Australian companies pay an “Australia tax” of 7 – 15 per cent and are best placed to compete on value differentiation and market leadership, according to a recent report released by the Advanced Manufacturing Growth Centre.
The Australian Financial Review reports that most Australian manufacturers were not well enough equipped to compete internationally, with knowledge gaps in areas such as process automation, sensors and data analysis, and precision manufacturing. There was also an overall lag in the amount of R&D done behind companies in leading nations such as the US and Germany.
Citing Codan’s example, the AFR article mentions that the metal detector company stayed ahead of Chinese counterfeits by having engineers from its radiocommunications unit by working to encrypt its IP.
To read the AMGC’s report, Sector Competitiveness Plan 2017, click here.