J A N U A R Y 2 0 1 3R E P R I N T E D J U LY 2 0 1 4

strategic industry plan

3executive summary

7industry visionindustry objectivecurrent state of industry

13critical success factors

design and innovation regulatory and compliance regime labour skills and training supply chain

34strategic directions for the industry

strategies to enhance industry development and business competitiveness

industry leadership – actions to be pursued at the association level

role for government

51conclusion- summary of issues & recommended actions

design and innovation

regulatory and compliance regime

labour skills and training

supply chain

The Strategic Plan has been prepared by the Kreitals Consulting Group. http://www.kreitals.com.au/

3

executive summaryThe Australian Furniture Cabinets and Joinery (FCJ) industry is a significant sector of Australian manufacturing, employing more than 130,000 persons across the country and contributing almost

$33 billion per annum to the domestic economy.

x

However, similar to Australian manufacturing generally, the local FCJ industry is an economically fr agmented sector characterised

by a preponderance of small, family-owned businesses. Less than one per cent of businesses in the sector employ more than 200

employees with the majority employing less than 20 workers. Over 80 per cent of businesses are based on the Eastern Seaboard with

58 per cent located in the traditional manufacturing states of Victoria and New South Wales and hence away from the growth states of

Western Australia, Queensland and the Northern Territory.

Activities within the sector comprise domestic and commercial, free standing and built in furniture; wooden doors; roof trusses and wall

frames; aluminium, timber and uPVC framed glazed windows and doors; other wooden builders’ joinery and carpentry, parquetry strips;

wooden industrial products and on-site installation.

The industry is currently under considerable restructuring pressure, competing against low cost imports in a high cost environment. This

is further compounded by the high Australian Dollar coupled with contracting market demand as both, new house starts and renovation

activity (traditionally key drivers for the industry), continue to decline.

Over 2011/12, total FCJ manufacturing revenue continued to decline (by a further 1.5 per cent), bringing the annual revenue level down

by almost 8 per cent to that prevailing pre-GFC. Moreover, industry productivity, as measured by value added per employee has also

fallen by a significant 10 per cent over this same period, despite the employment levels and total industry wages and salaries remaining

relatively stable over recent years.

Thus, recognising the critical turning point now confronting the industry, the 7 core industry associations representing the key sub-

sectors of the industry across Australia, have formed the FCJ Alliance (FCJA).

Currently, the FCJ industry can be characterised as being:

At a mature lifestyle stage; With negligible industry assistance; Subject to medium to low barriers to entry;

In a highly globalised industry confronting significant low cost import competition; and

Susceptible to revenue volatility.

However, the FCJA’s vision is to turn the Australian Furniture Cabinets and Joinery industry into one that is globally recognised as a vibrant,

design focussed industry sector, with world-class management, attracting the best workforce producing high value add, professionally

crafted, highly innovative furniture, cabinet and joinery products.

To help achieve this vision the FCJA has identified the following strategic objectives to underscore the industry’s ongoing development:

Embrace design and innovation as a core characteristic for future growth

Maximise its share of the domestic market

Develop an Export Culture and progressively grow export markets

Capitalise on and adopt latest technological developments

Attract more highly skilled, highly trained workers

Embody the latest management practices, reflecting world’s best practice in business management

Be an integral player in the global FCJ supply chain.

1

2

3

4

5

4

This Strategic Industry Plan has been developed by the FCJA to help

determine the most appropriate strategies that should be pursued to help

realise the above objectives. While the prime intention of the Plan is to

identify strategies and actions that the industry, and its representative

associations, should focus upon, it is clearly evident that there is a real role

for Government to play – both in ensuring that there are no unnecessary

impediments to the industry’s growth path and in supporting/encouraging

the priority development activities for the industry.

While many of the issues confronting the FCJ sector are ones that impact

on all manufacturing businesses, there are also many unique challenges

that must be addressed by the industry that require special attention, and

these are highlighted below. Nonetheless, much of the commentary on

manufacturing to date, and the focus of Government policy and policy

measures, seems to be driven by “big” manufacturing business. But there are

very few big businesses remaining in manufacturing in Australia, and those

that are can successfully straddle between local and offshore manufacture.

As far as the FCJ sector is concerned, it is predominantly epitomised by

small business, albeit it is a sector that collectively represents the major

employment base in Australian manufacturing.

Consequently, there needs to be a significant rethink to determine what

strategies are necessary for such a sector of industry. In developing this

Strategic Industry Plan it was soon evident that there are four Critical Areas

of Success for the Australian FCJ sector, and that strategies and Action

Plans would need to be developed for each of these – being Design and

Innovation, Regulation and Compliance, Skills Development and Training and

finally Supply Chain.

However, while priority action plans have been developed to address the

industry’s needs in each Critical Success Area, it is vital to recognise enhanced

development in all 4 critical areas must be progressed concurrently, and that

no recommended action should be considered in isolation from the others.

It is crucial to pursue all strategies as a collective whole, and only in that way

can the industry’s future viability be truly ensured.

The reality is that in the high cost environment now faced by Australian

FCJ producers, competing on price is no longer a sustainable model. For

Australian businesses to be sustainable long-term they need to be actively

seeking to enhance their operational efficiencies through enhanced capital

productivity (which means adopting the latest technologies) and labour

productivity (by upgrading skills at both management and operational

level), and they need to differentiate their product as a premium offering

based on superior quality, design and innovation.

The first and foremost critical success factor for the industry must

therefore be the development of a widespread and deeply ingrained design

/ innovation culture within the industry. Numerous companies in Australia

but predominantly overseas have successfully grown their markets

through incorporation of technologies and functionality (Herman Miller),

quality ground breaking design (Carl Hansen & Son) and customer tailored

design and development for both commercial and residential customers

(Schiavello, Sealy). Very often this has been done in conjunction with

recognised designers as a means of providing a unique, valued and sought

after product.

Of course, a design and innovation focus is more than just enhanced

product design, and embraces the whole operational process, from

production through packaging to ultimate marketing and customer service,

and even encompasses the overall business model. It is crucial that the FCJ

EXECUTIVE SUMMARY

5

industry of tomorrow has an inherent Design Culture which encompasses

design and innovation in all these facets.

Underscoring this Design focus is a need to enhance productivity within the

industry. Research conducted by the FCJA, Manufacturing Skills Australia

and numerous Government departments shows that the FCJ sector suffers

from a profound shortage of skilled workers across all disciplines necessary

for its operation. Since 2007 the number of apprenticeship commencements

has fallen each year. This lack of new entrants is compounded by an aging

workforce meaning that approximately an additional 15,000 workers will be

needed in the next five years to just maintain business as usual.

A core focus identified by the FCJA will be to work with governments,

tertiary education providers and individual enterprises to develop strategies

which maximise entrants to the workforce from non-traditional pathways

such as up-skilling of staff, greater engagement with secondary school

leavers and ways of increasing the participation of women into the sector.

Compounding the issue of a skills shortage is also the lack of structured

training at management and owner levels in the FCJ organisations. Further

training in the areas of finance, marketing, competitive manufacturing,

employee/subcontractor management and project management have been

particularly identified as needing to be addressed. Without development

and training in these areas business owners or managers will not have the

necessary skills to fully capitalise on emerging growth opportunities.

Greater focus will also be required in engaging in high end technical skills

related to computer aided manufacturing and design, production scheduling

and costing and pricing. Greater understanding on the potential of the

internet and other approaches direct to customers is also required.

To help achieve this, the FCJA will need to be more actively engaged in

the identification and development of training needs than it has in the past.

Currently the nature and delivery mode of training is simply not delivering

what the industry needs and the industry is united in its views that the

training package must be developed through the Forestworks Skills Council.

Another critical success factor identified by the FCJA is that of regulation

and compliance. In many ways this factor above all others has the greatest

potential to stifle the development of a sustainable, world class design

and innovation focused FCJ sector in Australia. While it is understood that

governments must make regulations to address market deficiencies or

achieve a common goal very often there are unintended consequences of

these actions.

However, the FCJA accepts that many regulations and standards are

necessary, to ensure the appropriate quality and performance requirements

are being fully met, and to safeguard consumers through the various product

safety standards. The FCJA supports the implementation of such standards

where they are clearly necessary, but is dismayed at the extent to which

imported product is able to breach such standards and regulations. It is

vital that where such legislative requirements exist, all imported products

must be monitored to the same extent as domestic product to ensure

compliance, and where it is non-compliant then necessary corrective action

must be taken, including strict enforcement of meaningful penalties.

The FCJA will seek to work with Governments to ensure that the industry’s

uniqueness is considered in the development of new legislation and

guidelines while also working through an identified list of regulations that

are either inhibiting growth, or are being applied

EXECUTIVE SUMMARY

6

inequitably with compliance only enforced upon local

manufacturers. The FCJA has undertaken a comprehensive review

of all legislation that impacts the sector (included as an Appendix

to the Strategic Plan) and believes that a pro-active cooperative

approach with governments is required to ensure the industry

can achieve its aims, and is not being treated in a discriminatory

fashion.

For this reason, the FCJA is strongly of the view that a single

body should be tasked specifically with monitoring compliance

by all products with existing standards and regulations, and

enforcing strict penalties where non-compliance is clearly evident.

Indeed, the reverse discrimination that appears to be applied

by Government agencies against Australian produced product

is also evident in the areas of import scrutiny and government

procurement. In particular, the FCJA contends that anti-dumping

provisions should be strengthened to transfer the onus of proof

to the importer rather than the local manufacturer, and Australian

Customs (or another appropriate Government agency) should

be properly resourced to ensure that product entering Australia

is properly classified to ensure it is subject to the requisite

tariff duties (too much product is being imported either falsely

classified to avoid duty or undervalued to minimise duty).

Moreover, government procurement officers, in assessing tenders

need to take account of the full impact of overall Government

Policy, as well as “whole of life” value assessment of the goods,

in the decision-making process. It is entirely appropriate that a

country with a high standard of living such as Australia should have

EXECUTIVE SUMMARY

demanding social, workplace, safety and environmental policies

in place. However, implementation of these policies imposes

significant costs on local industry and it is therefore inappropriate

for Government agencies to then purchase product from offshore

when it is simply cheaper because the same expectations have not

been placed on the offshore suppliers.

Finally, due to the fragmented nature of the industry and the

relative small size of the individual enterprises, effective Supply

Chain management is also a critical issue for the industry. To

help overcome the vulnerability induced by these industry

characteristics, strategies are necessary to encourage the industry

to collaborate more effectively together to improve the supply

chain relationships and to help enhance the industry’s profile and

sales on the global market.

To help implement the strategies identified in this Industry Plan,

to ultimately achieve the previously stated objectives, the FCJA

has determined a range of specific recommendations for both

the industry and government to pursue under each of the critical

success factors

and these are outlined in the FCJA Future Strategic Action

Steps at the conclusion of this document (Section 6). However,

it is important to recognise that this is an integrated set of

Recommendations and they should not be considered in isolation

of each other but should be implemented as a whole over time (of

course some are of more immediate need but the intention would

be for all the proposed Actions to be implemented within the next

two years).

x

7

1. industry vision

2. industry objectives

The Australian Furniture Cabinets and Joinery industry will be globally recognised as a vibrant, design

focussed industry sector, with world-class management, attracting the best workforce producing high

value add, professionally crafted, innovative furniture cabinet joinery products.

The Vision for the Industry is that within the next 10 years:

The prime objectives for the industry over the next 10 plus years are to:

Embrace Design and Innovation as a core characteristic for future growth

Maximise its share of the domestic market

Develop an Export Culture and progressively grow export markets

Capitalise on and adopt latest technological developments

Attract more highly skilled, highly trained workers

Embody the latest management practices, reflecting world’s best practice in business management

Be an integral player in the global FCJ supply chain

3. current state of the industry

The gross value of the Furniture and other Cabinet Making & Joinery (FCJ) industry in Australia is estimated at $32.8 billion in current prices. The furniture and furnishings component is estimated at around $25 billion or 76% of the total with Other Cabinet Making & Joinery accounting for the $7.8 billion balance. Furthermore, the door and window manufacturing industry is in itself a significant component of the FCJ sector, with an annual turnover of around $5.5 billion.

The ‘Furniture’ industry comprises all domestic and commercial free standing and built-in furniture.‘Other cabinet making & joinery’ includes wooden doors, roof trusses, wall and window frames, other wooden builders’ joinery and

carpentry, parquetry strips, other wooden industrial products and on-site installation.

The ‘door and window’ industry consists of firms that manufacture the following for the housing, residential and commercial sectors:

timber products such as framed window and doors, uPVC framed windows and doors

Imports declined by 7.6 per cent to $3.7 billion over 2011/12 while exports fell by 17 per cent to 0.2 billion

38 per cent of total imports were from China, with the next most significant sources being Malaysia (4 per cent), and then Vietnam, USA and Italy (3 per cent each). NB China accounts for 59 per cent of all Furniture imports into Australia and the estimated import share of total retail furniture turnover is 45 per cent, having increased from 36 per cent just 5 years ago

Of total FCJ exports around 13 per cent is exported to New Zealand, 5 per cent to USA, 3 per cent to Singapore and the rest being then spread across a wide range of countries.

architectural aluminium products such as doors, railings, partitions, window frames, aluminium framed windows, doors and shower screens,

Manufacturing revenue declined by 1.5 per cent over 2011/12 to $24.5 billion (in 2007/08 constant dollars, ie when adjusted for inflation) with the only growth sector of the industry being aluminium windows and doors manufacturing (indeed, the FCJ sector as a whole is still some 7.6 per cent below pre GFC levels)

Industry value added fell by 4 per cent over 2011/12 to $7.7 billion

Employment declined slightly (-0.4 per cent) over the year, to be just over 130,000 persons, while wages and salaries costs also declined marginally (by 0.6 per cent)

In addition a group of associated classes are also identified relating to soft furnishings such as carpets, cushions, curtains and drapes however these are separated from the other two sectors above and are not included in the coverage of this strategy document. The table on the following page provides a detailed break-up of the sector across a variety of indicators for 2011/12 with the main points being:

8

As a measure of productivity, industry value added per employee has fallen by 9.5 per cent over the five years to 2011/12, indicative of an industry that is struggling to gain productivity improvements

The number of manufacturing establishments grew marginally over 2011/12 (by 0.2 per cent), but it is still 3 per cent lower than 5 years earlier

The FCJ industry is a significant manufacturing sector for Australia. When compared to similar sectors such as TCF, Motor Vehicle and Household Appliances (see table below) the FCJ industry has a much larger value of manufacturing revenue, value add, employment and wages and salaries than the other three sectors. It should be noted that two of those industries have and continue to receive considerable government support yet contribute less than half of both the employment and the value add generated by the FCJ sector, and indeed whose significance relative to the FCJ industry has declined significantly over recent years.

Relative Significance of FCJ to Other Industry Sectors

TCF Motor Vehicle

Household Appliances

FCJ compared with

Manufacturing Revenue

Value Added

Employees

Wages & Salaries

2.7 : 1 1.3 : 1 11.8 : 1

3.4 : 1 1.7: 1 13.9: 1

3.6 : 1 3.1: 1 19.4: 1

3.7:1 1.6.1 14.4:1

INDUSTRY

TABLE ONE

Source: FCJ Industry Statistics and Trends 2012. Based on IBIS World and ABS data

9

Mfg

Re

venu

e ($

mln

)

Indu

stry

Va

lue

Add

ed

($m

ln)

Empl

oym

ent

(Num

ber)

Wag

es

and

Sala

ries

($m

ln)

Mfg

es

tabl

ishm

ents

(Num

ber)

Mfg

En

terp

rises

(Num

ber)

Indu

stry

va

lue

add

to R

even

ue

Indu

stry

re

venu

e pe

r em

ploy

ee

$000

Indu

stry

w

ages

to

reve

nue

Indu

stry

va

lue

add

per

empl

oyee

$0

00

Impo

rts

$mln

Expo

rts

$mln

Woo

den

furn

iture

& u

phol

ster

y

Shee

t met

al fu

rnitu

re m

fg

Mat

tress

mfg

(exc

ept r

ubbe

r)

Oth

er h

ouse

hold

& c

omm

erci

al

furn

iture

mfg

Tota

l Cor

e Fu

rnitu

re C

lass

es

Woo

den

stru

ctur

al c

ompo

nent

mfg

Woo

d p

rod

uct m

anuf

actu

ring

nec

Fab

ricat

ed m

etal

pro

duc

t mfg

. n.e

.c.

Car

pent

ry se

rvic

es

Tota

l Ass

ocia

ted

Cla

sses

Tota

l Fur

nitu

re In

dust

ry C

lass

es

Oth

er C

abin

et M

akin

g/Jo

iner

y C

lass

es

Woo

den

stru

ctur

al c

ompo

nent

mfg

Woo

d p

rod

uct m

anuf

actu

ring

nec

Alu

min

ium

Win

dow

s & D

oors

Car

pent

ry se

rvic

es

Tota

l Cab

inet

Mak

ing/

Join

ery

Cla

sses

TOTA

L FU

RNITU

RE, C

ABI

NET

&

JOIN

ERY

CLA

SSES

5,40

0

900

625

2,85

0

9,77

5

803

109

546

2,52

0

3,97

8

13,7

53

5,05

0

654

4,40

2

630

10,7

36

24,4

89

1,77

0

300

172

785

3,02

7

274

38 163

1,00

8

1,48

3

4,51

0

1,44

0

236

1,27

7

252

3,20

5

7,71

5

31,0

00

3,00

0

2,28

8

7,80

0

44,0

88

3,71

2

742

2,67

2

31,6

80

38,8

06

82,8

94

19,4

88

4,55

8

15,2

59

7,92

0

47,2

25

130,

119

2,75

0

540

190

900

4,38

0

632

293

735

16,9

20

18,5

80

22,9

60

3,32

0

1,90

1

1,48

7

4,23

0

10,9

38

33,8

98

1,36

0

158

103

555

2,17

6

165

26 110

416

717

2,89

3

886

160

895

1,04

4

2,96

5

5,85

8

2,60

0

490

177

800

4,06

7

580

267

662

16,8

84

18,3

93

22,4

60

3,04

5

1,64

0

1,25

5

4,22

1

10,1

61

32,6

21

32.5

%

33.3

%

27.6

%

27.5

%

29.9

%

34.2

%

35.2

%

29.0

%

40.0

%

176

300

273

365

222

216

147

204

80 103

166

259

143

288

80 227

188

57 100

75 100

69 74 51 61 32 38 54 74 52 84 31 68 59

1,80

0

375

246

540

2,96

1

9 54 311

0 374

3,33

5

45 330

N.A

0 375

3,71

0

30 15 13 30 88 2 4 44 0 50 138

8 25 N.A

33 66 204

25%

18%

16%

19%

22%

^

21%

24%

20%

16%

18%

21%

21%

24%

20%

17%

28%

^

24%

Key

Furn

iture

, Ca

bin

et M

aki

ng a

nd J

oine

ry S

tatis

tics

(at 2

007/

08 c

onst

ant

pric

es)

TABLE TWO

Sour

ce:

FCJ

Ind

ustr

y S

tatis

tics

and

Tre

nds

2012

.

10

There are some businesses with genuine scale, as well as a substantial number with of a medium size featuring a high level of entrepreneurial

spirit and capacity to grow. However, the bulk of the sector is characterised by small businesses of the type that are the backbone of the

Australian economy and which collectively employ a significant number of people. Less than 1 per cent of FCJ businesses employ more

than 200 persons but the bulk of the industry employs less than 20 workers or no workers at all (sole proprietors). Such a large number

of sole proprietors and small businesses present both a challenge and opportunity for the FCJ sector.

On a geographical basis Chart 1 shows the distribution of FCJ manufacturing companies in Australia. Almost 80 per cent of establishments

are located on the Eastern Seaboard of Australia with some 60 per cent in the traditional manufacturing states of New South Wales and

Victoria. Western Australia accounts for 10 per cent and South Australia 7.3 per cent of all FCJ establishments. Both the ACT and NT

account for less than 3 per cent of total FCJ establishments in Australia.

QLD 22%

SA 6%

NSW 31%

WA 11%ACT 1%NT 1%

VIC 26%

TAS 2%

FCJ IndustriesEmployment by State

2

2%

6% 11% 31%

26%

Source: FCJ Industry statistics and trends 2012

CHART ONE

1

2

3

4

5

Like many Australian Industries the FCJ sector operates in an environment that is very different to that of many of the countries from

where imported product is sourced. Table 1 on the following page shows the profile of various FCJ industry sectors against a range of

measures highlighting that the industry:

Is a well-established, mature industry

Has low to no industry assistance

Encounters medium to low barriers to entry

Competes in a highly globalised industry confronted by significant low cost import competition

Is susceptible to revenue volatility.

Moreover, the key drivers for the bulk of FCJ product are highly vulnerable to changes in the overall economic environment. At the broad

level industry demand for products is a function of:

Consumer Sentiment and Confidence which are governed by

Household disposable income

Interest rates

Employment levels

Growth in the construction sector both residential and commercial

Commercial occupancy rates

Government expenditures (for those products related to common good services and sectors, hospitals, community centres etc.)

