As manufacturers look to extend artificial intelligence beyond data analysis and into physical operations, the focus is increasingly shifting towards systems that can sense, interpret and respond to conditions on the factory floor.

Cognizant has launched a sovereign Physical AI platform aimed at helping manufacturers move beyond isolated artificial intelligence (AI) pilots and connect sensors, robotics, factory automation and other operational systems through a unified intelligence layer.

The technology services company said its Physical AI Platform-as-a-Service, built on the Cognizant Intelligence Spine, is designed to support AI deployment across physical operations while keeping data, rules and institutional knowledge under enterprise control.

In an exclusive interview with Australian Manufacturing, Cognizant Managing Director for ANZ Carla Ramchand said Physical AI differs from conventional industrial AI by enabling systems to interpret their surroundings, respond to changing conditions and take action in real time.

“Many AI tools today analyse data, predict faults, or recommend what someone should do next,” Ramchand said. “Physical AI takes that step further by enabling machines to understand their environment and context, provide reason for changing conditions, and act in real time.”

She said the shift is being enabled by the development of advanced sensors, robotics, multimodal AI and low-latency connectivity.

For manufacturers, Cognizant said this could mean moving from systems that identify problems and alert operators towards systems that can also determine causes and undertake authorised corrective actions within defined safety boundaries.

Moving beyond AI pilots

Cognizant said scaling AI from controlled pilots across multiple machines, production lines and sites can introduce technical and organisational challenges.

“Factories are complex environments,” Ramchand said. “Legacy equipment operates alongside newer sensors, robots and digital platforms, while data ownership and connectivity can vary across.”

She identified latency, integration, cybersecurity and safety as potential challenges when AI systems move into live operations. Organisational issues, including unclear ownership, inconsistent workflows and workforce readiness, can also emerge during implementation.

Cognizant recommends that manufacturers begin with a clearly defined operational problem and measurable target, while designing for production from the outset. Ramchand said security, governance, workforce training and lifecycle support should be incorporated, with digital twins used to test decisions before they reach live operations.

The Cognizant Intelligence Spine is intended to provide a framework between physical systems and the AI layer that reasons and acts, allowing individual AI applications to be connected rather than operating as standalone deployments.

Connecting existing factory infrastructure

Cognizant said its platform is designed to work across legacy and newer technologies, allowing manufacturers to modernise without necessarily replacing existing equipment.

“Interoperability is essential because most factories run on a mix of old and new technology,” Ramchand said.

She said sensors and integration tools can connect older equipment to newer factory systems, allowing existing assets to generate and share data that can be used by AI.

Rather than replacing machinery across an entire facility, Ramchand advised manufacturers to begin with a high-value asset or workflow, secure and connect its data, measure the return and then apply the approach elsewhere.

“Making existing equipment more connected and intelligent should be the focus of factories and not replacing every machine,” she said.

Cognizant said its Physical AI service supports manufacturing applications including predictive maintenance, autonomous quality control, robotic process integration and yield optimisation. Connecting these applications could allow information from cameras, equipment, maintenance systems and production processes to inform decisions across multiple operational areas.

The company also sees potential for Physical AI to address productivity and workforce pressures by continuously monitoring machinery, automating repetitive inspections and helping employees assess faults using live data.

However, Ramchand said the objective should not be complete automation.

“The goal should not be complete automation,” she said. “Manufacturers need to focus on targeting one clear result, prove it works safely, then roll the same system out to other lines and sites.”

Cognizant expects Physical AI to contribute to a shift from isolated automation towards more adaptive manufacturing operations over the next five years. Ramchand said this would not necessarily mean fully autonomous factories, but greater integration between AI-enabled systems and human workers.

As AI begins influencing physical operations, she said manufacturers should establish clear limits on autonomous actions, retain human oversight for safety-critical or irreversible decisions, and use manual overrides and fail-safe modes.

“Manufacturers must have control over the data, rules, and institutional knowledge shaping their systems,” Ramchand said. “Making every action visible, testable, and accountable is where we see this hybrid industrial workforce become a place of trust.”

