Australia has faced ongoing concerns over medicine supply in recent years, with reliance on imported pharmaceuticals and periodic shortages prompting greater attention on domestic manufacturing capability and supply chain resilience. 

Against this backdrop, pharmaceutical manufacturers are investing in expanding local production to strengthen Australia’s capacity to manufacture medicines onshore.

In an exclusive interview with Australian Manufacturing, conducted following the official opening of the Eastern Creek facility, Dr Aniss Chami, chief executive officer of Vitex Pharmaceuticals, outlined the company’s rationale for the investment, its expansion into registered medicines manufacturing, and why the family-owned business has continued investing in Australian production rather than pursuing lower-cost offshore alternatives.

The new Eastern Creek facility, known as Wonderland, officially opened on 3 July. The site triples the company’s production footprint while adding manufacturing capabilities across gummies, liquids, creams and probiotics. The expansion also extends Vitex beyond complementary medicines into registered medicines, including Schedule 4 prescription products.

Responding to Australia’s medicine supply challenges

According to Dr Chami, the investment was driven by concerns about Australia’s reliance on imported medicines and recurring supply shortages.

“This investment was a direct response to a vulnerability we saw play out in real time,” he said.

“In 2023, 61 per cent of medicines supplied in Australia were imported, and by mid-2024 more than 400 medicines were in shortage, affecting everything from cardiovascular disease to depression and hormone therapies.”

Dr Chami said the expanded facility would enable Vitex to broaden its manufacturing scope.

“Wonderland triples our production footprint and, critically, extends our licensed capability from complementary medicines into registered medicines, including Schedule 4 prescription products,” he said.

“That means we’re now positioned to help close genuine gaps in Australia’s domestic medicine supply, not just add capacity to what we already made.”

Engineering for expanded manufacturing

The increased production capacity required substantial changes to the site’s infrastructure and manufacturing systems, according to Dr Chami.

“Scaling into new dosage formats isn’t just about floor space — it’s a complete reimagining of the plant’s engineering backbone,” he said.

Dr Chami said the facility expanded from one electrical substation to five, with a combined supply of around 11,000 amps and more than 130 kilometres of cabling throughout the building.

He added that environmental controls were also upgraded with 68 air handling units and 26 dehumidifiers, alongside dedicated manufacturing lines including high-capacity solid blenders, a liquid blender, automated stick packaging, pastille formation and softgel encapsulation.

“Every one of those systems had to be purpose-built and validated to pharmaceutical-grade standards before a single gummy or cream could be produced at scale,” he said.

Contract manufacturing under one roof

Vitex manufactures products on behalf of multiple brand owners, providing services from formulation through to finished products.

“As a contract manufacturer, we’re the unseen hand behind a lot of Australia’s most trusted brands,” Dr Chami said.

“A client brings us an idea, and we carry it all the way to the shelf.”

He said operating formulation, testing and packaging under one roof helps streamline production while maintaining quality standards.

“Our quality systems have to be robust enough to serve multiple brand partners simultaneously, all under the one TGA licence and GMP framework, so there’s no daylight between our standards and theirs,” he said.

“In practice, that discipline is what drives speed… It’s also where innovation happens — we’re often solving formulation or format challenges alongside our clients, not after the fact.”

Why manufacturing has remained in Australia

While many manufacturing sectors have shifted offshore over recent decades, Dr Chami said Australia’s regulatory framework has supported domestic production of complementary medicines.

“I think it comes down to trust, and to the way Australia actually regulates this category,” he said.

“Everywhere else in the world, complementary medicines are regulated as a dietary supplement or a food. In Australia, the TGA regulates them as a medicine — which means our manufacturing has to meet medicine-grade standards, not food-grade ones.”

He said Australia’s regulatory requirements have helped establish a reputation for quality in export markets.

“Companies that chased lower-cost manufacturing offshore often found the savings didn’t hold up once you accounted for quality risk and supply reliability,” Dr Chami said.

“Our family made the opposite bet decades ago — investing in people, equipment and capability here — and Wonderland is really the culmination of that conviction.”

