Rising US dollar prices increasing to US$1.07, mean that the Australian dollar is a strong competitor in the global manufacturing industry. The past two years have seen the Australian dollar appreciating 17% against the US dollar, 8% against the English pound and 33% against the Euro.
The high currency has created great opportunities for small Australian businesses to import machinery or office equipment at very affordable prices.
“Therefore, there’s never been a better time to buy and whilst exports may be hurting, upgrading to the latest technology and automation may enable companies to reduce overheads and become more cost effective as well as offering greater precision. The greater precision cannot also be underestimated, as it’s not as easy for companies to import components that require a high level of precision,” said Ken Richards from Interlease a major sponsor of this years showcase.
Between the 8th and 11th of May the Austech Showcase 2012 will be taking place at the Sydney Showgrounds. A number of different organisations will be displaying the latest in manufacturing technology and techniques and manufactured component in their industries. It is a chance for component manufacturers, precision engineering firms, toolmakers, advanced manufacturers or general engineering companies to network and discuss their manufacturing capabilities.
Almost any manufacturing sector can embrace innovation, whether they’re high-tech or low or medium-tech. Sure, Australia’s manufacturers and farmers are in a much more competitive global environment than the big resource companies, and the high currency is making it a lot harder for them. While the exchange rate is favourable for imports and investments in new technology, the cheap imports also mean local manufacturers are not only battling on the export but also on the domestic front,” said Mr Shane Infanti, CEO of AMTIL .
Some economic experts predict that the Australian dollar will be back to normal and in the mid US $0.90 by the end of 2012, making exports more competitive and helping manufacturers who are struggling amoungst high export costs.