Australian manufacturing finds itself at a pivotal moment, grappling with myriad challenges that have led to its contribution to GDP dwindling to a record low of 5.4 per cent. Despite employing over 800,000 individuals and being recognised as strategically significant by successive governments, the sector has witnessed a decline, with approximately 250,000 skilled workers departing since 2008.
Factors such as COVID-19 disruptions and geopolitical tensions have further exacerbated issues related to offshoring and supply chain vulnerabilities. In this context, Australia’s role in a new manufacturing landscape necessitates a transformative approach, one that leverages technology, innovation, and strategic investments to not only revitalise the sector but also position it as a leader in sustainable manufacturing.
Central to this strategy is the adoption and advancement of advanced manufacturing technologies, known as enabling technologies, within the Commonwealth’s national reconstruction fund framework. Additive manufacturing (AM), also known as 3D printing, is a key manufacturing and materials-based technology that will enable this transformation, offering unparalleled potential to revolutionise production processes, enhance productivity, and bolster sovereign capability.
The promise of additive manufacturing
AM represents a transformative shift in the manufacturing supply chain, enabling the production of intricate, high-value customised products with unparalleled efficiency and precision. By embracing industry 5.0 principles, AM stands to catalyse the growth of Australian manufacturing, driving productivity gains and nurturing innovation across diverse sectors.
The potential of AM encompasses:
- On-demand production – production responds to demand in real-time, reducing inventories
- Complexity at low cost – intricate designs without added expense
- Localised/regional manufacturing – cuts supply costs and emissions with production closer to demand
- Customisation – mass customisation tailored to individual preferences
- Design optimisation – quickly iterate and optimise designs for better performance, consolidate parts which reduces assembly and part count
- Cost-effective low volume runs – eliminate expensive tooling for small batches
- Sustainability – reduce energy use, waste and pollution, enable material re-use and recycling.
The global consolidation and evolution of AM
The AM industry, which has experienced significant growth over the last decade fuelled by an extensive startup ecosystem, is currently undergoing rapid consolidation. This consolidation is driven by a combination of technological advancements, increasing market demand, and strategic business decisions. Large, diversified industry groups like GE, HP, Siemens and Nikkon are making significant plays in the AM sector.
One significant outcome of this consolidation is the emergence of comprehensive AM solutions providers. These entities offer end-to-end services covering hardware, software, materials, and post-processing techniques. Such integrated offerings simplify the procurement process for businesses seeking to adopt AM and foster innovation through enhanced collaboration across different facets of the industry.
The consolidation of services and integrated solutions now delivers what is being called AM 2.0, representing a significant evolution in 3D printing technology with enhanced precision, scalability, and material diversity. Unlike its predecessor, which primarily targeted prototyping and small-scale production, AM 2.0 enables the production of end-use parts at a commercial scale. This is achieved through advancements in machine capabilities, such as higher resolution printing, faster production speeds, and more robust post-processing techniques. Stryker recently announced that they had printed over two million orthopaedic implants and were investing further in production capacity.
The range of materials has expanded beyond basic plastics to include metals, ceramics, and composites, allowing for the creation of complex, high-performance components. These improvements enhance the functional capabilities of printed parts, reduce costs, and increase the feasibility of AM in various industries, including aerospace, automotive, and healthcare.
AM 2.0 is transforming industrial processes and supply chains. Traditional subtractive manufacturing, such as machining, often involves multiple steps and considerable waste, whereas AM minimises material use and allows for more intricate designs that are not possible with conventional methods. This shift leads to significant reductions in lead times and material costs.
Additionally, the ability to produce parts on-demand and closer to the point of use supports a more decentralised and resilient supply chain. Companies can now innovate more rapidly, producing custom and complex parts without extensive tooling or large inventories. GE has made use of AM to reduce part count and assembly in their leap jet engines by consolidating 20 parts into one printed fuel nozzle.