11

While these problems are largely faced by many industries, they are crucial factors for the FCJ industries and are an important consideration

in determining future strategic directions (and policies) for the sector.

The industry has been unstable over the past five years. Even prior to the onset of the global economic downturn, the industry had its

share of woes. Rising interest rates curtailed residential housing demand and domestic operators faced rapidly rising import competition

from low-cost producers such as China. Aggressive price discounting coupled with muted demand conditions saw industry profitability

decline considerably as domestic manufacturers could not compete with their overseas counterparts. The collapse of the housing market

and the start of the global financial crisis effectively crippled demand from construction markets, the door, window and joinery industry’s

primary sources of revenue. Revenue will recover as construction activity increases

According to the IBISWorld life cycle model, the industry is in a mature stage of its economic life cycle. Indicators of this phase include

slow growth in establishment numbers and domestic demand, and a slowdown in technological investments and product innovation. The

industry’s products, and associated technology used in production, are well established.

These are however factors that are not necessarily impossible to overcome, as evidenced by the situation in Germany and the performance

of its ‘Mittelstand’ during the Global Financial Crisis. Whereas the Australian economy was able to hold back the impacts of the GFC due

to its large endowment of natural resources the German economy also emerged in much better shape relative to the majority of European

countries.

Instead a core component of Germany’s success is placed at the feet of a group of enterprises known as the Mittelstand, which have the

following characteristics:

The success of the Mittelstand is their focus on international excellence in niche markets where they can maintain strong market positions.

Their value is obtained through offering superior value that cannot be readily or easily matched by low cost producers.

To do this they invest heavily in R&D and continuous improvement of both their products and processes. Their production networks are

closely linked to their R&D and they maintain close contact with their customers, suppliers and employees – the latter via a bottom-up

management style.

Furthermore, these Mittelstand enterprises account for 83 per cent of all apprenticeships in Germany.

When the Australian experience is examined it shows a much larger number of micro-businesses which employ very few, if any, staff and

thus the Australian Mittelstand accounts for only 3.7 per cent of all businesses in the economy. As a result Australia does not have the significant economic boost that a vibrant mid-sized business sector has nor does it allow the industry to capitalise on the R&D strengths in Australia. However, it is these characteristics that are the key to the ongoing development of manufacturing in Australia.

Thus the solution to developing a strong Australian FCJ sector, drawing on the observations of the German Mittelstand, include:

Typically employ between 10 and 250 workers

Have turnovers of between $2.6 million to $64.9 million

Account for 26 per cent of all manufacturing firms in Germany

Employ around 42 per cent of the workforce

Contribute around 35 per cent of value adding

Over 70% are family owned and located in smaller cities or regional towns

Adoption and development of management systems not typically suited to small businesses

Support by Governments for programs targeted at the < 100 employee sector in Australia rather than the large companies or micro-businesses

Consideration in broader policy development including taxation and environmental policy of the impacts to these currently micro to small sized businesses.

The strategies outlined in the remainder of this document are considered critical by the FCJ to the successful transition of the Furniture,

Cabinet Making and Joinery industry to a similar model of ongoing growth and success.

x

12

Lifecycle Stage

Revenue Volatility

Capital

IntensityIndustry A

ssistanceC

oncentration level

Regulation level

Technology C

hangeBrriers to Entry

Industry G

lobalisationC

ompetition

levelIBIS W

orld C

ode

Wood

en furniture & upholst. seat m

fg

Sheet metal furniture m

fg.

Mattress m

fg (except rubber)

Other household

& com

mercial

furniture mfg.

Wood

en structural component m

fg

Wood

product m

anufacturing n.e.c.

Alum

inium d

oors & w

indow

s mfg.

Fabricated m

etal product m

fg. n.e.c.

Carpentry Services in A

ustralia

Mature

Mature

Decline

Mature

Mature

Decline

Mature

Decline

Decline

Med

ium

Low

Med

ium

Med

ium

Med

ium

Low

High

Med

ium

Med

ium

Low

High

Low

Med

ium

Med

ium

Low

Med

ium

Light

Low

Low

Low

Med

ium

Low

Low

Low

Low

Low

Low

Low

Low

None

Low

Low

Low

Low

Low

Low

Med

ium

Med

ium

None

Med

ium

Light

Light

Light

Med

ium

Med

ium

Med

ium

Med

ium

Low

Med

ium

Low

Low

Low

Med

ium

Med

ium

Med

ium

Low

Med

ium

Med

ium

Low

Low

Low

Med

ium

Low

Low

Low

Med

ium

Low

Low

Med

ium

Low

Low

Low

High

High

High

High

Med

ium

High

High

Med

ium

High

C2921

C2922

C2923

C2929

C2323

C2329

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FCJ Ind

ustry Profiles by Ind

ustry Cla

ss

Industry Class

Description

TABLE THREE

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design and innovation

Given the relatively high cost of labour in Australia, quality design

has to be one of the differentiators that enable our industries to

compete with imports. The industry must develop a greater focus

on design and innovation, to the point where it becomes globally

recognised as epitomising an inherent design culture. In this way,

it can expand beyond the domestic market and build potential sales

and genuine value in targeting niche export markets.

Australia’s furnishing cabinet and joinery industries have some

outstanding designers, but they are not well known and the practice

of great design is not widely promoted within the industry. For

instance one Australian based designer has noted that he has not

worked with Australian manufacturers for over 15 years despite

being in constant demand by overseas manufacturers.

A core issue that the industry needs to overcome is the resistance

to adopting design and innovation as complementary terms.

Currently much of the industry sees innovation only in the sense of

inherent functionality and/or process improvement, with no role for

design. However as overseas FCJ industries and other Australian

manufacturing industries such as automotive and TCF have shown,

design needs to become integral to innovation, and of course

design transcends beyond just product design.

There are numerous examples within the furniture industry of

companies benefiting from a focus on design and innovation. It

is readily apparent that as customers become more educated and

demanding of good design and quality products that meet their

specific need, the FCJ industry must adapt accordingly.

To do this companies are employing a variety of techniques to

engage consumers. Herman Miller for instance is focusing on the

issues around what the home office should look like when iPads,

other tablets and notebooks have freed people to work anywhere

– ie. will people still seek to work at desks or will the couch, kitchen

critical success factorsThe problems faced by Australia in competing in a global FCJ market have been outlined above. As evidenced by the German Mittelstand experience, the current structure of the FCJ industry can become a strength for Australia through a focus

on design and innovation, skills and training and the supply chain.

table or balcony become the new office and what furniture will be

required? The company is focused on not just adding technology

on top of an existing product but building it in as a fundamental part

of the product.

Indeed, there are numerous examples where furniture has been

designed to incorporate new technologies, eg. the iCon Bed (Hollandia)

with docking stations for two iPads, speakers and amplifier or the

Fluer de Noyer chest of drawers (Think Fabricate) which features an

in-built charging station for electronic devices.

In many ways this process is not new and has been successfully

implemented time and time again by the electronics industry who

have utilised Bluetooth, wireless internet connections and complete

interactivity with the user to sell TV’s, cars, stereos and household

appliances. The furnishing industry is in a prime position to capitalise

on this convergence of technologies.

It is not unusual for overseas companies, particularly in Europe and

the United States to collaborate with a well-known designer on the

development of a product where the designers name and reputation

is core to the product being sold. The designer enables the company

to engage with the new more aware and savvy consumer seeking

products which meet their lifestyles.

The potential of this partnering is perhaps best illustrated by the

success of Danish furniture manufacturer Carl Hansen & Son. As

highlighted in the Case Study outlined below, after establishing a

reputation for high quality craftsmanship making bespoke furniture

the company engaged a designer Hans Wegner. Through this

collaboration over the 1950’s and 1960’s Wegner designed furniture

radically different to anything on the market including the ‘wishbone

chair’ which has been on the market since its inception. Incumbent in

the designs was a high level of complexity that required exceptional

craftsmanship which Carl Hansen & Son could provide.

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case study carl hansen & son denmark

Established in Odense on the island of Funen (located between Jutland and Zealand) in 1908.

Developed a reputation for high quality craftsmanship making bespoke furniture.

Gradually began to produce a small range of its most popular pieces.

These pieces along with fine craftsmanship became the company’s hallmark.

In the 1940s started to use a designer.

In the late 1940s a number of Danish furniture designers were gaining prominence.

From these designers they took a chance on Hans Wegner, a relatively unknown designer.

The company flourished on the back Wegner’s designs.

These designs were radically different to anything

on the market and were very complex and difficult

to manufacture – they demanded very high level

craftsmanship.

These designs included the ‘wishbone chair’ which has been on the market uninterrupted ever since.

The wishbone chair proved especially challenging – it back rail was steam bent and rear legs required turning by a contact turner.

Until that time chair seats were woven with reed, in the wishbone chair paper cord (developed during the war for use in grain binders in Sweden) was used.

Manufacturing furniture with such novel designs that were very difficult to make presented a big risk for the company. The furniture was not an immediate hit in the market place.

In 1951 Carl Hansen (and Wegner) and a number of other Danish furniture manufacturers formed a consortium called SALESCO, a sales and marketing company that promoted Wegner’s designs in Denmark and overseas and played a role in establishing Denmark’s distinct furniture design image.

In 2001 Knud Erik Hansen Carl Hansen’s grandson, took over as Managing Director.

Today the company continues to release ‘new’ Wegner designs.

This shows that the Danish furniture businesses have been extremely good at capitalising on, and selling products from the ‘golden age’ of Danish furniture, the 1950s.

While the company has developed new designs over its lifetime the most popular continue to be Wegner’s designs and the company

continues to produce them 40 to 50 years after their initial development. The level of complexity inherent in the design has also meant

that while copies have been created by low cost countries they cannot match the quality and standards of the original and it is the latter

inherent craftsmanship that consumers will pay a premium for.

Schiavello (see details in the following Case Study) is an excellent example of a company which has focused on developing leading edge

products and service which are both durable and functional and beautiful. They appeal to a consumer’s desire to have furnishings that

represent their particular lifestyle. To achieve this reputation and track record it has partnered with Australian and international designers

to create a large range of furniture.

case study schiavello market growth through design and innovation

Schiavello is an Australian based international company

founded in 1966 on the principles of innovation, quality and

service experience. Its aim is to be seen as an organisation

where intelligent design ranks as highly as the built quality of

our products.

Schiavello provides a fully integrated approach to dealing

with clients incorporating a broad product mix with design,

construction, fit out and specialty consulting service. It

employs over 1200 skilled employees and has sales offices

across the globe with manufacturing located in Australia.

With an accomplished team of industrial and furniture

designers, and mechanical engineers, working with advanced

software programs and Engineering/Stress Analysis

technology they design, prototype, test and build products.

Increasingly, the company works with Australian and

international designers to keep themselves at the leading-

edge of product and services design; to create products

that are not only strong and durable and functional, but

beautiful, too: products with high design values, that

you want to be around and have around, as much for the

pleasure they provide consumers as for their comfort and

practicality.

Another good example of triggering an emotive connection with the consumer is Pacific Green furniture, which has embraced a strong

environmental focus for the creation of its Palmwood as an ecologically sustainable timber alternative. Utilising new technology they

created a durable consumer orientated product suitable for a variety of climates and resistant to wood boring insects. The company’s

employment of indigenous designers and process workers delivers additional benefits to local communities in Fiji while its recycling

of palm trees provides it with a product attractive to those consumers concerned about logging and forestry processes including the

resultant impact on indigenous populations and other land users.

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case study pacific green furniture design and innovation to produce environmental solutions

Development of hardwood substitutes: Palmwood was the

name Pacific Green gave to the finished ‘hardwood’ material

it developed. Process breakthroughs had created a durable

consumer-oriented product that was suitable in a variety of

climates and resilient to wood-boring insects. Palmwood is an

ecologically-sustainable timber alternative.

Indigenous design: Each piece is handcrafted by artisans using

traditional techniques and is designed to give a sense of its

global ethnic origins.

Socially-responsible manufacturing: Pacific Green pioneered

the creation of a socially-responsible industry for the Pacific

region. By recycling unproductive coconut palms, old plantation

land was returned to the local villages to replant with young

fruit-bearing palms and other cash crops. The factory was built

in consultation with the surrounding villages, and the land used

was leased from the villagers to respect local ownership. Pacific

Green Industries (Fiji) Limited is listed on the South Pacific Stock

Exchange and its majority owners are the Fijian people.

Manufacturing processes use no toxins or chemicals and by-

products are reused. In 2001, Pacific Green addressed the United

Nations Conference on Trade and Development (UNCTAD) on

the social responsibility of manufacturing companies. Pacific

Green also advised the United Nations Food and Agriculture

Organization on its study on Coconut Palm Stems[4]. From

the mid-1990s to early-2000s, actor Pierce Brosnan was the

company’s Environmental Spokesperson.

As a result, Pacific Green was invited to participate at the World

Expo 2010 within the Pacific Pavilion[5].

Pacific Green unveiled the Indigenous Masterpieces concept at

its debut in Milan’s Salone del Mobile in 2011.

While it is critical for the FCJ industry to invest in new design and innovation it must overcome its exceptionally low historical spend

in respect of R&D compared to other industries. The ABS reports that in 2009-10 the furniture and other manufacturing sector spent

$30.6 million on business R&D. This accounted for less than one per cent of total business R&D expenditure and was the lowest of the

15 ANZSIC subdivisions included in the table. On the positive side this expenditure was 31 per cent higher than business R&D spend in

2007-08.

The “furniture and other” manufacturing sector also appears to be one of the least likely sectors to adopt the latest technologies,

spending only an estimated $170 million ( viz. one per cent of total business capital expenditure) in 2009-10 representing a 55 per cent

reduction in its level of capital expenditure (although there is a significantly high standard error in the estimates).

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regulatory and compliance

exchange rate

import standards

Clearly, government action (or inaction) can have significant impact on an industry and an economy overall. This section addresses the

issues identified by the FCJ sector in the areas where government regulation and consequent manner of enforcement can skew the relative

competitiveness of the local industry...

In many of the countries which compete with Australian FCJ products, manufacturers do not face the same levels of regulation, receive

greater industry assistance (directly or indirectly) including for many high tariff or other trade barriers to entry (even given the concessions

through many of Australia’s FTA’s – some of which are still several years away from parity).

These issues are compounded by:

A consistently high Australian dollar and the advantages

it provides to importers

Thus the industry’s ability to compete effectively against imports into the Australian market but also to secure market share in export

markets is severely limited. This is particularly the case when it is considered that on average across all sectors of FCJ over 75 per cent

of costs are related to raw material purchases and labour costs.

A complex and multiple taxation system across state and national governments

The Australian Dollar is being influenced by the strength of the domestic resources sector and this is seriously impacting on the international

competitiveness of other sectors of the Australian economy, including the furniture, cabinet and joinery industries.

While Australia has a deregulated currency, other countries still manipulate their currencies to certain extents. China has a deliberate policy

to hold down the value of the Renminbi (Yuan). The US also is prepared to “influence” its currency, and even Switzerland recently capped

the Swiss Franc to maintain its relativity with the Euro. The circumstances that led to the floating of the Australian Dollar have changed,

and there needs to be recognition of the adverse effect this is having on the traded goods sectors.

It is important to recognise that this is the prevailing market environment confronting the Australian industry. The FCJA is not necessarily

seeking any change to Australia’s exchange rate policy, simply highlighting that other countries who are a significant source of imports

do not operate a “free trade” currency.

This high and sustained level of the Australian dollar has exaggerated the deficiencies and problems of the FCJ industry bringing the

industry to the critical turning point it currently finds itself in. While the FCJ industry accepts that neither it nor governments can influence

the exchange rate, measures can be taken to help the industry restructure to help overcome resultant ramifications for the industry’s

overall international competitiveness.

A vital step is that every action possible be taken to ensure no unfair competition is imposed on the domestic industry. The remainder of

this Section addresses such issues which still need to be remedied.

Imported FCJ products are sold in the marketplace in competition with Australian made product in a deceptive manner, ie. not fit for

purpose, including for example:

cyclonic rated doors and windows which do not meet the

requisite quality or safety standards, non HMR kitchen,

bathroom and laundry cabinetry, etc.

in the Kitchens market, importers offer neither the length nor

comprehensive nature of the warranties enforced on

Australian made product.

The impact of products that are not up to Australian quality standards was clearly demonstrated in May 2012 with the collapse of St Hilliers,

a significant construction company in Australia (see CFMEU Report below). The collapse was bought on, amongst other things, through

the use of imported windows and doors which arrived on site but to wrong sizes and inferior specifications. This stalled development of

the Ararat prison site and prevented St Hilliers making payments to contractors and workers. This subsequently led to the company going

into receivership, contractors and labourers being put out of work and a stop to construction at the site.

Imports that do not comply with either standards or

the reasonable expectations of Australian consumers, eg

formaldehyde (a carcinogen) in board product, safety

glass that is dangerously below standard, etc

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As reported by the CFMEU on Wednesday 17th May 2012.

imported windows behind ararat prison site closure

The crisis that has brought the Ararat prison site to a halt was

caused by faulty windows and doors imported from China.

Subcontractors withdrew their workers last week after learning

builder St Hilliers was unable to pay outstanding bills. The

company has now been placed in administration as a result of

losses arising on the job.

Hundreds of windows and doors manufactured in China arrived

on site cut to wrong sizes, making them useless. Some have

been sent back while others are lying around in packing cases on

the now idle site.

The folly of importing building components has again been

exposed and Victoria looks set to pay a heavy price. Local

manufacturing jobs have been sacrificed, building workers have

been tipped out of work and at some stage the state will have

to find the money to get the project going again.

The FCJ industry agrees with the CFMEU that the use of Australian made product, which must be tested to show it conforms to

BCA requirements, would have prevented this issue from arising in the first place. The use of fraudulent SAI Global stickers and direct

approaches by importers to building sites is a core regulatory issue that the industry and government must address.

Another related issue is that imported FCJ products are allowed to claim they are “Australia Made” or infer they are Australian by semantics,

suggesting that the country of origin laws need to be strengthened or better enforced by the ACCC and more broadly the industry. The

industry is speaking with the Australian Made campaign and groups such as Choice to work on opportunities to better raise awareness of

consumers to the differences between Australian made and imported products.

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Much of the imported product that enters Australia, especially from

China is clearly dumped, often landing at prices for finished product

that is well below the world price for the core material inputs. This

puts unfair pressure on the local industry and measures need to

be implemented that enable the Australian industry to take more

effective action against dumping.

In addition to ensuring that Australia’s anti-dumping regime is

sufficient to protect the industry a greater focus is needed to

ensure that imported products are not circumventing duties both

through legitimate means and illegitimate means.

In respect to the former the industry seeks a review of the current

products allowed tariff free entry into Australia via policy-by-laws

and tariff concession orders. While many may be legitimate and

necessary, a whole of industry review will ensure that Australian

manufacturers are not being adversely affected particularly where

anti-dumping legislationand duting avoidance

excessive tax imposts on australian manufacturers

Australian manufacturers are subjected to a myriad of additional

taxes that add to their cost structure, while importers are not

subjected to this same degree of impost and thus have an

immediate advantage over the local industry.

This is evidenced by:

Various overseas tax comparison documents

proving Australia’s comparatively high overall tax structure

Payroll tax

Land Tax

Low depreciation allowances

The introduction of the Carbon Price policy is a further concern

for the industry through its potential to further erode the relative

competitiveness of the local industry, for questionable impact

on climate change. While there will be an impact on furniture

manufacturers through higher costs due to increasing energy

prices the bigger concern for the industry is the impact on wood

processors. The Engineered Wood Processors Product Association

of Australia released advice in May 2012 noting that many wood

processors had begun winding back production, mothballing

equipment and moving to three day weeks in order to cope with

the impact of the carbon price. One wood processor indicated

that their costs in energy alone would increase by $1 million before

any cost of emissions is taken into account.

If this was to occur the loss in supply of processed wood products

to other parts of the FCJ supply chain creates an environment

where Australian manufacturers are forced to source material off-

shore and potentially without the quality, fitness for purpose and

short supply times currently provided by local suppliers.

While the estimates of additional costs caused by the Carbon

Tax may seem low at a glance at around 1%, that 1% represents a

large proportion of the nett profit on sales currently experienced

by many businesses. Particularly in domestic furniture the nett

profits on sales is commonly below 5%, an unsustainable level

in manufacturing businesses. These businesses must have the

capacity to reinvest capital to buy more productive machinery to

survive in the longer term. For many business that 1% may be ½ to a

1/3 of their net profit, if indeed they are making money at all. Many

businesses have become unprofitable in the past six months with

sales falling precipitously as consumer confidence has plummeted

to GFC like levels.