Focus on supply chain resilience

Dr Chami said recent global disruptions have reinforced the importance of domestic manufacturing capability.

“It’s central,” he said when asked about local manufacturing’s role in supply chain resilience.

“We’ve seen what happens when the model relies on long, fragile offshore supply chains — COVID exposed it, and more recently, disruption in the Middle East has reinforced how quickly global supply can be interrupted.”

He said bringing production, testing and packaging together at a single Australian site reduces potential points of disruption.

“At full capacity, our combined operations will produce close to 30 billion doses annually. That’s sovereign capability in the most literal sense: medicines made in Australia, by Australians, available to Australians when they need them.”

Expanding into registered medicines

The Eastern Creek facility also enables Vitex to manufacture registered medicines, including Schedule 4 prescription products, which require additional regulatory compliance.

Dr Chami said Wonderland has completed Therapeutic Goods Administration inspection and is licensed under the Therapeutic Goods (Manufacturing Principles) Determination, aligned with the PIC/S Guide to Good Manufacturing Practice.

He said the facility supports manufacturing, packaging, labelling, testing and release for supply across tablets, capsules, powders, liquids and topical preparations.

“From an infrastructure standpoint, that meant building controlled and cleanroom environments to a standard beyond what complementary medicines manufacturing requires,” he said.

“The environmental control systems, the segregation between production zones, and the validation processes all had to be built for registered-medicine-grade compliance from day one.”

Competing through regulatory standards

Vitex currently exports to 26 direct international markets. Rather than competing primarily on production costs, Dr Chami said the company’s export strategy centres on Australia’s regulatory reputation.

“We don’t compete on cost with lower-cost offshore hubs, and we’ve never tried to,” he said.

“We compete on trust.”

Dr Chami said customers in markets including China, Vietnam, Thailand, New Zealand and South Korea choose Australian-manufactured products because of the Therapeutic Goods Administration’s regulatory framework.

“That regulatory reputation is a genuine commercial asset in export markets where consumers and regulators are increasingly scrutinising where and how medicines are made,” he said.

“Wonderland strengthens that position further and gives our international partners more capacity and more format options, without any compromise on the compliance standard that got us into those markets in the first place.”

The Eastern Creek facility officially opened on 3 July, marking a significant expansion of Vitex Pharmaceuticals’ manufacturing operations. Through the investment, the company aims to increase domestic pharmaceutical manufacturing capability while supporting both Australian medicine supply and export markets.

The post Inside Vitex’s $250M investment in Australian pharmaceutical manufacturing appeared first on Australian Manufacturing.

New Zealand’s manufacturing sector recorded its strongest monthly expansion in nearly five years, with the latest BNZ–BusinessNZ Performance of Manufacturing Index (PMI) rising sharply in June, according to the New Zealand Government.

Small Business and Manufacturing Minister Cameron Brewer said the PMI increased to 59.7 in June from 51.3 in May, marking its highest level since July 2021 and remaining well above the survey’s long-term average of 52.5. A reading above 50 indicates the manufacturing sector is expanding.

“This is a very strong result. Order books are filling up, production is climbing, and manufacturers are hiring again,” Brewer said.

According to the Government, all components of the PMI remained in expansion during June. New Orders recorded the strongest result at 64.1, followed by Production at 59.4 and Employment at 55.8, indicating increased activity and hiring across the sector.

The Government also cited comments from BNZ Head of Research Stephen Toplis, who said analysts were “staggered by the extent the Index has jumped.”

Brewer said the latest figures build on manufacturing’s contribution to New Zealand’s economic performance in the March quarter.

“Manufacturing is one of the powerhouses of our economy, and right now it’s running hot. This follows the sector being the single biggest driver of economic growth in the March quarter, so the momentum is real and it’s building,” he said.

The Government said manufacturing directly employs more than 220,000 people, contributes around eight per cent of New Zealand’s gross domestic product, and accounts for 60 per cent of the country’s exports.

Brewer said the Government’s Investment Boost initiative is intended to help manufacturers respond to growing demand by investing in new equipment and technology.

