Government & Defence Supply Chain Management

Supply Chain and Workforce Solutions for Government and Defence.

Trace helps Defence and Government agencies optimise supply chains, workforce operations, and service delivery. With proven experience across Federal and State Government and as members of multiple government panels, we deliver practical, resilient solutions that improve outcomes in complex, high-stakes environments.

The top deck of a naval ship.

Supporting Australia's Most Complex Operations with Practical, Outcome-Driven Consulting.

The Australian Defence Force (ADF) manages one of the country’s largest and most complex supply chains with billions invested annually in procurement, sustainment, and logistics. The performance of these systems is critical to operational readiness and national security.

At Trace Consultants, we bring deep expertise in defence supply chain strategy, government procurement, and public sector service delivery.

Government & Defence Consultants

Meet Our Government and Defence Experts:

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Mathew Tolley

Trace Partner
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Mathew has had previous roles in the Department of the Prime Minister and Cabinet, including as Director in the Office of Supply Chain Resilience. Over 12 years of experience advising public and private sector organisations.

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James Allt-Graham

Trace Partner
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James has over 30 years industry experience supporting Healthcare, Government, Defence and other public sector organisations.

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Emma Woodberry

Senior Manager
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Emma is a former Logistics Officer in RAAF, with over 10 years of experience in supply chain specialist consulting across diverse public sector organisations.

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Emma Hope

Senior Manager
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Emma has had previous logistics roles at Department of Defence and over 5 years experience in supply chain specialist consulting for a broad range or public and private sector clients.

Core service offerings

Strategic, Operational, and Technical Support for Government & Defence.

From high-level strategy to hands-on implementation, Trace delivers targeted support across the full spectrum of supply chain, procurement, workforce, and system challenges.

Workforce Strategy & Service Chain Optimisation

We help government agencies and defence departments plan, roster, and deploy workforces that are efficient, resilient, and ready. Our work spans the full end-to-end service chain, from strategic workforce planning through to daily scheduling.

Key Services:

  • Workforce Strategy & Organisation Design
  • Procurement Strategy for Services
  • Skills Mix Analysis & Forecasting
  • Rostering Strategy & Scheduling Optimisation
  • Cost Efficiency Reviews
  • KPI Dashboards & Reporting
  • Workforce Process Improvement

Defence & Government Supply Chain Consulting

Our consultants bring real-world supply chain experience from base logistics to multi-tier procurement, combined with deep understanding of public sector governance and risk frameworks. We design and implement defence supply chain strategies that are future-ready and built for complexity.

Key Services:

  • Defence Supply Chain Strategy
  • Supply Chain Operating Model Design
  • Integrated Product Support (IPS)
  • Supply Chain Planning & Forecasting
  • Preparedness Modelling & Resilience Diagnostics
  • Process Improvement & Cost Reviews
  • Governance Frameworks & Reporting

System Selection & Implementation

We guide agencies through the full lifecycle of supply chain and workforce technology transformation. From requirements gathering to post-go-live support, we ensure tech investments are fit-for-purpose, people-friendly, and properly embedded.

Key Services:

  • Requirements Definition & Functional Scoping
  • Technology and Software Selection
  • Implementation Project Support
  • End-User Support & Adoption

How to engage us

Federal & State Government Panels.

Trace is a listed provider on multiple Federal and State Government panels, making it simple for agencies to engage our services through established procurement pathways. Engage our services through:

Australian National Audit Office (ANAO)
Provision of Professional and Associated Services SON3921486

System Assurance Audits, Financial Statement Audits, Performance Audits, Labour Hire Contractor Recruitment services, and other additional services.

Australian Electoral Commission (AEC)
Provision of Transport, Logistics, and Related Services SON4025476

The provision of freight transport, logistics, and associated services, including the movement of electoral materials, furniture relocation, short-term storage, and technical advice.

Department of Finance – PD
Management Advisory Services (MAS Panel) SON3751667

Benchmarking, competition and market analysis, regulatory and policy analysis, business case development, cost-benefit analysis, supply and demand forecasting and more.

NSW Government
Performance and Management Services

Government and Business Strategy, Business Processes, Financial Services, Audit, Quality Assurance and Risk, Procurement and Supply Chain Services.

