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QBIC calls for long-term action to help the industry

QBIC’s Jason O’Dwyer shares his thoughts on strengthening Australia’s bus manufacturing industry
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Australia’s bus manufacturing industry is at a critical juncture. Despite its significant role in the country’s public transport system, the sector has long faced delays, supply chain disruptions, technology advancements and a changing government policy. 

“The bus manufacturing is struggling to build a resilient, competitive local industry, so state governments must take decisive, long-term action,” QBIC executive director Jason O’Dwyer told ABC. 

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Some of the challenges facing the industry include:

Uncertainty and Delays

Manufacturers struggle with ongoing delays and inefficiencies due to a lack of long-term planning. Without clear, detailed forecasts of future supply numbers and technology requirements, manufacturers cannot plan effectively, leading to disruptions in meeting demand.

Short-term Decision Making

Short-term government decisions disrupt long-term industry growth. This undermines investment in modern technologies, workforce training and infrastructure, which are essential for local manufacturers to stay competitive.

Political Instability

A lack of bipartisan support for manufacturing policy results in frequent shifts in government strategy, creating uncertainty for manufacturers.

This political instability makes it difficult to implement long-term plans and investments.

To resolve these challenges, O’Dwyer suggests several key actions that will ensure a more competitive and sustainable bus manufacturing industry.

Long-Term Supply Numbers

State governments must make forward supply numbers and technology decisions available at least two to three years in advance.

“Manufacturers need long-term visibility to plan for growth, invest in infrastructure and meet demand without delays,” says O’Dwyer.

Advance Purchase Orders

O’Dwyer advocates for placing bus purchase orders 12 months in advance with appropriate progress payments. This would help manufacturers manage supply chains effectively, ensuring timely delivery despite global disruptions.

Bipartisan Manufacturing Strategy

A unified, bipartisan manufacturing strategy is essential for long-term success. O’Dwyer stresses the importance of stability.

“A bipartisan approach is needed to ensure manufacturing policies are consistent, fostering long-term investment and growth,” he says. Broadened Local Content Requirements

State based local content requirements should be clarified and expanded to include all Australian-made components. This will boost manufacturing in regional areas, create jobs and strengthen supply chains.

Federal Coordination for National Interests

Federal coordination is crucial to ensure a unified and competitive bus manufacturing sector is in Australia’s national interests.

“A coordinated federal approach will help align state priorities, creating a stronger, more resilient industry and build a national manufacturing capability that can pivot to other priorities if and when required, ” O’Dwyer says.

Workforce Development and Skills Centres

Governments must invest in workforce development by creating skills centres focused on bus manufacturing. By adopting advance orders, as previously suggested, it will ensure apprentices and trainees have the certainty and scope of work to meet the industry’s evolving needs.

Informed Decision-Making

“Both state and federal governments must become more informed consumers, understanding the long-term impact of short-term decisions or delays in those decisions,” O’Dwyer says. 

“Strategic decisions now will build a stronger, more resilient bus manufacturing industry for the future.”

The Australian bus manufacturing industry is essential to the nation’s transport infrastructure but faces significant challenges

By providing long-term supply forecasts, placing advance purchase orders, adopting a bipartisan strategy, broadening local content requirements and investing in workforce development, state governments can help create a more resilient and competitive industry.

However, it is also crucial to strike a balance between local production and overseas imports to ensure that Australia remains competitive while safeguarding local manufacturing jobs and capabilities. 

“By working together, we can build a bus manufacturing sector that serves Australia’s long-term interests and secures its place in a global economy,” O’Dwyer says.  

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