“When order books fill up like this, manufacturers need to invest to keep pace, and that’s what Investment Boost is for, letting them buy the machinery and equipment that lifts productivity,” he said.

He also said New Zealand manufacturers are currently outperforming those in several major economies.

“Our manufacturers are outpacing every major economy right now, including the United States, China, Japan, the United Kingdom and Australia,” Brewer said.

“Kiwi manufacturers are showing what they can do when they get a Government that backs them. This is all part of the Government’s plan to fix the basics and build the future.”

The post New Zealand manufacturing growth reaches five-year high as PMI surges appeared first on Australian Manufacturing.

Daikin Australia has launched its next-generation Alira X wall-mounted split system air conditioner range, introducing upgraded heating performance, indoor air quality features and design refinements aimed at addressing Australia’s varied and often extreme climate conditions.

According to the company, the new Alira X (FTXM-AVMA Series) has been developed to provide faster heating, improved energy efficiency and reliable operation in high temperatures, while incorporating technologies intended to improve indoor air quality.

Daikin Australia said the system’s new Rapid Heat technology can warm rooms up to 25 per cent faster than the previous-generation Alira X. The company also said its Long Time Heat feature allows continuous heating for more than 100 minutes without entering a defrost cycle, reducing heating interruptions in colder conditions.

“At Daikin, our philosophy is centred around ‘Perfecting the Air’. We aim to create indoor environments that are not only comfortable, but also healthier and more reliable for Australian households,” said Raj Singh, General Manager of Product and Marketing.

“The Alira X range was designed to respond to the everyday challenges faced by households across the country, from extreme temperatures through to humidity and air quality concerns,” Singh said.

Daikin said the system is designed to operate in Australia’s climate extremes, including temperatures of up to 50°C. The company noted that the product is intended to support households during periods of extreme summer heat, including in locations such as Western Sydney where temperatures can exceed 45°C.

The company also introduced several design updates, including a redesigned gecko-resistant electrical box intended to help protect outdoor units from vermin-related damage in warmer regions, and longer indoor unit pipe tails designed to simplify installation in double-brick homes.

In addition to temperature control, Daikin said the Alira X incorporates its Streamer Technology, which is designed to help decompose pollutants including bacteria, viruses, mould, pollen, allergens, odours and formaldehyde. The system also includes a Mould Proof Operation feature that continues fan operation for up to one hour after cooling or drying mode to help dry internal components and suppress mould growth.

“In Australia, there’s still a perception that good outdoor air quality automatically means good indoor air quality, but that’s not always the case,” Singh said.

“Modern homes face a range of indoor air quality challenges, from allergens and odours through to humidity and mould. Features such as Streamer Technology and Mould Proof Operation are designed to help Australians create healthier and more comfortable indoor environments year-round,” he added.

Daikin Australia said the Alira X range has been approved under Australia’s Sensitive Choice program and offers improved seasonal energy efficiency ratings across hot, average and cold climate zones under the Zoned Energy Rating Label (ZERL) system. The company also said the system is designed to reduce energy consumption and operating costs compared with conventional resistance heaters.

Other features include built-in Wi-Fi connectivity, an Intelligent Eye occupancy sensor, 3-D airflow, quiet operation modes, weekly timer functionality and the use of R32 refrigerant, which has a lower global warming potential.

The Alira X range is now available in Australia, according to Daikin Australia.

The post Daikin Australia launches next-generation Alira X split system for Australian conditions appeared first on Australian Manufacturing.

Rolls-Royce has begun construction on a major expansion of its Submarines site in Derby, with the company saying the increased manufacturing capacity will support current and future submarine programmes for the UK and Australian navies under growing defence commitments.

The company announced it has officially broken ground on a new manufacturing facility at its Raynesway site, marking the start of foundational work on an expansion that will more than double the size of its manufacturing operations. 

The wider development will add more than 100,000 square metres of manufacturing and office space and is expected to create 1,170 skilled jobs across manufacturing, engineering and other disciplines.

According to Rolls-Royce, the expansion is intended to increase manufacturing output to meet demand from the Royal Navy and the future Australian SSN-AUKUS submarine programme under the AUKUS partnership between Australia, the United Kingdom and the United States.