Digital Transformation Agency
Performance and Management Services

Strategy, Policy and Governance services, Business, Systems and Process analysis services, Solutions Implementation services

Our Experience

Proven Track Record with Federal and State Government Clients:

Insights and resources

Latest Insights on Government & Defence Topics

Procurement
July 16, 2025

Procurement of Preventative Maintenance Services for Heavy Asset Industries – A Strategic Approach

Heavy industries rely on their assets every day. This article explores how effective procurement of preventative maintenance services can reduce downtime, improve safety, and deliver long-term value for infrastructure-intensive businesses.

Procurement of Preventative Maintenance Services – A Strategic Imperative for Heavy Asset and Infrastructure Industries

In Australia and New Zealand, organisations operating in infrastructure, mining, utilities, energy, ports, rail, defence, and transport rely heavily on high-value, long-life assets. For these industries, asset performance isn’t just a function of uptime—it directly influences operational capacity, workforce safety, regulatory compliance, and the bottom line.

With economic headwinds, regulatory pressure, and shifting expectations around ESG and cost efficiency, preventative maintenance is no longer a ‘nice to have’—it’s a critical lever in asset lifecycle management. Yet, despite its importance, procurement of preventative maintenance services remains under-optimised in many organisations. Contracts are often reactive, cost-driven, fragmented across assets, or fail to align with long-term operational strategies.

This article explores how to strategically approach the procurement of preventative maintenance services, the challenges asset-intensive industries face, and how Trace Consultants can help organisations unlock value from these essential services.

Why Preventative Maintenance Matters

Preventative maintenance (PM) refers to scheduled servicing and upkeep of assets to prevent failure and extend useful life. Unlike reactive or corrective maintenance, PM aims to address wear-and-tear before breakdowns occur.

In asset-intensive industries, PM is crucial for:

  • Reducing Unplanned Downtime: Preventative schedules ensure critical assets don’t fail during production or peak periods.
  • Extending Asset Life: Regular servicing delays the need for capital replacement.
  • Minimising Safety and Compliance Risks: Failures in infrastructure, mining, or energy can have catastrophic consequences for workers and the environment.
  • Managing Costs Over Time: A well-designed PM strategy reduces reactive spend, emergency callouts, and insurance claims.

While the operational benefits are clear, achieving these outcomes requires disciplined procurement and vendor management practices—not just skilled technicians.

Common Challenges in Procuring PM Services

Despite PM’s critical role, many organisations fail to fully optimise their procurement approach. Common issues include:

1. Fragmented Contracts and Siloed Assets

Organisations with multiple sites or business units often let each area procure its own PM services. This leads to:

  • Duplication of effort and variation in scope
  • Inconsistent standards and KPIs
  • Missed opportunities to leverage scale for cost and service benefits

2. Overly Reactive or Time-Based Models

Many PM contracts are still based on rigid time intervals rather than asset condition or usage data. This can result in:

  • Over-servicing of some assets
  • Under-servicing of others
  • Poor cost-to-benefit ratios

3. Insufficient Scope Definition

Scope of services is often poorly defined, leading to:

  • Misalignment on what’s included/excluded
  • Lack of accountability between owner and provider
  • Ambiguity during contract performance reviews

4. Lack of Strategic Supplier Relationships

PM providers are often viewed as transactional service vendors, rather than long-term partners. This undermines innovation, continuous improvement, and responsiveness.

5. Difficulty Demonstrating Value

PM spend can appear as overhead. Without robust performance metrics or benchmarking, procurement teams struggle to demonstrate the value of preventative investment.

Key Considerations for Procurement Teams

To address these challenges, organisations need to apply strategic sourcing principles to PM procurement. Below are the core considerations.

1. Understand the Criticality of Assets

Not all assets are created equal. Procurement should align servicing models to asset criticality:

  • High-criticality assets (e.g. high-voltage transformers, escalators in transport hubs, medical chillers in hospitals) may require condition-based or real-time monitoring.
  • Medium or low-criticality assets can be serviced through a mix of scheduled inspections and standard intervals.

A risk-based segmentation approach enables prioritisation of spend and performance management.

