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Melbourne South East Manufacturing Boom with Honi Walker
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Ever wondered how the manufacturing sector is evolving with advanced technologies and facing modern challenges? Discover the insights of Honi Walker, CEO of the South East Melbourne Manufacturing Association (SEMMA), as she shares her perspective on the dynamic landscape of manufacturing in Australia, particularly in Melbourne's South East region. In this episode, we reveal how this powerhouse area is generating a staggering $54 billion in gross regional product and making significant contributions to the national manufacturing output.
The future of manufacturing is bright, but it's also filled with challenges and opportunities that we'll explore in this episode. Honi addresses common misconceptions about the industry being 'dirty, dumb, and dangerous,' and helps us understand how manufacturing is transforming into a smart, secure, and sustainable industry.
From advancements in defence manufacturing to the critical integration of AI for enhanced safety, Honi unveils the innovations reshaping the industry. Honi also addresses pressing issues such as Victoria's recent land tax increase and its impact on consumers, the rising cost of manufacturing equipment, and the potential skills shortage. Plus, learn about the history and mission, and take advantage of a special sign-up offer for our listeners. Don’t miss this engaging conversation with Honi Walker!
RESOURCES:
[Member Sign Up] via website
[Member Sign Up] via email
[Link] SEMMA's position on the Victorian Government's recent land tax announcement
[Link] Connect with Honi on LinkedIn
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Episode Introduction
Speaker 1Welcome to the High With Confidence podcast by People2U. Today we have Honny Walker, the CEO of South East Melbourne Manufacturing Association, otherwise known as SEMA for short. Sema represents over 230 leading manufacturing companies in South East Melbourne, a powerhouse region generating $43 billion in gross regional product, 50% of Melbourne's manufacturing jobs and 30% of the nation's manufacturing output Some staggering stats right there. Honi brings a wealth of experience in business development, strategic relationships and communications, along with her role as a co-owner of a local manufacturing business. Honi is passionate about the importance of manufacturing and will explain why Melbourne's South East region is such a dynamic force in the nation's manufacturing landscape. Before we start, though, people2u acknowledges the traditional owners of country on which we live and work throughout Australia and pay our respects to elders, past and present, and extend that respect to all Aboriginal and Torres Strait Islander cultures. We've got a lot to discuss, so let's dive in. Welcome to the show, honey Walker.
Speaker 2Thanks very much, Rebecca.
Importance of Manufacturing for Australia
Speaker 1Now explain in a really broad way why is manufacturing so important for Australia as a whole.
How Many Billion of Dollars?
Speaker 2Okay, well, manufacturing is so important to Australia because it underwrites everything that we do, what we build, what we export, the people who work in it. It's important for the development of our trades and also for new innovations $43 billion in gross regional product comes out of Melbourne's South East region.
Stuff the Tall Poppy Syndrome
Speaker 2Yeah, well, that's actually been updated and it's actually $54 billion. So, yeah, it's real and that's the sort of contribution that this area makes to Australia's economy. And the Southeast Melbourne is now the largest manufacturing hub in Australia. So we're very proud of that and we're going to keep building it. And you know there's lots more to come. We need to be proud of what we do. You know enough of this tall poppy syndrome. We need to be proud of what we do. You know Enough of this tall poppy syndrome. Yep, we need to just embrace it and go yeah, we're good at this, so just do it, let's rock it. You know we are good. Love that. The Aussie ingenuity has just led to so many advances and inventions over time. You know, you think about the Hills Hoist and the Victor Mower Absolutely iconic All these things, even the guy who invented Wi-Fi yeah, he invented it here in.
Speaker 2Australia. So you know, look, we're pretty good and we should be celebrating ourselves and our achievements more than just our sporting stuff no taking away from sport, but you know we're also good in so many other areas, and manufacturing is one of those.
Emerging Trends and Innovation in Manufacturing
Will AI steal all of the manufacturing jobs?
Speaker 2Are there any emerging trends innovations currently happening in Australian manufacturing. Yes, I think it's the advanced manufacturing componentry for defence and composite materials. Now, these all you know nanotechnology. So it's really quite incredible what chemical engineers and other types of engineers but it's really quite incredible what they're able to do and what they can build and develop through 3D printing first off and then get those into production. So, yeah, it's quite an incredible process and, you know, it makes things lighter. Lighter, faster and, hopefully for the consumer, cheaper. Is ai?
Speaker 1big in manufacturing. What does that involve?
Speaker 2well, I guess, with a lot, of, a lot of us who are using ai, you know it can certainly help to write for my role, submissions, yep letters, things like that, so it can save a lot of time. But I also believe that more of our manufacturers, those who are in that position, are looking at ways to decrease the human element in that. So it's better for safety, it's better for efficiency, so that's the way they're using it to look at those changes to work practices.