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Sponsored content by APS Industrial

APS Industrial (APS) is expanding its regional presence through the acquisition of Albury-based Control Technologies, a move the industrial products supplier said will strengthen its local service capability and support further investment in warehousing, stockholding and technical support.

The acquisition will be accompanied by strategic investment in Control Technologies’ local warehousing capacity and stockholding, according to APS.

APS said the investment is aimed at improving product availability, response times and technical support for customers across northern Victoria and south-western New South Wales.

APS outlines regional investment

APS Managing Director David Hegarty said the acquisition builds on the longstanding working relationship the two businesses have maintained since APS launched in 2018.

“APS and Control Technologies have had a strong working relationship dating back to the launch of our business in 2018, and they have built an outstanding reputation in the region,” Hegarty said.

According to Hegarty, the acquisition will allow APS to build on Control Technologies’ existing regional presence while increasing its own service capability.

“This acquisition enables us to build on that legacy through continued investment in our regional presence and service capability in this important market,” he said.

APS stated local customers would also gain access to its broader product portfolio, alongside increased stockholding and technical support.

“It is equally significant for local customers, who will benefit from access to our full product portfolio, increased stockholding and enhanced technical support,” Hegarty said.

According to APS, the transaction forms part of its strategy to expand its regional footprint in key growth markets. The company also linked the acquisition to the relocation of its Sydney branch, which APS said had strengthened its ability to service customers across New South Wales.

Local team to remain in place

APS said Control Technologies will retain its existing trading name and branding following the acquisition, while founder Erwin Bejsta will continue his involvement in the business.

According to Bejsta, maintaining continuity for existing customers will remain a priority while the business gains access to APS’s broader product offering.

“Working closely with our customers to support their varied project and application needs – no matter how big or small – has always been a hallmark of the Control Technologies approach,” Bejsta said.

“Existing Control Technologies customers will continue to work with the same local team while gaining additional access to the broad APS portfolio,” he added.

APS said the transition is already under way, with the acquisition scheduled to take effect on 1 October 2026.

For further details, please visit APS Industrial’s website. 

_{This article contains information provided by APS Industrial and is intended for general use only. It does not take into account your personal, professional, or business circumstances.} 

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Manufacturing apprentice and engineering enrolments have remained largely stagnant over the past three years, prompting the South East Melbourne Manufacturers Alliance (SEMMA) to warn that the sector could face continuing skills shortages.

The issue was discussed at SEMMA’s fourth Manufacturing BLUEPRINT forum, EDUCATE, which focused on the skills challenges facing manufacturers now and in the coming years. 

SEMMA said recent Australian Bureau of Statistics (ABS) figures show little to no growth in enrolments for manufacturing trades such as sheet metal work and engineering.

SEMMA CEO Honi Walker said the industry needed to better understand what was preventing more young people from pursuing manufacturing careers.

“We need to understand where the obstruction is. What will attract young people into manufacturing? We know it’s smart, secure and sustainable. But do they know it?” Walker said.

She said the focus should be on increasing participation and completion across both apprenticeships and tertiary qualifications, rather than debating different education pathways.

“This is not even about TAFE vs tertiary, it’s about attracting more people to the industry,” Walker said.

SEMMA also highlighted the need for training programs to respond more quickly to changes in manufacturing, particularly as technologies such as artificial intelligence and robotics become more prominent. 

The organisation said it works closely with Chisholm Institute and supports faster updates to training packages to reflect industry requirements.

The forum also raised concerns about government policies affecting small and medium-sized manufacturers’ ability to employ apprentices and skilled workers. Walker argued that policy settings should support the broader growth and productivity of Australia’s manufacturing base.

“The wealth and health of economies like Germany have got it right. They base their economics on their local manufacturing industry,” she said, pointing to local production and government procurement as areas where Australia could strengthen its approach.

During the forum, Shadow MP for Skills and Industry Bridget Vallence said the Victorian Liberal Party would seek to reduce payroll tax and land tax.

SEMMA has called for a freeze on payroll tax and the removal of payroll tax from apprenticeship wages. The organisation also wants higher financial incentives for employers hiring apprentices, noting that Victoria currently provides $5,000 compared with a $15,000 wage subsidy offered by the Queensland Government.