The FCJ sector believes that the carbon tax is very likely to impact

the industry both in sales and increased cost due to:

The structure of the sector in Australia

Increasing import penetration into the market for FCJ products

An inability to fully pass through all cost rises

The exact impact is heavily dependent on a number of factors

external to the industry including:

The extent and availability of international permits

The actions of households and other sectors of the economy

to the carbon tax

The actions of other countries and the impact on their

domestic FCJ industries

Overall domestic and international conditions

The Clean Technology Investment Program (CTIP) and the push

from environmental groups such as Planet Arc to increase the

use of wood as a construction material given its carbon storage

benefits are unlikely to provide offset to the increased costs being

faced by more than a few business due to the current SME nature

of much of the industry (especially given the Government’s recent

action to “pause” grants under certain programs, including the CTP,

which further undermines investor confidence and creates further

uncertainty about the Government’s true commitment to industry

development in Australia).

advances or technological change in local production processes

and availability of raw materials may now make Australian

production feasible whereas in the past it may not have been

possible/economic..

There does remain however, clear evidence that a large number of

products are bypassing the 5 per cent tariff rate through deliberate

undervaluation and misclassification. While this is presumably

an issue for all industries, the FCJ sector advocates increased

funding to enable customs officers (or an appropriate alternative

government agency) to police and enforce with punitive penalties

those operators deliberately avoiding duty and competing unfairly

with Australian producers. The increased revenue generated by

ensuring importers actually pay the legislated rate of duty will more

than cover the increased resources needed to monitor and police

these provisions.

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australia’s regulatory framework

Reflecting its developed nature, high standard of living, well developed labour market and high social awareness, Australia has in place a

range of regulations, codes and laws necessary to provide protection to employees, consumers and the general public. The FCJ industry

supports the need for these regulations and codes however asks that the Government acknowledge much of the competing product

entering Australia is made in countries which do not have the same levels of regulations and codes.

For example, commercial furniture manufacturers cannot compete with countries which have virtually no environment and safety regulation

and policies and thus companies operating in them need not invest in capital and processes to prevent this occurring. Likewise, less

stringent labour laws and employee protections – such as annual leave, superannuation etc. – place Australian producers at a competitive

disadvantage to these countries.

While the industry acknowledges that the Australian Government cannot actively change the rules and regulation of another sovereign

government it does have the power to implement policies which apply the same level of standards for imported product, to those

expected of Australian manufacturers. The most notable are through Australia’s custom legislation and processes, building codes,

standards and government procurement (the latter is covered in section 6 below while the first was covered above).

The example of St Hilliers and the problems of using non-compliant and non-tested products in the Australian market is just one of

several examples, noted by the CFMEU and other industry stakeholders. These products are entering Australia by circumventing existing

standards and building codes due to poor enforcement and poor education of those making purchasing decisions. This is to the detriment

of local producers (and ultimately to the detriment of the Australian consumer).

Another well publicised example is the continuing issue with glass top tables exploding, seemingly spontaneously. Despite this problem

being identified since the late 2000’s products continue to be purchased in Australia which experience the same problem. Clearly this

points to a lack of enforcement or control on the standards of these products entering Australia.

While changes have been made to the Building Code of Australia to clause B 1.4(h)(iii) ‘Nickel Sulphide Clause’ requiring heat soak testing of

toughened and heat strengthened glass before it can be used, the FCJ is not aware of any changes to standards in regards to glass used

in furniture applications. As late as June 2011, tables are still exploding in Australia1 and overseas.

The local Australian manufacturer is subjected to significant additional costs in order to meet the numerous product standards and

building codes. Yet clearly there is a lack of enforcement of these standards in the end consumer markets as evidenced by the continuing

influx of inferior products into the Australian market.

The FCJ is seeking to work with the CFMEU, Industry aligned groups (HIA, MBA etc.), Consumer aligned groups (Choice, Planet Ark),

governments and opposition parties to ensure that those responsible for consumer safety are actively policing these codes and policies.

This includes building inspectors and surveyors and the ACCC where breaches of the Trade Practices Act occur.

1 ‘Exploding table shocks owners’, Fraser Coast Chronicle. http://www.frasercoastchronicle.com.au/story/2011/06/06/chemicals-cause-exploding-table-shocking-owners/ Last accessed 19 August 2012.

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government procurement practices

surety of supply of raw materials

Government procurement policies should recognise the full value of local manufacture to government. This is not a call for special

treatment but a commercial argument that all aspects, outside of mere invoice price, must be taken into consideration – and ideally written

into government policy - to ensure that Australian companies are being treated on a true “like-for-like” basis in government purchasing

decisions.

For example, Australian industry is making huge in-roads on environmental savings and sustainable development. This too should be a

factor taken into account in government procurement decisions. That is, Government Buyers should have an ethical purchasing policy – ie

everyone that Government purchases from, should comply with similar conditions to what is expected of Australian industry.

Moreover, it needs to be recognised, and publicly acknowledged, that there is an inherent strategic value in nurturing local capabilities.

Government Procurement can drive innovation and industry growth – but to do so, it must be prepared to reward the effort made

by industry, by giving preference to firms that can demonstrate that they are actively, and productively, pursuing all these areas of

desirable industry development in Australia. Otherwise Australia risks losing these capabilities from a domestic base, which in turn means

Government will be reliant on being suitably supplied through other suppliers – ie imports - through which it will have little control.

A proper assessment of true value must take into account the full economic impact, including an assessment of the “whole of life” value,

of local production in any ‘cost comparison’ with overseas purchased product. This should include an assessment of tax effects derived

through domestic business (GST, income tax collected from locally employed manufacturing staff, corporate tax, etc) and economic

multipliers, particularly for regional communities. A value must also be allocated (if not a requirement set) for firms abiding by Australian

standards with regards to workplace practices, environmental standards, community support, labelling (ie accuracy and adherence in

meeting stated country of origin, fibre content, care instructions statements), etc.

Significant product is imported into Australia containing timber product that has been illegally sourced, as evidenced by Federal

Government recognition in illegal logging proposals.

FCJ industries in Australia face challenges to guaranteed supply of raw timber material due to out-dated environmental concerns, water

allocations, and other issues. This has a significant bearing on effective resource allocation and the long term sustainability of the industry.

This challenge is compounded by the actions of groups such as “No Harvey No” campaign whose attack on Harvey Norman for selling

products using Australian Timber runs contrary to sustaining a viable Australian orientated furniture manufacturing industry. This and other

campaigns are based on a misrepresentation of “forest destruction” and often include gross distortions of the true facts. For example

Market for Change stated that 76% of Australia’s forest and wood lands could be logged when ABARES statistics show that only around

6% of Australian forests are used for logging, and that figure could not ever change upwards to a significant degree.

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Campaigns like “No Harvey No” are most likely to drive consumers

to purchase products not made from Australian timber and thus

potentially made offshore and with less controls and less focus

on sustainable forestry practices. The FCJ industry welcomes the

warning by the Federal Government on the longer term impacts of

such a campaign to the broader furniture and construction supply

chain.

FCJA notes and applauds the action taken by Senator Kim Carr

in early 2012, whose intervention was crucial in persuading Get

Up to at least temporarily drop their support of the No Harvey

No campaign. This was an excellent demonstration of how a

government can be effective by simply and publically stating the

actual facts.

The FCJ welcomes the passage of the “Illegal Logging Prohibition Bill

2011” through Parliament and the regulations, penalties and tools it

will provide to identify and prosecute products from illegal logging.

However, there remains more work to ensure that the regulations

are not manipulated or abused. Consultation is also critical with

the FCJ industry on the development of both the prohibited and

regulated lists under the legislation.

Complementary to the need to punish the use of illegal logged

wood and wood products is the need for a focus on encouraging

and maintaining sustainable wood resources from both private and

public forests throughout Australia. Ensuring a domestic supply

of sustainable timber, which can be monitored, provides assurance

to consumers and NGO’s while also offering strong domestic

alternatives for producers of wood based products.

Strict monitoring of domestic wood sources in addition to

restrictions on illegally logged products will also assist in addressing

the miscommunication and misunderstanding of NGO’s and other

groups as to the real impact of the industry. While the FCJ sector

supports for the large part the role of NGO’s in identifying problems

and issues it does remain concerned at some of the ill-researched

and mis-guided statements that have been made in respect of the

furnishing industry such as that of the No Harvey No campaign. A

strong and transparent supply chain and domestic logging industry

will address this issue.

There are positive activities as well that the industry seeks to

foster and would seek government support. These include the

push by Planet Ark to encourage consumers to look at wood

based products as a store of carbon. Equally the focus by steel

manufacturers on environmental improvements and investment

in new materials and production processes also requires ongoing

encouragement.

As an example of these positive activities, the Case Study on

the opposite page shows the approach of Sealy to working with

its supply chain to produce high quality, durable products which

meet the performance needs of consumers. However, through a

pro-active approach to work with its suppliers it is also minimising

the environmental footprint of its products and delivering what

has become an increasingly important product characteristic for

consumers – environmental sustainability.

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SEALY Sustainability and design through strong supply chain clusters

Sealy owns and operates 25 bedding plants in the U.S. Three are dedicated to innerspring and foundation component parts and one is dedicated to producing its very own latex–another first in the mattress industry.

As the world’s largest bedding manufacturer, Sealy Corporation recognizes the importance of environmental sustainability and takes seriously its corporate responsibility for good stewardship in this effort. It seeks to provide high-quality, durable sleep sets that provide our customers with the highest levels of comfort and wellness.

A core goal for Sealy is to reach an acceptable balance between sustainability and product quality, performance and durability, based upon the practical application of the most advanced technologies available. The company is currently embarking on a two-fold approach to reduce our environmental footprint: To ensure that its current operations, and the operations of its suppliers, are as environmentally friendly as possible. To search for economically feasible ways to improve the sustainability of its products.

Here are the steps that Sealy has taken to improve the environmental sustainability of its products:

WOOD *Sealy’s lumber resource is certified to SFI (Sustainable Forestry Initiative) and CSA (Canadian Standard Association) standards. This lumber company: Supplied 66% of its fuel needs through "green" fuel sources (biomass, e.g., bark and sawdust, as well as landfill gas) in 2008. Self-generates 46% of its energy needs (fuel and electricity) using renewable sources (co-generation from biomass and hydroelectricity). Reduced greenhouse gas emissions by 31% in intensity (per ton) and 52% total since 2000.*Relevant Sealy product: box spring (frame)

STEEL *100% of the steel products in Sealy sleep sets come from recycled steel. Because of its patented design, Sealy innerspring units can be compressed instead of baled, so that more innerspring units fit into a truckload. Fewer truckloads provide greater fuel efficiency and reduced emissions.*Relevant Sealy products: mattress (innerspring), box spring (modules, center rails, grid tops, nails and staples)

FOAMS *Sealy’s foam supplier recycles 100% of its polyurethane scrap for use in the production of other consumer products (e.g., carpet, padding).*Relevant Sealy product: mattress (comfort layers)

LEAN MANUFACTURING *Scrap Reduction: Sealy has reduced its scrap by 69% from approximately 1.8 lbs per piece produced in June 2004 to approximately .43 lbs per piece produced in December 2009.In 2009, Sealy reduced its recycled scrap 3.3% from 2008 and 33% since 2004 (lbs per unit sold).

Recycling:100% of manufacturing scrap from all Sealy’s plants is taken by a third-party company to be recycled for other products. Scrap includes textiles, foams and plastics. Both wood and metal pallets are sent back to Sealy’s plants for re-use.Logistics Sealy uses a route optimization software system that streamlines delivery and minimizes the fuel use of its truck fleet. Sealy has consolidated transportation in North America where appropriate. Sealy has selected suppliers based on their proximity to Sealy plants. Subsequently, Sealy has reduced its carbon dioxide emissions by 23% since 2007.

Non-Essential Materials Reduction Sealy has minimized the use of secondary materials that are not critical to bed manufacturing and has developed environmentally preferable options (e.g., reduced corrugated packaging).

FIRE-RETARDANT MATERIALSSealy chose to use only environmentally friendly fire-retardant materials to meet the new U.S. Code of Federal Standards, Title 16, Part 1633, Standard for the Flammability (Open Flame) on Mattress Sets. By design, Sealy’s fire retardant materials have inherent re-retardant properties. As a result, no chemicals, including halogens or harsh metals, are used in Sealy’s fire-retardant materials.

SECONDARY BEDDINGSealy has created an entire division to channel excess production to secondary bedding markets. This minimizes the amount of products and materials going to landfills, and includes: Sleep sets produced from excess raw materials Production overruns Off-specification sleep sets Prototypes and experimental sleep sets

24

labour, skills and training 4.3

There is a profound shortage of skilled workers across all parts of the FCJ industry as identified in the following Table:

As Table 3 shows the range of occupations in the FCJ sector are for

the large part applicable across a range of manufacturing sectors

and the skill sets are very similar. As such the FCJ industry is not

just competing amongst itself for workers but also with other

manufacturing sectors and to some extent the booming resources

sector in Australia.

Manufacturing Skills Australia (MSA) confirms this trend across

manufacturing generally, noting in respect of skills shortages that

“Most attributed the attractiveness of other industries and salary

competition as the main reasons for their difficulty in recruiting the

skills they need. These were also blamed for difficulty in retaining

workers”.3 As noted below the booming resources and associated

construction sectors are proving a significant drain on workers to

the FCJ sector.

An approximation of the looming skills shortage (using Deloitte

Architectural glass designers and technicians

Supervisors

Kitchen and bathroom installers,manufacturers and designers

CNC operators and programmers

Upholsterers

Carpet/vinyl/timber floor layers

Glaziers

Project Managers

CAD specialists

Managers and management skills

Cabinet makers

Wood machinists

Window coverings makers & installers

Glass processing workers

Technical sales people

Industrial painters

Access Economics data on annual projected retirement rates)

would suggest an additional 15,000 workers will be needed over

the next five years just to maintain ‘business as usual’ for the

sector. This accounts for both new and replacement of retiring

workers from the industry.

While improvements in technology will drive productivity

improvements and greater efficiencies the skills shortage will be a

significant dampener on the potential growth and innovation in the

industry moving forward unless practical solutions are found.

The FCJ industry is also conscious of the potential workforce that

exists through non-traditional pathways, including up-skilling of

existing staff (from within FCJ or other parts of manufacturing),

greater encouragement for secondary students to consider FCJ as

a viable career option and increasing the participation of women in

the industry.

Skills Shortages, Furnishing2

2 Manufacturing Skills Australia, Environmental Scan 2012. February 2012. p 41 3 ibid. p 6

TABLE FOUR

4.3

.1

25

26

apprentices

There is inadequate incentive, especially in

prevailing market conditions, for employers in

FCJ to train/employ apprentices. This is reflected

in the low enrolment of apprentices into TAFE

colleges nationally.

According to the Australian Bureau of Statistics

(6227.0), in 2011 there were 24,300 persons

undertaking apprenticeships in the manufacturing

sector, this was 30% lower than those

undertaking an apprenticeship in 2010 and 16%

below levels in 2009. However the number of

students undertaking apprenticeships in the

Construction and Other (agriculture, forestry

fishing, mining etc.) both grew between 2009

and 2011. This confirms the problems faced

by FCJ and broader manufacturing in attracting

persons to the industry when both construction

and mining would appear to be more attractive

options.

For 2011 by field of trade, the majority were in

construction (60,300) followed by Automotive

and engineering (40,800) and Electro technology

and telecommunications (37,400).

Graph 2 below, highlights the number of MSA

related Apprenticeship Commencements for

Jan-June 2007 – 10. It shows a downward trend

in the number of apprenticeships commenced

albeit with a small rise in 2010. Over the period

between 2007 and 2011, apprenticeships fell by

376 people or a decline of 19 per cent over the

four year period.

This fall may in part be due to a perceived lack

of attractiveness of the FCJ industry relative to

other industries, but also reflects the significant

barriers to training being faced by the FCJ

industry. As the MSA notes, inflexible and

inadequate delivery of training is still a major

barrier to workforce development” “While some…

can be attributed to outdated content within the

LMF02 Furnishing Training Package…a significant

element of frustration appears to be due to

inadequate access to training delivery”.

Interestingly as Table 5 (rIight) shows, in the areas

of AQF II, AQF III, AQF IV and Diploma or higher of

LM02 student numbers have risen. This suggests

a desire by existing workers to advance their

education but highlights the problem of a lack of

apprentices or students undertaking AQF I level

certificates contributing to the skills shortages

and lack of new entrants to the sector.

2007 2008 2009 2010 2011

2500

2000

1500

1000

500

1924 2001

1262

1775 1548

January - June

Num

ber or com

mencem

ents

commencement Jan - June 2007 - 2011 figuresMSA APPRENTICESHIP

Source: MSA Environmental Scan 2012

Source: MSA Environmental Scan 2012

GRAPH TWO

2007 2008 2009 2010

Enrolments for LMF02

2,239

10,526

1,111

1,592

7,299

108

416

3,056

10,595

1,346

1,418

7,790

20

21

3,348

10,193

1,323

1,507

7,303

17

43

Apprentices and trainees

All students

AQF I

AQF II

AQF III

AQF IV

Diploma or higher

2,991

11,643

993

1,623

7,342

762

923

TABLE FIVE

4.3

.2

27

management training

Management and line managers lack fully developed skills in

key areas like finance, marketing, competitive manufacturing,

employee/subcontractor management, employee relations, project

management, contract administration, etc.

The future for any manufacturing sector wishing to improve its

sales and market penetration is through innovation at all levels –

product, process and organisation. The nature of manufacturing is

changing as consumers become increasingly more knowledgeable

about product and features, demanding uniqueness, high quality

craftsmanship and made to purpose products. The changes

required to produce these need to begin with the management of

the company.

However, the traditional structure of the FCJ industry with a large

proportion of micro and family owned and operated businesses

has been one of limited innovation with R&D spend often

focused solely on incremental technology change primarily in the

production process. A step-change in management thinking is

required throughout the industry in order to enable it to make the

adjustment to the new manufacturing ideals and approaches.

As Professor Gӧran Roos from Swinburne University recently

noted4 a principle ingredient for the success of a manufacturing

firm in a high cost environment is an experienced entrepreneurial

leadership with ambitious goals. To this you need to add a

loyal, knowledgeable low turnover workforce, high quality, high

performance product offering and risk-reducing innovation-driving

partnerships with research and expertise centres among other

things.

Reflecting successful models from Europe, Professor Roos notes

that companies must increase their investment in R&D, ICT,

organisational structures, design, brand equity and education and

training. A bottom up approach to management and decision

making where the dynamic between employer and employee

becomes one of mutual respect, with both wanting the firm to be

more successful, must be pursued.

To replicate the success of furniture manufacturers in European

countries such as Sweden, Denmark and Germany, business owners

and managers must be willing to examine alternatives to the

traditional ways of running a business. A focus on greater supply

chain linkages and clustering to achieve economies of scale is

needed. Equally a focus on partnering with technology providers,

researchers or recognised brands and designers must be pursued

to achieve a Product-Service-System Offering that is high value

add and low volume.

While Government Programs can help foster the required cultural

change, it is up to the industry, its owners and managers, to change

their approach and thinking on management of the company. The

FCJA recognises that it must pursue a program of education and

knowledge transfer to assist its members to understand and

implement change in their structures.

To this end the FCJA will seek to work with its members to identify

and develop specific training, workshops, international visits and

knowledge transfer activities. These courses must be designed so

as to minimise the impact on the manager’s time and may involve

partnering with existing education and training providers particularly

those utilising online/interactive forms of training and learning.

FCJA firmly believes however, that Government programs to

facilitate and promote industry mentoring are vital as this will is

the most cost effective way to cement truly effective learning

and growth. There are many examples of this process being

applied by other industry sectors, particularly in professions such

as engineering and other technical disciplines. Mentoring provides

benefits to both the mentor and the mentored, and is a proven

means of passing on knowledge and skills, particularly in an industry

with an aging workforce.

In short the Australian furniture and joinery industry needs to move

away from seeing itself as a components business to one of being

a design orientated, modern forward looking business that is readily

able to respond to changing market and consumer needs.

The success of pursuing a forward looking, management driven

strategy is seen in the success and development of UCI. As

highlighted in the Case Study below, UCI’s success has been due

to proactive management decisions to build on identified market

opportunities. This includes the decision to establish manufacturing

facilities allowing them to offer more flexibility and customisation

to customers; to continually invest in world first innovation; and

building up a strong in-house design team. These decisions place

UCI in a position of being able to provide a complete project

solution from design, manufacture and project delivery.

4 Making things in a high cost environment. RMIT business innovation lecture. 23 February 2012

4.3

.3

28

UCIbusiness sustainability through innovation

UCI has had a long and proud history with its first genesis in

1972, starting in Melbourne. A key strength of UCI’s history has

been its ability to evolve with the times to meet the constantly

changing needs of the workplace.

In 1985 we achieved a national presence and rebranded as

Interlink. This new development enabled us to provide a common

offering around Australia with showrooms and offices in every

capital city of Australia. We were the first company in the

commercial furniture industry to achieve this and are proud to

carry it on today.

With the advent of technology and the new development

of workstations we undertook major changes and became a

manufacturer with the establishment of our first manufacturing

plant in the late 1980’s. This major development enabled us to

provide much greater flexibility and customisation. It was also

a key element of our sustainability strategy. Sustainability was

always a priority and enabled us to secure the workstations for

the Sydney Olympics which involved the supply, take back and

refurbishment of 3,500 workstations. This project was supplied

in 1998, and 15 years later the innovation involved in this project

is now commonplace.