Speaker 1What are the most pressing challenges currently facing the Australian manufacturing sector?
Speaker 2Well, without a doubt, it's the increased taxes that we are being expected to pay. They are really crippling our manufacturers and I'm talking specifically about land tax, specifically about land tax. Some of the increases Our members have experienced between 300% to 1,000% increases in five years. That's a lot. And other barriers for manufacturers would be, well, the cost of equipment and a skills shortage. And we're not the only industry that's suffering from that. You know everybody is. And we're not the only industry that's suffering from that. You know everybody is Hospitality, aged care, you know AMBOs, it's right across the state, it's right across the country.
OFFER: 10% off to Join SEMMA!
Speaker 1Yeah, you know, sema has over 230 members. How can a manufacturing company become a member?
Speaker 2Oh it's really easy and we love manufacturing members. Just jump on our website, semacomau, or you can drop us an email info at semacomau. We think the fees are very reasonable and we've been told that time and time again. They are for the value and opportunities that we provide our members as well as networking events, news, industry trends.
Speaker 2Yes, that's right and, as I said before, you know, we open up a world of opportunity for grants and tenders and collaborative opportunities, as well as R&D through the universities. If you want interns, depending on where you're at in your life cycle of business, we can certainly connect you to the right people to grow your idea. That's what we do. So sign up. Sign up today. Do it now. There's a 10%. Do so sign up. Sign up. Do it now. There's a 10% discount. There you go.
The Birth of SEMMA
Speaker 1How good, I guess, why did SEMA come into existence?
Speaker 2Good question. So it was 21 years ago that they were formed from a bunch of manufacturers who said, well, we're not getting the attention we need around rolling stock and that's a fancy term for trains, trams that are being built in, light rail, that are being built here in Victoria and feeling that there was a possibility it was going to go offshore. So that's why Simmer was started. So we advocated to government for that reason and there we are, we're established. We managed to make sure that rolling stock that the government maintained, buying it here and also that goes along with ensuring that there's a local content, so a local jobs content, in all of these tenders. That has to be adhered to.
Speaker 2So, which is great for manufacturing here I love that purpose and that.
Current Industry Gaps
Speaker 1Why, yes, so powerful? Yes, you are literally at the coalface. What are some of the gaps you're seeing in the manufacturing sector?
We want YOU to be a Welder!
Speaker 2currently. Well, I guess you know real gaps are skills, skilled people and even low skilled people, because that's where you can start. If you're somebody who thought, oh, I need a career change or something like that, there are micro-credentials that you can do at TAFE that can basically, after a couple of weeks, you can step into a role. Could be, you know, starting welding. Welding, for example, and welders get paid a mozza and there is right now in australia a shortage of 10 000 welders.
Speaker 2So you know when you think about that it's not, I guess you know it's like anything it's not where you start, it's where you end up, and the opportunities here in manufacturing are just enormous. So welding is definitely an area.
Speaker 1In demand and the job security a welder would have in their career is very high because of that skills shortage as well.
Speaker 2That's right and that's for as you say. It's there, it's for a long time. There's going to be lots of work coming through with rolling stock, with SRL, with the renewable energy terminal and with defence. There's a huge amount of work. So we need welders, we need people who want to learn the basics in manufacturing, and these jobs are open to anyone. Any gender can learn, you know, make no mistake, if you can put together a sandwich, you can work in manufacturing.
Speaker 1Now, that's a tagline if ever I heard one honey. Well, I just thought of that Put on a sticker.
Speaker 2If you can make a sandwich, you can make it in manufacturing. You know, and there was something, and you know we brought out some information last year. It was pretty clear to me that we saw that there was a bit of a poor perception of manufacturing, that it was being thought of as dirty, dumb and dangerous. But it's not, not now. You know, some of these companies that work with food have to be HACCP. Basically, it's about health and cleanliness in your factory. These floors are so clean you can eat off them.
Speaker 2It's incredible no longer dirty, dumb and dangerous. It's smart, secure sustainable.
Honi's Passion
Speaker 1I'm sure they can hear it on the podcast, but I can feel your passion coming across the room, which is awesome.
Speaker 2Well, it's true, you know, it gets me out of bed. It's exciting. And when you see it and I know well I co-owned a manufacturing business for a time there and so I understand it, I get it, you know, and the passion these people have, it's awe inspiring. So the least I can do is give it my best every day for these people. No-transcript.
Speaker 1Okay. Land tax, which is obviously a hot topic at the moment. Can you break down the recent Victorian state government's land tax increase and discuss who will be most affected by it? Okay, sure?