Walker said reducing land tax could also help manufacturers invest in equipment and expand their businesses, potentially creating greater capacity to employ apprentices.

“Manufacturing is the engine room of our economy,” Walker said. “We need a war time attitude to re-building our economy and it’s manufacturing that did it then and can do it again – if the governments’ embrace this thinking.”

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Nova Systems has expanded its manufacturing and systems integration footprint in Queensland, opening a new National Systems Integration Centre in Banyo that is more than twice the size of its original facility.

The company said the expansion, less than a year after the centre opened, has been driven by growing demand from Defence, aerospace and emergency services customers. 

The larger facility is designed to increase Nova’s capacity for systems integration, testing, prototyping, production and customer engagement.

Nova Systems CEO Dean Rosenfield said the expansion reflected demand for specialised engineering and manufacturing capabilities.

“The fact we’ve already expanded into a facility more than double the size reflects both the strength of demand for these services and the expertise of our team,” Rosenfield said.

The expanded centre will support production activities including Nova’s stretcher loading system developed for the Royal Flying Doctor Service Queensland fleet. It will also support mission integration projects for organisations including StarFlight and the Royal Australian Navy’s Aircraft Maintenance and Flight Trials Unit.

According to Nova, the facility is intended to support projects across the full systems integration lifecycle, from concept development and design through to testing, certification, production and sustainment.

Rosenfield said the investment would allow the company to scale its operations while contributing to Australia’s sovereign engineering and advanced manufacturing capabilities.

“The National Systems Integration Centre gives us the ability to deliver those capabilities at scale while continuing to grow Australia’s sovereign engineering and advanced manufacturing expertise,” he said.

Nova said the expanded facility would increase its capacity to support Defence, aviation and emergency services programs as demand for integrated technical solutions grows.

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Australian long-duration energy storage company Allegro Energy has partnered with Jena Batteries and its parent company, Suqian Time Energy Technology, in a move aimed at accelerating the manufacturing and commercial deployment of Allegro’s flow battery technology.

According to Allegro Energy, the partnership combines its proprietary water-based microemulsion electrolyte technology with Jena Batteries’ experience in large-scale flow battery manufacturing, production and system integration.

The companies plan to deploy pilot systems in Australia to demonstrate the technology at increasing scale before exploring opportunities in international markets.

Allegro Energy said its microemulsion electrolyte is designed to address cost, safety and performance limitations associated with long-duration battery storage. The technology uses readily available materials and is non-flammable, according to the company.

Allegro Energy CEO Thomas Nann said manufacturing and deployment capacity were becoming central considerations for the long-duration storage sector.

“Long-duration storage is no longer principally a question of whether the world needs it. The challenge is how we manufacture and deploy it at the scale the energy transition now requires,” Nann said.

“Allegro has spent years developing the chemistry. Jena Batteries brings significant manufacturing and system integration capability. Combining those strengths gives us a pathway to take an Australian-developed technology and prove that it can be manufactured and deployed at commercial scale.”

Jena Batteries and Suqian Time Energy Technology bring experience in manufacturing and integrating flow battery systems, providing a platform for Allegro’s electrolyte technology to be incorporated into large-scale energy storage solutions, Allegro said.

A Jena Batteries spokesperson said the companies’ capabilities were complementary.

“Allegro Energy has developed a promising approach to flow battery chemistry. By combining our complementary strengths, we are creating the foundation for safe, scalable and cost-effective long-duration energy storage solutions,” the spokesperson said.

The agreement comes amid growing demand for energy storage capable of shifting renewable energy over longer periods, Allegro said, citing the increasing penetration of wind and solar power and rising electricity demand from data centres.

For Allegro, Nann said the partnership could provide a pathway for Australian-developed technology to access international manufacturing capabilities and global markets.

“The opportunity for Australia isn’t simply to deploy batteries invented and manufactured somewhere else,” he said.

“We have the science and engineering capability to develop important new storage technologies here. Partnerships like this give Australian innovation a credible pathway into global manufacturing and global markets.”