2. Define the Scope Clearly and Consistently

Good procurement starts with a clear, consistent definition of:

  • Asset categories and components
  • Inspection, servicing, calibration, testing, and reporting requirements
  • Access needs, site-specific constraints, and compliance needs (e.g. ISO standards, regulatory guidelines)

Trace Consultants often help organisations document their current state and develop functional scopes of work that align to ISO55000 asset management principles.

3. Consider Whole-of-Life Outcomes

Rather than just lowest cost per visit, sourcing strategies should consider:

  • Expected life extension per asset category
  • Reduced downtime risk
  • Reduced reactive maintenance callouts
  • Improved compliance metrics and insurance risk ratings

This moves the conversation from ‘price per hour’ to ‘value per outcome.’

4. Engage the Right Providers

Not all PM providers are the same. Procurement teams should assess:

  • Experience with similar asset classes
  • Ability to scale across sites and geographies
  • Digital capability (e.g. condition monitoring, reporting tools)
  • Safety record and compliance rigour
  • Culture fit and partnership approach

Where appropriate, alternative contracting models like performance-based maintenance contracts or bundled service agreements may be more effective than transactional models.

5. Embed Reporting and Continuous Improvement

Contracts must specify clear KPIs such as:

  • Completion rates vs. schedule
  • Asset reliability improvements
  • Downtime reduction
  • Response and rectification times
  • Audit findings and non-conformances

Embedding mechanisms for quarterly reviews, lessons learned, and innovation pilots strengthens supplier engagement.

A Strategic Sourcing Framework for Preventative Maintenance Services

Trace Consultants recommends a structured approach to PM procurement, using a strategic sourcing and transformation lens. Below is a typical methodology we apply.

Phase 1: Spend & Asset Base Analysis

  • Review current PM spend, service contracts, and categories
  • Analyse asset inventory, criticality, and condition
  • Assess historical maintenance performance and cost drivers

Phase 2: Opportunity Identification

  • Identify duplicate contracts, low-performing vendors, or high-reactive spend areas
  • Conduct benchmarking on servicing frequencies, costs, and outcomes
  • Evaluate internal vs. external service provision trade-offs

Phase 3: Scope and Specification Design

  • Define standardised scopes of work and service level agreements (SLAs)
  • Prioritise high-impact categories or assets
  • Develop asset care plans by type and criticality

Phase 4: Market Engagement Strategy

  • Develop Go-To-Market (GTM) strategy (bundled vs. category-based)
  • Determine contracting model (e.g. term-based, performance-based)
  • Prepare RFx documents with clear evaluation criteria

Phase 5: Supplier Selection and Contracting

  • Support tender evaluations, negotiations, and supplier onboarding
  • Finalise KPIs, reporting obligations, and escalation processes

Phase 6: Implementation and Performance Management

  • Support transition to new providers or processes
  • Embed contract management practices and digital dashboards
  • Facilitate quarterly reviews and continuous improvement

Preventative Maintenance in Key Infrastructure Sectors

The approach to PM procurement must be tailored to industry-specific operating environments. Below are a few considerations across key infrastructure sectors:

Mining and Resources

  • Assets operate in remote, harsh conditions; reliability is critical
  • Fly-in/fly-out (FIFO) servicing models often apply
  • Contracted providers need to meet stringent safety standards and operate 24/7

Transport and Logistics

  • Rail, port, and airport assets require strict adherence to service windows to avoid passenger or freight disruption
  • Shared asset environments demand clear accountability between multiple parties (e.g. lessor, operator, government)

Utilities and Energy

  • Preventative maintenance plays a central role in network reliability and bushfire prevention
  • PM plans must integrate with real-time SCADA and asset condition data
  • Increasing expectations around ESG reporting linked to asset management

Social Infrastructure (Hospitals, Universities, Correctional Facilities)

  • PM influences safety and comfort of occupants
  • Growing expectation to bundle services (e.g. HVAC, plumbing, fire safety) for integrated FM delivery models

The Role of Technology in PM Procurement

Technology plays an increasingly important role in both the execution and procurement of PM services.

Asset Management Systems (AMS)

Robust AMS platforms (e.g. IBM Maximo, TechnologyOne, Assetic) enable:

  • Asset lifecycle tracking
  • Condition monitoring
  • Maintenance scheduling
  • Contractor integration

Procurement teams must ensure service contracts are structured to align with the organisation’s digital architecture.

