What is the Modern Manufacturing Initiative?
The Modern Manufacturing Initiative is a key element of the Australian Government’s Modern Manufacturing Strategy, which aims to help Australian manufacturers scale-up, compete internationally and create jobs.
The $1.3 billion Modern Manufacturing Initiative (the initiative) is a key element of the Strategy and will run over four years from 2020-21 to 2023-24. The initiative aims to stimulate business investment in the manufacturing sector by addressing barriers to scale and competitiveness for
Australian manufacturers. It aims to build manufacturing capabilities and networks, lift productivity, create jobs, build global competitiveness and boost the export potential of Australian manufacturers.
The Initiative will encourage businesses to invest in their future and be part of a growing and dynamic Australian manufacturing industry. The Australian Government will co-invest to help businesses achieve competitiveness and build scale. Through this Initiative, the Australian
Government is seeking to harness the unique characteristics of each priority area and help business invest in strategic projects to overcome industry-specific challenges.
The Government is investing $1.3 billion through the initiative to support Australia’s manufacturing sector to:
- be more productive and highly-skilled
- be more collaborative and innovative
- be at the leading edge of commercialisation and technology adoption
- be more outward looking in searching for opportunities to development new supply chains and integrate into existing value chains and markets, including global markets.
Specifically, the initiative will see the Government strategically invest in projects that help manufacturers to scale up and create jobs, with investment targeted at supporting projects within the National Manufacturing Priorities. Government is seeking to co-invest in transformative,
industry-led proposals informed by the road maps that have been developed for each of those priority areas. The road maps identify unique sectoral characteristics and opportunities to boost competitive advantage and build the manufacturing sector in a way that has never been done
before. The Government is looking to work with industry to harness Australia’s competitive advantage in its priority sectors by co-investing in projects, proposed by industry.
What are the National Manufacturing Priorities?
The National Manufacturing Priorities are:
- Resources Technology & Critical Minerals Processing
- Food & Beverage
- Medical Products
- Recycling & Clean Energy
Resources Technology & Critical Minerals Processing
Australia has significant reserves of the critical minerals and metals which drive the modern global economy. These are used to manufacture advanced technologies such as:
- electric vehicles
- mobile phones
- renewable energy.
The majority of primary ores are shipped overseas for processing. This means Australia only gets a small share of the potential benefit. By manufacturing here in Australia, we can increase the benefits to our economy.
Food & Beverage
For the purposes of this road map, food and beverage manufacturing covers businesses that undertake various stages of processing to transform agricultural produce into food and drink products. This includes processes ranging from basic preparation, preservation and packaging of raw ingredients, through to elaborately transformed foods and beverages. However, food and beverage manufacturing excludes food service retailing businesses and unprocessed food commodities.
The food and beverage manufacturing sector is made up of subsectors which are as diverse as the range of foods and drinks we consume on a daily basis. Firms within the sector undertake a wide variety of value adding activities, using agricultural inputs to produce food for consumption. Many of the firms interact as part of a complex integrated supply chain, in which agricultural inputs go through a series of processing stages before being suitable for distribution to consumers. For example, food manufacturing encompasses flour mills, which process wheat that is subsequently
used by other food manufacturers in the production of bread and other baked goods. The sector also includes firms that process livestock to produce meat, which is directed both to consumers to be cooked at home, and also into other food manufacturing businesses that prepare ready to eat meals.
At a high level, the subsectors that make up food and beverage manufacturing include:
- meat processing and meat product manufacturing
- seafood processing
- dairy product manufacturing
- fruit and vegetable processing
- oil and fat manufacturing
- grain mill and cereal product manufacturing
- bakery product manufacturing
- sugar and confectionary manufacturing
- beverage manufacturing.
