Successful Endeavours - Electronics Designs That Work!

Australian Manufacturing PMI

Unlike what you are probably hearing from politicians, Australian Manufacturing is one of the current success stories of the Australian economy. Currently the second highest growth sector in Australia, Australian Manufacturing has been in growth every month bar one since mid 2015. Check out the chart below from Trading Economics Australian Manufacturing PMI.


source: tradingeconomics.com

Which is really great news for Australia because Australian Manufacturing:

  • creates fundamental value
  • creates more indirect jobs around it than any other industry
  • spreads wealth more evenly through the Australian community than any other industry

So jobs, equitable distribution of wealth and a thriving service sector are all better because of local manufacturing.

Australian made products

Our focus is on products you can make in Australia. And profitably of course. Some recent examples of Australian made products we have worked on are:

And quite a few we can’t tell you about yet.

Successful Endeavours is a leading economic indicator business. When we get busy, the Australian economy will be going through a lift in 6 to 12 months. And we are very busy right now. Which I am taking as a very good sign.

Some additional resources if you want to know more are:

Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In AustraliaRay Keefe has developed market leading electronics products in Australia for more than 30 years. This post is Copyright © 2018 Successful Endeavours Pty Ltd.

Australian Manufacturing PMI

The PMI, or Purchasing Manager’s Index, is a measure of whether a sector is growing or contracting. Growth is above 50 and contraction is below 50. So here is the last 12 months for Australian Manufacturing shown visually.

Australia Manufacturing PMI 2016-2017

Australia Manufacturing PMI 2016-2017

This is a continuing trend since mid 2015 and a really good thing for the overall Australian economy.

And to top it off, the growth in Australian Manufacturing in August 2017 was the highest since 2002. So really kicking some goals this year.

You can read more about it in:

Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In AustraliaRay Keefe has developed market leading electronics products in Australia for more than 30 years. This post is Copyright © 2017 Successful Endeavours Pty Ltd.

Manufacturing Profits you can retire on

I was talking with one of our past clients a little while ago. They told me they had a problem. They said, “Ray, I nearly retired“! So I asked them what that meant. And they explained.

We had developed a product for them a decade ago. The total project cost then around $50,000 as it included both the product Electronics Design, Embedded Software and also the Automated Test Equipment (ATE) for Production Test which also had an Electronics Design, Embedded Software and Windows PC ATE Software component to it. And from that product they made nearly $2,000,000 in retained profit. From their perspective, nearly enough to retire on. And since they own the company it is theirs to distribute as they please. Now they wanted to do it again. So we are onto another very exciting Product Development for them. Can’t say any more about that yet.

So I though about the value proposition here. The maths says:

2,000,000 / 50,000 = 40:1 Return On Investment (ROI).

And that ignores the total value of the economic activity and profits their suppliers and customers have made.

Return On Investment (ROI)

Return On Investment (ROI)

Manufacturing Spearheads Economic Growth

The Victorian Government estimates that every $1 spent with a business like Successful Endeavours, there is $100 of overall economic value generated for the state. Makes you wonder why they don’t invest themselves? They used to through things like the Technology Voucher Program but all of that is currently shut down.

And of course there are the jobs this generates. Again, Victorian Government estimates are that every job in manufacturing creates another 5 jobs around it in the supply chain and supporting businesses. That is the highest ratio of any industry.

So what’s not to love about Australian Manufacturing! Let’s look at the benefits:

  • creates fundamental value (so the service sector has something to leverage off)
  • creates jobs and then more indirect jobs than any other industry so it is great for employment
  • creates profits

And far from being in decline, the Australian Manufacturing PMI has been in growth most of the past  2 years so that is also really positive for the overall economy. Check out he graph below from the Australian Industry Group (AIG).

Australia Manufacturing PMI 2015-2017 shows growth the whole way

Australia Manufacturing PMI 2015-2017 shows growth the whole way

The above graph was created by Trading Economics. They provide a a useful way to use the AIG Australian Manufacturing PMI figures to get reports in the format you want. If you explore it more deeply, you can see that we took a hit to Australian Manufacturing during the Global Financial Crisis (GFC) but it has been an upward trend from then on.

AIG

AIG

Go Australian Manufacturing!

Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In Australia. Ray Keefe has developed market leading electronics products in Australia for more than 30 years. This post is Copyright © 2017 Successful Endeavours Pty Ltd.

Australian Manufacturing PMI

The Australian Manufacturing PMI is a measure of the manufacturing economy in Australia. A score above 50 means it is growing and a score below 50 means it is shrinking. I recently reported in the post about out new location that we had been in growth for the past 17 months but according to one data source we missed out for a couple of months during that time. For the history see:

So I thought I would double check the data. I went to the Trading Economies Australian Manufacturing PMI and looked at the trend since 2012. Here is what I saw.

Australia Manufacturing PMI 2016

Australia Manufacturing PMI 2016

So my understanding of this graph is that after the Global Financial Crisis we saw Australian Manufacturing decline but since 2012 the decline has slowed and this past year it has grown.

As a result, I continue to be encourage that Australian Manufacturing is Growing and we will continue to support that by developing modern electronics based products that are Made in Australia.

Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In Australia. Ray Keefe has developed market leading electronics products in Australia for more than 30 years. This post is Copyright © 2016 Successful Endeavours Pty Ltd.

Australian Manufacturing Grows

This month we have the interesting statistic that Australian Manufacturing has grown every single month for the past 12 months. That is a whole year of positive growth. Australian Manufacturing Expansion is a good in my opinion. I know we have been led to believe that Australian Manufacturing is gone with the exit of the car assemblers being the final straw, but the truth is very different. The Automotive Sector only accounts for 5% of Australia’s Manufacturing.

Innovation, technology and business expert

Professor Goran Roos

In my post on Modern Economies Need Manufacturing I cited some of the work by Professor Goran Roos who has both academic and business experience in making Innovation, Technology and Business work together. Hi Scandinavian background also means he is familiar with the benefits of collaboration and partnering for commercialisation, something we desperately need to do better here.

So Manufacturing Growth is a very good thing. It creates more jobs around it than an other industry and creates that fundamental value the service industry need to lever off. Let’s face it, someone has to do it.

Australian Exports Expand

And in addition, Australia has 300 More Exporters. That right, more companies are exporting now that a year ago. The lower Australian Dollar is responsible for some of this, and the better rhetoric at the Federal politics level has certainly helped.

AIG

AIG

Here is the Australian Industry Group report on Leading Performance Indicators: AiG-PMI-2016.

The average Australian Manufacturing PMI performance over the past 12 months is 52.3 where 50 = staying the same and more than 50 = growing. So measurably growing. You can get a more detailed report on just Australia is doing from Trading Economics Australian Manufacturing PMI.

Australian Manufacturing PMI June 2016

Australian Manufacturing PMI June 2016

So another good month for Australian Manufacturing. And a good thing that is.

Successful Endeavours specialise in Electronics Design and Embedded Software Development, focusing on products that are intended to be Made In Australia. Ray Keefe has developed market leading electronics products in Australia for more than 30 years. This post is Copyright © 2016 Successful Endeavours Pty Ltd.