Our sustainability journey continued and in the early 2000s we

relocated our factory to its current site in Adelaide. This enabled

us to achieve some of our ambitious sustainability goals which

included our environmental certification ISO 14000 and our

environmental product certification GECA.

Over this period we developed a much stronger emphasis on

design establishing our in-house design team in Adelaide, with

a combination of industrial designers and mechanical engineers.

The design team completed our long term strategy to provide

the complete project solution from Design, Manufacture and

Project Delivery

In 2006 the company rebranded to UCI. This rebrand was a

reflection of our continual evolution and tied in with our shift to a

fully integrated offering, which involved providing a combination

of Australian Manufactured products and selected international

offerings. Under UCI’s First Source Supply strategy we source

directly from global suppliers which we continue to supply

throughout Australia which provides both global capability and

local experience. UCI is proud to supply products from 2 of the

global top ten suppliers, Allsteel and Okamura.

Nothing is certain other than more change and evolution. We

will continue to evolve and meet new challenges and look to the

future with excitement. Mostly we look forward to continuing to

meet the needs of our clients.

high level technical skills

There are also significant skills shortages in FCJ higher level technical areas including costing & pricing, production scheduling,

computer-aided manufacturing, computer-aided design, estimating, etc.

For a sector to be focused on high quality, high value add niche products, it is critical that the necessary skills and resources are in place

to facilitate the rapid changes required under such a business focus.

A review of the traditional FCJ industry highlights a range of occupations all related to the physical manufacture of the product – ie.

Cabinet Maker, Carpenter, Wood Machinist etc. All other roles including those relating to the actual design, marketing, communication

and administration of the process are grouped in ‘Other’. While this may be traditional it does not reflect the importance that these

“other” skills will have for the industry in the future.

For example, the experience of Nordic companies shows that 89 per cent of these companies have developed products by combining

different technologies or technical solutions, which traditionally were not used in their industry. This compares to a mere 12 per cent

of companies in Australia. As technologies continue to converge and consumers become increasingly connected to technology, the

furniture industry needs the right skills in place to identify and be able to supply high end, niche market products in response to the

growing consumer knowledge and awareness of what is available/possible.

These products command a higher margin and move companies from competing on price to competing on functionality. Such

products command a higher premium in the market and through ongoing innovation remain out of the reach of low cost furniture

manufacturers. Moreover, it is what the consumer will increasingly be seeking.

Several industries in Australia and overseas have addressed this issue not through just upgrading their own skill base, but through

effective clustering and partnerships with existing providers of these services and skills. The TCF sector is a good example of this,

where companies have formed strong linkages along the supply chain and with researchers to research and develop products that are in

many cases world-first.

4.3

.4

29

industry determined training

lack of attraction in industry for job seekers

The industry is not in a position to effectively or fully determine its own training needs, including qualifications, course design, etc. This

is because the Skills Council of direct relevance to the FCJ sector is Manufacturing Skills Australia (MSA) and it tends to be dominated by

non-FCJ personnel, resulting in courses being developed which have low patronage by the industry itself or by actual job-seekers.

Further, the current method of trade training delivery by TAFE colleges is in many cases no longer suitable to industry needs. TAFE

is insufficiently funded to provide for genuine composite and flexible delivery while “Few (in some cases, if any) RTOs are keeping

qualifications for these thin market areas [areas such as upholstery, furniture polishing and soft furnishing whose number of trainees

is very small] on their scope. This includes selling off equipment and resources…” 5. These factors have led to FCJ enterprises losing

confidence in the VET training system overall.

1

2

3

Training packages that fail to fully reflect the rapidly changing needs of industry.

Training delivery systems that are no longer appropriate.

Rejection of the VET training system by enterprises in the FCJ sector

This has all resulted in:

The current training system requires major changes to the existing system to make it more FCJ relevant, user friendly, and to ensure

that the education and training delivered is a genuine driver of productivity and innovation in the industry. This then needs better

targeted funding as part of a package to support the industry in its drive towards a prosperous future.

Nevertheless, the proposed redevelopment of the Furnishing Training Package by Manufacturing Skills Australia was expected to be a

positive step toward addressing the formal training issues faced by the industry and is supported by the FCJ sector (albeit it has real

concerns about the outcome due to the lack of genuine consultation in the process).

Equally the FCJ Council has undertaken a review of current training programs available to it. This review shows that a considerable

amount of training is readily available to the industry and again numerous industry sectors have maximised their value through industry

led processes (consider professional organisations such as CPA, The Law Society or Mining focused groups such as The AusIMM or AIG

whose primary purpose is to facilitate the transfer of knowledge and information amongst its members).

Industry led training can be delivered at a relatively low cost and low burden on industry resources through:

FCJ orientated training and information transfer

sessions delivered through:

Conferences, seminars, workshops whereby

experienced/senior people teach others

Online database and website where people can place

case studies and learning’s that others may be able

to implement

A Continuing Professional Development program

that ‘rewards’ ongoing training and provides a

formal means for the above to occur

Such a program can also be tied into an industry

standard or existing standard to provide consumers

with greater assurances on the credibility of a

product or process

Insufficient school leaver job seekers are applying for work in the FCJ industry.

In particular, and similar to other manufacturing industries, the FCJ companies are suffering from an inability to attract quality labour,

especially given the competition from the mining sector. As noted previously the skills in demand for the FCJ industry are also those in

demand by the mining and construction sectors. This is evidenced by the fall in persons undertaken apprenticeships in manufacturing

but significant increase in those undertaking them in construction and other sectors (principally mining).

Consequently many of the entrants to the industry are mature age, and either not suited or eligible under the existing training system.

This needs to change and requires changes to the treatment of self-education practices of both companies and training providers, and

of employees themselves.

While not a recognised long term solution to the industries problem the FCJ sector should consider if more can be done through the

skilled migration program. Most of the occupations for the industry are included in the schedule and this should be investigated further

as a means to resolve the shortfall but also to potentially bring in different skills, experiences and ideas to the industry.

5 Ibid p 39

4.3

.54

.3.6

__

30

supply chain 4.4

retailer dominance

4.4

.1 Larger retailers of furniture have a disproportionate amount of

negotiating power in the supply chain due to their relative size

and control over a significant proportion of retail floor space. This

is not dissimilar to the situation facing suppliers to the Coles/

Woolworths duopoly. The key outcome of this market power

disparity, especially when coupled with the threat of low-cost

import substitution, is that manufacturers are unable to achieve a

sustainable profit margin.

We believe that Australian manufacturers should be given the right

to deal with these large chains collectively.

It is difficult to change the underlying power disparity with

retailers and thus the FCJ industry recognises that it must explore

alternatives to bringing the product to market. In many cases this

may involve bypassing the retailer and selling direct to consumers

via the internet. Once again this approach has been successfully

implemented across a range of industries within Australia and

globally.

An online presence not only reduces the issues of dealing with

retailers demands for lower prices but allows a greater interaction

with the consumer. A principle part of the success of overseas

companies and clusters has been their ability to understand and

work closely with their customers. An online presence allows a

company to remain close to its customers and be able to respond

to changing demands and needs. While there is a large part of

“touch and feel” in the selection of FCJ products the experience of

overseas FCJ firms and in other areas such as clothing (another area

where touch and feel is important) this clearly has not precluded

increasingly growing sales through on-line promotion..

For instance, through a greater investment in ICT and new

production techniques a company could offer a fully interactive

process for customers to custom design their next chair, couch or

bed – beyond simply selecting a different fabric. Options could be

built in that allow users to specify integrations to specific devices

(iCon Bed etc.) or to a desire for a purpose-built, modular piece of

furniture that can be used in a multitude of ways.

The Economist noted in an article entitled ‘Manufacturing The third

Industrial revolution’ 6 that advances in production techniques such

as “additive” manufacturing (eg 3D printers), new materials such as

carbon fibre and nanotechnologies will lead to a revolution focused

on mass customisation not mass consumption. It points to the

change in many manufacturers bringing their operations back into

local markets where they can be closer to their customers and

supply chains and there is no reason why this could also not occur

within the Australian FCJ industry .

Additional work must also be done to engage with the Australian

Made campaign and the Industry Capability Network (ICN). The

31

6 Full article available from http://www.economist.com/node/21553017. Last accessed 25 May 2012

former of course, provides a means for manufacturers to

differentiate themselves in the marketplace by denoting that a

product is Australian Made or contains Australian materials. ICN

is a business network that introduces Australian and New Zealand

companies to projects. In essence it offers a new business source

for suppliers and a sophisticated search service for project

managers. Its core role is to find the suppliers and service providers

best equipped to meet the requirements of hundreds of projects

across Australia and New Zealand.

Drawing on the benefits of promoting the value of locally made

products, the industry should seek to utilise websites which allow

consumers to track the supply chain of products. Two such

sites are Sourcemap www.sourcemap.com and Greenfly www.

greenflyonline.org. Both of these sites are relatively new with

Greenfly still in Beta mode, however both seek to provide an

open and transparent map of the supply chain on key products.

Sourcemap notes that “Consumers use the site to learn about

where products come from, what they are made of and how they

impact people and the environment. Companies use Sourcemap to

communicate transparently with consumers and tell the story of

how products are made”.

Greenfly takes a slightly different approach to Sourcemap and has

been designed as “…a revolutionary new online tool that helps you

design environmentally improved products. It is a user-friendly

design support tool focused on real-world design projects.

Greenfly incorporates life-cycle modelling and Eco Design

strategies with easy to use, cutting-edge web technology.

Greenfly shows the environmental impacts of your design choices

through strong graphical representation and helps you improve and

communicate your product sustainability decisions.”

Greenfly is supported by the Victorian Government’s Sustainability

Fund and is a partnership between the Centre for Design, RMIT

University; WSP Environmental; and the Design Institute of

Australia. This could be a useful tool for the FCJ industry to trial

in developing new products and testing new processes ahead of

full scale implementation. In essence it provides a utility for a small

company to undertake a considerable amount of proof of concept

and product testing through a simple online tool compared with

engaging a research group or other specialist to undertake such

work.

Equally the use of supply chain websites provides a degree of

transparency to consumers that is becoming an increasingly

important factor for decision making.

32

fragmented industry structure

The FCJ industry is dominated by a large number of very small

independent businesses, leading to inefficiencies compared to

larger production centres and to imported product. The majority

of the sector is characterised by small operations who for the large

part are sole traders or employing less than 20 staff (approximately

two thirds of all establishments). Just under a third are medium

sized companies with only 0.1 per cent of firms employing more

than 200 persons. The table on the following page shows the

major players in each of the sectors and their estimated market

shares

This fragmentation is further compounded by the fact that there

are distinct gaps within the supply chain, often making it difficult

and costly to quickly source necessary intermediate products and

services. This has a major negative impact of the industry’s overall

competitiveness levels.

This fragmented nature coupled with the issues around

management skills and training noted above significantly restricts

the ability of industry players to engage with other important

stakeholders, including designers and research and development

groups to develop new products and processes which could

potentially be used to increase market share and grow the sector. A

common problem in all industries is being able to have industry and

researchers working together and a number of programs (including

those administered by Enterprise Connect) have been developed

to assist this. However, such programs are often broad in approach

and specific industry needs are not always fully appreciated (due

to a lack of specific industry knowledge or insight).

But there are alternative approaches as evidenced by the former

Victorian Government funded Vic-Start’s program support for the

“TCF Technology Network”. Over the four years of its operation the

network facilitated the creation of 235 technology transfers with

107 completed, in addition to formalising 70 business relationships.

These projects resulted in investment by the industry of more

than $16.8 million.

The success of this project was largely due to strong input

from the industry via the national TCF representative body and

the appointment of a specialist Network Manager, that reflected a

strong understanding of the industry and was able to effectively

facilitate the build up of the network and its linkages.

The FCJ industry wishes to work with government to pursue

similar programs to continue the process of consolidation and most

particularly supply chain clustering.

Looking along the supply chain, IBIS World reports that in 2011/12

there were 4,441 Specialist Retail Furniture Establishments, and this

is expected to grow to around 4,693 by 2016/17. The majority

of these are located in the large population centres of New

South Wales, Victoria and Queensland with an increasing number

emerging in Western Australia and South Australia. An improved

consolidation of the manufacturing industry should act as a counter

to this increasing reliance on imports for retail sale.

Equally according to IBIS World, furniture wholesalers in Australia are

facing increased pressure from wholesale bypass by retailers, rising

imports, falling retail prices and higher input costs. This situation

does however point to potential upside from a consolidated

industry that works with wholesalers to offer tailor made, just in

time product to customers.

4.4

.2

33

There has already been a process of consolidation, and there is likely to be a continuation of this. This should not be random, but to a plan

that will produce an industry that is set up to succeed in a global marketplace.

The direction for such consolidation and supply chain clustering can be seen in the functioning of the Salling Lkast furniture cluster in

Western Jutland, Denmark and the East Westphalia Lippe kitchen furniture cluster in North Rhein Westphalia, Germany. Both operate in

developed mature economies with wage and business costs equivalent to those experienced by Australian FCJ businesses. Additionally

both comprise small to medium family owned and operated companies.

The Australian FCJ industry is in a similar position to these clusters and pursuit of the directions identified in this report will drive the

industry toward this path. This can be achieved through a combination of Industry Strategies and support mechanisms by government

at all levels in Australia.

Both are supply chain clusters combining a number of small to

micro businesses

The clusters have facilitated strong localised supply

chain linkages with the clusters favouring local producers.

This results in a strong relationship that enables a rapid

response to changing consumer demands and market

directions in addition to first-hand knowledge transfer

Both have developed strong reputations for quality, built on

the foundation of highly skilled craftsman who take pride in

their work

They have worked to build up strong relationships with

local educational institutions who provide training and skills

development to cover the full spectrum of skills requirements

both current and those identified as necessary for the future

Both clusters are export orientated, exporting a large

proportion of their product

Some common themes emerge from these examples:

Have adopted a model of market pull by communicating with

and staying close to their consumers rather than a market

push approach

This is achieved through a high level of customisation

within the product

They have a deliberate strategy of targeting high end markets

allowing them to compete on design and functionality rather

than price

They remain up to date with the latest production practices,

organisational structures and innovations

While the clusters facilitate cooperation they do so in a way

that maintains strong competition among the companies

within them. This in itself ensures that individual companies

continue to innovate to the benefit of themselves and the

broader cluster

34

STRATEGIC DIRECTIONS FOR THE INDUSTRY

The Australian FCJ industries have strong potential to enhance their international competitiveness through exploiting and/or creating certain comparative advantages. These include access to very high quality raw

materials, a workforce that could potentially be of a world class skill level, a safe investment environment, and a regulatory framework that should be able

to ensure world class, sustainable environmental outcomes.

We can build on these strengths to achieve real change that could put our industries at the leading edge in their fields internationally.

Achievable outcomes that would help ensure the industry has a sustainable future include:

Development of niche export markets

Effective protection for consumers from below standard imports and materials

A value added design based industry

Developing a strong Australian furnishings brand with values of quality, sustainability, craftsmanship, and longevity.

Generating a workforce with a higher skill and productivity level that helps bridge the gaps to the future

Addressing the trade distorting influences and ethical procurement policies of the government.

Enhancing supply chain efficiencies

1

2

3

4

5

6

7

strategies to enhance industry development and business competitiveness 5.1

The following strategies and activities have been identified to help enhance industry development and business competiveness.

The successful pursuit by all relevant stakeholders in the industry – ie owners, managers, workforce, unions, governments and

retailers – of the activities below will deliver this potential.

5

35

design and innovation

It is clear from the analysis above that a successful FCJ sector

in Australia is dependent not only on removing the barriers and

hurdles currently confronting Australian manufacturers but also on

the ability of the industry to become more design oriented and

adopt leading edge technologies. There is a clear opportunity

for the FCJ Council and governments to develop a program that

encourages the uptake of new ideas, technologies and processes

including the fostering of relationships with designers, research

groups and technology providers.

In particular, based on an assessment of the overseas experience,

engagement with the ICT, design and electronics sectors in Australia

is critical to the success of the industry. Cooperative projects

which build on the unique skill sets of each sector utilising multiple

technologies to develop products will allow FCJ manufacturers to

seize on the trend for products that are functional but also reflect

consumers’ desire for unique pieces of high quality.

In a related manner there is considerable benefit in building strong

relationships with FCJ sectors in other countries, particularly those

in developed countries that are considered successful and world

leading. This would include countries such as Denmark, Germany,

Sweden and Italy and seek to foster cooperation and improved

awareness by Australian FCJ companies on how those sectors

have improved their ability to compete against cheaper imports.

Additionally it may generate information or technology transfer to

the Australian FCJ sector.

As the experience of many European countries has shown, the

Australian industry must develop a strong awareness of the

positive benefits of creating products with a core design element.

Incorporation of design concepts can drive and/or complement

innovation and allow rapid tailoring of FCJ products to changing

consumer trends.

An excellent illustration of this is how design and innovation can

5.1

.1 provide the flexibility to adjust to changing consumer trends for

products with a low environmental footprint. As governments

increasingly legislate to achieve environmental aims the FCJ

industry must investigate alternatives to reduce the ‘pollutants’ it

produces.

The areas such as energy and waste management have been

identified as an initial focus however the adoption of new raw

materials, production processes or distribution networks must also

be investigated. Finally, the industry must work with environmental

NGO’s on programs that promote the benefits of Australian

designed and made products. This can be complemented by

training courses offered such as the MSS11 Sustainability Training

Package.

The FCJ sector acknowledges that there are numerous government

programs focused on design, innovation and R&D, but unfortunately

many of these are not suitable for FCJ companies. As Section 3 of

this document showed the Australian FCJ sector is a fragmented

mix of micro and small businesses with few medium to large

companies. This structure makes it difficult for associations and

governments to provide information and resources to companies,

particularly on programs that do not have immediate direct

relevance to owners and managers of FCJ enterprises and this is

now a significant barrier to program uptake.

In lieu of a sector specific FCJ program, it is vital that all current and

future assistance programs are modified to be more relevant to

the majority of FCJ enterprises in Australia, which are largely small

businesses. As such the FCJA seeks to work cooperatively with

governments to fine tune existing programs and ensure that they

are suitable for FCJ enterprises.

Such changes many also have flow on effects beyond the FCJ

sector by allowing other fragmented industry sectors to gain

access to them as well.

36

The FCJA has undertaken an initial review of existing standards and regulations, and identified the implications of non-compliance with

each (see Appendix 1).

Achievement of this would level the playing field while also protecting consumers from inferior products. It is vital that the implementation

and enforcement of regulatory controls relating to the overall level of quality, standards and safety within the Australian furniture market

is undertaken in a balanced fashion, with imports subjected to the same scrutiny and compliance requirements as local industry.

A core and necessary requirement must be the creation of a new

regulatory specific Statutory Body to:

Monitor the implementation and application of all mandatory

standards and regulations

Ensure/enforce full compliance with these standards and

regulations

Apply significant penalties to non-compliant companies

Such a body would ensure consistency in approach, and a concerted effort in applying all standards and regulations equitably within the

marketplace.

regulation and compliance

A range of issues that contribute to an unfair playing field and represent a significant barrier to industry growth and development have

been highlighted in Section 4.2. To redress this imbalance a proactive and cooperative approach by the industry, trade unions and

government agencies is needed, especially to address the illegal or avoidance practices by various players, including but not necessarily

exclusively, the importing community.

To frame the response, it will be necessary to clearly identify:

5.1

.2

Current Australian standards and standard setting committees

Products made from illegally logged timbers and the potential

for FCJ products to be used in the importation of illegal

goods into Australia

Building codes and their enforcement

Consumer protection codes and their enforcement

The level of fees and taxation required to be met by Australian

FCJ producers compared with those faced by importers of FCJ

products

Australia’s tariff system including the various tariff

arrangements through Australia’s bilateral and multilateral free

trade agreements, general tariff rates and Tariff Concession

Orders and By-laws

The need for Mandatory testing (relating to all Standards and

Regulations that must be adhered to) of all products supplied

into Australian markets and related to this mandatory warranties

for all products supplied into Australian markets

37

labour, skills and training

5.1

.3

Possibly the most critical factor related to the future success of the industry is the need to address the skills shortage, including the

lack of business skills at the management level. Without a stronger managerial capability and a sufficiently large and appropriately skilled

workforce, the FCJ industry will be severely restricted in its ability to achieve its potential growth.

To address this a dedicated program which first assesses current and anticipated skills shortages in the FCJ industry, both in the traditional

‘trade-based’ areas and the emerging areas of computer aided design, costing and pricing, scheduling and process and product innovation,

should be undertaken. This study will also include a detailed analysis of the current trade based offerings among TAFE institutes and

identification of any deficiencies in this area and will be undertaken in consultation with the appropriate Skills Council, including the

redevelopment of the LMF02 Furnishing Training Package.

In the first instance this should provide the basis for a program to raise the awareness of career opportunities within the FCJ sector, with

a particular focus on school leavers, young adults and mature age workers returning to the manufacturing sector. Secondly it should

establish a dedicated program of training for managers and owners of businesses in the FCJ sector aimed at improving skills in the areas

of project management, contractor and employee management and entrepreneurial skills, including finance and marketing capabilities.