Through Ag2030, the Australian Government is setting the foundations for agricultural growth. It will ensure Australian agricultural producers receive maximum returns for their hard work and are supported by vibrant rural and regional communities. Key Government actions relevant to the Food and Beverage road map include but are not limited to:
- delivery of a National Agricultural Innovation Agenda in 2021
- developing a National Agricultural Innovation Policy Statement and mission-oriented agricultural innovation priorities by mid-2021
- providing $1.3 million to Agricultural Innovation Australia to drive a new cross-industry approach to agricultural innovation
- providing $86 million over 4 years to deliver 8 Agricultural Adoption and Innovation Hubs (focused on local drought resilience research), through the Future Drought Fund by mid-2021
- developing a Digital Foundations for Agriculture Strategy that will set the foundations for widespread uptake of digital technologies across agriculture sectors by mid-2021
- working with the Rural Research and Development Corporations (RDCs) to deliver digital platforms that support uptake of innovation and commercialisation outcomes
- providing approximately $300 million annually in government-matching contributions, to support eligible research and development activities for the agriculture industry
- delivering a National Agricultural Workforce Strategy for future workforce development and availability
- $328 million to modernise Australia’s export systems over 4 years, as part of the Government’s deregulation agenda, which will help food and beverage manufacturers, particularly in dairy, with direct and indirect business costs.
Quality medical products are at the centre of a healthy society. They can also be the centrepiece of a dynamic economy. They do this by translating smart ideas into globally competitive manufactured products.
Medical products make a significant contribution to Australia’s economic prosperity. Some of Australia’s most innovative commercial successes are from this sector.
Australian medical products making a global impact include the:
- cochlear implant
- green whistle
- cervical cancer vaccine.
Recycling & Clean Energy
Materials and energy are at the heart of manufacturing. Modernising how we use them is central to building an advanced manufacturing economy.
Australian manufacturers are well positioned to use our unique natural, industrial and competitive advantages. We can take advantage of this opportunity by combining:
- abundant clean energy
- material resources
- onshore industrial base.
Growing the defence industrial base is a key priority for the Australian Government. Australian manufacturers are in a prime position to take advantage of the increased domestic and global investments in Defence capabilities.
The opportunities that come from these investments will support manufacturers to:
- make up a greater share of the defence supply chain
- manufacture the components and capabilities required for Defence acquisition and sustainment projects
- diversify their customer base and enter new markets beyond the Australian Defence Force
- contribute to some of the world’s most advanced supply chains
- export to allies or likeminded countries.
Australia’s reputation as a reliable and high-value manufacturing nation positions us to achieve excellence in Australian space manufacturing. It will allow us to:
- build a competitive edge in key space activities
- create platforms for exports
- meet emerging critical national needs.
The Modern Manufacturing Initiative will operate under 3 streams:
- Collaboration – provides funding for a small number of large, transformational projects. Projects that will either directly feature collaboration or will create and facilitate collaborative ecosystems.
- Translation – will help manufacturers translate good ideas into commercial outcomes. It will also encourage investment in non-R&D innovation.
- Integration – will help manufacturers integrate into local and international supply chains and markets.
The Manufacturing Collaboration Stream provides funding for a small number of large, transformational projects. Projects that will either directly feature collaboration or will create and facilitate collaborative ecosystems.
The Manufacturing Collaboration Stream supports large-scale manufacturing projects with:
- business-to-business collaboration at their core and/or
- business-to-research collaboration at their core.
This stream will catalyse long-term transformation in the National Manufacturing Priority areas. It will focus private and public investment to help create the environment and incentives for Australian manufacturers to:
- scale up
- move towards higher value added activities
- become more competitive.
What does it offer?
The objectives of the Manufacturing Collaboration Stream are to:
- Foster collaboration between businesses, research organisations, investors and other parties to realise transformation in Australia’s manufacturers towards higher value added segments of the manufacturing ‘smile curve’
- Support manufacturers to work together to build manufacturing networks and ecosystems, unlock complementary capabilities, overcome barriers to scale and grow, and access global markets
- Support long-term job creation and a more highly skilled workforce in the Australian manufacturing sector
- Increase investment in Australian manufacturing, particularly in high-value added activities
- Increase manufacturing capability, business acumen, knowledge diffusion and expertise.
The Manufacturing Collaboration Stream will encourage all forms of collaboration. This could include projects brought forward by groups, for example where the collaboration may be formalised through legal agreements and governance models, as well as projects brought forward by a single entity, for example to create shared use or multi-user facilities that generate informal collaboration.
Regardless of the form or type of collaboration, projects must demonstrate that they will generate real and meaningful collaborations that will allow manufacturing businesses to achieve scale, become more competitive, create new jobs and help to upskill the Australian manufacturing workforce.