Power BI and Analytics Dashboards

Dashboards enable procurement, operations, and engineering to:

  • Visualise PM performance across sites
  • Track contractor compliance
  • Monitor asset performance trends
  • Compare reactive vs. preventative ratios

Mobile-Enabled Field Reporting

Best-in-class PM providers offer digital tools that:

  • Capture field servicing data in real time
  • Flag defects and non-conformance immediately
  • Auto-generate audit trails and compliance reports

Trace Consultants helps organisations design performance frameworks and contract requirements to ensure technology integration is considered during procurement—not as an afterthought.

How Trace Consultants Can Help

At Trace Consultants, we specialise in helping asset-intensive industries optimise procurement and performance across their supply chain and operations.

When it comes to preventative maintenance services, our approach is both strategic and practical. We partner with clients across Australia and New Zealand to:

  • Analyse maintenance spend and vendor performance
  • Define standardised scopes, SLAs and evaluation frameworks
  • Develop Go-To-Market strategies and manage the procurement process
  • Identify opportunities for cost reduction, bundling, or insourcing/outsourcing
  • Support supplier transition and contract implementation
  • Benchmark performance and enable continuous improvement through data

Our work is grounded in deep industry knowledge—from mining to energy, transport to healthcare—and we pride ourselves on being hands-on, trusted advisors.

By engaging Trace Consultants, clients gain not just procurement expertise but a team that understands the operating context of their assets and the broader strategic drivers behind their maintenance strategies.

To learn more about our services and recent work, visit our insights page: www.traceconsultants.com.au/insights

Preventative maintenance is no longer just an operational issue. For asset-intensive industries across Australia and New Zealand, it is a strategic lever for performance, risk mitigation, and long-term value creation.

Yet too often, preventative maintenance services are procured like commodity labour—without the strategic rigour, planning, and alignment to outcomes required to drive real impact.

As infrastructure ages, capital budgets tighten, and safety and compliance expectations rise, the organisations that treat PM as a strategic procurement category—not just a cost centre—will be best positioned for long-term success.

Whether you’re about to go to market, reassessing vendor performance, or looking to drive cost efficiencies, Trace Consultants is ready to help you transform how you procure and manage preventative maintenance services.

How well is your preventative maintenance procurement strategy working for you?

Strategy & Design
July 14, 2025

How AI is Changing Management Consulting - an AI prompted - point of view by Shanaka Jayasinghe

The future of consulting isn’t less human—it’s more. Here’s what that means for our industry.

The Future of Management Consulting, with AI

A point of view by Shanaka Jayasinghe, Partner at Trace Consultants

Let me get this out of the way upfront: yes, I used AI to help draft this article.

Not because I couldn’t write it. But because, like everyone else, I’m learning how to use these tools effectively—and because it would be disingenuous to talk about the future of management consulting without using the very technology we’re all trying to understand.

AI is already transforming the way organisations think, plan, and operate. For consulting firms—especially those of us who work deeply in supply chain and procurement—this presents both a challenge and an opportunity. We must confront what AI automates, where human expertise still holds unmatched value, and how our role needs to evolve.

At Trace, we see this evolution playing out every day across our projects—from rethinking warehouse and transport networks, the automation of forecasting & purchasing decisions, to the redesigning back-of-house logistics for major hospitals.

The future isn’t about competing with AI. It’s about integrating it—so we can go deeper, act faster, and deliver smarter outcomes for our clients.

A Shift in the Consulting Project Landscape

In a short space of time, we’ve already seen a clear shift in the types of consulting projects clients are engaging. The era of the multi-year tech transformation—requiring armies of consultants, vendors, and SI partners—feels like it’s winding down. Whether driven by economic pressure, AI enablement, or both, organisations are now leaning into more agile, focused initiatives. The brief is clearer: reduce cost, move faster, unlock value.

Clients want surgical improvements to their business model—clear problems, straightforward solutions, pragmatic delivery, and real-time benefit tracking. It’s no longer about grand programs with abstract business cases. It’s about doing fewer things, better.