Finally it should provide a basis for enabling Forestworks to take over responsibility for developing and implementing an FCJ relevant

Training Package. This will allow the sector to take greater control of its own training needs, including qualifications, course design and

outcomes.

While the approaches above will address the skills shortage in the medium to long term the industry also needs to examine short-term

options. A short-term solution will be to investigate the opportunities through skilled migration to fill this gap and provide industry with

relevant information to allow them to utilise this program.

In addition a program of consumer education and awareness focused on the benefits of Australian made FCJ products must be undertaken.

This should focus on the unique qualities of Australian made product including the potential for Australian FCJ manufacturers to provide

innovative, tailored products in addition to the economic benefits of the industry to the Australian economy.

Given the importance of government procurement to the industry, both through its size and potential to lead private sector procurement

any campaign must be extended to procurement officers. This should be coupled with changes to public service procurement policies

which ensure fair and equitable treatment of all suppliers, be they domestic or offshore.

Consideration will also be given to the potential for the formation of a larger cluster group to negotiate with retailers to ensure that

Australian Made product, and the benefits associated with such, are more proactively promoted at retail outlets.

38

In many industry sectors it is evident that clustering has been

able to address:

The lack of innovation uptake in industry by improving

cooperation between supply chain partners within an

industry, as well as between industry and other stakeholders,

including designers, researchers and training providers

The fractured nature of the sector by creating economies

of scale without necessarily undertaking business mergers

or acquisitions. These economies of scale will improve the

ability of FCJ enterprises to negotiate with both suppliers

and retailers for better outcomes, as well as to push into

overseas markets

A lack of understanding of the capabilities of businesses

throughout the supply chain by painting a clear picture of

the capacity of each part of the supply chain

Finally, a focus on Australia’s sustainable forestry sector including

education and a cooperative approach between FCJA, NGOs,

consumer groups and governments will assist in the development

of a strong, secure and sustainable supply chain. This approach

of working along the domestic supply chain coupled with a

consumer awareness campaign and the tougher regulations on

imported products using illegally logged timber, will drive cluster

development, innovation and growth domestically in the FCJ sector.

supply chain

5.1

.3

International experience shows that those sectors with a clear

understanding of their supply chains have had the most success

in competing with imported products and in off-shore markets.

The FCJ industry is a fragmented industry characterised by a large

number of micro and small businesses along the supply chain. This

creates problems in respect to the sourcing of materials but also

when dealing with wholesalers and retailers.

A comprehensive supply chain map is required for the Australian

FCJ industry which clearly shows the true extent of the industry

in Australia. This study should encompass the economic, social

and environmental impact of the industry and encompass the entire

supply chain from raw material suppliers through to retailers. The

emergence of web based supply chain tracking programs such as

Sourcemap and Greenfly show that increasingly consumers and

companies are seeking an open and transparent depiction of a

products supply chain. Something the Australian FCJ industry does

not currently have.

While some consolidation has occurred in the industry a dedicated

program administered cooperatively by the FCJ Council and

Federal Government designed to facilitate further consolidation in

the industry through clustering must be pursued. Such a program

could be based on programs such as the TCF Technology Network

or the Salling Lkast Furniture Cluster and East Westphalia Lippe

Kitchen Cluster.

x

39

40

industry leadership 5.2 actions to be pursued at the association level

Core to the success of the FCJ sector in Australia is a consolidated

industry that speaks with one voice to governments, retailers,

unions and other stakeholders. The FCJA is working through its

participating organisations and inaugural Council to provide the

avenue for this voice to be heard.

Section 5.1 outlined in broad terms the actions that the industry

design and innovation

5.2

.1 The FCJA recognises that the industry must re-orientate itself

from an industry focused on price to one focused on design and

innovation in all forms, including product quality, functionality and

appeal, process improvements, interaction with/responsiveness to

the end customer, overall business models, etc.

FCJA will initiate action to disseminate case studies from Australia

and globally, some of which are contained in this document, to

demonstrate the benefits to Australian companies of investing in

design, innovation and the latest technologies. This is expected to

work in conjunction with the push for increased management skills

and consumer orientated promotional campaigns.

The FCJA will also seek to work with Government on developing an

incentive scheme for companies to take up innovative processes

and/or develop/incorporate new technologies into their product

offering. This could include investigation of such things as:

Accelerated depreciation and/or tax rebates for innovative

technologies, process improvements and product development

and for increased spending on design oriented activities

Introduction of such schemes as New Zealand’s “Better by

Design” program or the former Queensland “Ulysses” program

Fostering partnerships between designers and FCJ business

operators

Cluster development and partnering with research and

technology providers

Cooperation with designers, technology providers, research bodies

and other sectors critical for the development of new products

and processes for the FCJ sector must be a key focus for the

industry moving forward. Once again the fragmented nature of the

industry has seen some partnerships developed by FCJ companies

but largely in isolation to the rest of the industry and focused on

a single product. A united industry led by the FCJ Council will be

able to engage in formal relationships with other sectors such as

ICT, design and electronics through their industry associations or

equivalent bodies.

As part of the broader program with government, the FCJ Council

will seek to implement a specific committee to facilitate linkages

between companies, researchers and representatives from the

sectors noted above.

The experience of overseas industries and other Australian

manufacturing sectors is that recognition of a company or

company’s achievements represents an excellent means to both

reward innovation and promote the industry. To this end the FCJA

will investigate the potential for an award or awards that recognise

innovation and leading edge design in the Australian FCJ industry.

This will be developed in consultation with existing awards but

also with existing tradeshows and events as additional activities

to promote the quality, skills and diversity of the Australian FCJ

industry.

Finally, the industry must have the opportunity to see and learn

from the best in the world. A characteristic of most manufacturers,

particularly in the FCJ sector, is that they are generally practically

focused and hands on experiences provide an excellent means

to demonstrate what can be done. The FCJA will seek to work

with businesses and government agencies to facilitate the visit of

Australian companies to international conferences or conferences

and for overseas clusters, experts to be bought to Australia to

speak with Australian FCJ industries

These will be delivered by FCJA through ‘Challenge Workshops’

comprising interested designers, manufacturers and researchers in

addition to the establishment of a “pool of knowledge” of designers,

engineers and business consultants that will be made available to

assist companies or clusters develop and/or pursue and implement

new design and innovation ideas.

FCJA will also work cooperatively with government to establish

a “Design and Prototype centre” which can showcase a wide

cross section of latest product and innovative developments.

Similar models, albeit on a smaller scale, have been developed by

the automotive sector (concept cars), TCF Sector (Textile and

Fashion Hub) and groups such as the Warren Centre for Advanced

Engineering. To begin this it is proposed a survey be undertaken to

identify the current state of the industry and provide a benchmark

to measure future progress and success.

Coupled with this centre would be a push by the FCJA to engage

with politicians and recognised Australians to act as champions for

the industry both within Australia and offshore.

The concept of pop-up shops, especially linked with various

festivals or even galleries or in open spaces (such as the Botanical

Gardens), has also been identified as a valuable way to both build

the profile of the industry and its capabilities and generate new

sales (especially for the furniture industry). Indeed, a good focal

believes need to be undertaken. Any reform to the industry

must be done in a cooperative fashion and the FCJA

recognises that Government cannot be expected to act

alone in this respect. The following outlines the commitment

the FCJA, on behalf of the industry, will make in regards to

achieving the change required in the industry to allow it to

grow and remain sustainable.

41

regulation and compliance

5.2

.2

point for the industry may well be through the annual Vivid Festival

(ie a “Festival of Light, Music and Ideas”) held end May/early June

each year, especially given that Good Design Australia is partnering

with the NSW Government specifically to promote design during

the Festival. As such, design will be one of the headline features of

the Festival, and the Australian Design Awards will be held during

this period as will a major 2 day Conference. This would be a good

opportunity to promote the FCJ industry’s design capabilities.

The FCJA will further refine its preliminary assessment of the

current state of laws, regulations and trade related arrangements

applying to the industry.

The FCJA will seek to work with statutory authorities in the

implementation of regulations and codes. This will include the

relevant regulatory enforcement agencies, including the Australian

Competition and Consumer Commission (ACCC); Building

Standards Boards, Work Safe agencies and local government

planning and building inspectors, and hopefully a new statutory

body specifically established to implement, police and enforce all

mandatory standards and regulations. These relationships will allow

the industry to address many of the regulatory issues noted in

Section 4.2 above.

The FCJA will also seek to work cooperatively with governments to

develop an information campaign for purchasing and procurement

officers (public and private) to ensure that the true costs and

benefits of using Australian or imported product is understood

and implemented. This program will relate to both a consumer

education program and, if appropriate, an industry “Trustmark”

scheme. The Trustmark program would be available to all Australian

made FCJ products and services which meet its requirements.

The FCJA recognises that there are numerous stakeholders in the

FCJ sector with whom strong relationships are required in order to

achieve the desired change in the industry’s direction and focus.

These include trade unions, particularly the CFMEU, building industry

associations (HIA, MBA), consumer groups (Choice), environmental

NGOs (Planet Ark), surveying associations (Institution of Surveyors,

Victoria, ISNSW), Australian made campaign and standard setting

body SAI global.

Historically engagement with these groups has been through various

smaller associations, often uncoordinated and consequently risking

the advocacy of potentially conflicting outcomes. However, these

associations are the right ones to be involved in such activity, as they

are close to their members and understand their unique requirements.

But with the establishment of the FCJA, it provides a forum for a

common position to be developed on behalf of the collective FCJ

industry.

As such, the FCJA will provide common thread for the associations

individually to work with these groups on:

Standards

Increased inspections and awareness of the problems inferior

imported product can have on the broader construction industry

Employment, skills and training focused programs as outlined

above

Focused FCJ product origin program building on that existing

work

Driving awareness among consumers of the problems associated

with imported product to the broader FCJ consumers

The FCJ Council has held preliminary meetings with the CFMEU and

identified several areas where it can cooperate with that group to the

benefit of the broader industry and those employed by it.

42

labour, skills and training

5.2

.3 The FCJA will review and build upon its preliminary assessment of training opportunities and programs relevant to the FCJ sector working

with the relevant Skills Council (ideally Forestworks) and the CFMEU to ensure that the industry has adequate representation on relevant

skills councils and committees.

Through this relationship the FCJA will also seek to investigate and develop a program to engage secondary school students, their

teachers and parents to promote careers in the FCJ sector. As a direct action the FCJA will seek to meet with careers teachers directly

using strategies successfully employed by other industries in Australia and overseas.

The Federal Government’s commitment through its Skills for all Australians policy is welcomed by the FCJA and it will seek to work with

governments to ensure that all elements of the policy are implemented. This will include lobbying State and Territory governments to

implement relevant parts of the program in addition to seeking commitments from opposition parties to the overriding broad principles

of that policy.

While the program above will assist in addressing those traditional areas of skills needed by the industry the need to have an innovative,

focused and driven management in the industry requires additional focus from within the FCJ industry. As such the FCJA will, in the first

instance, investigate options through TAFE or other providers for the delivery of management (non-trade related) courses. This could

include groups such as the Australian Institute of Company Directors (AICD), Business Schools or RTO’s from other sectors such as ICT

and design.

In addition to providing workshops on design/innovation, consumer awareness and mentoring, the FCJ Council will also identify and

promote best-practice management and operational activities (in Australia and overseas) in FCJ and other industries. This will be done

through seminars workshops, inter-firm comparison, benchmarking and company visits. These will complement the training modules

noted above.

Finally the FCJA wishes to pursue the development of a Master Craftsman qualification within the FCJ industry. This would have an

identified educational pathway combining both formal units of study and continuing professional development activities such as,

conference presentations, mentoring and contribution of articles to industry publications.

Study units for the Master Craftsman would cover all aspects of what the industry considers a Master Craftsman including traditional

43

supply chain

5.2

.4 A strong supply chain is critical to the effective growth and development of the FCJ industry in Australia. The FCJA will work cooperatively

with the government to undertake a comprehensive study of the FCJ supply chain in Australia. The results of this survey will provide the

clearest indication available as to the size, potential and most importantly where significant gaps and opportunities exist.

Following on from this study the FCJA will lead a program of clustering in the industry, to the benefit of all in the supply chain. This will

include providing sufficient evidence and argument for the need to form such clusters. This will be best achieved by the formation of

an internal committee or committees involving all parts of the supply chain to identify and address barriers within the sector. This group

would include raw material suppliers, retailers, wholesalers and public and private procurement officers.

Reflecting many of the issues raised with FCJA members in respect of retailers, the Council will investigate options to improve linkages

between manufacturers and retail groups in addition to exploring options to allow manufacturers to sell directly to consumers. Given the

concern over the practice of importers going directly to building sites and consumers this program would be subject to strict conditions

and other regulations flowing from the actions outlined in Section 5.1. This would include the introduction of virtual/digital supply chains

and establishment of showrooms to demonstrate innovative content both virtually and at tradeshows.

FCJA will also collaborate with governments in targeting new markets utilising the strength of these supply chain clusters. This will be

done through dedicated inward and outward bound trade missions and Australian FCJ sector stands at major overseas trade shows

and events. The focus of these activities will be to demonstrate the diverse product offering, quality, uniqueness and comprehensive

support and service of Australian made FCJ products – from sustainable raw material inputs to construction and on-going servicing (where

applicable).

skills coupled with units in lean manufacturing, design, IT and management techniques. The training would be provided in modular format

to allow for ease of use for those undertaking the course of study. Through cooperation with the relevant Skills Council and Tertiary

institutions the Master Craftsman degree would be equivalent to a Bachelor’s degree.

The FCJA believes that this program will provide recognition of the skills of many in the FCJ industry while also providing a clear career

path for those considering entry into the industry. Through a dedicated mentoring program Master Craftsman can proactively drive an

increased uptake of training and improve engagement with school leavers. Finally it will drive loyalty among employees by providing a

clear career path within which their employer can invest.

44

role for government 5.3

Overall the FCJ sector seeks recognition from government of its importance to the Australian economy historically, currently and its

strong potential to be a leading edge manufacturing sector into the future. Government’s role is seen as more than just providing funding

to the sector, as occurs in other sectors, but also of partnership with a consolidated industry group focused on the ongoing development

of the Australian FCJ sector.

With appropriate Government action, the Australian FCJ sector can make significant productivity gains through improvement in the

flexibility of their manufacturing processes, streamlining of regulatory procedures and improved infrastructure. These are the three core

factors critical for sustaining the Australian economy identified recently by McKinsey and Co.

The FCJA welcomes the report of the non-government members of The Prime Ministers Manufacturing Taskforce and supports fully their

“Smarter Manufacturing for a Smarter Australia” strategy and the following principles:

The FCJA equally welcomes the Prime Ministers response to this report and her commitment to bring together the Industry Capability

Network, the Buy Australian at Home and Abroad Supply Advocates, AusIndustry and Enterprise Connect to share information on

opportunities for manufacturers from large domestic projects. The formation of a Manufacturing Leaders Group and Industrial Research

Transformation Program (ITRP) are equally welcomed and the FCJA would expect to be involved in that.

However, the government must give due consideration to all of the report’s recommendations if it is truly to be seen as truly supporting

the Australian manufacturing sector.

Building a new and stronger generation of small through to

large manufacturing businesses with the management and

capabilities to compete and succeed in the global economy

Transforming a larger portion of the $9.4 billion that gets

invested each year by the Commonwealth Government in

science and research into applied knowledge in manufacturing

and into jobs and wealth created by this nation’s manufacturers.

Ensuring our manufacturers continue to invest in Australia,

bringing global technology and knowledge to their customers.

This will be done by providing them with a reason to invest

– a good business environment, world class innovation,

competitive taxation and regulatory regimes and a strong

body of SMEs with which to link.

Building better supply chains that constantly drive excellence

through industry, while providing pathways for our smaller

businesses into global markets so that they can expand and

grow. Australia’s SME manufacturers will develop new business

models, increase their absorptive capacity and leverage more

services and original design thinking in the solutions they

provide global customers.

Building a smarter and more efficient manufacturing industry

that helps build the nation’s mines, cities and urban and

regional infrastructure. Better cities and better infrastructure

will lift the quality of life for working people and increase

the nation’s productivity. This is what winning is all about in

today’s global economy.

Building better, more productive, smarter workplaces where

trust, co-operation and collaboration helps build better

more prosperous, productive and profitable manufacturing

businesses.

Building better manufacturing businesses capable of dealing

with cyclical challenges and structural change. But we

will also be vigilant in pushing government to reduce the

time, cost and risk of doing business in this country – and

to give manufacturing an investment environment that is

internationally competitive. That is a priority all the leaders

share.

Design and Innovation

5.3

.1 There is a clear case for governments to work with the FCJ sector in developing an incentive scheme (through new initiatives or fine-

tuning of existing initiatives) for companies to take up innovative processes and/or develop/incorporate new technologies into their

product offering.

Similar programs have been undertaken in the Automotive and TCF sectors by both Labor and Coalition governments providing clear

evidence that Government support of such activity does lead to demonstrable positive benefits for the economy as a whole. In conjunction

with the FCJA, governments must review existing government assistance programs and existing policies including consideration of such

things as:

Tax incentives for the introduction of innovative technologies

Fostering partnerships between FCJ business operators, designers and researchers

Technology cluster development

Recognising design as an integral element of innovation

Introduction of such schemes as New Zealand’s “Better by

Design” or the former Queensland “Ulysses” program (see

brief outline of both below)

45

In order to foster uptake of innovation and design in the industry, government support of FCJA led ‘trade missions’ to overseas conferences and trade

shows to promote Australian capabilities in addition to observing world’s best practice in FCJ design and production, is vital.

Related to the need to focus on skills development the Government must also ensure that adequate funding is maintained to tertiary educational

institutions in the areas of FCJ, design and ICT among others, to ensure that these skills can be further developed within the Australian industry. Such

a policy will also ensure that sufficient teaching ability remains to continue education in these areas, as well as ensure that a strong research capability

remains in Australia.

Finally in the area of design and innovation governments must consider providing funding for the establishment of a design and prototype centre which

will encourage cooperation between designers, manufacturers and researchers. This centre will also provide a clear means to promote the awareness and

usage of latest technologies by Australian FCJ companies. A core part of this should be the creation of a “pool of knowledge” of designers, engineers

and business consultants in addition to a study of the current state of innovation within the industry.

BETTER BY DESIGN New Zealand

Better by design is a specialist

group within the New Zealand

Trade and Enterprise government

agency with its sole purpose being

to help New Zealand enterprises

succeed. The programs operated

by Better by Design are built on the

principle that design strategies and

processes can be applied to

businesses to improve the bottom

line.

It connects companies with

business experts and design

practioners and provides a range

of services including independent

assessment of a company’s

fundamental strengths and

weaknesses, identifies opportunities

and develop an action plan. The

agency also has a focus on

advocating the value of design.

While a government agency it has

an advisory board comprised of

seven of New Zealand’s foremost

design practioners and business

leaders.

Better by design represents the

type of government and industry

cooperative model the FCJA

envisages operating within

Australia.

ULYSSES Transforming business through design

As part of the $3 million

Designing Queensland

Program, the Department of

Employment, Economic

Development and Innovation

received $1.1 million to

implement a Design

Integration Program. Called

Ulysses, the program's goal is

to make Queensland's

mainstream businesses

internationally competitive

through design.

Ulysses plays a critical role in

commercialising innovation

for Queensland businesses

and will assist Queensland

businesses to use design to

differentiate their products

and services in the global

market place.

46

Regulation and Compliance

5.3

.2 Government needs to take note of the inequities identified by the FCJA with regard to:

Current Australian standards and standard setting committees

Products made from illegally logged timbers and the potential

for FCJ products to be used in the importation of illegal goods

into Australia

The level of fees and taxation required to be met by

Australian FCJ producers compared with those faced

by importers of FCJ products

Consumer protection codes and their enforcement

One area that the Government must act on immediately is to strengthen the anti-dumping measures to:

Make clear it is action to combat unfair trade

(it is not a trade protection barrier)

Shift the onus of proof to the importer, not the

local manufacturer

The FCJA also calls on the Government to establish a new statutory body to:

Monitor the implementation and application of all mandatory

standards and regulations

Ensure/enforce full compliance with these standards

and regulations

The FCJA would also encourage an awareness raising campaign with government procurement officers and departments which

highlights the full capabilities of Australian manufacturers. While the FCJA acknowledges that governments have policies in place which

require procurement officers to fully assess the costs and benefits of foreign purchases against Australian processes it must also be in a

position to act on substantiated advice from industry where this does not occur.

Moreover, Government Procurement policy should specifically call for the factoring in of “whole of life”value of the subject goods, as

well as the cost of adherence to environmental, social, safety and labour requirements for imported products that are not subjected to

the same compliance costs as local product in meeting these policy requirements of the Australian Government.

Government support is also essential to provide credibility in any industry led and developed consumer awareness campaign that

encourages the increased purchase of Australian made product and the resultant benefits to the Australian economy of those purchases.

The returns to the government are numerous extending from the pure economic and budget gains through increased sales and hence

production of Australian product, to indirect savings in costs of healthcare and prosecutions of those companies who fail to adhere to

Australia’s standards and regulations.

