Over the last decade, the productivity of Australian manufacturing has dropped by 1%, while the productivity of our competitors has increased over that same period. It is widely believed that sub-optimal investment in infrastructure, skills development and innovation over the last 5-10 years is the root cause of this result.

For Queensland industry to experience a more productive and competitive environment, what is needed is a dynamic, self-sustaining culture of innovation within organisations. Critical to such a culture of innovation are the small-to-medium-sized enterprises (SMEs), which have historically proved to be the engine rooms of economic growth, and sources of new employment. As a result, QMI Solutions is involved in a number of initiatives that will assist drive organisational innovation in Queensland manufacturing companies, which in turn leads to a more dynamic, agile and productive industry.

QMI Solutions was recently announced as a Foundation Partner for the Queensland Government's new initiative "Toward Q2: Tomorrow's Queensland."  QMI, together with Ai Group will deliver the 'Tomorrow's Industry Program' which contributes to strengthening Queensland's economy by helping businesses become more innovative and competitive.

Q2's vision of creating a stronger Queensland has two key targets:

Target 1: Queensland is Australia's strongest economy, with infrastructure that anticipates growth

Target 2: 50% increase in the proportion of businesses that undertake research and development or innovation.

QMI's collaboration activities with government, industry and universities means it is well positioned to create and exploit that critical link between the talents, skills and innovation of Queensland's workforce and the development of a competitive and sustainable industry.

Performance and Innovation: QMI's Performance and Innovation (P&I) division assists in the implementation best practice processes and innovative technologies to improve the overall performance of companies. Recently, QMI Solutions was engaged by the Creative Industries unit within the Department of Employment, Economic Development and Innovation (DEEDI) to deliver the Queensland Design Capability Program (QDCP), now called Ulysses. The program is designed to drive organisation innovation in Queensland SMEs, which in turn leads to an innovative and competitive industry. Participating Queensland companies will:

• transform intellectual property into high value, highly differentiated products, brands and services
• lead markets by creating products and services that address emerging and latent market needs
• create and sustain competitive advantage and growth in international markets by competing on capabilities

Skills: QMI's Skills division (MSQ) assists customers to improve their organisational culture by implementing workforce development and skilling solutions. The Enterprise Development Program and the Productivity Places Program are just two initiatives that MSQ is involved in to assist industry in skill-related matters.

Enterprise Development Program (EDP): Jointly funded by DET and Construction Skills Queensland, this program targets 45 Queensland manufacturing enterprises that employ apprentices and trainees. It provides companies with five fully susidised days of assistance from QMI Solutions to help companies retain their skilled workforce (particularly apprentices and trainees) and implement programs which address skills formation and development needs.

Productivity Places Program (PPP): This program is part of the Australian Government's "Skilling Australia for the future" initiative and aims to address the higher level skills shortages and increase workforce participation and productivity. Both existing workers and job seekers are eligible to participate in this program.

Capability: QMI's Capability division (ICN Queensland) assists Queensland industry with identifying growth and supply chain opportunities. In collaboration with DEEDI, ICN Queensland has developed a new service for Queensland manufacturers; the Major Project Supplier Plan (MPSP). This program is structured to help Queensland companies identify the skills and capabilities required to successfully supply to large Australian infrastructure and industrial projects. The MPSP is designed for those companies serious about improving business capabilities and aspiring to successfully supply to major projects. This fully subsidised program will give eligible Queensland companies the tools they require to win contracts.

By improving our industry's competitiveness through innovation, it will be in a position to win more work which in turn will create more jobs and, ultimately, lead to a world class sustainable manufacturing industry.   In fact, just last year QMI Solutions assisted industry create or retain over 6900 for the Queensland economy - a strong return on a $3.6M investment by the State Government (see figure below) . This information is encapsulated in our "Value to Industry" document, which will be circulated throughout Queensland in coming months.

Manufacturing is not yesterday's economy - as it stands, Queensland industry delivers approximately 190,000 full time jobs and $18 billion in output, or 9.3% of Gross State Product. To ensure the manufacturing industry remains both a solid cornerstone and a fundamental driver of the Queensland and national industrial economy, QMI will continue to assist manufacturers cultivate the skills of their people, embrace change and drive organisational innovation from the front. I, and the team here at QMI, look forward to the challenge.