And in this environment, it’s not the “smartest” consultant who stands out—it’s the most helpful. The real value lies in the application of a solution, not just its design. Those who can implement change, navigate complexity, and deliver impact without overcomplicating it will outperform. That’s the difference between good and great—and it’s what will determine who thrives in the age of AI.

Consulting’s Core Promise Hasn’t Changed—But How We Deliver It Must

Great consulting has never been just about providing answers. It’s about helping clients solve problems they can’t—or shouldn’t—tackle alone. It’s about building trust, embedding change, and transferring capability.

I read a fantastic piece on consulting back in 2018 that's shaped my perspective since. Robert Hillard wrote in The Mandarin, consulting is at its best when it’s:

  • Trusted – grounded in long-term relationships, not transactions
  • Transformative – unlocking change that sticks
  • Transferable – leaving clients better equipped than before

These principles remain true in the age of AI. But how we deliver against them is changing—fast.

A Growing Irony in the Consulting Sector

There’s a strange paradox emerging. Many global consulting firms are promoting AI as the key to competitive advantage. Yet in doing so, they’re also accelerating the commoditisation of some of their own services.

As a former Director at Accenture, I’ve seen firsthand how large firms—built for scale and capacity—are grappling with this shift. Their latest global strategy, as reported in the AFR, reflects a sharp pivot towards AI-powered service lines. But in doing so, many are caught in a tension between automating delivery and preserving value.

If AI can automate benchmarking, generate strategy slides, simulate business cases, and process supply chain data in minutes—then why engage a traditional consultant?

The answer, of course, is: it depends on what you want.

If you want a generic solution based on global best practice and internal toolkits, AI might be enough. But if you want something fit-for-purpose, grounded in the operational realities of your business, and actually implementable—then you still need people who understand how supply chains work on the ground, how technology integrates across the stack, and how to drive alignment across stakeholders.

That’s where the difference lies. And it’s where Trace has always focused our value.

The Spotlight on Big Consulting—and the Rise of Boutique Specialists

The broader context cannot be ignored. The PwC Australia tax scandal has prompted a wave of scrutiny around consulting engagements—especially within government.

Large firms, once the default, are now under more pressure than ever to justify cost, independence, and delivery value. In this environment, boutique firms like us have found greater traction—not just because we’re smaller, but because we’re specialists.

We bring deep, operational expertise in supply chain and procurement—not just strategy, but execution. We know how to redesign supply chain technology architectures and work with operators to optimise for outcomes - whether that be oriented towards driving service, growth or cost outcomes. We know what warehouse constraints actually look like on site. We know how to navigate and implement change in complex government and commercial environments.

What’s Becoming Less Valuable in Consulting

AI has already made some aspects of our profession redundant—and more change is coming.

Tasks like deck-building, benchmarking, financial modelling, and process mapping are being automated. These used to be core deliverables; now they’re inputs, or even by-products, of the real work.

Some forms of IT consulting, particularly those relying on offshoring or capacity-based delivery models, are at risk. Why engage a team to build a data model over three weeks when an AI tool can structure 80% of it in a day?

Clients expect—and deserve—faster, more efficient delivery.

Let’s call it out clearly:

1. Generic Benchmarking and Presentation Building

Once a differentiator, now a commodity. If you’re producing decks that repackage existing content, clients will quickly realise they can generate it themselves—with better data and in less time.

2. Surface-Level Expertise

Summarising industry trends or deploying generic maturity models without tailoring to the client’s operating model, commercial context, or tech stack is no longer good enough. Clients want specific, actionable insights.

3. Chargeable-Hour Based Operating Models

Charging for time rather than outcomes is under threat. When a task is automatable, the expectation will shift toward fixed-price, outcome-based delivery—especially in areas like procurement diagnostics, network design modelling, or demand planning.

Consultants need to go beyond what AI can do. That’s the new bar.

What’s Becoming More Valuable in Consulting

As AI takes over commoditised tasks, the real value in consulting shifts to the things it can’t do—yet.

1. Deep Domain and Operational Expertise

Nowhere is this more true than in supply chain and procurement.

From configuring a WMS system for complex warehouse flows to evaluating supplier transition risk across a hospital network, the nuance required can’t be faked.

Our clients choose us because we understand their operations at a granular level. We know what happens at the loading dock. We understand how a supplier shift affects patient flow, shift rostering, or site safety.

