MADE IN AUSTRALIA means different things to different people. I thought that I knew the legal definition but when I looked it up, I found out that I was incorrect. It seems that in 2017 the definition was amended. I thought that at least 50% of the value had to be added here.
If you want to find out the legal meaning then the Australian Consumer Law act is the place to look: Part 5-3 of the Australian Consumer Law (ACL) has provisions for country of origin claims. These include the definition of substantial transformation.
If you look at the australianmade.com.au website they have this definition: A product has been substantially transformed in Australia if:
- it was grown or produced in Australia, or
- as a result of one or more processes carried out in Australia, the end product is fundamentally different in identity, nature or essential character from all of its imported ingredients or components.
We very proudly promote our products as ‘Made in Australia’ but what does that mean in reality?
Other than the components on the PCB, everything is sourced from Australia if it’s available. Many of the inputs are available and made locally, but very sadly local manufacturing of IC’s (chips), capacitors, resistors, diodes, etc ended in the 1980’s.
The great majority of the value added work is completed in Australia. The PCB’s are loaded with components in sunny Victoria. The finished/tested boards are then shipped to us in Mission Beach, FNQ. All the rest is completed here. The bare enclosures are machined here, and the Brissy made overlays are then applied. The wiring looms are 100% made here and these are installed as the Display is assembled. Testing and calibration is part of this process. The sensors are all manufactured here- from winding the rolls of cable to final resin sealing and testing. All final packaging and quality control is in FNQ!
And FYI many of the components are made in places other than China, including the US, Taiwan, Japan, Malaysia, India and even Canada.
Now the question is: can we make it MORE in Australia? The answer is YES. There is nothing stopping us from gradually moving further down the value add chain. We can look at what is involved in manufacturing some of the less complex inputs, and then investing in the production line equipment. For example, we currently outsource for enclosures and also piezo buzzers. These are both produced on injection moulding equipment that is readily available. We would then be able to offer other manufacturers/resellers plastic moulded supplies. This would help us to justify the cost of adding more production lines AND it would diversify the business.
That is just one example. It is just a steady process of production leading to opportunities, and opportunities leading to more production. We may need to buy in some of the other inputs required for new products. But over time, who knows- we might end up in the microprocessor business one day. If the Taiwanese could do it, I believe we can.