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UNSW Sydney engineers have secured a $6.52 million grant from the Australian Renewable Energy Agency (ARENA) to investigate challenges associated with operating Australia’s electricity system with increasing levels of solar, wind and battery storage.

The three-and-a-half-year project, titled Protection & Relay Operation for Inverter-based Low-inertia Electricity Systems (PROFILES), will be led by the UNSW School of Electrical Engineering and Telecommunications and the Real Time Simulations Laboratory.

UNSW Associate Professor in Energy Systems Georgios Konstantinou said the research would examine how inverter-based resources used in renewable generation and battery storage interact with power system protection.

“The way that the power is supplied from renewables is fundamentally different to that of traditional coal fired generation,” A/Prof. Konstantinou said.

“Essentially, we need to keep operating a safe and reliable power system.”

ARENA said the growing connection of inverter-based resources to the National Electricity Market meant there was a need for greater understanding of how emerging technologies could contribute to system strength.

The agency said the project would examine how grid-forming batteries interact with protection systems when providing fault current, describing the issue as an area requiring further evidence before the technology can be more widely relied on for system strength services.

A/Prof. Konstantinou said the research would also aim to identify solutions and help manage risks and costs associated with renewable power systems.

“This work will help to future proof, manage risks and reduce the costs associated with renewable power systems,” he said.

UNSW Deputy Vice-Chancellor Research & Enterprise Professor Bronwyn Fox said the grant would support testing and modelling focused on the future operation of Australia’s electricity networks.

“Transforming the nation’s electricity grid is a critical undertaking,” Prof. Fox said. “This research is essential for the future of Australia’s energy transition.”

The project will involve UNSW researchers A/Prof. Konstantinou, Dr Felipe Arrano-Vargas and Dr Shan Jiang, with support from the UNSW Energy Institute and industry partners including Transgrid, the Australian Energy Market Operator, ElectraNet, Power Electronics, SMA, Tesla and Siemens.

ARENA said UNSW’s hardware-in-the-loop testing capability and its position as an independent research organisation were factors sup

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Sponsored content by MRPeasy

Australian precision engineering and industrial instrumentation company CENMAC implemented ERP software when it was still a one-man operation. “I couldn’t imagine us growing to this size without MRPeasy,” says Jason Ford, Founder.

From precision engineering to precision instrumentation

Centreline Machining (CENMAC) is an Australian precision engineering and instrumentation company serving industries such as food, mining, and industrial processing.

Founded in 2018 as a CNC machining operation, CENMAC has evolved into an expanding manufacturing business that, alongside its machining work, manufactures its own line of temperature instruments, pressure gauges, diaphragm seals, pressure transmitters, analytical equipment, pH and conductivity instruments, and flow meters for customers who need reliable measurement and monitoring equipment for demanding production environments.

Spreadsheets and accounting software became an obstacle

From the beginning, CENMAC’s work has required close control over quoting, job costing, materials, production orders, and delivery dates. Ford realized early on that he needed a system to bring these workflows together in one place.

“When it was just me, it was spreadsheets,” says Jason Ford, Founder. “I also used Xero, which is good for sending invoices and quotes, but it lacks on the manufacturing side.”

Ford also recalls needing a better way to assess whether each project was profitable. The details behind each job – the time spent, materials used, and true production cost – were difficult to track with spreadsheets and memory alone.

“I couldn’t keep track of costs. Whenever a repeat job came in, I needed to know whether the previous price was still good,” he says.

Ford began searching for a system to support the manufacturing side of the business. After trying out a few options, MRPeasy stood out for its balance of powerful functionality and user-friendliness.

“I used it, it was easy, and it made sense to me compared to other systems that were a bit clunky or a bit basic,” he says.

An early implementation to accommodate growth

Ford implemented MRPeasy while CENMAC was still a one-man company, before the wider team came on board. This gave him time to build the system around the company’s actual needs, starting with the essentials.

“I reckon we had MRPeasy up and running in 2-3 weeks,” he states.

That early adoption gave CENMAC a foundation it could grow with. Instead of waiting until spreadsheets became unmanageable, the company introduced a system while its processes were still simple enough to structure properly.