That’s not something AI can infer from a spreadsheet.

2. Human Connection and Change Enablement

AI doesn’t build trust. It doesn’t resolve tension in a boardroom or help a CFO navigate uncertainty in a capital project.

Consulting is still about people. That’s more true than ever in a world where technology creates answers, but humans make decisions.

3. Strategic Intuition and Decision Framing

AI can present options—but it can’t navigate trade-offs in a complex business environment.

Whether we’re advising on S&OP frameworks, indirect procurement strategies, or warehouse footprints, our clients value judgement—the kind that comes from doing it before, in multiple contexts, and knowing where to flex.

The Architecture Challenge: Data Disintegration in Supply Chains

If there’s one thing holding organisations back from AI-enabled transformation—it’s their fragmented system landscape.

In supply chain, we see this daily:

  • ERP for finance and materials
  • APS for planning
  • WMS and TMS for logistics
  • P2P for procurement
  • BI tools for reporting
  • All alongside countless excel spreadsheets!!!

Each holds different data, structures, and timestamps—creating blind spots and inefficiencies.

This leads to:

  • Limited visibility of landed costs or working capital
  • Duplicate supplier records
  • Misaligned planning and execution
  • Excel-heavy workarounds

AI won’t solve this alone. But it can help:

  • Integration layers to harmonise data
  • Agents to fill data gaps with external benchmarks
  • Decision engines to simulate outcomes across constraints

But only if consultants know how to apply it operationally.

Bridging the Gap: From Data Fragmentation to AI Enablement

AI’s power is only as strong as the data it can access. In supply chain and procurement, fragmented systems often limit that potential. Legacy platforms, siloed functions, and poor integration can stall even the best AI tools. Effective consultants help cut through this. Drawing on deep operational experience, they guide businesses to prioritise tech investments with a practical lens—introducing targeted solutions that capture and connect the right data without overengineering. This approach maximises the impact of AI while keeping integration costs lean.

At Trace, we’ve helped clients unlock critical data and enable AI-driven planning, forecasting, and workflow automation. If you're navigating this space, reach out to Tim Fagan or Mat Tolley—they’re doing this work right now and can help you move faster, smarter.

A New Model of Consulting: AI-Augmented, Human-Led

At Trace, we believe the future isn’t AI versus people—it’s AI plus people, each playing to their strengths.

Our model is simple:

  • AI does the heavy lifting – data ingestion, pattern recognition, workflow automation
  • Our consultants lead the thinking – alignment, change, solution design, implementation

Whether optimising a warehouse network, designing linen logistics for a new hospital, or deploying scheduling tools for aged care—our team uses AI to go faster but always lead with human judgement.

What This Means for Talent

The consultant of the future isn’t just a generalist. They’re:

  • A systems thinker
  • An operations expert
  • A change leader
  • A technologist (even if not a coder)
  • A trusted advisor

At Trace, our team includes planners, engineers, operators, integrators—and the occasional AI enthusiast.

These are the people who will thrive in the future of consulting.

The More Things Change, the More We Need to Stay Human

AI will replace parts of consulting. But it will also elevate it.

Our job is not to resist the shift—but to lean into it with clarity, ethics, and courage.

To stop charging for what’s easy.
To focus on what’s hard.
To go deeper.
To be faster.
To stay human.

At Trace, that’s been our model since day one: operational depth, client intimacy, real-world results.

Yes, I used AI to help write this.

But it’s the human insight that makes it matter.

Sustainability, Risk and Governance
May 17, 2025

Building Australia’s Manufacturing Future: Targeting High-Productivity Industries Amid Global Trade Uncertainty

Global trade uncertainty challenges Australian manufacturers, but opportunities abound in high-productivity, low-labour industries like advanced manufacturing, clean energy, and critical minerals. This article explores how CEOs and Boards can leverage these sectors for growth, with insights from Trace consultants.

Building Australia’s Manufacturing Future: Targeting High-Productivity Industries Amid Global Trade Uncertainty

Navigating a New Era for Australian Manufacturing

Global trade is in flux. Geopolitical tensions, supply chain disruptions, and shifting trade policies—exemplified by events like U.S.-China tariffs and Indonesia’s nickel export bans—have created an unpredictable landscape. For Australian manufacturers, these challenges threaten competitiveness but also present a chance to rebuild the industry by focusing on high-productivity, low-labour sectors.