For the Modern Manufacturing Initiative’s Collaboration grant opportunity, a total of approximately $800 million is available from 2021-22 to 2023-24. The minimum grant amount is $20 million and the maximum grant amount is $200 million.
Funding may be used for activities such as:
- constructing, establishing, and fitting out new manufacturing facilities, buildings or hubs where they will support high-value added manufacturing activities, collaboration and scaling up manufacturing in Australia
- transforming existing manufacturing facilities through modifications or refits where this will support high-value added manufacturing activities, collaboration and scaling up manufacturing in Australia
- design, branding, distribution and after sales services where this will support high-value added manufacturing activities, collaboration and scaling up manufacturing in Australia
- acquiring, designing, installing, constructing and commissioning new plant, equipment and machinery for new or modified manufacturing facilities/hubs
- acquiring technology and/or purchasing intellectual property (IP) required to undertake the project
- proof of concept activities and the commercialisation of research and development outcomes
- collaboration with partners that bring complementary strengths from across the innovation chain, value chain and/or supply chain, to cooperatively overcome barriers to scale and/or increase competitiveness and/or access new markets to provide national benefits to Australia
- enhancing existing manufacturing techniques and processes, products and services including via technology adoption
- workshops, mentoring or guidance activities for the purposes of knowledge transfer and diffusion to members of the collaboration.
Applications will be assessed based on the weighting given to each criterion and we will only consider funding applications that score highly (50% or more) against all assessment criterion, as these represent best value for money.
- Assessment criterion 1: Alignment of your project with the program objectives and Modern Manufacturing Strategy (25 points). You should demonstrate this by describing:
- how your project will achieve the objectives and outcomes of the Manufacturing Collaboration Stream
- how your project will develop and contribute to ongoing and sustained collaborations, including how the collaboration will unlock benefits and capabilities
- how your project aligns with and supports implementation of the relevant National Manufacturing Priority road map(s), and the growth opportunities and goals set out in the road maps
- how the project will benefit or transform the relevant National Manufacturing Priority(ies) and the strategic benefit of the project to the project’s locality or region.
- Assessment criterion 2: Benefits to Australia (25 points). You should demonstrate this by identifying:
- the nature, extent and timeliness of anticipated outcomes and the benefits the project will bring to Australia including how your project aligns with the Australian Government’s broader policy objectives, particularly those relevant to the National Manufacturing Priority area(s) your project aligns with
- the extent that your project will maximise Australian employment outcomes, such as increased jobs and/or a more highly skilled workforce over the life of the project and into the future. You need to identify the number and types of Australian jobs your project will create, when they will be filled and how you have determined this number
- how your project will create and retain other benefits for Australia, including IP or new skills.
- why the Australian Government should invest in your project including how the grant will impact the project in terms of scale and timing and how this investment will impact participants’ ability to be self-sustaining and globally competitive into the future.
- Assessment criterion 3: Capacity, capability and resources to deliver the project (25 points). You should demonstrate this by identifying:
- your track record and experience in managing projects of a similar nature or scale and your plan specific to this project to utilise and manage personnel with the right skills and experience, including strong governance, management, financial and technical expertise
- your plan to manage and deliver the project including collaborative arrangements and governance, implementation methodology, timeframes, delivery risks and budget
- your access, or future access, to any required infrastructure, capital equipment, technology, commercial agreements, IP, specialist skills or expertise, and regulatory or other approvals (specify any approval conditions on the project).
- Assessment criterion 4: Access to finance and investment (25 points). You should demonstrate this by identifying:
- your access, or future access, to the required finance and investment required to fund your share of eligible project costs
- your intended funding arrangements to support ongoing collaborative activities beyond the grant period
- your ability to fund and manage any cost overruns
- the total private sector investment the grant will leverage (projects with a higher proportion of private sector funding will be more competitive). Cash contributions are preferred to in-kind contributions for this criterion
- additional investment that the project will leverage, including supporting infrastructure or in-kind contributions, that are not considered eligible expenditure.
The Manufacturing Translation stream will help manufacturers translate good ideas into commercial outcomes. It will also encourage investment in non-R&D innovation.