Achieving clear workflows without complicating things

With MRPeasy, CENMAC was able to integrate several core workflows into a single system. The team uses it for CRM, manufacturing orders, purchasing, inventory tracking, job management, and Xero integration. Instead of relying on paperwork, spreadsheets, or separate systems, the business now has a clear process for fulfilling orders.

“There’s a flow from quote to order confirmation to production to shipping, which has helped us a lot,” Ford says.

MRPeasy has also made it easier for different team members to access the information they need. Shop floor employees use the system to clock time, view drawings, add setup notes, and attach supporting information through Google Drive. This means production knowledge can be built up inside the system rather than sitting in one person’s head.

“By the time the job is done, I can just confirm it, and then it goes to shipping,” Ford says.

Because each team member only needs to use the parts of the system relevant to their role, CENMAC has been able to introduce MRPeasy without overwhelming the shop floor.

“We’ve got permissions set up to keep the noise away from people who don’t need to see certain parts of the system,” Ford says.

Growth feels unimaginable without a proper system

Looking back, Ford thinks it would have been much harder for CENMAC to reach its current size without a manufacturing system in place. By implementing MRPeasy early, the company created a foundation that could support more part numbers, more routings, more work orders, and a growing team.

“I couldn’t imagine us growing to this size without MRPeasy,” he says. “There would be too much paperwork, too many spreadsheets, and too many things getting lost or forgotten.”

For manufacturers still relying on spreadsheets, Jason’s main advice is to put a proper system in place before the business becomes too complex.

“I’d say do it sooner rather than later because it is easier when you’re small,” he says. “We’ve now got thousands of columns, routes, and part numbers. Back when I started, there were maybe 10. When you only have a small number of part numbers or a small number of people, it’s much easier.”

_{This article contains information provided by MRPeasy and is intended for general use only. It does not take into account your personal, professional, or business circumstances.} 

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The NSW Government has opened applications for a new $6 million fund aimed at helping manufacturers adopt new technologies, improve productivity and strengthen local manufacturing capability.

The Innovative Manufacturing Adoption Fund will provide support across two stages, with $1 million available in the first stage for manufacturers to assess technologies and manufacturing capabilities. 

Grants of between $10,000 and $50,000 will support activities including feasibility studies, pilot projects, process testing, equipment assessments and certification.

Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the initiative would support manufacturers in adopting innovation and technology.

“We are partnering with industry to encourage local manufacturers to create a stronger and more resilient industry that can compete on the global stage,” Houssos said.

“The Innovative Manufacturing Adoption Fund will support local manufacturers with new ideas and help them transition to a secure future through innovation and technology.”

A second stage, scheduled to open in early 2027, will provide a further $5 million in competitive grants to support the implementation of new technologies and the scaling of manufacturing operations.

The fund is open to NSW manufacturers across sectors including construction, clean energy, transport, defence and aerospace, health and medtech manufacturing.

Minister for Industry and Trade and Minister for Innovation, Science and Technology Anoulack Chanthivong said the program was intended to help businesses move from research and ideas towards practical manufacturing applications.

“This fund will help manufacturers take the leap from good ideas to real-world adoption of the technologies that are transforming industries around the globe,” Chanthivong said.

“We know NSW has world leading research and innovation ecosystems and we’re excited to see how their work can be commercialised in the manufacturing sector.”

Australian Industry Group Head of NSW Helen Waldron welcomed the funding, saying it could help manufacturers expand operations and continue investing in innovation.

“Manufacturing is an engine of innovation, reinvesting 4.1% of value-added back into R&D – the highest rate of any industry in Australia,” Waldron said.

Applications for the first stage close on 6 October 2026, or earlier if available funding is fully allocated.

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The Queensland Government has committed $12 million to support the establishment of what it says will be Australia’s first sovereign wide-body aircraft paint and refinishing facility at Wellcamp Airport in Toowoomba, with the project expected to strengthen the region’s manufacturing, aerospace and defence capabilities.

The funding has been awarded to US-based Landlocked Aviation through the Queensland Government’s $180.6 million Sovereign Industry Development Fund.