Manufacturing’s share of Australia’s GDP has dwindled to under 10%, down from 29% in the 1950s, largely due to high labour costs and competition from low-cost producers. Yet, with strategic focus, Australia can capitalise on its strengths—abundant resources, skilled workforce, and innovation ecosystems—to target industries where productivity trumps labour intensity. This article outlines key sectors—advanced manufacturing, clean energy, and critical minerals—and strategies to maximise productivity, with guidance on how Trace Consultants can help CEOs and Boards lead the charge.

The Global Trade Challenge: Why Manufacturing Matters

Global trade uncertainty exposes Australia’s reliance on imports for critical goods, from medical supplies to technology components. The COVID-19 pandemic highlighted this vulnerability, with supply chain bottlenecks disrupting access to essential products. Meanwhile, mercantilist policies in countries like China suppress wages and flood markets with cheap goods, undercutting Australian producers.

Manufacturing remains vital for economic resilience, job creation, and innovation. It drives productivity growth, historically outpacing services, and supports high-skill, high-wage jobs. For CEOs and Boards, revitalising manufacturing isn’t about returning to the 1960s but about targeting niches where Australia can compete on quality, innovation, and efficiency, not just cost.

Target Industries: Where Australia Can Win

To maximise productivity, Australia should focus on industries with low labour content or where advanced technologies and skilled workforces create competitive advantages. Three sectors stand out: advanced manufacturing, clean energy, and critical minerals.

1. Advanced Manufacturing

Advanced manufacturing leverages automation, AI, robotics, and 3D printing to produce high-value goods with minimal labour. Australia’s strengths—access to cutting-edge research through institutions like CSIRO and innovation hubs like the Australian Manufacturing and Materials Precinct (AMMP)—position it to excel in this space.

Key Opportunities:

  • Medical Technologies: Australia’s expertise in pharmaceuticals and biotech, exemplified by companies like CSL, supports high-value products like vaccines and diagnostics.
  • Aerospace and Defence: Firms like Austal demonstrate global competitiveness in shipbuilding and defence systems, driven by precision engineering.
  • Food and Beverage Processing: Automation in meat, dairy, and grain processing boosts output while meeting export demand.

Productivity Edge: Technologies like cobot welding and AI-driven quality control reduce labour needs while improving consistency. For example, automation upgrades in food processing have increased capital investment by 24.5%, enhancing output per worker.

How Trace Consultants Can Help: Trace Consultants designs automation strategies, from selecting AI tools to integrating robotics. We conduct feasibility studies, optimise workflows, and provide change management to ensure seamless adoption, helping manufacturers scale efficiently.

2. Clean Energy Manufacturing

The global transition to net zero creates demand for clean energy technologies, aligning with Australia’s abundant renewable resources and government support via the $22.7 billion Future Made in Australia plan. Programs like the $1 billion Solar Sunshot and $523.2 million Battery Breakthrough incentivise local production.

Key Opportunities:

  • Solar Panels: Scaling solar manufacturing to meet domestic and export demand.
  • Batteries: Producing high-value battery products for stationary storage, leveraging Australia’s lithium reserves.
  • Green Hydrogen: Developing production facilities for export to Asia and Europe.
  • Productivity Edge: Clean energy manufacturing relies on automated processes, like robotic assembly lines for solar panels, reducing labour costs. Australia’s proximity to critical minerals also lowers input costs.

    How Trace Consultants Can Help: We guide manufacturers through government incentives, develop supply chain strategies for raw materials, and implement digital twins to optimise production. Our expertise ensures alignment with sustainability goals and market needs.

    3. Critical Minerals Processing

    Australia holds 31 critical minerals, including lithium, cobalt, and rare earths, essential for batteries, electronics, and defence technologies. The $7 billion Critical Minerals Production Tax Incentive supports downstream refining, reducing reliance on foreign processing.