Commonwealth funding will be provided on a co-investment basis and will be up to 50% of eligible project costs.
The application process will be a one-stage process.
There will be annual funding rounds, beginning in the first half of 2021. See below of an expectation of what this stream could look like.
Australia’s collaboration on innovation between manufacturers and the research/higher education sector is the lowest in the OECD. Australia is missing out on world first innovation, local jobs growth and global competitiveness opportunities that are stimulated by greater collaboration and workforce mobility between the industry and research sectors.
The Manufacturing Translation stream will:
- provide more Facilitators so more manufacturers can access Australia’s innovation infrastructure, particularly in regional areas
- make matched grants available to support graduate and postgraduate researchers placements in businesses
- make matched grants available to support business researchers to be placed in publicly funded research organisations
- identify opportunities to access research and development and testing facilities and develop specialised training options by working more closely with the vocational education and training sector.
An Manufacturing Translation stream facilitator will help you to assess the gaps in your business knowledge and provide specialist support. There are two types of facilitations available:
- Technology Facilitation – helps your business to identify new technology, knowledge and expertise
- Research Facilitation – helps your business to identify critical and strategic research needs and pathways to engage and collaborate with the research sector.
At the end of the engagement, you will be provided with a Facilitation Report that outlines your business’ needs and opportunities. Based on the nature of your enquiry, the report will either recommend off-the-shelf technologies or collaborative research projects. For research projects, you will be able to apply for an Innovation Connections Grant to help co-fund the collaboration.
Manufacturing Translation stream grant
Following a Manufacturing Translation stream facilitation, you can apply for an Manufacturing Translation stream connections grant to undertake a research project that addresses the recommendations made in the Facilitation Report.
Manufacturing Translation stream research projects must be in collaboration with a Publicly Funded Research Organisation (PFRO) and should develop a new idea with commercial potential. Your Manufacturing Translation Facilitator will help you decide which three available grants will suit your business needs:
- Researcher Placement – placing a researcher in your business (up to a maximum of $50,000)
- Business Researcher Placement – placing a researcher from your business into a PFRO (up to a maximum of $50,000)
- Graduate Placement – employing a graduate or post-graduate with a relevant degree into your business to work on a specific Innovation Connections project (up to a maximum of $30,000).
The Manufacturing Integration stream will help manufacturers integrate into local and international supply chains and markets.
Commonwealth funding will be provided on a co-investment basis and will be up to 50% of eligible project costs.
The application process will be a one-stage process. See below of an expectation of what this stream could look like.
Manufacturing Integration stream facilitation services are tailored to assist and enable eligible Australian manufacturers to participate in domestic and global supply chains, generate sustainable business growth and find opportunities to connect and network with their customers.
Manufacturing Integration stream facilitation services include activities to:
- work within a supply chain to find opportunities, improvements and linkages
- support the entry of eligible businesses into supply chains
- create and implement a plan which builds and strengthens the business’ capability and skills
- facilitate connections between an eligible business and customers, both domestically and globally
- share practical information on specific supply chains with industry via business.gov.au.
Support & Funding
Manufacturing Integration stream facilitation services are delivered through three distinct client services, namely:
- Information Services
- Customer Connections
- Supplier Improvement Plans.
These Manufacturing Integration stream facilitation services include activities to:
- work within a supply chain to find opportunities, improvements and linkages
- support the entry of eligible businesses into new supply chains and markets
- find and assess gaps in the business and connect this information with the supply chain opportunity
- create and implement a plan, which builds and strengthens the business’ capability and skills
- build connections between an eligible business and customers, both domestically and globally
- share practical information on specific supply chains with industry.
Your business can expect:
- a custom action plan with strategies for your businesses’ specific market or supply chain
- training to help you to prepare for introductions to buyers
- to join in supply chain forums and attend networking events and training.
Timing for the opening of the Modern Manufacturing Initiative will likely to be:
- Collaboration – 11 August 2021
- Translation – 1 March 2021
- Integration – 1 March 2021
Exact timing will be provided in the beginning of the first half of 2021.
The Australian Government has announced a $1.3 billion Modern Manufacturing Initiative MMI. It is likely to be spread evenly across the three programs.
