Australia’s manufacturing sector has been in decline for years as company after company moves to manufacture offshore. Over the last month, the devastation of sars-cov-2 has shown how vulnerable the world is when relying on international supply chains.
In preparation for the looming health protective equipment shortage, Australian businesses large and small stepped up. Med-con, the only medical mask manufacturer in Australia went into overdrive tripling their workforce and moving to 24/7 production. Detmold group pivoted from takeaway food packaging into joining Med-con as a mask manufacturer to produce 145 million masks for the national stockpile.
Med-con mask factory in Shepparton, with help from the ADF manufacturing surgical masks. source: www.sheppnews.com.au/
While in Melbourne led by Grey innovation, a consortium of design and engineering firms have rapidly designed an invasive ventilator for treating sars-cov-2. The consortium has received over $30 million in funding from state and national governments to produce 2000 ventilators by July.
Executive chairman of grey innovation, Jefferson Harcourt stating “whilst manufacturing is still alive here, it’s important that we support it and grow it” “Make Australia make again”
The economic turmoil right now is unprecedented, and with unprecedented turmoil comes an unprecedented opportunity to adapt, innovate and disrupt. Winston Churchill said, “Never let a good crisis go to waste” it’s a cliche but it still rings true.
Analysts predict that the unemployment rate in Australia is set to increase to double figures by June.
Grey innovation’s executive chairman Jefferson Harcourt Source: sbs.com.au
Looking back on previous crises, mass unemployment can be a trigger for business creation and innovation. Throughout the GFC in the US there was a surge of new businesses being created, an increase of 50% comparing 2007 and 2009. Many startups launched out of necessity because the founders lost their previous jobs, as unemployment soared to a peak of 10%.
Global supply chains devastated due to the pandemic leave opportunities for disruption by businesses new and established. Businesses and Government need to strike while the iron is hot to increase Australian design and manufacturing while providing economic independence.
Get in touch with us at hello@honepd.com if you’d like to discuss launching a new product, or adjusting your products to suit alternative manufacturing, and in the mean time, stay healthy.