    Key Opportunities:

  • Lithium Refining: Building facilities to process lithium for battery production.
  • Rare Earths: Developing refining capabilities for magnets used in wind turbines and electric vehicles.
  • Nickel and Cobalt: Enhancing processing to counter Indonesia’s low-cost exports.
  • Productivity Edge: Automated extraction and refining technologies minimise labour while maximising output. Data analytics optimise resource use, cutting waste.

    How Trace Consultants Can Help: Trace Consultants maps supply chains for critical minerals, negotiates partnerships with global buyers, and integrates AI-driven processing systems. We ensure compliance with environmental standards, enhancing market access.

    Strategies to Maximise Productivity

    Targeting the right industries is only half the battle. Manufacturers must adopt strategies to enhance productivity, leveraging technology and innovation to stay competitive.

    1. Embrace Industry 4.0 Technologies

    The fourth industrial revolution—encompassing AI, IoT, and automation—enables manufacturers to optimise processes and reduce labour dependency. For example, predictive maintenance using IoT sensors can cut downtime by 15-20%.

    Applications:

  • Smart Factories: Integrate IoT for real-time monitoring of equipment and inventory.
  • AI Analytics: Forecast demand and optimise production schedules.
  • Robotics: Automate repetitive tasks in assembly and packaging.
  • How Trace Consultants Can Help: We assess your operations, recommend Industry 4.0 solutions, and manage implementation. Our training programs ensure your workforce adapts to new technologies, driving productivity gains.

    2. Build Resilient Supply Chains

    Global trade uncertainty demands robust supply chains. Manufacturers can mitigate risks by:

    • Localising Production: Reshoring critical components to reduce reliance on volatile imports.
    • Diversifying Suppliers: Partnering with regional suppliers to avoid single-point failures.
    • Digital Supply Chains: Using blockchain for transparency and traceability.

    How Trace Consultants Can Help: We conduct supply chain diagnostics, design resilient networks, and implement digital tools like advanced planning systems (APS). Our expertise ensures continuity and cost efficiency.

    3. Invest in Workforce Upskilling

    High-productivity industries require skilled workers adept at managing advanced technologies. Australia’s declining birth rate (1.6, below the 2.1 replacement level) underscores the need for a tech-savvy workforce.

    Approaches:

  • Training Programs: Partner with universities and TAFEs for Industry 4.0 skills.
  • Cross-Industry Recruitment: Attract talent from tech and engineering sectors.
  • Soft Skills: Emphasise teamwork and problem-solving to enhance innovation.
  • How Trace Consultants Can Help: We develop tailored upskilling programs, collaborating with educational institutions and industry bodies. Our change management strategies foster a culture of continuous learning.

    Overcoming Challenges: A Strategic Approach

    Building manufacturing in these sectors faces hurdles:

    • High Upfront Costs: Automation and clean energy facilities require significant investment.
    • Skills Shortages: 95% of manufacturers report difficulty attracting skilled labour.
    • Global Competition: Low-cost producers like China challenge price competitiveness.

    CEOs and Boards can address these by leveraging government incentives, like the National Reconstruction Fund, and focusing on niche, high-value products. Collaboration with innovation hubs and global partners also enhances competitiveness.

    Why Partner with Trace Consultants?

    At Trace Consultants, we empower Australian manufacturers to thrive in a volatile global market. Our services include:

    • Strategic Planning: Identifying high-productivity opportunities in advanced manufacturing, clean energy, and critical minerals.
    • Technology Integration: Implementing AI, IoT, and automation for maximum efficiency.
    • Supply Chain Optimisation: Building resilient, digital-first supply chains.
    • Workforce Development: Designing upskilling programs to bridge skills gaps.

    Our data-driven, collaborative approach ensures solutions are tailored to your business, delivering measurable ROI. Whether you’re scaling a clean energy venture or automating a factory, we provide the expertise to succeed.

    A Future Made in Australia

    Global trade uncertainty is a wake-up call for Australian manufacturing. By targeting high-productivity, low-labour industries—advanced manufacturing, clean energy, and critical minerals—Australia can rebuild its industrial base. Embracing Industry 4.0, resilient supply chains, and skilled workforces will ensure competitiveness without relying on low-cost labour.

    CEOs and Boards must act now, leveraging government support and expert guidance to seize these opportunities. Contact Trace Consultants today to transform your manufacturing strategy and build a future-proof business.

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