The CSIRO has revealed its blueprint for how Australian manufacturers can survive and prosper in an uncertain future.
The Advanced Manufacturing Roadmap, which was written in collaboration with industry, government and researchers, identifies major growth opportunities and what manufacturers need to do to achieve them.
CSIRO CEO, Dr Larry Marshall said the roadmap is the compass that guides science to deliver the breakthrough innovation needed to re-imagine Australian advanced manufacturing.
"Australian science can turn disruptors and increased globalisation into opportunities for value creation right here at home," he said.
Marshall said the Advanced Manufacturing Roadmap spells out how manufacturing is becoming increasingly global, with integration into international value chains vital.
Over the next 20 years, he said Australia's manufacturing industry must evolve into a highly integrated, collaborative and export-focused environment that provides high-value solutions.
"The sector needs to focus on pre-production activities such as design, research and development; as well as value-adding services, sustainable manufacturing and low volume/high margin customised products," he said.
CSIRO manufacturing director, Dr Keith McLean, said this would require significant technological innovation by public and private research communities.
"The industrial landscape is changing fast. We need to start evolving with it," McLean said.
"Australian manufacturing has a strong, high-tech future.
"The research sector needs to focus on areas like sensors, data analytics, advanced materials, robotics, automation, 3D printing and augmented - or virtual - reality.
"Australian manufacturers must transform their businesses by investing in new knowledge, skills and practices."
The Advanced Manufacturing Roadmap calls on Australia's research and manufacturing sectors to increase their collaboration and alignment with each other.
It also urges manufacturers to place a greater focus on: participation in global value chains; improve their ability to attract and retain staff with skills in digital literacy, leadership, customer interface and STEM capabilities; increase the gender, age and ethnic diversity of their workforce; and improve business-to-business collaboration.
"Industry needs to lead this transformation. CSIRO has the expertise, experience and business network to help guide them," McLean said.
The Advanced Manufacturing Roadmap is the first in a series of Roadmaps being produced by CSIRO, each aligned to the Federal Government's Industry Growth Centres.