Building codes and their enforcement

Australia’s tariff system including the various tariff

arrangements through Australia’s bilateral and multilateral free

trade agreements, general tariff rates and Tariff Concession

Orders and By-laws

The need for Mandatory testing of all products supplied into

Australian markets and related to this mandatory warranties

for all products supplied into Australian markets

Allow “class” actions to be undertaken by industry sub-

sectors and/or industry associations on behalf of their

members

Apply significant penalties to non-compliant companies

Develop a register of acceptable certification authorities

throughout Australia including reference to the “Illegal

Logging Prohibition Bill 2011”

47

48

Labour, Skills and Training

Supply Chain

5.3

.35

.3.4

The Federal Labour Government has made a strong and positive

commitment to improving the Vocational Educational Sector in

Australia and it must keep to these promises. Likewise the FCJA

calls on State and Territory Governments to implement the policies

in line with the Council of Australian Governments.

As part of the broader industry study the government must

provide assistance to the industry to fully understand the

significance of current and future skills gaps. This must incorporate

an investigation on both the supply and demand for vocational

and non-vocational training as it relates to the FCJ sector. Upon

completion of this review the Government must work with the

FCJA to ensure that a dedicated program focused on promoting

the FCJ sector as a viable, interesting workplace with long-term

career prospects.

FCJA would recommend that this can be best done through a

dedicated Business Advisory Unit (BAU). This BAU can provide

ready feedback on management and management efficiencies in

addition to providing clear directions and access to government

programs.

The FCJA will seek the Government’s support in the development

of a comprehensive Capability Map of the FCJ supply chain in

Australia. This map will help identify gaps in the supply chain,

especially where the necessary critical mass is threatened so

that action can be taken to strengthen the supply chain where

necessary and enable the necessary scale economies to be built up

to further develop the true potential of the Australian FCJ sector.

Utilising this map will also help the FCJA determine where supply

chain clusters could be encouraged/developed to help build overall

industry efficiencies.

A regulated industry is important to the industry provided that

the regulations are developed in conjunction with industry and

designed to protect the ultimate consumer of the product and the

Australian manufacturer.

All Australian governments must undertake a review of the various

regulations and ownership provisions placed on FCJ businesses

which provide a disincentive for business purchase, investment

and growth.

FCJA also asks the government to improve investment in long-

term plantations and the development of sustainable wood

resources from both public and private native forests. Such action,

as noted elsewhere in this document, is critical for ensuring that

Australia maintains a sustainable wood products industry on which

FCJ businesses can draw material from.

Government needs to ensure that government procurement

programs provide sufficient weight to Australian formed clusters

and that government procurement officers are fully aware of

the complete benefits and costs of Australian production versus

imported products.

49

51

CONCLUSIONSUMMARY OF ISSUES & RECOMMENDATIONS

In determining this forward strategic action for the Australian FCJ industries, the FCJA is proposing the following action

steps as the starting point to address the core Critical Success Factors underscoring the industries’ future growth prospects (see

Recommendations Matrix on following pages)

6

52

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

DESIGN AND INNOVATION

• The industry must develop a greater focus on design and innovation, to the point where is becomes globally recognised as epitomising an inherent Design Culture

• The industry must focus on building relationships with other sectors including: + Designers + Electronics + ICT + Research organisations

• The Australian FCJ industry must become more aware of the activities of overseas based FCJ producers with a view to both learn from their experiences but also to explore partnerships

• The industry needs to have a better under standing and awareness of the positive benefits of creating products with a core design element

• The industry must take full advantage of all available programs to help foster a greater uptake of design, innovation and R&D activities

• Work with governments in an effort to develop appropriate incentive schemes to encourage companies to take up innovative processes and/or incorporate new technologies into their product offering. This includes:

+ Accelerated depreciation and/or tax rebates for innovative technologies, process improvements and product development and for increased spending on design oriented activities

+ Introduction of such schemes as New Zealand’s “Better by Design” program or the former Queensland “Ulysses” program

• Encourage linkages between FCJ companies, researchers, technology providers, industrial designers and relevant government agencies

+ Convene ‘Challenge Workshops’ between interested manufacturers, designers and/or research organisations to brainstorm potential innovative product designs and/or process innovations that could be developed through collaborative projects, including impact of latest technology developments (such as 3D printing, laser & water jet cutting, communications, etc)

+ Establish a “pool of knowledge” of designers, engineers and business consultants that can be made available to assist the industry to pursue new design and innovation ideas

+ Implement program of pop-up exhibitions of innovative product in conjunction with strategic partners (e.g. fashion houses, galleries, festivals, wineries, etc)

• Prioritise target markets/countries and facilitate industry trade missions overseas and encourage overseas ‘leaders’ in the FCJ sector to visit Australia and speak with the industry

Critical

High

High

Ranking

Critical

Critical

Critical

High

High

High

Medium

• Introduce new incentives and/or fine-tune existing programs to encourage companies to take up innovative processes and/or incorporate new technologies into their product offering. These should include consideration of:

+ Accelerated depreciation and/or tax rebates for innovative technologies, process improvements and product development and for increased spending on design oriented activities

+ Introduction of such schemes as New Zealand’s “Better by Design” program or the former Queensland “Ulysses” program

• Provide access to funding and Australian and State/Territory overseas based investment and trade promotion offices for the FCJ Council to organise trade missions and host visiting experts and technology providers

• Work with the FCJ Council to develop tailored information for FCJ companies around issues relating to IP protection

• Maintain funding to tertiary institutions in the areas of FCJ, design and ICT among others to ensure that these skills can maintained and built upon within Australia

• Sponsor awards nights and industry showcases to improve the promotion of creative leading edge design within the Australian FCJ sector

53

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

DESIGN AND INNOVATION

• The industry must develop a greater focus on design and innovation, to the point where is becomes globally recognised as epitomising an inherent Design Culture

• The industry must focus on building relationships with other sectors including: + Designers + Electronics + ICT + Research organisations

• The Australian FCJ industry must become more aware of the activities of overseas based FCJ producers with a view to both learn from their experiences but also to explore partnerships

• The industry needs to have a better under standing and awareness of the positive benefits of creating products with a core design element

• The industry must take full advantage of all available programs to help foster a greater uptake of design, innovation and R&D activities

• Work with governments in an effort to develop appropriate incentive schemes to encourage companies to take up innovative processes and/or incorporate new technologies into their product offering. This includes:

+ Accelerated depreciation and/or tax rebates for innovative technologies, process improvements and product development and for increased spending on design oriented activities

+ Introduction of such schemes as New Zealand’s “Better by Design” program or the former Queensland “Ulysses” program

• Encourage linkages between FCJ companies, researchers, technology providers, industrial designers and relevant government agencies

+ Convene ‘Challenge Workshops’ between interested manufacturers, designers and/or research organisations to brainstorm potential innovative product designs and/or process innovations that could be developed through collaborative projects, including impact of latest technology developments (such as 3D printing, laser & water jet cutting, communications, etc)

+ Establish a “pool of knowledge” of designers, engineers and business consultants that can be made available to assist the industry to pursue new design and innovation ideas

+ Implement program of pop-up exhibitions of innovative product in conjunction with strategic partners (e.g. fashion houses, galleries, festivals, wineries, etc)

• Prioritise target markets/countries and facilitate industry trade missions overseas and encourage overseas ‘leaders’ in the FCJ sector to visit Australia and speak with the industry

Critical

High

High

Ranking

Critical

Critical

Critical

High

High

High

Medium

• Introduce new incentives and/or fine-tune existing programs to encourage companies to take up innovative processes and/or incorporate new technologies into their product offering. These should include consideration of:

+ Accelerated depreciation and/or tax rebates for innovative technologies, process improvements and product development and for increased spending on design oriented activities

+ Introduction of such schemes as New Zealand’s “Better by Design” program or the former Queensland “Ulysses” program

• Provide access to funding and Australian and State/Territory overseas based investment and trade promotion offices for the FCJ Council to organise trade missions and host visiting experts and technology providers

• Work with the FCJ Council to develop tailored information for FCJ companies around issues relating to IP protection

• Maintain funding to tertiary institutions in the areas of FCJ, design and ICT among others to ensure that these skills can maintained and built upon within Australia

• Sponsor awards nights and industry showcases to improve the promotion of creative leading edge design within the Australian FCJ sector

54

DESIGN AND INNOVATION

• Improved promotion of creative design within the industry through awards nights, industry showcases, trade exhibitions and trade fairs

+ Ensure that all Australian Industry Exhibitions incorporate a section that is focussed completely on displaying the latest design and innovation developments within the Australian industry

+ Encourage Australian FCJ companies to exhibit increasingly more demanding product (in terms of craftsmanship, design and innovation) at relevant industry exhibitions/trade shows (both in Australia and internationally)

+ Develop annual Design Concept Awards and Design Competitions, augmenting existing Design Awards, to encourage designers, manufacturers and students to present innovative design concepts/ideas

+ Encourage more Australian businesses to participate in the existing Design Awards

• Collaborate with the Australian Design Alliance in promoting a National Design Alliance

• Establish a “Design and Prototype Centre” to showcase a wide cross section of latest product design and innovative developments, and to encourage cooperation between designers, manufacturers and researchers

• Proactively promote the principles of “creativity”, “innovation” and “inspiration” to the furniture, kitchen and joinery industries + Encourage FCJ manufacturers to proactively engage with designers to produce new ranges of product that can be marketed under a unique label clearly and distinctly associated with the designer

+ Disseminate case studies and information from Australia and globally emphasising the importance of innovation and design to the success of the Australian FCJ industry

• Engage with key government officials and politicians to champion the industry’s capabilities

• Undertake an awareness raising campaign among FCJ businesses of the available programs and assistance intended to encourage “innovative development”

Critical

Medium

High

High

High

High

• Provide funding for the establishment of a “Design and Prototype Centre” to both encourage cooperation among designers, manufacturers and researchers, and to promote the use/awareness of latest technologies

• Provide funding assistance to FCJA to allow the establishment of a “pool of knowledge” of designers, engineers and business consultants

• Fund and/or undertake a survey of the industry’s current position with respect to design and innovation, to provide a base line on which future progress can be measured

• Funding of an industry awareness raising / education program comprising a series of workshops, events, expert visits over a two year period, to foster a design culture within the industry

Medium

High

High

Critical

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government Ranking

55

DESIGN AND INNOVATION

• Improved promotion of creative design within the industry through awards nights, industry showcases, trade exhibitions and trade fairs

+ Ensure that all Australian Industry Exhibitions incorporate a section that is focussed completely on displaying the latest design and innovation developments within the Australian industry

+ Encourage Australian FCJ companies to exhibit increasingly more demanding product (in terms of craftsmanship, design and innovation) at relevant industry exhibitions/trade shows (both in Australia and internationally)

+ Develop annual Design Concept Awards and Design Competitions, augmenting existing Design Awards, to encourage designers, manufacturers and students to present innovative design concepts/ideas

+ Encourage more Australian businesses to participate in the existing Design Awards

• Collaborate with the Australian Design Alliance in promoting a National Design Alliance

• Establish a “Design and Prototype Centre” to showcase a wide cross section of latest product design and innovative developments, and to encourage cooperation between designers, manufacturers and researchers

• Proactively promote the principles of “creativity”, “innovation” and “inspiration” to the furniture, kitchen and joinery industries + Encourage FCJ manufacturers to proactively engage with designers to produce new ranges of product that can be marketed under a unique label clearly and distinctly associated with the designer

+ Disseminate case studies and information from Australia and globally emphasising the importance of innovation and design to the success of the Australian FCJ industry

• Engage with key government officials and politicians to champion the industry’s capabilities

• Undertake an awareness raising campaign among FCJ businesses of the available programs and assistance intended to encourage “innovative development”

Critical

Medium

High

High

High

High

• Provide funding for the establishment of a “Design and Prototype Centre” to both encourage cooperation among designers, manufacturers and researchers, and to promote the use/awareness of latest technologies

• Provide funding assistance to FCJA to allow the establishment of a “pool of knowledge” of designers, engineers and business consultants

• Fund and/or undertake a survey of the industry’s current position with respect to design and innovation, to provide a base line on which future progress can be measured

• Funding of an industry awareness raising / education program comprising a series of workshops, events, expert visits over a two year period, to foster a design culture within the industry

Medium

High

High

Critical

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government Ranking

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

REGULATORY & COMPLIANCE

• There are a number of inconsistencies among State and Federal Government regulations and standards in addition to varying levels of policing and enforcement. Issues include:

• There is no one regulatory body, agency or department within industry to oversee implementation and consistent enforcement of all relevant product and consumer regulations in Australia

• Certifying bodies must be well-credentialed and trustworthy – too many overseas sourced certifications are unreliable (or worse, fraudulent)

• Consumers are not fully educated nor aware of the benefits of Australian Made FCJ products compared with overseas made products

• Government Procurement decisions do not take into account the compliance cost imposed on local industry of adhering to the various Australian Government policies, and purchase imported materials on price even though they do not comply with these policy requirements

• Existing companies in the Australian FCJ sector are not well versed in promoting the benefits of their locally made products and often lack the necessary economies of scale to undertake a strong and positive marketing program

• Provide a preliminary assessment of the current state of laws, regulations and codes applying to FCJ products across Australia

• Identify and report on evident discrepancies in the way current laws, regulations and codes are applied to FCJ product across Australia depending on whether they are imported or sourced from Australian production, highlighting extent and implications of any non-compliance

• Work directly with statutory authorities and bodies responsible for establishing, policing and enforcing standards, regulations and codes

• Raise local industry’s awareness of obligations to abide by all relevant regulations and standards through an education campaign aimed at ensuring the industry's adherence to all regulations

• Build relationships with other stakeholder groups in the FCJ sector including trade unions, building industry associations, consumer groups, NGO’s, Australian Made campaign, surveying and building inspection associations

• Work proactively with Government to establish a statutory body focused on ensuring full compliance by all parties with all standards and regulations applying to FCJ products

• Develop an information campaign for consumers and procurement/purchasing officers, including consideration of an appropriate industry “Trustmark” scheme.

• Develop a program providing information to FCJ manufacturers on how to promote their businesses and products in the context of the broader consumer campaign

Critical

Critical

High

High

Ongoing

Critical

High

High

Ranking

Critical

Critical

Critical

High

High

Critical

High

High

• Ensure full harmonisation of Federal and State codes and regulations as they relate to the FCJ sector

• Direct relevant government agencies to work with the FCJ Council in addressing several of the immediate issues regulatory/compliance inequities already identified including:

• Commit to work closely with FCJA in the development of Regulations to be applied under the Illegal Logging Prohibition Legislation, to restrict the use of illegally logged timbers in complex timber products such as furniture, cabinetry, joinery, kitchens and flatpacks

+ These regulations must be effective, but at a low compliance cost and practical for Australian businesses

• Establish a purpose specific Government Body to: + Monitor the implementation and application of all mandatory standards and regulations

+ Ensure a balanced regulatory framework whereby compliance by imported materials is enforced to the same extent as it is for local product + Apply significant penalties to clearly non-compliant companies

+ Develop a register of acceptable certification authorities both in Australia and overseas

• Australian governments at all levels are to provide information to their procurement officers and departments outlining the capabilities of Australian FCJ producers

• Government Procurement policy to call for a “whole of life” value assessment and for the factoring in of the cost of adherence to “whole of government” policies in the areas of environmental sustainability, social, safety and labour requirements for local manufacture where imported products are not subjected to those same compliance costs

• Government Procurement purchasing decisions to factor in lost tax take, at all levels, if supply contract awarded to imported product instead of Australian manufactured product

• Governments to support in principle and via funding a consumer awareness campaign that highlights the inherent benefit and value of Australian made, compliant products

+ Need equitable, consistent treatment for Australian producers – with imports and with overseas standards and regulations

+ Currently no real enforcement to ensure full compliance by imported product with established standards and regulations

+ Insufficient penalties and follow up against clearly non-compliant product

+ Anti - Dumping action is vital, ensuring fair trade and should not be perceived as a protectionist measure+ Many imports entering Australia are either misclassified or undervalued in order to reduce the tariff duty cost

+ Strengthening anti-dumping measures to switch the onus of proof to the importers, to enable group/sector based action and to ensure SME’s can effectively mount cases

+ Ensure the Australian Customs Service (or another appropriate Government agency) is sufficiently resourced to scrutinise imported FCJ products and ensure compliance at the dock (with both appropriate duty payments and adherence to regulatory standards)

56

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

REGULATORY & COMPLIANCE

• There are a number of inconsistencies among State and Federal Government regulations and standards in addition to varying levels of policing and enforcement. Issues include:

• There is no one regulatory body, agency or department within industry to oversee implementation and consistent enforcement of all relevant product and consumer regulations in Australia

• Certifying bodies must be well-credentialed and trustworthy – too many overseas sourced certifications are unreliable (or worse, fraudulent)

• Consumers are not fully educated nor aware of the benefits of Australian Made FCJ products compared with overseas made products

• Government Procurement decisions do not take into account the compliance cost imposed on local industry of adhering to the various Australian Government policies, and purchase imported materials on price even though they do not comply with these policy requirements

• Existing companies in the Australian FCJ sector are not well versed in promoting the benefits of their locally made products and often lack the necessary economies of scale to undertake a strong and positive marketing program

• Provide a preliminary assessment of the current state of laws, regulations and codes applying to FCJ products across Australia

• Identify and report on evident discrepancies in the way current laws, regulations and codes are applied to FCJ product across Australia depending on whether they are imported or sourced from Australian production, highlighting extent and implications of any non-compliance

• Work directly with statutory authorities and bodies responsible for establishing, policing and enforcing standards, regulations and codes

• Raise local industry’s awareness of obligations to abide by all relevant regulations and standards through an education campaign aimed at ensuring the industry's adherence to all regulations

• Build relationships with other stakeholder groups in the FCJ sector including trade unions, building industry associations, consumer groups, NGO’s, Australian Made campaign, surveying and building inspection associations

• Work proactively with Government to establish a statutory body focused on ensuring full compliance by all parties with all standards and regulations applying to FCJ products

• Develop an information campaign for consumers and procurement/purchasing officers, including consideration of an appropriate industry “Trustmark” scheme.

• Develop a program providing information to FCJ manufacturers on how to promote their businesses and products in the context of the broader consumer campaign

Critical

Critical

High

High

Ongoing

Critical

High

High

Ranking

Critical

Critical

Critical

High

High

Critical

High

High

• Ensure full harmonisation of Federal and State codes and regulations as they relate to the FCJ sector

• Direct relevant government agencies to work with the FCJ Council in addressing several of the immediate issues regulatory/compliance inequities already identified including:

• Commit to work closely with FCJA in the development of Regulations to be applied under the Illegal Logging Prohibition Legislation, to restrict the use of illegally logged timbers in complex timber products such as furniture, cabinetry, joinery, kitchens and flatpacks

+ These regulations must be effective, but at a low compliance cost and practical for Australian businesses

• Establish a purpose specific Government Body to: + Monitor the implementation and application of all mandatory standards and regulations

+ Ensure a balanced regulatory framework whereby compliance by imported materials is enforced to the same extent as it is for local product + Apply significant penalties to clearly non-compliant companies

+ Develop a register of acceptable certification authorities both in Australia and overseas

• Australian governments at all levels are to provide information to their procurement officers and departments outlining the capabilities of Australian FCJ producers

• Government Procurement policy to call for a “whole of life” value assessment and for the factoring in of the cost of adherence to “whole of government” policies in the areas of environmental sustainability, social, safety and labour requirements for local manufacture where imported products are not subjected to those same compliance costs

• Government Procurement purchasing decisions to factor in lost tax take, at all levels, if supply contract awarded to imported product instead of Australian manufactured product

• Governments to support in principle and via funding a consumer awareness campaign that highlights the inherent benefit and value of Australian made, compliant products

+ Need equitable, consistent treatment for Australian producers – with imports and with overseas standards and regulations

+ Currently no real enforcement to ensure full compliance by imported product with established standards and regulations

+ Insufficient penalties and follow up against clearly non-compliant product

+ Anti - Dumping action is vital, ensuring fair trade and should not be perceived as a protectionist measure+ Many imports entering Australia are either misclassified or undervalued in order to reduce the tariff duty cost

+ Strengthening anti-dumping measures to switch the onus of proof to the importers, to enable group/sector based action and to ensure SME’s can effectively mount cases

+ Ensure the Australian Customs Service (or another appropriate Government agency) is sufficiently resourced to scrutinise imported FCJ products and ensure compliance at the dock (with both appropriate duty payments and adherence to regulatory standards)

57

58

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

LABOUR SKILLS & TRAINING

• There are significant skills shortages within the industry compounded by:

• Reflecting the large number of micro and small businesses within the Australian FCJ sector, often family owned and operated, there is a lack of cutting edge management skills and experience in the industry. Particular areas include

• Skills shortages also exist in areas of higher technical skills including:

• FCJ Council to review and build on its preliminary assessment of training opportunities and programs relevant to the FCJ sector in Australia

• Work with government to facilitate a move of Industry Skills Council to Forestworks for the LMF package

• FCJ Council to work closely with Forestworks to ensure that all skills and training needs of each FCJ sub-sector are fully met and that no sector or skill needs is adversely impacted by a move to Forestworks

• Engage with secondary schools to promote trade based careers in the FCJ industry as a viable option

• Proactively promote existing and any new programs to the industry.