The project is expected to attract almost $52 million in total investment and create more than 750 jobs across construction and operations.

According to the Queensland Government, Landlocked Aviation will build a purpose-designed 7,685-square-metre facility capable of servicing both wide-body and narrow-body aircraft. The site is expected to provide aircraft strip and repainting, partial repainting, blending and corrosion protection services.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the investment would establish a new aviation and defence capability in the region.

“This investment will establish a critical and unique defence and aviation capability in Toowoomba, creating jobs, strengthening local supply chains and ensuring Australia is less reliant on offshore providers,” Bleijie said.

The Queensland Government said the facility would address the current reliance on overseas providers for much of the aircraft repainting and refinishing work. Landlocked Aviation Managing Director Andrew Howard said the project would bring that capability onshore.

“Australia does not currently have an onshore capability to repaint wide-body aircraft. When these aircraft need repainting, the work goes offshore, along with the skills and economic activity it supports,” Howard said.

“From 2028, we intend for that work to stay in Australia and be done here at Wellcamp.”

Construction is expected to support up to 600 jobs, while the completed facility is forecast to employ more than 150 highly skilled workers. Operations are expected to begin in 2028, with completion targeted for early that year.

Treasurer and Member for Toowoomba South David Janetzki said the project would contribute to the region’s industrial development.

“This project is exactly the type of investment Queensland needs, attracting private sector confidence, creating skilled jobs and growing our industrial capability for the future,” Janetzki said.

Landlocked Aviation said the facility would also support the development of an aviation workforce, with plans to take on apprentices from its first year of operation and work with UniSQ and TAFE Queensland.

“Aircraft refinishing is highly skilled trade work, learned through formal training and practical experience on the hangar floor,” Howard said. “We will take on apprentices from our first year of operation.”

Member for Condamine Pat Weir said the project demonstrated the role regional communities could play in attracting international investment and developing sovereign defence capability.

“This investment is a significant vote of confidence in the Toowoomba region and our local capabilities,” Weir said.

The Queensland Government said the Sovereign Industry Development Fund is intended to support projects across sectors including defence, biomedical industries and biofuels, with the broader aim of increasing sovereign industrial capability and attracting private investment.

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University of Wollongong (UOW) spin-out Hysata has been named a national finalist in the Research Commercialisation category at the 2026 Australian Financial Review Higher Education Awards, recognising the manufacturing and commercial development of hydrogen technology originating from university research.

According to UOW, Hysata was founded in 2021 to commercialise research led by Distinguished Professor Gerry Swiegers into a capillary-fed electrolysis cell designed to improve the efficiency of hydrogen production. 

The company’s electrolyser technology converts renewable electricity to green hydrogen at a reported 95 per cent system efficiency, compared with 75 per cent for conventional technologies.

UOW Vice-Chancellor Professor Max Lu AO said the company demonstrated the potential for university research to move beyond the laboratory and into commercial applications.

“An important measure of research excellence is what happens beyond the laboratory. Hysata shows how a breakthrough developed at UOW can be translated into a commercially viable technology, attracting significant investment and creating high-tech jobs here in the Illawarra,” Professor Lu said.

Hysata has raised $220 million in private capital since its spin-out and received more than $30 million from the Australian Renewable Energy Agency, alongside other Australian and NSW Government support, UOW said.

The company opened an 8,500-square-metre headquarters in Port Kembla in 2023 and now employs 130 people in high-tech manufacturing and engineering roles. UOW said the facility has also provided opportunities for university graduates and interns.

Professor Swiegers said the recognition highlighted the potential for university research to generate commercial outcomes.

“Seeing that technology move from laboratory to proven commercial reality, underpinning international commercial agreements and a growing workforce in the Illawarra, shows what is possible when university research is backed to go the distance by the public and private sector,” he said.

Hysata has also progressed towards commercial deployment, including a binding order for a megawatt-scale system scheduled for delivery in 2027, a six-month trial in Jeddah with Saudi power utility ACWA Power, and Joint Development Agreements with POSCO Holdings and POSCO E&C.

The Research Commercialisation category recognises efforts to translate publicly funded research into products and companies delivering commercial and economic benefits.

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