Let’s Buy Into Local Manufacturing

Buy Australian. It’s a marketing catch-cry that has resonated with us for decades. Yet for our local manufacturing industry, it has never been more apt. Or more important.

Stuart Highway crosses Agnes Creek

Today local manufacturers face unprecedented challenges through the unpredictability of Covid 19. This has caused chaos with our supply chains. We simply can’t get what we need, when we need it. While many see this as a challenge, at Caps and Closures we see this as an exciting opportunity for local manufacturers.

The opportunity to buy local and boost our local manufacturing industry. Industry 4.0’s digital revolution is changing the way companies think about their products and processes. Now is the perfect time to embrace these enabling technologies to create new products, collaborate internationally with innovative partners and upskill our manufacturing. With our valued partners’ support, the industry can excel in all areas of innovation, quality, lead-time, and pricing. This will lead to new licensing of global intellectual property as well as onshore manufacturing of critical products of an equivalent quality to imports. Let’s look at how we can all ‘work together’ to bring business onshore and reap the benefits.

The Challenges of Supply and Demand

The Challenges of Supply and Demand

The constant Covid disruptions to our international supply chains have caused massive logistical problems for local manufacturing with timing and cost blowouts for sea and air freight.

While local demand here remains consistent, international supply isn’t. This means manufacturing interruptions add significant costs for local businesses and of course consumers.

That’s the challenge. To turn this disruption into opportunities.

The moment we can as a sector embrace Industry 4.0 ‘smart’ thinking to create innovative new local products, processes and services, we will ably fill this international supply chain gap.

A Smart New Way of thinking

A Smart New Way of thinking

Today too many local manufacturers follow premium high margin, low volume business models, often importing high-volume product to take advantage of economies of scale and avoiding CAPEX.

Our customers’ high expectations and Australia’s consumer and regulatory requirements have resulted in global highest quality products being available to Australian consumers, often imported from Europe or USA.

Now with supply chain disruption and EU production interruptions, there is the risk of local consumers compromising quality for availability. This needs to change.

As Australia emerges post-COVID-19, it is time for businesses to shake off this risk averse attitude that has led us to emphasise a low-volume product approach.

The Benefits of a Buy Local Approach

The Benefits of a Buy Local Approach

So what incentives are there for manufacturing to buy local? Quite a lot it turns out. Here’s a small snapshot:

  • Consistency – Upgraded manufacturing capability adds value chain support and consistency, diminishing the effect of overseas disruptions.
  • Collaboration – Joint EU and US ventures can transfer manufacturing to Australia to serve the local market.
  • Partnerships – Lean on the strengths of our international supply chain partnerships, to access and manufacture innovative new products for our Australian customers
  • Competitive – High-volume local industries can become more competitive with “Asian Tiger” nations.
  • Knowledge – New licensing of IP from global leaders, plus many home-grown products being improvements on licensed IP.
  • Local Value Chains – Strengthen our global competitiveness through complete chains from raw material to end of life.
  • Sovereign Capability – Government focus results in programs for implementing new or licensed technology.
  • Lower risk – Government support creates the opportunity to take on bigger high-tech projects with reduced technical and financial risk.

A Local Success Story

At Caps and Closures, we’re excited about a buy local approach. It clearly makes sense for Australian manufacturing. Not only will it strengthen our local manufacturing sector through economic gain, Government incentives and a pro Australian Sovereign approach – It will ensure a sustainable local supply chain that can withstand impact from international competitors.

Cap and Closures have long been supporters of a buy local approach. Our innovative products are equal to any in the world and globally recognised and awarded. It is this belief in the quality of local products that will lead the way in the future for all Australian manufacturing.

We are here to help you innovate. Get in touch.

Published on 4 November 2021

in News.

Four Game-Changing Innovations for Packaging Personalisation
Covid-19 NoticeAn important COVID-19 notice to our suppliers and customers.