The groundbreaking ceremony was attended by UK Minister of State for Defence Lord Coaker, Rolls-Royce Submarines President Abi Clayton and Commodore Alistair Moody, Director for Nuclear Propulsion at the Submarine Delivery Group.

Clayton said the project represented an important milestone for the company’s manufacturing capability.

“Breaking ground is a significant step forward in the critical growth of our business. This expansion will more than double the size of our manufacturing facility, strengthening our capability and demonstrating our ongoing commitment to the Defence Nuclear Enterprise,” she said.

“Together with our trusted delivery partners, our commitment is to deliver this programme safely, efficiently and to the highest standards. This work will unlock much-needed manufacturing capacity on site, allowing us to enhance our delivery drumbeat to support the boat build programmes.”

During the visit, Lord Coaker also met Rolls-Royce nuclear welding apprentices who recently secured first, second, third and fourth places in the SkillWeld 26 East Midlands heats, marking the first time one company has claimed the top three positions in the national apprentice welding competition.

Lord Coaker said the expansion reflected the government’s investment in defence manufacturing.

“The expansion of the Rolls-Royce site is a clear demonstration of the government’s commitment to the UK’s nuclear deterrent,” he said.

“Witnessing the manufacturing of the fifth SSN-AUKUS reactor and the hundreds of apprentices in action was inspiring – seeing defence investment creating jobs, driving growth, and keeping the UK safe.”

Rolls-Royce announced plans in 2023 to double the size of its Raynesway site, where it designs and manufactures the nuclear reactors that power every Royal Navy submarine. Under the AUKUS partnership, the company will also supply reactors for Australia’s future SSN-AUKUS submarines.

Commodore Alistair Moody said the expansion reflected the shared commitment of the UK and Australian governments to the submarine build programme.

“The ongoing expansion work at Raynesway demonstrates the shared commitment of the UK and Australian governments to meet the ambitious pace of our submarine build programmes. Together, we are building the foundations for delivery to defend our nations for decades to come,” he said.

“The significant nuclear enterprise investment confirmed in the DIP reflects the UK’s unwavering commitment to maintaining and renewing our nuclear deterrent, a capability that has protected the UK and our allies for almost 60 years. Delivering this work is a National Endeavour and continues to drive growth, strengthen security and sustain tens-of-thousands of jobs across the UK.”

Rolls-Royce Submarines employs more than 5,500 people and designs, manufactures and supports the pressurised water reactors used across the Royal Navy’s submarine fleet. 

The company is currently supplying reactor systems and associated components for the Astute and Dreadnought submarine programmes while providing in-service support from its Derby operations and technical teams located across the UK.

The post Rolls-Royce expands manufacturing capacity to support UK and Australia submarine programmes appeared first on Australian Manufacturing.

Australian small and medium-sized manufacturing businesses will be able to access a new $10 million co-investment fund aimed at supporting emissions reduction, improving energy efficiency and transitioning away from fossil fuel-based industrial processes, according to the Advanced Manufacturing Growth Centre (AMGC).

Funded by the Australian Renewable Energy Agency (ARENA) through its Advancing Renewables Program and delivered by AMGC, the SME Industrial Decarbonisation Fund will provide matched funding for projects that modernise manufacturing operations while reducing emissions.

In a news release, AMGC said the fund is intended to support manufacturers implementing electrification and other low-emissions technologies, delivering projects with measurable emissions reductions and commercial potential, sharing lessons with the broader industry, and building workforce capability to operate new equipment and meet certification, safety and compliance requirements.

Priority will be given to projects in three manufacturing areas identified as having significant decarbonisation potential: surface treatment, including powder coating and galvanising; process steam applications such as sterilisation, drying and cooking; and metals processing, including extraction, fabrication, refinement and transformation.

ARENA Chief Executive Officer Darren Miller said industrial decarbonisation would play a key role in Australia’s transition to net zero emissions.

“Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” Miller said.

“This funding extends ARENA’s work in industrial decarbonisation to reach small and medium sized manufacturers, helping them deploy practical solutions and demonstrate approaches that can be replicated across the industry.”