• Investigate the potential to partner with TAFEs or other providers of management training to deliver a series of training packages designed for managers and owners of Australian FCJ businesses. Topics should include:

• Establish Master Craftsman qualifications for the industry (with an identified educational pathway to attain the final qualifications). These qualifications should be able to be achieved through a variety of pathways, including additional units of study in disciplines such as Design, Production / Lean Manufacturing, IT & systems etc. The final qualification awarded should be of a standard and recognition equivalent to a University Bachelor Degree

• Establish and administer an FCJ mentoring program with a strong focus on management, marketing and financial skills

• Identify the potential for targeted on-site short courses for FCJ companies

• Identify “best practice” management and operational activities (in Australia and overseas, in the FCJ industries and other relevant industries) and showcase these to industry through:

• Work with Government to investigate and promote the potential for skilled migration visas to provide a short-term solution to the skills shortage if there is no other feasible alternative

• Engage with tertiary bodies and other providers of skills in the areas of costing and pricing; scheduling; computer aided manufacturing and design; and ICT based skills; to both develop training programs for existing FCJ employees but also to recruit directly from these courses into the industry

High

High

Critical

Critical

Medium

High

Critical

Critical

Medium

High

Medium

Medium

Ranking

Critical

High

High

High

High

High

Medium

Critical

• The Federal and State Governments must commit to implementation of its policies to improve the content and delivery of apprenticeship training to match the needs of industry

• State Governments must play a key role in this as they control much of the delivery through the TAFE system

• Governments to work with all relevant FCJ bodies to oversee the move of Furnishing training package (LMF) Industry Skills Council to Forestworks.

• The Federal Government to fund on an ongoing basis programs like the Apprentice Advisor & Mentor projects.

• Government to consider possible incentives or existing programs that can improve the skills of FCJ managers and owners including taxation incentives for training by recognised bodies

• Establish a dedicated Business Advisory Unit to provide ready feedback on management and manufacturing efficiencies

• Encouragement for FCJ companies to undertake business reviews and develop appropriate, forward thinking strategic business plans

• Fund mentoring programs to ensure short term education/business reviews that lead to self-sustaining improvements.

+ Low take up of apprenticeships

+ An out-dated TAFE training delivery method incompatible with current industry needs

+ A lack of dedicated input from the FCJ sector in the development of training and education packages

+ A lack of new entrants, school leavers or others, seeking trade based roles in the FCJ industry

+ Inability to compete for labour given large salaries offered by the construction and mining sectors

+ Business & Financial management

+ Innovation in process and design

+ Project management

+ Contract management and negotiation

+ Marketing and customer relations+ Finance and accounting+ Lean manufacturing+ Application of digital technologies

+ Seminars/workshops+ Inter-firm comparisons/benchmarking+ Company visits and tours

+ Introduce a modular skills development approach so there is a defined pathway for further development+ Costing and pricing

+ Scheduling

+ Computer aided manufacturing and design

+ ICT based skills including automation and consumer engagement

59

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

LABOUR SKILLS & TRAINING

• There are significant skills shortages within the industry compounded by:

• Reflecting the large number of micro and small businesses within the Australian FCJ sector, often family owned and operated, there is a lack of cutting edge management skills and experience in the industry. Particular areas include

• Skills shortages also exist in areas of higher technical skills including:

• FCJ Council to review and build on its preliminary assessment of training opportunities and programs relevant to the FCJ sector in Australia

• Work with government to facilitate a move of Industry Skills Council to Forestworks for the LMF package

• FCJ Council to work closely with Forestworks to ensure that all skills and training needs of each FCJ sub-sector are fully met and that no sector or skill needs is adversely impacted by a move to Forestworks

• Engage with secondary schools to promote trade based careers in the FCJ industry as a viable option

• Proactively promote existing and any new programs to the industry.

• Investigate the potential to partner with TAFEs or other providers of management training to deliver a series of training packages designed for managers and owners of Australian FCJ businesses. Topics should include:

• Establish Master Craftsman qualifications for the industry (with an identified educational pathway to attain the final qualifications). These qualifications should be able to be achieved through a variety of pathways, including additional units of study in disciplines such as Design, Production / Lean Manufacturing, IT & systems etc. The final qualification awarded should be of a standard and recognition equivalent to a University Bachelor Degree

• Establish and administer an FCJ mentoring program with a strong focus on management, marketing and financial skills

• Identify the potential for targeted on-site short courses for FCJ companies

• Identify “best practice” management and operational activities (in Australia and overseas, in the FCJ industries and other relevant industries) and showcase these to industry through:

• Work with Government to investigate and promote the potential for skilled migration visas to provide a short-term solution to the skills shortage if there is no other feasible alternative

• Engage with tertiary bodies and other providers of skills in the areas of costing and pricing; scheduling; computer aided manufacturing and design; and ICT based skills; to both develop training programs for existing FCJ employees but also to recruit directly from these courses into the industry

High

High

Critical

Critical

Medium

High

Critical

Critical

Medium

High

Medium

Medium

Ranking

Critical

High

High

High

High

High

Medium

Critical

• The Federal and State Governments must commit to implementation of its policies to improve the content and delivery of apprenticeship training to match the needs of industry

• State Governments must play a key role in this as they control much of the delivery through the TAFE system

• Governments to work with all relevant FCJ bodies to oversee the move of Furnishing training package (LMF) Industry Skills Council to Forestworks.

• The Federal Government to fund on an ongoing basis programs like the Apprentice Advisor & Mentor projects.

• Government to consider possible incentives or existing programs that can improve the skills of FCJ managers and owners including taxation incentives for training by recognised bodies

• Establish a dedicated Business Advisory Unit to provide ready feedback on management and manufacturing efficiencies

• Encouragement for FCJ companies to undertake business reviews and develop appropriate, forward thinking strategic business plans

• Fund mentoring programs to ensure short term education/business reviews that lead to self-sustaining improvements.

+ Low take up of apprenticeships

+ An out-dated TAFE training delivery method incompatible with current industry needs

+ A lack of dedicated input from the FCJ sector in the development of training and education packages

+ A lack of new entrants, school leavers or others, seeking trade based roles in the FCJ industry

+ Inability to compete for labour given large salaries offered by the construction and mining sectors

+ Business & Financial management

+ Innovation in process and design

+ Project management

+ Contract management and negotiation

+ Marketing and customer relations+ Finance and accounting+ Lean manufacturing+ Application of digital technologies

+ Seminars/workshops+ Inter-firm comparisons/benchmarking+ Company visits and tours

+ Introduce a modular skills development approach so there is a defined pathway for further development+ Costing and pricing

+ Scheduling

+ Computer aided manufacturing and design

+ ICT based skills including automation and consumer engagement

60

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

SUPPLY CHAIN

• The industry lacks a clear supply chain map leading to:

• Retailer is only interested in the quick sale

• Lead times from order to ultimate delivery to end consumer often unduly protracted and not necessarily the right product

• Inadequate supply of Australian timber placed at further risk through environmentally focused taxation, legislation and ill-informed environ mental NGO campaigns

• Many builders and DIY renovators use low quality imported joinery and/or materials not compliant with Australian standards either intentionally or unintentionally through deceptive conduct by importers and retailers of such products

• Engage proactively with government to undertake a comprehensive supply chain map and study of the industry in Australia

• Support development of industry clusters – linking supply chain partners and like-minded companies to form strategic manufacturing alliances, either as:

• Introduce a consumer/retailer awareness program to promote the capabilities of the Australian industry, and the benefits derived from sourcing Australian Made FCJ products

• Collaborate in targeting new markets through:

• Establish the Industry’s own Showrooms/Sales Rooms (displaying latest innovative product)

• Establish collaborative industry buying groups

• Encourage joint market research for collective industry, to enable firms to base rational decisions about capacity, target market structures, market needs, etc

High

Critical

Critical

High

Medium

High

Medium

Ranking

High

High

High

High

Medium

• Government to fund and contribute to the development of a supply chain map of the Australian FCJ sector

• Provide a dedicated FCJ program to foster the development of supply chain clusters including both the facilitation of clusters and funding where appropriate to establish the cluster

• Provide encouragement/support for industry mergers and acquisitions

• Develop a targeted export program that provides market intelligence, design guidance, trade show support, and networking.

• Support to develop web based branding and sales opportunities to help balance retailer dominance of the supply chain.

+ A lack of engagement with retailers and ultimately consumers to promote the benefits and quality of Australian Made FCJ products

+ Inadequate knowledge on potential partnerships and clusters within the industry+ A lack of economies of scale within the industry

+ Loose networks, sharing information and ideas

+ Formalised collaboration, either as cooperatives or even Joint Ventures

+ Develop an on-line industry training program targeted at the retail sales person

+ Trade Missions

+ Australian Industry” stands at Exhibitions

+ Collective tendering to sell whole “story” rather than individual products (eg fit out of whole office/apartment including kitchens, cupboards, loose furniture, etc)

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

SUPPLY CHAIN

• The industry lacks a clear supply chain map leading to:

• Retailer is only interested in the quick sale

• Lead times from order to ultimate delivery to end consumer often unduly protracted and not necessarily the right product

• Inadequate supply of Australian timber placed at further risk through environmentally focused taxation, legislation and ill-informed environ mental NGO campaigns

• Many builders and DIY renovators use low quality imported joinery and/or materials not compliant with Australian standards either intentionally or unintentionally through deceptive conduct by importers and retailers of such products

• Engage proactively with government to undertake a comprehensive supply chain map and study of the industry in Australia

• Support development of industry clusters – linking supply chain partners and like-minded companies to form strategic manufacturing alliances, either as:

• Introduce a consumer/retailer awareness program to promote the capabilities of the Australian industry, and the benefits derived from sourcing Australian Made FCJ products

• Collaborate in targeting new markets through:

• Establish the Industry’s own Showrooms/Sales Rooms (displaying latest innovative product)

• Establish collaborative industry buying groups

• Encourage joint market research for collective industry, to enable firms to base rational decisions about capacity, target market structures, market needs, etc

High

Critical

Critical

High

Medium

High

Medium

Ranking

High

High

High

High

Medium

• Government to fund and contribute to the development of a supply chain map of the Australian FCJ sector

• Provide a dedicated FCJ program to foster the development of supply chain clusters including both the facilitation of clusters and funding where appropriate to establish the cluster

• Provide encouragement/support for industry mergers and acquisitions

• Develop a targeted export program that provides market intelligence, design guidance, trade show support, and networking.

• Support to develop web based branding and sales opportunities to help balance retailer dominance of the supply chain.

+ A lack of engagement with retailers and ultimately consumers to promote the benefits and quality of Australian Made FCJ products

+ Inadequate knowledge on potential partnerships and clusters within the industry+ A lack of economies of scale within the industry

+ Loose networks, sharing information and ideas

+ Formalised collaboration, either as cooperatives or even Joint Ventures

+ Develop an on-line industry training program targeted at the retail sales person

+ Trade Missions

+ Australian Industry” stands at Exhibitions

+ Collective tendering to sell whole “story” rather than individual products (eg fit out of whole office/apartment including kitchens, cupboards, loose furniture, etc)

61

Critical Strategic Issue FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government

SUPPLY CHAIN

• The industry lacks a clear supply chain map leading to:

• Retailer is only interested in the quick sale

• Lead times from order to ultimate delivery to end consumer often unduly protracted and not necessarily the right product

• Inadequate supply of Australian timber placed at further risk through environmentally focused taxation, legislation and ill-informed environ mental NGO campaigns

• Many builders and DIY renovators use low quality imported joinery and/or materials not compliant with Australian standards either intentionally or unintentionally through deceptive conduct by importers and retailers of such products

• Engage proactively with government to undertake a comprehensive supply chain map and study of the industry in Australia

• Support development of industry clusters – linking supply chain partners and like-minded companies to form strategic manufacturing alliances, either as:

• Introduce a consumer/retailer awareness program to promote the capabilities of the Australian industry, and the benefits derived from sourcing Australian Made FCJ products

• Collaborate in targeting new markets through:

• Establish the Industry’s own Showrooms/Sales Rooms (displaying latest innovative product)

• Establish collaborative industry buying groups

• Encourage joint market research for collective industry, to enable firms to base rational decisions about capacity, target market structures, market needs, etc

High

Critical

Critical

High

Medium

High

Medium

Ranking

High

High

High

High

Medium

• Government to fund and contribute to the development of a supply chain map of the Australian FCJ sector

• Provide a dedicated FCJ program to foster the development of supply chain clusters including both the facilitation of clusters and funding where appropriate to establish the cluster

• Provide encouragement/support for industry mergers and acquisitions

• Develop a targeted export program that provides market intelligence, design guidance, trade show support, and networking.

• Support to develop web based branding and sales opportunities to help balance retailer dominance of the supply chain.

+ A lack of engagement with retailers and ultimately consumers to promote the benefits and quality of Australian Made FCJ products

+ Inadequate knowledge on potential partnerships and clusters within the industry+ A lack of economies of scale within the industry

+ Loose networks, sharing information and ideas

+ Formalised collaboration, either as cooperatives or even Joint Ventures

+ Develop an on-line industry training program targeted at the retail sales person

+ Trade Missions

+ Australian Industry” stands at Exhibitions

+ Collective tendering to sell whole “story” rather than individual products (eg fit out of whole office/apartment including kitchens, cupboards, loose furniture, etc)

62

SUPPLY CHAIN

Critical

Medium

Medium

• Provide funding support to encourage supply chain collaboration and up-take of quick response principles

• Support the FCJ’s work in providing a clear outline of the industry to environmental NGOs and consumers through:

• Review building codes and regulations to ensure that DIY’ers and builders cannot be approached directly by importers and suppliers not accredited to Australian standards

High

High

Medium

• Promote benefits of “Quick Response” philosophy to local industry, highlighting all available avenues to reduce lead times, including:

• Work cooperatively with NGO’s and other stakeholder groups including timber suppliers to ensure the true facts are known in regards to the production and supply of Australian sourced timber

• The FCJ will utilise the programs previously noted to inform DIY’ers and builders of the risks of using non-compliant raw material and products and also better inform them of viable locally made alternative products

+ Collaboration through strategic supply chain relationships

+ The use of latest communication/information technologies to enhance direct interaction with the ultimate consumer

+ Introducing virtual/digital supply chains (to streamline activities and defer physical production to latest point possible)

+ Exploring the potential/scope for FCJ manufacturers to market directly to consumers, including through collective industry on-line network

+ Funding of specific activities and tasks

+ Implement and enforce the provisions of the “Illegal Logging Prohibition Bill 2011”

FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government Ranking

63

SUPPLY CHAIN

Critical

Medium

Medium

• Provide funding support to encourage supply chain collaboration and up-take of quick response principles

• Support the FCJ’s work in providing a clear outline of the industry to environmental NGOs and consumers through:

• Review building codes and regulations to ensure that DIY’ers and builders cannot be approached directly by importers and suppliers not accredited to Australian standards

High

High

Medium

• Promote benefits of “Quick Response” philosophy to local industry, highlighting all available avenues to reduce lead times, including:

• Work cooperatively with NGO’s and other stakeholder groups including timber suppliers to ensure the true facts are known in regards to the production and supply of Australian sourced timber

• The FCJ will utilise the programs previously noted to inform DIY’ers and builders of the risks of using non-compliant raw material and products and also better inform them of viable locally made alternative products

+ Collaboration through strategic supply chain relationships

+ The use of latest communication/information technologies to enhance direct interaction with the ultimate consumer

+ Introducing virtual/digital supply chains (to streamline activities and defer physical production to latest point possible)

+ Exploring the potential/scope for FCJ manufacturers to market directly to consumers, including through collective industry on-line network

+ Funding of specific activities and tasks

+ Implement and enforce the provisions of the “Illegal Logging Prohibition Bill 2011”

FCJ (Associations & Companies)

Priority Actions Priority Actions

Ranking Government Ranking

64

Appe

ndix

1

Stan

dard

s Rel

ated

to F

CJ

Indu

stry

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

ASN

Z

4220

:201

0 Bu

nk B

eds

and

othe

r ele

vate

d be

ds N

o Fu

rnitu

re

ACC

C N

ATA

N

o Ye

s

Oth

er s

tand

ards

AS-2

281

Flex

ible

cel

lula

r pol

yure

than

e

AS

_468

5 Pl

ay g

roun

d eq

uipm

ent

AS-4

685

Part

1: S

afet

y an

d te

st m

etho

ds

AS/N

ZS-4

491

Tim

ber

AS/N

ZS IS

O-8

124

Safe

ty o

f toy

s

AC

CC

AS

/NZS

ISO

-812

4.1

Part

1: S

afet

y as

pect

s

AS

/NZS

ISO

-812

4.3

Part

3: M

igra

tion

of c

erta

in e

lem

ents

A

SNZ

24

55.1

:200

7

Text

ile �

oor c

over

ings

-Ins

talla

tion

pra

ctic

es N

o M

anuf

actu

ring

Not

hing

N

ot s

ure

No

No

Oth

er s

tand

ards

AS-1

684

Resid

entia

l tim

ber-

fram

ed c

onst

ructi

on

AS-2

454

Texti

le fl

oor c

over

ings

-Ter

min

olog

y

AS

-428

8 So

ft un

derla

ys fo

r tex

tile

floor

cov

erin

gs

AS/N

ZS-1

080

Tim

ber-

Met

hod

of te

st

AS/N

ZS-1

080.

1 M

etho

s 1: M

oist

ure

Cont

ent

AS/N

ZS-1

859

Reco

nstit

uted

woo

d-ba

sed

pane

ls-Sp

ecifi

catio

ns

AS/N

ZS-1

859.

2 Pa

rt 2

: Dry

-pro

cess

ed fi

breb

oard

AS

/NZS

-185

9.4

Part

4: W

et-p

roce

ssed

fibr

eboa

rd

AS

/NZS

-227

0 Pl

ywoo

d an

d bl

ock-

boar

d fo

r int

erio

r use

NZS

-360

4 Ti

mbe

r fra

med

bui

ldin

gs

65

W

orkS

afe

Aus

tral

ia N

atio

nal M

odel

Reg

ulat

ions

NO

HSC:

1005

Co

ntro

l of w

orkp

lace

haz

ardo

us su

bsta

nces

N

OHS

C:20

07

Nati

onal

Cod

e of

Pra

ctice

-Con

trol

of w

orkp

lace

haz

ardo

us

subs

tanc

es

Oth

er N

otes

Ad

hesiv

es-M

SDS

shou

ld b

e pr

ovid

ed o

n sit

e in

acc

orda

nce

with

WSA

Am

bien

t tem

pera

ture

in th

e ar

ea w

here

texti

le fl

oor

cove

rings

is to

be

laid

shal

l be

betw

een

10c-

35c

Re

lativ

e hu

mid

ity o

f the

are

a sh

ould

not

exc

eed

75%

or f

all

belo

w 3

0%

In

com

mer

cial

inst

alla

tions

, air-

cond

ition

ing

shou

ld b

e ru

n fo

r 7 d

ays a

t nor

mal

ope

ratin

g te

mpe

ratu

re

Su

bfloo

r pre

p sh

ould

be

dry,

smoo

th, p

lane

, sou

nd a

nd

clea

n

ASN

Z

AS/

NZS

493

5:20

09

Dom

estic

furn

iture

-Fre

esta

ndin

g ch

ests

of d

raw

ers,

war

drob

es a

nd b

ooks

helv

es/b

ookc

ases

-Det

erm

inat

ion

of

stab

ility

No

Free

sta

ndin

g Fu

rnitu

re

Not

hing

A

FRD

I te

stin

g N

o N

o

Oth

er S

tand

ards

ISO

/IEC

-170

25

Gene

ral r

equi

rem

ents

for t

he c

ompe

tenc

e of

testi

ng a

nd

calib

ratio

n la

bora

torie

s

Oth

er n

otes

If

furn

iture

doe

s not

mee

t the

stan

dard

, it i

s rec

omm

ende

d th

at th

e fu

rnitu

re it

ems b

e su

pplie

d w

ith a

ppro

pria

te

attac

hmen

t dev

ices

and

inst

ructi

on a

nd a

war

ning

labe

l. Ch

ests

of d

raw

ers/

war

drob

e an

d Bo

oksh

elve

s/bo

okca

ses

ASN

ZA

S 20

47-1

999

AS

4420

.1-6

:199

6

AS

1288

-200

6

Oth

er S

tand

ards

AS/

NZS

466

6:20

00

AS/

NZS

466

7:20

00

AS/

NZS

466

8:20

00

AS/

NZS

220

8:19

96

Win

dow

s in

bui

ldin

gs -

Sele

ctio

n an

d in

stal

lati

on

Win

dow

s —

Met

hods

of t

est f

or A

S 20

47

Gla

ss In

Bui

ldin

gsPl

ease

not

e th

at w

e ha

ve o

nly

refe

renc

ed W

ardr

obe

door

s, m

irror

s and

sh

ower

scre

ens

Insu

latin

g gl

ass u

nits

Qua

lity

requ

irem

ents

for c

ut to

size

and

pro

cess

ed g

lass

Glos

sary

of t

erm

s use

d in

the

glas

s and

gla

zing

indu

stry

Safe

ty g

lazin

g m

ater

ials

in b

uild

ing

(hum

an im

pact

co

nsid

erati

ons)

Yes

Yes

Yes

Yes

Yes

No

No

No

No

Build

ing

and

Co

nstr

uctio

nN

ation

al

Cons

truc

tion

Code

Nati

onal

Co

nstr

uctio

n Co

de

Nati

onal

Co

nstr

uctio

n Co

de

Accr

edita

tion

prog

ram

La

belli

ng

NAT

A Ac

cred

itatio

n pr

ogra

m

Labe

lling

Test

Rep

orts

66

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

W

indo

ws

(con

t.)

