To lead or to follow…
innovation & collaboration in manufacturing
Stuart Thomson
CEO – Rail Manufacturing CRC
www.rmcrc.com.au
Australian rail industry snapshot
150
15,000
years
employees
suppliers
15
1,500
$4.2b
330
OEM & global tier 1
firms
6th
1st
42,262
largest rail network
largest tram network
km of track
revenue
Source: A Profile of the Australian Rail Manufacturing Industry, ACIL Tasman for the Department of Industry, Innovation and
Science, July 2011.
Supply Opportunity for Rail
Tier 1
Tier 1
Tier 2
Tier 2
Tier 3
Tier 3
Rail Manufacturing :
ca. 88 % of revenue = Tier 1:
ca. 90% of total businesses exist in Tier 3
Opportunities:
Golden era = constant demand
Prime opportunity for local companies
to invest in the future via innovation
Examples: Innovation challenge
Cirque du Soleil used innovation in an old
performance genre to create a $4B
organisation
Kodak invented digital photography but did
not capitalise on its own innovation
A number of Australian manufacturing
entities are bucking the downsizing trend;
Auto aftermarket
Mining; GroundProbe, SmartCap
Software
SME Rail businesses like MRX, DTI, TTG,
and new industry players like Keech, Air
Radiators, Airlinx, real serious games etc
Innovative, nimble, and flexible.
To lead, or to follow…

The OECD Science, Technology and Industry Scoreboard 2013 found
that Australia ranked the lowest in the OECD for collaboration on
innovation with public research institutions.
 Manufacturing is rapidly changing – new technology, new materials,
robotics and automation
 Government helps businesses innovate through CRCs programme,
R&D tax concession, other industry assistance & grant programs
 Innovation is now an Australian Government priority:
 Industry Growth Centre into Advanced Manufacturing
 Innovation Policy Statement in December with new initiatives
Innovation challenge for rail
 Rail is a globally competitive industry
 Innovation is key to production efficiency and wealth creation
 Innovative Australian businesses that collaborate are:
 23 per cent more likely to report increased productivity
24 per cent more likely to report increased profitability
24 per cent more likely to employ more people
 Rail manufacturing in Australia has low levels of innovation compared to
other sectors and other countries
 Less than 1% of those working in rail have R&D or science
expertise
 Many rail businesses lack dedicated R&D resources in-house to bring
innovation to business
Consultation within rail industry
•
•
•
210 participants from over 110 different organisations in
the rail industry - launched in June 2012
Identified 18 Priority Opportunities out of 80 needs for
competitive technologies that would help position the
Australian rail industry to better meet the needs of global
customers
22 Strategic Recommendations, including:
Australia needs a rail
manufacturing CRC
Six enablers:
• Governance
• Standardisation &
Regulation
• Funding
• Research
• Policy
• Collaboration
Why a Rail Manufacturing CRC?
 You – the Rail Industry – said it was a priority – On Track 2040 identified
need for a research organisation for Rail Manufacturing
 Rail manufacturing identified technological challenges to solve to
remain viable and competitive, such as:
• Efficient operations through increased industry capacity and
reliability (quality)
• Quality service through customer information, product delivery and
increased safety
• Efficient systems by essentially increasing productivity and process
sustainability through reducing costs, lowering emissions, and
limiting external impacts
 Cooperative Research Centres bring business and innovation together
through collaboration on projects to develop new solutions, products
and processes
Our funding model
R&D PROJECTS
RMCRC
Australian Government funding
of $31 million x 6 years
Industry
Research Providers
50:50 co-funding
and
“In-kind”
“In-kind”
(research expertise &
facilities)
RMCRC model
Rail
Industry
RMCRC
R&D
Providers
•
•
•
•
Collaboration
Innovation
Integration &
Globalisation
Industry determines
whether to;
“Compete on price” or
“Compete on value”
Both options can be
innovation and driven
Strategic Research Themes
1. Power &
Propulsion
2. Materials &
Manufacturing
• Energy regeneration
and storage
• Advanced braking
systems
• Electronic motors
and systems
• High performance
materials for rail
• Advanced
manufacturing
• Lightweight materials
• Low cost
manufacturing systems
3. Design,
Simulation &
Modelling
• Advanced design and
simulation
• Automated health
monitoring
• Advanced data analysis
• Energy use
management tools
Our Essential Participants:
RMCRC Membership Benefits:
Solve your technical
challenges with access to
the latest research
Share the risk of R&D by
participation in cofunded research projects
Gain from RMCRC’s
commercialisation model
Access Australia’s leading
research engineers,
scientists with expertise to
help solve your technical
problems
Become a leader in
innovation for your
business