Robert Gottliebsen
Biden’s boom Australia’s last chance to save local manufacturing: Robert Gottliebsen
In a dramatic 24 hours last week Amazon, Apple and Google all announced disappointing downturns yet the American economy created 517,000 jobs in January.
In simple terms, the three US technology giants that have dominated global business over the last decade have missed the latest technology boom that aims to reconfigure and dramatically expand US manufacturing slashing long supply chains particularly those that start in China.
Like all such booms, the majority of the jobs created are not in the actual installations but in associated areas.
The manufacturing revolution is happening as the US Federal Reserve tries to slow the American economy using interest rates and a reduction in money supply.
That becomes a much harder task when it comes up against the government-sponsored manufacturing boom designed to reduce costs and inflation with better technology.
Accordingly, the Biden government is creating jobs and stimulating the economy — the reverse of the Federal Reserve aim. President Joe Biden’s supporters would argue that the current signs of lower US inflation simultaneously with the boom in employment shows their anti-inflation measures are working better than those of the Federal Reserve.
Most areas of Australia led by defence have been very sleepy in embracing the US technology revolution although, even the US admits the 3D printing part of its technology change has been slower than originally planned
When the US Navy picked out a tiny cash-strapped Australian 3D technology company, AML3D, to be an integral part of the US nuclear submarine industry it suddenly exposed Australia to the dramatic changes ahead.
If AML3D’s systems measure up to US defence standards — as the US navy expects — the Australian company has the opportunity become part of Biden’s US manufacturing revolution.
Biden makes no secret that he is implementing an agenda to reduce inflation that is very different from the Federal Reserve.
Biden’s office describes what is happening this way: “One of the best ways to lower the cost of the goods and services that families rely on is to make more things in America, with more secure, resilient supply chains.
“We learned this the hard way during this crisis – when brittle supply chains and hollowed out manufacturing resulted in backlogs, bottlenecks and higher prices for families.
“We are in the midst of an American manufacturing boom with over $US200bn ($289.34bn) of investments in new manufacturing facilities and record-setting job creation.
“This is just the beginning of a broad revival of American industrial might.
“But not enough American companies are using 3D printing or other high-performance production technologies.
“That’s why President Biden is pleased to join several leading American companies to celebrate the launch of Additive Manufacturing Forward (AM Forward) which aims to help lower costs for American families by improving the competitiveness of America’s small-and-medium-sized manufacturers.
“AM Forward is a voluntary compact between large, iconic manufacturers and their smaller US-based suppliers.
“GE Aviation, Honeywell, Lockheed Martin, Raytheon, and Siemens Energy are the initial participants in AM Forward and will support their US-based suppliers’ adoption of new additive capabilities, helping to transform shop floors across the country.
“The Department of Energy will make its Manufacturing Demonstration Facility at Oak Ridge National Laboratory available to SME manufacturers to test new additive techniques.
“The Manufacturing Extension Partnership will provide enhanced technical assistance; and the Department of Defence will use its Mentor Protégé Program to reimburse the cost to the large participants in AM Forward for providing technical assistance to their smaller US-based suppliers”.
The US has at least two national laboratories but chose Oak Ridge in Tennessee to install the AML3D systems which means if its 3D parts measure up to US navy specifications Australian 3D technology will be exposed to this enormous 3D incubator extending way beyond defence.
Back home, Australian defence is not just behind in weaponry but appears to have little understanding of the way a modern defence operation must operate.
Hopefully Defence Minister Richard Marles, after highlighting AML3D to the President, will then understand what needs to happen in Australia.
These US developments can transform Australian manufacturing including nuclear submarines and other defence equipment. Electric cars are another good example
Using technology that already exists or will develop in the next year or two Australia can 3-D print most of the parts required for an electric car.
Modern robotic driven assembly lines can assemble those parts without being held back by the tyranny of scale. The same applies to a vast number of other manufactured goods.
In the 1960s, we established a manufacturing base but then destroyed it by a bad work practices which compounded tyranny of scale obstacles We now have a second chance if we‘re smart enough.
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