Speaker 2Well, this nasty money-grabbing attempt by the Victorian government and I can say that because we believe that's what it is and that's what we put in our communications Started about five years ago and they developed this other element through the State Revenue Office called the Value of General Victoria and they are handling all the increases. So they are looking at incremental increases in your land, so not just your unimproved value, but your land overall, and they take this. So I have sat with the treasurer and tried to understand how they calculate this and basically you need an economics degree to understand it.
Speaker 2Tim pulled out his little ready reckoner, which really just didn't solve any problems. But it's quite an interesting way that they've gone about it. For example, one of our members had an increase of 300% in their land tax in five years. Now, nowhere in the world has land increased that much, let alone some of our other members who've had increases of 1,000%. It's unrealistic for the government to continually increase these taxes, because that's what's happening. They base it on the Australian dollar and at the start of the year, which could be, you know, 67 cents based on the against the American dollar, yep. And then they put in a whole lot of other calculations. Like I said, you need an economics degree. They're very clever people. I can't take that away from them.
Speaker 1They are.
Speaker 2They're very clever and they do it in such a way where you're just so bamboozled by it that they hope you'll go away and stop making noise. But SEMA will not, because we don't think it's fair for manufacturers. This is the point about the flow-on effect to consumers the more costs put on manufacturers, it's going to flow down that chain to consumers. So it's going to mean that cost of living will go up, cost of products, inflation will go up, rates of pay aren't meeting the CPI, but this is going to continue to happen. So we're going to end up with things are going to be so expensive in this state, which is the highest taxed state in Australia, and we're broke. Where does it end? And why do manufacturers have to keep putting their hand in their pocket when we're hiring people, when we're trying to grow, but we keep getting disincentivised by this government?
Defence vs Manufacturing
Speaker 1Yeah, you raise some very good points, honey. In terms of the defence industry, it's pretty vital to Australia, not pretty, it is vital to Australia. Why should manufacturing industry be considered just as vital as the defence industry?
Speaker 2Well, look, we won't be able to defence, won't have all of those whiz-bang tanks and Aussie bushmasters and, you know, the subs and the drones and all of that sort of stuff, without manufacturers.
Speaker 1We make it, and is most of that coming out of Melbourne South East Corridor?
Speaker 2Yeah, there's a lot coming out of here and also in the north as well. We've got our counterpart, association Northlink. They do a bit in that area as well, but no, it's the southeast that is really well geared for all of that, and some of the things we're making here are just incredible. But we do, we need it more than ever and it's all about technology and advanced materials and we should be really proud of it. And I know we have a proud history of you know, and we should be really proud of it, and I know we have a proud history of you know defending this country and you know, helping our allies. And well, we need this technology, we need to have it here, this sovereign capability in Australia. It's vital for our protection. It really is.
Speaker 1People to you. You know some of our services we provide for are metal workers, you know, being welders, fitters, boiler makers.
Speaker 2With the rapid advancements in technology and automation, what does the future landscape of skills trade look like? For manufacturing the hands-on, because there are small elements of maintenance which can't be done. When you're talking about manufacturing to scale, it's different to maintenance. So we've got to make all these things, but then we need to maintain them. Engines and even with the electrical engines there's still all of this maintenance is going to need to happen.
Industry Gender Imbalance
Speaker 1Wonderful. I also want to talk about gender equality, and you've touched on the world has been a career for any gender. So what needs to be done in order to achieve true equity, in your opinion?
Speaker 2I think we really have to start way back in primary school and, you know, start saying to our girls you can do anything. There are whole groups of cohort that I know as manufacturers we need to tap into and you know that's um women as well as the cultural aspect. Part of my role is re-educating our members and saying, hey, have a look at this area. Have you thought about this? Some of our manufacturers have. They've changed their rosters so they've got, for example, school pickup friendly times. You know drop-off pickup times, okay. So, mainly because we know it's usually women that do that, there are also splitting shifts for other cohorts. So you know it's usually women that do that. They're also splitting shifts for other cohorts. So you know it's happening. It's happening slowly but it is happening. We just have to ensure that right through the education chain and right through from. You know, our parents have got to be saying to our kids you can do anything.
Speaker 1Well, with all this great work you're doing, what is your coffee order? To fuel yourself?
Speaker 2Oh, it sounds really daggy. I like an almond milk latte. Thanks.
Speaker 1I don't think that's daggy. I think that's quite on trend really.
Speaker 2It's all right, but I'll drink whatever. I'm actually not very fussy, love that.
Conclusion
Speaker 1Well, thank you so much for coming on our show today and thank you so much for the chat. I know our listeners will get a lot from it. Our pleasure Thanks. You're a busy person, so thanks a lot for listening to this episode. If you liked what you heard, drop us a review. We would really appreciate that. People to you, people for here there.