Building Resilience in Australian Manufacturing

Resilient firms are defined as those that outperform their industry in a downturn, with higher earnings than average companies. For one in three Australian manufacturing businesses, however, the loss of one customer would have a moderate to significant impact on their business. For one in 10 manufacturers, the loss of one customer would force their business to shut down.

According to the Advanced Manufacturing Growth Centre Report 2018 there are three business factors driving resilience in Australian Manufacturing:

1. Superiority: superior firms possess an unassailable competitive advantage by offering technically superior products or services that are unique within the market, and highly valued irrespective of accompanying conditions.

2. Diversity: diversified firms possess a competitive advantage across many product segments, service offerings or geographically diverse export markets. This enables them to respond to shifting consumer tastes or reduced overall demand.

3. Flexibility: flexible firms possess an agile business structure allowing them to manage fluctuations in input costs or change industry focus in the event of a downturn.

If you are keen to explore the above when it comes to cnc machined parts please do contact us at Challenge Engineering on (02) 9632 0010 or email enquiries@challengecnc.com.au