workforce, and by providing many work experience opportunities for high school students and undergraduates in various areas of business.”

The factory expansion is expected to be finished by late November.

“We are currently completing the installation of advanced manufacturing equipment,” Anthony says.

“We have also completed the installation of a 100kW PV solar power system which will allow REDARC to offset CO2 carbon emissions by 80 tonnes per year.

“We’ve also added a Tesla Powerwall to store energy from our solar system and a diesel generator allowing uninterrupted operations.”

Today the company sells more than 500 products sold globally into North America, Europe, UAE, South Africa, UK, South Korea and Singapore.

Its road to manufacturing success was laid in 1979 when the company was founded by electronics engineer Robin (Bob) William Mackie, who hand-built vehicle ignition systems and voltage converters.

Bob passed away in 1997 and Anthony and Michele Kittel, along with Michele’s father Denis Brion, purchased the business which they believed had potential but “needed a lot of work”.

“I knew we had a lot of work to do and since that time we have had a motto, ‘customer is king’. It took almost three years to stabilise the business and develop a vision for the future,” Anthony says.

REDARC built its reputation on the high quality manufacturing of vehicle power solutions.

Six of the eight original staff from the ‘90s are still with the company which has since built upon its team-based culture and diversified into the development of products for the 4WD and caravan industry.

These products include inverters, power supplies, battery chargers, brake controllers, trailer braking products, and portable solar panels.

REDARC services a range of other industries including heavy trucking, emergency services, mining, industrial, marine and recreational vehicles and, more recently, the defence and medical device industries.

SA’s burgeoning defence industry is one of the company’s key targets and for the last five years has offered the Australian defence sector a range of electronic solutions for vehicles.

REDARC is an SME (small-to-medium enterprise) partner for Rheinmetall, which won the LAND400 phase 2 contract to deliver more than 200 combat reconnaissance vehicles for the Australian Army.

The REDARC workforce is expanding, with job roles in various fields.

REDARC is also an SME partner to BAE Systems Australia on the SEA5000 Future Frigates project that will deliver nine new Hunter Class ships built by ASC Shipbuilding at Osborne from 2020.

Aside from its branching out into defence, REDARC has also experienced growth in its usual sectors, namely through the acquisition of NSW company Hummingbird Electronics in 2015.

In 2017/18 REDARC signed eTrailer Corporation and Keystone Automotive Operations as two distribution partners for North America.

Despite the Adelaide-born company reaching global heights, its managing director says SA is the “best place in the world to live and operate a business”.

“We have long-established networks and connections, our families live here,” he says.

“It’s great to see the growth and confidence in the SA economy, employment creation and infrastructure development. We are passionate about Australian manufacturing and employing local people.”

I Choose SA for Advanced Manufacturing stories are made possible by City of Salisbury:

Industry in focus: Advanced Manufacturing

Throughout the month of September, the state’s advanced manufacturing industry will be under the magnifying glass as part of I Choose SA.

As SA transforms away from traditional manufacturing processes, innovative and sophisticated products and services are taking their place, creating new jobs and investment opportunities for the state. Read more stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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