The Economic Benefits of Choosing an Australian Manufacturer

The Australian manufacturing sector remains resilient despite intense global competition. Companies and individuals are focused on minimising production costs and streamlining their supply chain to increase profits. Overseas manufacturers have marketed their facilities as the cheaper alternatives to attract Australian customers. Whilst overseas manufacturing might seem ideal at first, selecting an Australian manufacturer comes with far more financial benefits than you would think.

Below you will find four of the most beneficial factors of working
with a local manufacturer in Australia.

Quick turnaround time

The current business landscape is dynamic and competitive; the saying “you snooze, you lose” has never been more accurate. With local manufacturing, some of the processes like component design and prototyping happen simultaneously. The manufacturer and the consumer consult and evaluate the functionality of products and make timely decisions on custom manufacturing processes that can enhance production lead time and cost reductions.

Challenges in communication with overseas manufacturers could derail production timelines. Technical terminologies can be lost in translation, resulting in the production of incomplete or substandard parts. Product samples are provided for the consumer to test and evaluate and have to travel long distances. Delays in project implementation or product use are common since an abundance of time is spent sending feedback and implementing recommended modifications.

Australian manufacturers have a better understanding of the consumer market and industry standards. Through this, the manufacturer can provide end-to-end production support to guarantee quality production at the first attempt. It eliminates the need for product rework which is a leading cause of delays to project deadlines. Local manufacturers might often provide on-site support and tooling management to produce special jigs or fixtures.

You can prevent the domino effect in your supply chain!

Supply chain stability

Logistics is becoming increasingly expensive, with the costs inevitably passed on to consumers. Engaging a local manufacturer ensures that the clients can control supply chain costs and effectively plan their operations based on predictable delivery schedules.

With local manufacturing, supply chain interruptions caused by tariff changes, customs inspections and geopolitical tensions are eliminated. As a result, significant cost savings are identified as customers avoid paying international taxes, brokerage and clearance fees charged by agents at ports of entry. In addition, tax-related and licensing needs are fewer, cheaper and far more straightforward as clients deal with a single government. 

Supply chain stability is essential for manufacturers to forecast demand and adjust production accordingly. It promotes effective material planning and minimises inventory-related costs for both manufacturer and client. Established facilities provide inventory management support to their clients. They help them to maximise the utilisation of cash and minimise risks in material storage and handling.

Increased employment opportunities

The manufacturing sector employs close to a million Aussies and supports millions of families; the local and national economy gains strength by hiring more people. The monetary earnings of these employees are then invested in local businesses, and the collected payroll taxes are used for development purposes.

Choosing Australian manufacturers creates more job opportunities for the local communities, and with new roles sprouting in research and development, businesses expand, and the local communities thrive as some manufacturers engage in corporate social responsibility (CSR) activities.

Quality control and sustainability

The call for sustainability is echoing across the world. As a result, facilities and individuals are working hard to minimise emissions and reduce material wastage during production. Additionally, manufacturers are focused on developing high-quality products through sustainable processes that consume less energy.

Manufactured products must conform to specific quality standards. For entities that work with Australian manufacturers, the safety and quality of products are assured as government-appointed agencies conduct frequent inspections within the production facilities. Consumers do not have to worry about new purchases to replace defective or low-quality products.

When dealing with some overseas manufacturers, it is common for them to dictate the minimum number of products made and shipped, increasing the purchase cost and complicating the shipping process. However, these MOQ are often much less for Australian manufacturers, meaning lower cashflow impact and stock turns. Enhanced flexibility.

Market penetration for new products can be highly unpredictable. As the products gain credibility, OEMs need to upscale production to meet the growing demands. Catering for increasing consumer demand within a short time frame can be impossible when working with an overseas company. Local manufacturers are typically responsive to such market changes, with the ability to ramp up operations quickly, allowing for products to be delivered promptly and at lower rates. 

In conclusion

Manufacturing remains a vital economic pillar in Australia, and the government remains committed to supporting local manufacturers and safeguarding the sector’s future. When working with Australian manufacturers, there’s a surety that all profits retained within the national border will positively impact the local economy and improve living standards.

We can help strengthen your supply chain, contact us today for further information
[email protected] 1800 899 480