With the global economy being scrutinised on every radio, television, trade magazine and newspaper, it is needless to say that confidence levels among consumers and business owners have dropped, at least for the short term. The unprecedented crisis has left businesses throughout the world in turmoil, most experiencing reductions in sales, revenue and employment. So what does this mean for our manufacturing industry?
According to a recent survey1 conducted by the Australian Industry Group, the volatility in global financial markets has affected Australian manufacturing through a slowdown in economic growth both globally and domestically. Over 60% of Australian manufacturers and service providers surveyed reported a negative impact on their sales, a decline in production and a significant pinch in new orders as a result of the downturn. With impacts set to intensify in the months ahead, it is not easy to find a positive voice against the flood of bleak reports and statistics.
QMI Solutions understands that given the gloomy forecast, it will take much more than hoping for a miraculous recovery to ensure the sustainability of our manufacturing industry. It is important for industry to realise that continuous improvement, as its name suggests, needs to be a cyclical activity. Investment, employment and R&D are means for companies to grow and prosper, however these activities are often unnecessarily cut back to save money in times of economic uncertainty. While indeed providing a short-term remedy for the profit and loss statement, these measures do not guarantee long-term corporate sustainability. To be successful for a sustained period of time, especially in the current fiscal climate, manufacturing businesses need prosperous and supportive societies, a strong corporate structure, a focused workforce and healthy environments. Sustainability initiatives take time to evolve and add value. As with any journey, the best approach is to start with small steps and build over time. QMI is here to support you with your journey and we have several avenues available to assist manufacturers bulletproof the business against the economic downturn and ensure the sustainability of operations.
- 100% subsidised days
- Best practice support projects – helping manufacturers to maximise resources
- 100% subsidised Benchmark
- Collaborating with partners
Fully subsidised days: QMI is supporting industry through this difficult phase by offering up to two fully subsidised consulting days to Queensland manufacturers. This initiative has been implemented to assist businesses in developing an action plan to combat the current economic downturn. Subsidies are courtesy of the Queensland Government's Department of Tourism, Regional Development and Industry (DTRDI).
Best practice support projects – helping manufacturers to maximise resources: QMI has a number of programs and methods available for manufacturers that will save time and money, without affecting staff employment, training and R&D projects. Last financial year, Queensland manufacturers and service providers spent $1.2M on QMI services and received a total of $48.7M worth of value including;
- increased sales of $23.4M
- increased exports of $17M
- cost savings of $6.23M
- investment savings of $11.21M
Ark Homes benefited from QMI's services by engaging staff in the direction of the business, which resulted in significant returns. QMI was publicly acknowledged for this work when Ark Homes won the Regional Exporter Award at the 2008 Queensland Export Awards.
In conjunction with DTRDI, QMI offers best practice support projects, like the one we did at Ark Homes, at subsidies of up to 50% for eligible companies.
Benchmarking: A 100% subsidised benchmark can be undertaken for your business by the staff of DTRDI or QMI, and is a popular tool used by many manufacturers. Benchmarking compares your business against others in the same industry sector and highlights relative strengths and weaknesses in a range of areas across your business. In the current economic climate, a benchmark is extremely valuable because it outlines areas where you could make focused improvements in the business in order to both survive and grow.
Collaborating with partners: In an effort to broaden the scope of expertise available to industry, we have recently engaged several third party providers to assist in the delivery of our products and services to Queensland manufacturers. We are also working closely with our Federal Government colleagues via the Enterprise Connect Program to ensure Queensland manufacturers can access multiple levels of government assistance and support.
Although there is a challenging road ahead for all businesses, the team at QMI is dedicated to assisting Queensland manufacturers remain successful. I hope this leaves you feeling positive about the future of Queensland industry and for more information on any of the initiatives I have mentioned, contact us on info@qmisolutions.com.au or (07) 3364 0700.
1 Australian Business and the Global Economic and Financial Crisis, Australian Industry Group, October 2008.