Eligible Australian-owned manufacturers employing fewer than 200 staff can apply for co-investment for projects valued between $400,000 and $1 million, with successful applicants required to contribute 50 per cent of eligible project costs on a dollar-for-dollar basis.

AMGC Managing Director Dr Jens Goennemann said the initiative was designed to strengthen both the competitiveness and sustainability of Australia’s manufacturing sector.

“This important initiative supports manufacturers across a range of industrial sectors, from food and beverage to surface finishing and metal processing, to improve efficiency and future-proof their operations,” Dr Goennemann said.

“To advance Australia’s industrial capability, all areas of manufacturing must be engaged. This Fund supports skills development, operational transition to lower-emissions, and sharing knowledge to accelerate industry wide progress.”

Applications open in July 2026 and will be assessed on a rolling basis until 31 December 2027 or until the available funding has been allocated.

According to AMGC, the organisation has facilitated more than 500 national collaborations and co-funded more than 170 manufacturing projects over the past decade. 

It said these initiatives have contributed to the creation of more than 4,400 jobs and involved more than $137 million in combined industry and government investment, generating an estimated $1.72 billion in additional national revenue.

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The Western Australian Government has announced $6.5 million in funding over the next four years to support the State’s space sector, with the investment to be shared between the Australian Remote Operations for Space and Earth (AROSE) consortium and Curtin University’s Binar Space Program.

According to the WA Government, the funding, announced as part of the 2026-27 State Budget, includes $4 million for AROSE Ltd and $2.5 million for Curtin University to continue space-related research, technology development and workforce training.

The government said the investment supports its Diversify WA framework, which identifies the space industry as one of nine priority sectors aimed at strengthening and diversifying the State’s economy.

Curtin University’s Binar Space Program designs, develops, tests, builds and operates small satellites. Since 2021, four Binar satellites have been launched, with another three launches expected later this year, according to the WA Government.

The program also provides training for high school students, undergraduate, graduate and postgraduate students in satellite design, manufacturing and operations.

Meanwhile, Perth-based not-for-profit consortium AROSE works on remote operations technologies for both Earth and space applications. Its projects include bushfire detection and response, agriculture, defence, and the development of new space and resources technology initiatives.

The WA Government said the funding would enable both organisations to continue expanding their work and contribute to Western Australia’s position in the growing space sector.

Science and Innovation Minister Stephen Dawson said the funding reflected the government’s ongoing support for the industry.

“The Cook Labor Government is again looking to the stars with this latest funding boost to our ever-growing space industry,” Dawson said.

He said Western Australia was well placed to participate in the sector’s growth.

“Western Australia has the geography, expertise and ambition to be a key player in the space sector, and we’re making sure the right settings are in place to support long-term growth,” he said.

Dawson said continued investment in AROSE and the Binar Space Program demonstrated the government’s commitment to building the State’s space capability.

“Continuing to co-invest in both AROSE and the Binar Space Program is a clear display of our government’s commitment to enhancing our local space industry capability,” he said.

He added that the funding aligned with the government’s broader economic diversification strategy.

“The space industry is one of the nine identified sectors under Diversify WA and it is through investments such as this that we are able to continue diversifying and future proofing the WA economy,” Dawson said.

The post WA commits $6.5M to support space industry initiatives appeared first on Australian Manufacturing.

Article by Andrew Mamonitis, Vice President – APAC, Manufacturing Division, ECI Software Solutions

Becoming smarter and more efficient will help your enterprise combat the myriad of challenges the upcoming 12 months have in store.

For local businesses in general, and manufacturers in particular, FY2026 has been quite the year. 

From rising labour costs and skills shortages to the global fuel shock which sent the price of diesel soaring in March, and the interest rate hikes economists believe will keep coming down the pike, the manufacturing sector has been buffeted on multiple fronts, mostly by forces beyond its control. 

Then there’s the rising incidence of cyber-attacks, with their potential to cause serious operational disruption and sizeable financial losses – an average of $56,600 and $97,200 per report, for small and medium businesses respectively, according to the Australian Signals Directorate’s Annual Cyber Threat Report 2024-25.