This transformation drives a new era of manufacturing efficiency and sustainability, positioning AM 2.0 as a cornerstone of modern industrial practices. From an Australian perspective, this consolidation provides a more stable and mature market entry position for businesses looking to adopt AM, bridging the gap between early adopters and the early majority, and enabling businesses to grow their product and business offerings based on AM technologies.
Australia’s R&D landscape
Australia’s prowess in AM research is undeniable, with the nation consistently punching above its weight on the global stage.
The Australian Strategic Policy Institute’s critical technology tracker uses the weighted citations of the country’s publications for AM research, ranking Australia fifth in the world behind the US, China, the UK, and Germany.
This record is supported by significant investment in AM machines, facilities and supporting research and testing capabilities. This total investment amount to well over $250 million in the last 10 years across our major universities and CSIRO.
Further to this and despite its relatively smaller industrial base compared to global counterparts, Australia excels in attracting and mostly retaining talent, underscoring its significant potential to drive innovation and technological advancement in the field of AM.
If this research strength could be combined and coordinated with Australia’s current initiatives, leveraging the unique access to critical minerals and materials, we could become world leaders in the application of AM within the industry.
Australian AM industry challenges
Despite being the fastest-growing sector in global manufacturing, AM faces unique challenges in Australia. While the technology holds immense potential for revolutionising traditional manufacturing processes, its widespread adoption among Australian small and medium-sized enterprises (SMEs) lags behind international trends.
The slow adoption of AM technology among Australian SMEs can be attributed to several factors, with a primary one being the prevalence of small-scale manufacturers in the country. Roughly 90 per cent of Australian manufacturing companies employ fewer than 20 individuals, presenting a challenge for these businesses to invest in and integrate advanced technologies like AM. These smaller operations often lack the necessary knowledge, resources, and support to accurately assess the direct impacts of transformative technologies such as AM compared to the familiar technologies and upgrades to existing equipment they already use daily to serve customers.
This challenge is exemplified by the outcomes of the previous government’s modern manufacturing initiative, where 37 projects received direct funding for traditional fabrication equipment focused on cutting, machining, and welding, compared to only five projects identifiable as related to AM investments. Many of these AM projects were within companies that had previously invested in AM, indicating a reluctance among others to embrace this technology.
Another significant challenge is the absence of a concerted national effort to engage SMEs in AM research and development initiatives and limited open access facilities for education, demonstrations and testing of applications. Unlike countries such as the USA, Europe and especially China, where government-led initiatives, hubs and industry collaborations drive innovation and adoption, Australia lacks a cohesive national strategy to support SMEs in embracing AM technologies.
Government initiatives and strategic imperatives
Acknowledging the transformative potential of AM, the Australian government has designated it as a critical technology in the national interest, highlighting its significance as an enabling capability for advanced manufacturing. AM holds a prominent position in the priority areas outlined by the National Reconstruction Fund (NRF), as an enabling capability, emphasising its cross-cutting importance in driving innovation and value creation across various sectors.
AM also plays a pivotal role in key priority sectors such as resources, transport, medical science, defence, and renewables, further accentuating its strategic value in advancing Australia’s economic and technological objectives.
Despite this recognition, the Australian government has yet to make a substantial investment or commitment to AM. The 2024-2025 federal budget showed no direct support for the technology. This contrasts with support provided for other emerging technologies such as quantum computing and responsible deployment of AI. Interestingly, some of these technologies may be less mature than AM and could potentially offer lower benefits in terms of broader industrial involvement and uplift.
The overall lack of a coordinated national approach to AM hampers SMEs’ access to crucial R&D resources, including funding, expertise, and infrastructure. Without adequate support, Australian manufacturers struggle to invest in AM-related research, development, and innovation projects, which not only impedes their ability to adopt the technology but also undermines their competitiveness on a global scale. The absence of comprehensive workforce education and training programs exacerbates the skills gap, further hindering the uptake of AM technologies within the local manufacturing sector.
