Think HBR

Creating a new vision for Hunter manufacturing and engineering

Adrian Price
Ai Group
 
The downturn in mining spending since 2013 has hurt many local manufacturers. In order to explore the development of broader markets and products, Ai Group lead a Study Tour to SME manufacturers in Germany in 2013 to find out what made them the best in the world in engineering technology. The main reason was their deep engagement with universities in engineering and technology research, regardless of the size of the company. Since then, Ai Group has been forging close links with the University of Newcastle. Manufacturers and researchers now meet monthly to network on “things innovative”.
 
Off the back of that relationship, we have been able to explore the development of global collaborations around technology. The aim is to create a “Network of Makers” with four or five Innovative Manufacturing Regions around the world, with whom we can exchange ideas and do business.
 
The first of these outreaches was organised through Professor Mark Jones, Head of the School of Engineering, University of Newcastle who provided us with the links to the University of Pittsburgh, where we visited in 2015. A full report of that trade mission can be viewed at
www.aigroup.com.au/contact/hunter (Photos of Australian Delegates and our hosts University of Pittsburgh at a cocktail function in the University Club).
 
The Pittsburgh experience and its story had a significant impact on the tour participants. The City suffered terribly in the 1980’s with the loss of a substantial part of their steel making industry and support industries. It lost half of its population.
However, Pittsburgh is now regarded as “America’s Most Liveable City”, particularly for the under 30’s. Part of the secret of their transformation was the engagement of industry and community with their two technology-based universities – the University of Pittsburgh and Carnegie Mellon – which is also the National Centre for Mechatronics.
 
Pittsburgh and the Hunter also share another important aspect of their heritage - 1.5 – 2 centuries of engineering knowledge and experience. They are engineering centres with real depth of skill.
 
So what could we do back here in Newcastle to help our manufacturing industry increase its transformation to higher technology and global engagement?
 
Ai Group has hatched The 4 Big Ideas for Hunter Manufacturing:
 
1. To have the Hunter recognised by the NSW Government as an International Centre of Engineering Excellence and be promoted around the world through its offices. To do this we need to map what we are good at and what skills underpin success. This dovetails with RDA Hunter’s current project on Smart Specialisation.
 
2. To hold a Makers’ Festival which brings together innovative manufacturers, engineering and related technology companies, start-ups, incubators, researchers, university, TAFE, STEM schools and investors. In Pittsburgh we heard the slogan “A rising tide lifts all boats” – so this could be a small tide that could invigorate local industry. It will be happening on 11 and 12 of November at Newcastle Jockey Club. If your organisation would like to be an exhibitor, please register your interest by contacting Adrian Price at Ai Group by email adrian.price@aigroup.com.au
 
3. To attract some large tech corporates to set up in the Hunter. Part of the success of Pittsburgh is that it has 6 Fortune 500 companies there, which provides scale for investment and supply chain engagement. This could be a achieved in conjunction with Action 1.
 
4. To expand the investment community in the Hunter. The Hunter has a small angel investor community which funds technology start-ups. In Pittsburgh we visited Alpha Lab Gear, a start-up incubator. It has an annual budget of $7m invests in 40 start-up companies a year. A significant part of their budget comes from community investors following pitches by start-ups to investors in the City Hall. A larger pool of local investment in the Hunter could power more local innovation.
 
All of these ideas will require collaboration with other business organisations, research organisations, Government and interested business and technology stakeholders to be successful. Ai Group is in consultation with some already and will continue over coming months with the aim of creating our new engineering and technology future.
 
For further information contact Ai Group on (02) 4925 8300, email adrian@aigroup.asn.au or visit www.aigroup.com.au/contact/hunter
Adrian Price clipping path Adrian Price

Adrian Price is Regional Manager, Hunter, Central Coast and Northern NSW, Australian Industry Group, a position he has held since July 2010. He worked in Ai Group’s Sydney and Western Sydney offices for 12 years and in Newcastle for 2½ years before being appointed Regional Manager. Prior to Ai Group Adrian performed similar HR and IR roles in State Government departments.