Against that backdrop, it’s little surprise some once thriving manufacturers have gone to the wall during the past 12 months. 

They include the likes of Price Plastics, a long-established supplier to the industrial and consumer markets, which collapsed into administration in September 2025, and luxury caravan manufacturer Zone RV which went into liquidation in January.

With conditions likely to remain uncertain and challenging, maintaining high visibility and tight control over your operations could help your business avoid joining their unfortunate ranks in the upcoming financial year. 

When the going gets tough, the tough get going

The strength of your financial management can mean the difference between sinking and staying afloat. Forecasting accurately, keeping accounts up to date and maintaining an iron grip on your outgoings and cash flow will help you deal with fluctuating demand and unexpected changes to your cost base.

Understanding your production capacity and monitoring your productivity and output will allow you to maximise the efficiency of your operations and ensure you’re extracting peak value from your assets and employees.

Robust stock control and scheduling systems can help you keep a lid on inventory costs, minimise bottlenecks and delays, and create the capacity to accommodate new customers or rush orders.

And strong cyber-security safeguards will reduce the risk of costly disruption, should your business be targeted by hackers or scammers. 

Why working in manual mode can make tough times tougher 

Ensuring your enterprise is lean, mean and ready to respond to rapidly changing conditions can be difficult if you’re operating in manual or semi-manual mode.

That’s still the status quo for a sizeable proportion of small and medium sized local manufacturers that haven’t documented and systemised key practices and processes. 

Typically, they rely heavily on spreadsheets, or even paper-based systems, with a surprising amount of intellectual property – including critical customer and operational information – stored in owners’ and long-term employees’ heads.

Not having that data consolidated in an accessible ‘single source of truth’ can make it tricky, if not impossible, to extract the insights you need to optimise your operations and monitor your position at a granular level.

Turning to technology 

That’s where cloud-based enterprise resource planning (ERP) software can be a real game changer.

Eliminating legacy processes and practices and pulling all your operational and financial data together on a single platform – preferably one that’s been custom built to address the unique requirements of small and medium sized manufacturers – will help you bring greater efficiency and rigour to all aspects of your operations.

You’ll be able to maintain a bird’s eye view of how your business is tracking – in the here and now, not months ago when reports were last run – and use sophisticated, AI-powered analytics technology to identify emerging issues.

From managing your stock levels and cash flow to minimising downtime and overtime while boosting your output, you’ll have the tools and insights you need to make your business more productive, profitable and resilient.

Ideally, you’ll elect to work with a vendor that provides a comprehensive range of safeguards to keep your data private and safe. These should include multi-factor authentication, firewall protected servers, the latest encryption technology and hourly back-ups to help you recover quickly, should your enterprise fall victim to an attack.

Stronger and smarter in FY2027 and beyond

Taking steps to make your manufacturing business more resilient will see it better placed to withstand whatever shocks and setbacks FY2027 has in store. Deploying ERP technology that allows you to monitor and manage every facet of your operations will help you boost productivity, pre-empt issues and pivot rapidly when circumstances change. If you’re committed to sticking it out for the long haul, it’s a critical asset that should sit at the heart of your IT stack.

The post How Australia’s small and medium sized manufacturers can develop the resilience to navigate tough times in FY2027 appeared first on Australian Manufacturing.

A new research project will evaluate the performance of an Australian-produced titanium powder for advanced manufacturing applications, with the aim of assessing its suitability for producing high-value titanium components using additive manufacturing and other production methods, according to the Additive Manufacturing Cooperative Research Centre (AMCRC).

Led by Coogee Titanium in partnership with The University of Queensland (UQ) and supported by the AMCRC, the $677,000 project will examine whether the locally produced TiRO® titanium powder can be used to manufacture high-quality components while potentially reducing production costs and environmental impacts.

According to the AMCRC, the project will benchmark TiRO® powder against conventional titanium powders commonly used in additive manufacturing, including gas atomised and hydride-dehydride materials. 

Researchers will also investigate how trace impurities, such as magnesium and chlorine, affect the microstructure and mechanical performance of manufactured components.