The Modern Manufacturing Initiative will likely have the following funding arrangements:
- Collaboration – 33% of total project costs
- Translation – 50% of total project costs
- Integration –50% of total project costs
Bulletpoint Track Record
Bulletpoint has assisted numerous companies secure manufacturing grants.
Bulletpoint helped Greenbear secure a grant of $500,000. Based in Tottenham, Victoria, Greenbear is a processor of waste and recycled materials. They received funding to build a fully-automated waste sorting line for residential Construction and Demolition (C&D) waste more feasibly and efficiently than current disposal methods.
Bulletpoint assisted Harry & Larry’s secure a grant of $1,200,000. Based in Brunswick, Harry & Larry’s manufacture a range of specialty ice creams. The grant will see 30 new jobs created and investment in a factory expansion with custom engineered production lines, including the latest freezing technology, to make a range of gourmet ice creams and desserts in complex shapes and layers.
Bulletpoint assisted Cottage Cheese Farm secure a grant of $765,000. Based in Glenroy, Victoria, Cottage Cheese Farm is a speciality cheese manufacturer making mainly Haloumi, Ricotta and Mozzarella cheeses. They received funding to assist with construction of a $6M purpose built cheese and yoghurt manufacturing facility. The project will allow them to expand current operations and introduction of new product lines.
Bulletpoint assisted Abey Australia secure a grant of $250,000. Based in Gisborne, Victoria, Abey is a manufacturer of plumbing and building products. They received a grant of $250,000 to buy five high-speed of five robots and 3 conveyors.
Bulletpoint assisted Osteon Medical secure a grant of $74,000. Based in Mulgrave, Victoria, Osteon Medical manufacture a range of dental and facial implant prosthetic products. They received a grant to purchase a 5 axis simultaneous CNC milling machine.
Bulletpoint assisted Keech secure a grant of $141,700. Based in Bendigo, Victoria, Keech is a manufacturer of high integrity steel castings. They received a grant to based in Bendigo. Keech received a grant to purchase a 3D digital printer for prototyping and pattern making.
Bulletpoint assisted AMR Hewitts secure a grant of $135,000, Based in Tullamarine, Victoria, AMR Hewitts is a print packaging for the pharmaceutical and food packaging industries. They received a grant to purchase a new forme cutting machine to reduce turnaround times.
Bulletpoint assisted Class Plastics secure a grant of $250,000. Based in Truganina, Victoria, Class Plastics is a manufacturer of industrial and retail plastic liquid containers. They received a grant to purchase a series of accumulated blow moulding machines and feed in conveyors.
- Resources Technology & Critical Minerals Processing Guidelines
- Food and Beverage National Manufacturing Priority Guidelines
- Medical Products Manufacturing Priority Guidelines
- Recycling and Clean Energy National Manufacturing Priority Guidelines
- Defence National Manufacturing Priority Guidelines
- Space National Manufacturing Priority Guidelines
Translation and Integration streams Recipients – Round 1
Grant recipients under the first round of the Modern Manufacturing Initiative (MMI) Translation and Integration streams are being announced successively. Successful applicants have demonstrated alignment with the 6 National Manufacturing Priority areas.
- 4 businesses will share in grants worth over $13.9 million. These grants will help Australian space manufacturers grow and become part of global supply chains. This will build our local space industry and create skilled jobs for the future.
- 5 businesses will share in grants worth over $36 million. These grants will co-fund new projects to help scale-up local medical product manufacturing facilities and open new export opportunities.
Resources Technology and Critical Minerals Processing
- 8 businesses will receive a share of grants worth over $50 million. These grants will enable manufacturers to advance their critical minerals processing techniques, and produce high value resources for export. This will continue to build on Australia’s world class reputation in the resources sector.
2 July 2021 – MMF Collaboration Stream, $800m in grants
Guidelines for the federal government’s Modern Manufacturing Initiative’s Collaboration Stream have been released, with $20-$200 million available for large-scale projects.
Minister for Industry, Science and Technology Christian Porter said the Collaboration Stream will see the Government strategically invest in projects that help manufacturers to scale up and create jobs.
The funding can cover up to 33 per cent of an eligible project’s expenditure.