To address these challenges and expedite the adoption of AM technology in Australia, collaborative efforts are imperative from government, industry, and academia. Initiatives such as establishing dedicated funding programs, fostering collaborative research endeavours, and providing technology adoption grants can equip SMEs with the necessary resources and support to invest in AM technologies.
Additionally, investments in tailored education and training programs within tertiary and vocational institutes, specifically designed for the manufacturing workforce, can enhance skills development and facilitate the seamless integration of AM into conventional manufacturing processes.
Solutions for accelerating adoption
Addressing the challenges hindering the widespread adoption of AM among Australian manufacturers requires a multi-faceted approach that encompasses policy interventions, industry collaboration, and workforce development initiatives.
Firstly, there is a need for targeted government support and investment to facilitate access to AM technologies and resources for SMEs. This could involve the establishment of AM innovation hubs or common user facilities and research consortia, such as a CRC program, aimed at fostering collaboration between industry, academia, and government agencies.
Additionally, initiatives to upskill the manufacturing workforce in AM technologies and processes are essential to ensure their successful integration into existing manufacturing operations.
Finally, incentivising the adoption of AM through grants, tax incentives, and subsidies could help overcome financial barriers and encourage investment in AM infrastructure and capabilities.
Case studies and success stories
Highlighting success stories and best practices in AM implementation can serve as powerful catalysts for driving adoption and inspiring confidence among Australian manufacturers. Case studies of companies that have successfully integrated AM into their operations, resulting in tangible benefits such as cost savings, increased productivity, and enhanced product quality, can provide valuable insights and practical guidance for others looking to embark on their AM journey. Showcasing the diverse range of applications and industries where AM has been successfully utilised, from aerospace and automotive to healthcare and consumer goods, can help dispel misconceptions and demonstrate the versatility and adaptability of AM technology.
Despite AM in Australian industry being in its infancy, there are numerous success stories that can inspire broader sector adoption. For instance, in the medical technology field, companies like Lyka Smith and Singular Health have developed regulatory-approved products, showcasing the potential of AM in this sector. Similarly, in the transport and defence industries, companies such as Rosebank Engineering, AML3D, and Spee3D have made significant strides with unique technologies developed domestically. Notably, AML3D and Spee3D are also original equipment manufacturers (OEMs), with their AM systems being sold worldwide. These success stories not only highlight the capabilities of AM technology but also underscore the innovation and competitiveness of Australian manufacturers on a global stage.
Closing remarks
As Australia charts its course toward economic recovery and sustainable growth, the revival of its manufacturing sector stands as a critical imperative. AM emerges as a potent catalyst capable of breathing new life into Australian manufacturing, fostering innovation, and bolstering sovereign capability.
Through embracing AM and confronting the obstacles hindering its widespread adoption, Australia can position itself as a frontrunner in advanced manufacturing, ushering in a period of sustained economic prosperity and technological advancement.
Achieving this vision demands unified efforts and collaboration among government, industry, academia, and other stakeholders through an organisation such as the proposed Additive Manufacturing CRC, which is under consideration for round 25 funding. Together, we must harness the full potential of AM to propel Australian manufacturing into a transformative era of growth and prosperity.
In realising this goal, Australia would not only solidify its standing in the global manufacturing arena but also fortify its long-term economic resilience and prosperity.
Simon Marriott, CEO, Additive Manufacturing CRC (AMCRC). Simon is a highly experienced senior executive with extensive managerial, operational and strategic expertise in advanced manufacturing environments.
Dr Frank Wagner, research director, Additive Manufacturing CRC (AMCRC). Dr Wagner is a senior manufacturing innovation executive with an engineering background. He has more than 25 years of experience in applied research and industrial R&D management.
Dr Matthew Young, consultant, Additive Manufacturing CRC (AMCRC). Dr Young is a technology, development, manufacturing and materials expert with more than 20 years’ leadership experience within R&D and translation.
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