The material will be evaluated using manufacturing processes including Laser Powder Bed Fusion (L-PBF) and Hot Isostatic Pressing (HIPing) to determine where the powder can compete with existing titanium feedstocks.

Coogee Titanium Technical Director Peter Duxson said the research was intended to validate the performance of the company’s titanium powder for advanced manufacturing applications.

“This project is about proving that TiRO® powder can meet the performance demands of advanced manufacturing while delivering cost and sustainability benefits,” Duxson said.

“We’ve developed a unique production process and invested in multiple facilities here in Australia, and this research will help unlock its full commercial potential across both domestic and international markets.”

University of Queensland project lead Associate Professor Michael Bermingham said the research would provide insights into the material’s manufacturing performance.

“Understanding how this new titanium powder behaves during manufacturing is essential,” Bermingham said.

“By comparing it directly with established materials and studying the role of impurities, we can determine whether it is suitable for producing high-quality, reliable components.”

AMCRC Managing Director Simon Marriott said the project aligned with efforts to strengthen Australia’s advanced manufacturing sector through industry and research collaboration.

“This collaboration highlights the importance of connecting industry and research to accelerate innovation,” Marriott said.

“Developing a competitive, locally produced titanium feedstock has the potential to transform Australia’s additive manufacturing ecosystem and reduce reliance on imported materials.”

According to the AMCRC, the project is expected to provide data on the manufacturability and performance of TiRO® powder, helping Coogee Titanium identify potential markets and support adoption in sectors including aerospace, defence and medical manufacturing. 

The research is also intended to contribute to the development of an Australian titanium supply chain spanning raw materials through to finished components.

The post Manufacturing project to assess Australian-made titanium powder for advanced production appeared first on Australian Manufacturing.

Sponsored content by Commonwealth Bank of Australia 

Australia’s manufacturing sector entered 2026 with improving momentum, but renewed global disruption is again testing resilience across the industry.

CommBank’s Manufacturing Signals Report highlights that manufacturing output expanded 1.2% over the year to December 2025, marking a return to growth after contraction in 2024. However, operating profits declined by 2.0% over the same period, reflecting the ongoing pressure rising costs are placing on margins.

Navigating a more complex operating environment

According to insights from CommBank’s Economics team, manufacturers are now navigating a more complex operating environment. CommBank Senior Economist, Business and Industry, Ryan Felsman, says, “The outlook for 2026 is already impacted by challenges relating to the Middle East conflict and global trade risks. Higher interest rates also play a role as the Reserve Bank of Australia (RBA) responds to persistent inflationary pressures.

“Manufacturers, already faced with rising input prices, are now reporting higher fuel, material and freight costs, as well as supply shortages and export challenges linked to supply disruptions around the Strait of Hormuz.”

“It’s no longer just fuel, clients are navigating cost pressures across their entire operation; it’s warehousing, labour, and raw materials,” says Belinda Harris, General Manager Commercial Banking Queensland at CommBank.

Harris says many businesses are also becoming more sophisticated in how they manage working capital and investment decisions. “It used to be a 12-week cash flow; now it’s six months, with sensitivities built in. Businesses are getting more sophisticated because that knowledge helps them understand what they can and can’t manage.”

These conditions are also influencing customer behaviour. As Felsman says, “some customers have brought orders forward to build inventories just as a ‘sovereign resilience’ pivot is putting more focus on localised inventory stockpiling and production”.

Meanwhile, longer shipping delays and inventory stockpiling are extending cash conversion cycles and increasing pressure on working capital management. CommBank is supporting manufacturers that are navigating this cashflow volatility, helping them access short to medium-term working capital.

Productivity and operational resilience remain in focus

Manufacturers are increasingly responding by focusing on productivity, operational efficiency and cost discipline, rather than volume-based expansion alone. Technology and automation are also becoming more central to resilience strategies, particularly as labour shortages remain acute across technical and trade occupations.

Around 80% of manufacturers are investing in or planning to adopt AI, with businesses exploring ways to improve efficiency, streamline operations, and manage labour constraints through automation and smarter processes.

For many manufacturers, the immediate opportunity is in using AI to improve reporting, forecasting, and operational visibility, rather than fully automated production. Delta Panels’ CFO, Rory Guy, says the business is exploring AI to improve management reporting, customer trend analysis, and production insights, helping their teams extract greater value from existing operational data.

Signs of resilience across the sector

While the outlook remains challenging, the report also highlights important signs of resilience within Australian manufacturing. “Despite these domestic and global headwinds, Australian manufacturing has shown resilience with its share of GDP stabilising at around 5.7% as of December 2025 after a long-term decline,” says Felsman.

“The industry is shifting toward higher value exports, including medical devices, advanced food products and specialised materials, alongside accelerating exports of battery inputs,” he added.

Supporting manufacturers through changing conditions

For CommBank, the report reflects a commitment to helping manufacturers interpret changing conditions with timely economic insights, specialist banking support, and practical solutions that enable businesses to invest, adapt, and grow amid a challenging market environment.

Read the full report

Explore the economic forces shaping Australian manufacturing in 2026. Read the CommBank Manufacturing Signals Report now.

_{Sources: Australian Industry Group (March 2026) Australian Industry Index; S&P Global (March 2026) Australia Manufacturing PMI; Jobs & Skills Australia, Occupation and Industry Profiles, 2026; Northline, Impact of the Middle East Crisis on Ocean Freight to Australia, 5 March 2026; ITBrief, Manufacturers embrace AI & automation but face key barriers in 2025, 29 May 2025; Australian Bureau of Statistics National Accounts, June 2025; Australian Bureau of Statistics Labour Force, February 2026.}

_{This advertorial is intended to provide general information of an educational nature only. Any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its publication. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945.}

_{This article contains information provided by CommBank and is intended for general use only. It does not take into account your personal, professional, or business circumstances. Please seek professional advice and review the product’s terms and conditions before making any decisions based on this information.}   

The post The economic forces driving manufacturing’s next cycle appeared first on Australian Manufacturing.

IFS has announced a multi-year agreement with Chelsea Football Club to deploy its Industrial AI technology across the Premier League club’s business operations, with the company saying the move is intended to establish a new approach to the use of artificial intelligence in elite football.

The agreement builds on the global principal partnership between the two organisations first announced in February. 

According to IFS, its technology will be progressively embedded across Chelsea’s operations, beginning with finance and procurement before expanding to additional Industrial AI capabilities, including asset management and facility operations.

IFS said its software will become part of the club’s operational systems, using its IFS.ai platform to improve operational performance, increase efficiency and identify opportunities for future growth.

In the initial phase of the rollout, the company said its technology will provide Chelsea with real-time visibility into finance operations, automate manual processes and support an end-to-end procurement workflow covering supplier onboarding, contract management and spend visibility.

IFS said the phased implementation aligns with Chelsea’s objective of becoming one of the most operationally advanced clubs in world football through the adoption of Industrial AI technologies.

Mark Moffat, chief executive officer of IFS, said the partnership would demonstrate how industrial-grade AI could be applied in a high-performance sporting environment.

“Chelsea FC operates in a world where performance, precision and pressure are non-negotiable. That’s exactly the kind of environment where IFS Industrial AI thrives and delivers,” Moffat said.

“This partnership will demonstrate to the world what’s possible when elite ambition meets industrial-grade AI.”

IFS said it currently manages more than US$2.4 trillion in critical assets for customers across sectors including manufacturing, energy and aerospace, and that the same Industrial AI capabilities used in those industries will now be applied to Chelsea’s operations.

Chelsea Football Club chief financial officer Adriel Lares said the agreement marked the next stage of the organisations’ partnership.

“Advanced technology is transforming the way businesses operate and we are excited to be moving into the next phase of our partnership with IFS to realise the opportunities AI software presents,” Lares said.

According to IFS, the agreement is expected to expand over time beyond finance and procurement to include asset management and facility operations as part of the club’s broader operational strategy.

The post From factory floor to football: IFS expands Industrial AI with Chelsea FC appeared first on Australian Manufacturing.