AS 3

740:

2010

W

ater

proo

fing

of d

omes

tic w

et a

reas

Ye

s

AS 1

860.

1:20

02

Parti

cleb

oard

floo

ring

Yes

AS

292

4 Hi

gh P

ress

ure

deco

rativ

e la

min

ates

-she

ets m

ade

from

th

erm

osetti

ng re

sins

Th

e re

quire

men

ts fo

r gla

zing

win

dow

s and

doo

rs a

re th

e sa

me

for r

esid

entia

l and

non

-res

iden

tial u

se. G

laze

d do

ors

are

refe

renc

ed a

s win

dow

s und

er re

gula

tion.

Do

ors o

f all

oper

ation

al ty

pes a

re in

clud

ed, e

.g h

inge

d,

slidi

ng fo

ldin

g an

d st

acki

ng, e

tc.

Mirr

ors,

with

in 2

00m

m a

bove

the

floor

leve

l in

bath

room

s,

ensu

ites a

nd ro

oms o

r enc

losu

res c

onta

inin

g sp

a po

ols s

hall

be G

rade

A o

r B sa

fety

gla

ss..

Ord

inar

y an

neal

ed g

lass

in

clud

ing

mirr

or m

ay b

e us

ed p

rovi

ded

it is

com

plet

ely

adhe

red

to a

solid

mat

eria

l. O

rdin

ary

anne

aled

gla

ss, i

nclu

ding

mirr

ors,

may

be

used

pr

ovid

ed a

fixe

d va

nity

or b

ench

hav

ing

a he

ight

of n

ot le

ss

than

760

mm

and

a d

epth

not

less

than

300

mm

that

ex

tend

s the

full

wid

th o

f the

gla

ss o

r mirr

or is

loca

ted

in

fron

t of t

he g

lass

or m

irror

Oth

er n

otes

ASN

Z

AS/

NZS

438

6.1:

1996

D

omes

tic

Kitc

hen

Ass

embl

ies

- Par

t 1: K

itch

en U

nits

N

o Bu

ilt-in

fu

rnitu

re a

nd

kitc

hens

Not

hing

N

othi

ng

Yes

No

Oth

er s

tand

ards

AS

119

9.0-

2003

(IS

O 2

859-

0:19

95)

Sam

plin

g pr

oced

ures

for i

nspe

ction

by

attrib

utes

Par

t 0:

Intr

oduc

tion

to th

e IO

S 28

59 a

ttrib

ute

sam

plin

g sy

stem

AS

139

9

AS

142

8.1-

2009

De

sign

for a

cces

s and

mob

ility

Pa

rt 1

: Gen

eral

requ

irem

ents

for a

cces

s-N

ew B

uild

ing

wor

k Ye

s

AS

142

8.2

AS

193

9 Co

uldn

't lo

cate

AS

213

1 Co

uldn

't lo

cate

AS

245

8 Co

uldn

't lo

cate

Not

e-As

wri

tten

. Thi

s st

anda

rd is

pri

mar

ily in

tend

ed fo

r cla

ss1,

2, 3

an

d 4

part

bui

ldin

g as

defi

ned

in th

e Bu

ildin

g Co

de o

f Aus

tral

ia (B

CA),

but a

lso

incl

ude

Clas

s 5

and

6

Oth

er s

tand

ards

67

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

W

indo

ws

(con

t.)

AS 3

740:

2010

W

ater

proo

fing

of d

omes

tic w

et a

reas

Ye

s

AS 1

860.

1:20

02

Parti

cleb

oard

floo

ring

Yes

AS

292

4 Hi

gh P

ress

ure

deco

rativ

e la

min

ates

-she

ets m

ade

from

th

erm

osetti

ng re

sins

Th

e re

quire

men

ts fo

r gla

zing

win

dow

s and

doo

rs a

re th

e sa

me

for r

esid

entia

l and

non

-res

iden

tial u

se. G

laze

d do

ors

are

refe

renc

ed a

s win

dow

s und

er re

gula

tion.

Do

ors o

f all

oper

ation

al ty

pes a

re in

clud

ed, e

.g h

inge

d,

slidi

ng fo

ldin

g an

d st

acki

ng, e

tc.

Mirr

ors,

with

in 2

00m

m a

bove

the

floor

leve

l in

bath

room

s,

ensu

ites a

nd ro

oms o

r enc

losu

res c

onta

inin

g sp

a po

ols s

hall

be G

rade

A o

r B sa

fety

gla

ss..

Ord

inar

y an

neal

ed g

lass

in

clud

ing

mirr

or m

ay b

e us

ed p

rovi

ded

it is

com

plet

ely

adhe

red

to a

solid

mat

eria

l. O

rdin

ary

anne

aled

gla

ss, i

nclu

ding

mirr

ors,

may

be

used

pr

ovid

ed a

fixe

d va

nity

or b

ench

hav

ing

a he

ight

of n

ot le

ss

than

760

mm

and

a d

epth

not

less

than

300

mm

that

ex

tend

s the

full

wid

th o

f the

gla

ss o

r mirr

or is

loca

ted

in

fron

t of t

he g

lass

or m

irror

Oth

er n

otes

ASN

Z

AS/

NZS

438

6.1:

1996

D

omes

tic

Kitc

hen

Ass

embl

ies

- Par

t 1: K

itch

en U

nits

N

o Bu

ilt-in

fu

rnitu

re a

nd

kitc

hens

Not

hing

N

othi

ng

Yes

No

Oth

er s

tand

ards

AS

119

9.0-

2003

(IS

O 2

859-

0:19

95)

Sam

plin

g pr

oced

ures

for i

nspe

ction

by

attrib

utes

Par

t 0:

Intr

oduc

tion

to th

e IO

S 28

59 a

ttrib

ute

sam

plin

g sy

stem

AS

139

9

AS

142

8.1-

2009

De

sign

for a

cces

s and

mob

ility

Pa

rt 1

: Gen

eral

requ

irem

ents

for a

cces

s-N

ew B

uild

ing

wor

k Ye

s

AS

142

8.2

AS

193

9 Co

uldn

't lo

cate

AS

213

1 Co

uldn

't lo

cate

AS

245

8 Co

uldn

't lo

cate

Not

e-As

wri

tten

. Thi

s st

anda

rd is

pri

mar

ily in

tend

ed fo

r cla

ss1,

2, 3

an

d 4

part

bui

ldin

g as

defi

ned

in th

e Bu

ildin

g Co

de o

f Aus

tral

ia (B

CA),

but a

lso

incl

ude

Clas

s 5

and

6

Oth

er s

tand

ards

AS 2

754.

2.19

91

Adhe

sives

for ti

mbe

r and

tim

ber p

rodu

cts

Part

2: P

olym

er e

mul

sion

adhe

sives

AS 2

754.

1

AS 2

754.

2

AS 2

924.

1.19

98

High

Pre

ssur

e de

corativ

e la

min

ates

-She

ets m

ade

from

th

erm

osetti

ng re

sins

AS 3

137

Coul

dn't

loca

te

AS 4

299-

1995

Ad

apta

ble

hous

ing

AS/N

ZS 1

859.

1:20

04

Reco

nstit

uted

woo

d-ba

sed

pane

ls

AS/N

ZS 1

859.

1 Pa

rt 1

. Partic

lebo

ard

AS/N

ZS 1

859.

2 Pa

rt 1

. MDF

-

AS/N

ZS 2

269:

2004

Plyw

ood-

Stru

ctur

al

AS/N

ZS 3

108

Coul

dn't

loca

te

Oth

er n

otes

"S

hall"

indi

cate

s tha

t a st

atem

ent i

s man

dato

ry

"S

houl

d" in

dica

tes a

reco

mm

enda

tion

ASN

Z

A

S/N

ZS 4

386.

2:19

96

Dom

estic

Kitc

hen

Ass

embl

ies

Part

2. I

nsta

llatio

n

No

Built

in

furn

iture

and

ki

tche

ns

Not

hing

N

othi

ng

Yes

No

Oth

er S

tand

ards

AS 1

939

Degr

ees o

f protecti

on p

rovi

ded

by e

nclo

sure

s for

ele

ctric

al

equi

pmen

t (IP

Cod

e)

Oth

er n

otes

Ra

w e

dges

of w

orkt

ops i

nclu

ding

butt

and

mitr

ed jo

ints

and

cu

t-ou

ts S

HA

LL b

e se

aled

to p

reve

nt th

e in

gres

s of

moi

stur

e. W

ater

proo

f mou

ld re

sista

nt se

alan

t SH

ALL

be

used

The

unde

rsid

e of

the

wor

ktop

imm

edia

tely

abo

ve a

nd

exte

ndin

g fo

r a d

istan

ce o

f 150

mm

eith

er si

de o

f the

di

shw

ashe

r SH

ALL

be

adeq

uate

ly se

aled

to re

duce

the

ingr

ess o

f moi

stur

e

68

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

ASN

Z

AS

5079

.1-2

003

Filin

g C

abin

ets

Part

1 L

ater

al F

iling

Cab

inet

s

(AN

SI B

IFM

A X

5.2

- 199

7, M

OD

)

No

Com

mer

cial

fr

ee s

tand

ing

furn

iture

Not

hing

N

othi

ng

No

No

Oth

er n

otes

Th

e te

rms ‘

late

ral fi

le c

abin

et’ a

nd ‘l

ater

al fi

ling

cabi

net’

can

be u

sed

inte

rcha

ngea

bly

mea

ning

a fi

ling

cabi

net w

idth

is

grea

ter t

han

its d

epth

A re

quire

men

t to

fit a

n an

ti-til

t dev

ice,

if th

ere

is no

oth

er

mea

ns o

f pre

venti

ng to

pplin

g ov

er th

e fil

ing

cabi

net w

hen

two

or m

ore

load

ed d

raw

ers a

re o

pen

has

been

add

ed th

e AN

SI st

anda

rd

ASN

Z

AS/

NZS

479

0:20

06

Furn

itur

e -S

tora

ge U

nits

. Det

erm

inat

ion

of s

tren

gth

and

dura

bilit

y IS

O 7

170:

2005

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

ASN

Z

ASN

ZS 4

610.

2:19

99

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

No

Oth

er S

tand

ards

AS/N

ZS 4

438

Heig

ht a

djus

tabl

e sw

ivel

cha

irs

ISO

717

4 Fu

rnitu

re-C

hairs

-Det

erm

inati

on o

f sta

bilit

y IS

O 7

174-

1 Pa

rt 1

Upr

ight

cha

irs a

nd st

ools

O

ther

not

es

"Sha

ll" in

dica

tes t

hat a

stat

emen

t is m

anda

tory

"S

houl

d" in

dica

tes a

reco

mm

enda

tion

Furn

itur

e -

Scho

ol a

nd E

duca

tion

al -

Cha

irs

dur

abili

ty a

nd s

tabi

lity

ASN

Z A

SNZS

461

0.3:

1999

Fu

rnit

ure

-Sc

hool

and

Edu

cati

onal

- -

Tabl

es a

nd S

tora

ge

furn

itur

e -

Stre

ngth

, dur

abili

ty a

nd s

tabi

lity

N

o Fr

ee s

tand

ing

furn

iture

N

othi

ng

Not

hing

N

o N

o

BS 9

03

Phys

ical

testi

ng o

f rub

ber

No

BS 9

03:A

26

Part

A26

: Met

hod

for d

eter

min

ation

of h

ardn

ess

(har

dnes

s be

twee

n 10

IRHD

and

100

1RH

D)

No

Not

es

"Sha

ll" in

dica

tes t

hat a

stat

emen

t is m

anda

tory

"Sho

uld"

indi

cate

s a re

com

men

datio

n

69

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

ASN

Z

AS

5079

.1-2

003

Filin

g C

abin

ets

Part

1 L

ater

al F

iling

Cab

inet

s

(AN

SI B

IFM

A X

5.2

- 199

7, M

OD

)

No

Com

mer

cial

fr

ee s

tand

ing

furn

iture

Not

hing

N

othi

ng

No

No

Oth

er n

otes

Th

e te

rms ‘

late

ral fi

le c

abin

et’ a

nd ‘l

ater

al fi

ling

cabi

net’

can

be u

sed

inte

rcha

ngea

bly

mea

ning

a fi

ling

cabi

net w

idth

is

grea

ter t

han

its d

epth

A re

quire

men

t to

fit a

n an

ti-til

t dev

ice,

if th

ere

is no

oth

er

mea

ns o

f pre

venti

ng to

pplin

g ov

er th

e fil

ing

cabi

net w

hen

two

or m

ore

load

ed d

raw

ers a

re o

pen

has

been

add

ed th

e AN

SI st

anda

rd

ASN

Z

AS/

NZS

479

0:20

06

Furn

itur

e -S

tora

ge U

nits

. Det

erm

inat

ion

of s

tren

gth

and

dura

bilit

y IS

O 7

170:

2005

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

ASN

Z

ASN

ZS 4

610.

2:19

99

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

No

Oth

er S

tand

ards

AS/N

ZS 4

438

Heig

ht a

djus

tabl

e sw

ivel

cha

irs

ISO

717

4 Fu

rnitu

re-C

hairs

-Det

erm

inati

on o

f sta

bilit

y IS

O 7

174-

1 Pa

rt 1

Upr

ight

cha

irs a

nd st

ools

O

ther

not

es

"Sha

ll" in

dica

tes t

hat a

stat

emen

t is m

anda

tory

"S

houl

d" in

dica

tes a

reco

mm

enda

tion

Furn

itur

e -

Scho

ol a

nd E

duca

tion

al -

Cha

irs

dur

abili

ty a

nd s

tabi

lity

ASN

Z A

SNZS

461

0.3:

1999

Fu

rnit

ure

-Sc

hool

and

Edu

cati

onal

- -

Tabl

es a

nd S

tora

ge

furn

itur

e -

Stre

ngth

, dur

abili

ty a

nd s

tabi

lity

N

o Fr

ee s

tand

ing

furn

iture

N

othi

ng

Not

hing

N

o N

o

BS 9

03

Phys

ical

testi

ng o

f rub

ber

No

BS 9

03:A

26

Part

A26

: Met

hod

for d

eter

min

ation

of h

ardn

ess

(har

dnes

s be

twee

n 10

IRHD

and

100

1RH

D)

No

Not

es

"Sha

ll" in

dica

tes t

hat a

stat

emen

t is m

anda

tory

"Sho

uld"

indi

cate

s a re

com

men

datio

n

ASN

Z

AS/

NZS

217

2:20

10

Cot

s fo

r hou

seho

ld u

se. S

afet

y re

quir

emen

ts N

o Fr

ee s

tand

ing

furn

iture

A

CCC

NA

TA

No

Yes

Oth

er S

tand

ards

AS 2

281

Flex

ible

cel

lula

r pol

yure

than

e fo

r sea

t cus

hion

ing

and

bedd

ing

AS 5

605

Guid

e to

safe

use

of p

rese

rvati

ve-t

reat

ed ti

mbe

r AS

/NZS

213

0 Co

ts fo

r nur

sery

, hos

pita

l and

insti

tutio

nal u

se-S

afet

y re

quire

men

ts

AS/N

ZS 2

195

Fold

ing

cots

-Saf

ety

requ

irem

ents

AS

/NZS

449

1 Ti

mbe

r-Gl

ossa

ry o

f ter

ms i

s tim

ber r

elat

ed st

anda

rds

AS/N

ZS IS

O 8

124

Safe

ty o

f toy

s AS

/NZS

ISO

812

4.1

Part

1 S

afet

y as

pect

s rel

ated

to m

echa

nica

l and

phy

sical

pr

opertie

s AS

/NZS

ISO

812

4.2

Part

2 F

lam

mab

ility

AS

/NZS

ISO

812

4.3

Part

3 M

igratio

n of

cer

tain

ele

men

ts

ASN

Z

AS/

NZS

381

3:19

98

Plas

tic

mon

oblo

c ch

airs

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

No

Oth

er S

tand

ards

AS 1

449

Wro

ught

allo

y st

eels

-Sta

inle

ss a

nd h

eat-

resis

tant

pla

te,

shee

t and

strip

IS

O 2

439

Flex

ible

cel

lula

r pol

ymer

mat

eria

ls-D

eter

min

ation

of

hard

ness

(ide

ntific

ation

tech

niqu

e)

ASN

Z

AS/

NZS

444

2:19

97

O�

ce D

esks

N

o Fr

ee s

tand

ing

furn

iture

N

othi

ng

Not

hing

N

o N

o

70

Oth

er S

tand

ards

AS 1

192

Elec

trop

late

d co

ating

s—N

icke

l and

chr

omiu

m

AS 1

580

Pain

ts a

nd re

late

d m

ater

ials

—M

etho

ds o

f tes

t AS

158

0.40

8.4

Part

408

.4 P

aint

test

s—ad

hesio

n (c

ross

cut)

AS

292

4 De

cora

tive

ther

mos

etting

lam

inat

ed sh

eet

AS 3

100

Appr

oval

and

test

spec

ifica

tion—

Gene

ral r

equi

rem

ents

for

elec

tric

al e

quip

men

t AS

/NZS

185

9 Re

cons

titut

ed w

ood-

base

d pa

nels

AS

/NZS

185

9.3

Part

3: D

ecor

ative

ove

rlaid

woo

d pa

nels

BS

396

2 Fi

nish

es fo

r woo

den

furn

iture

BS

396

2.2

Part

2: A

sses

smen

t of s

urfa

ce re

sista

nce

to w

et h

eat

BS 3

962.

3 Pa

rt 3

: Ass

essm

ent o

f sur

face

resis

tanc

e to

dry

hea

t BS

396

2.4

Part

4: A

sses

smen

t of s

urfa

ce re

sista

nce

to c

old

liqui

ds

BS 3

962.

5 Pa

rt 5

: Ass

essm

ent o

f sur

face

resis

tanc

e to

col

d oi

ls &

fats

BS

396

2.6

Part

6: A

sses

smen

t of r

esist

ance

to m

echa

nica

l dam

age

IEC

447

Man

mac

hine

inte

rfac

e—Ac

tuati

ng p

rinci

ples

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

AFRD

I 104

Pe

rfor

man

ce o

f fur

nitu

re a

nd fu

rnitu

re c

ompo

nent

s und

er

vario

us c

limati

c co

nditi

ons

AFRD

I 108

Re

quire

men

ts fo

r sur

face

fini

shes

use

d on

tim

ber f

urni

ture

ASN

Z

AS/

NZS

444

3:19

97

O�

ce p

anel

sys

tem

s -

-W

orks

tati

ons

N

o Fr

ee s

tand

ing

furn

iture

N

othi

ng

Not

hing

N

o N

o

Oth

er S

tand

ards

AS 1

045

Acou

stics

—M

easu

rem

ent o

f sou

nd a

bsor

ption

in a

re

verb

erati

on ro

om

AS 1

191

Acou

stics

—M

etho

d fo

r lab

orat

ory

mea

sure

men

t of

airb

orne

soun

d tr

ansm

issio

n lo

ss o

f bui

ldin

g pa

rtitio

ns

AS 1

192

Elec

trop

late

d co

ated

—N

icke

l and

chr

omiu

m

AS 1

276

Met

hods

for d

eter

min

ation

of s

ound

tran

smiss

ion

clas

s and

no

ise is

olati

on c

lass

of b

uild

ing

parti

tions

AS

158

0 Pa

ints

and

rela

ted

mat

eria

ls—

Met

hods

of t

est

AS 1

580.

4 Pa

rt 4

08.4

: Adh

esio

n (c

ross

cut)

71

AS 2

924

Deco

rativ

e th

erm

osetti

ng la

min

ated

shee

t AS

310

0 Ap

prov

al a

nd te

st sp

ecifi

catio

n—Ge

nera

l req

uire

men

t for

el

ectr

ical

equ

ipm

ent

AS/N

ZS 1

859

Reco

nstit

uted

woo

d-ba

sed

pane

ls

AS/N

ZS 1

859.

3 Pa

rt 3

: Dec

orati

ve o

verla

id w

ood

pane

ls

AS/N

ZS 4

088

Burn

ing

beha

viou

r of u

phol

ster

ed fu

rnitu

re

AS/N

ZS 4

088.

1 U

phol

ster

y m

ater

ials

for d

omes

tic fu

rnitu

re—

Smou

lder

ing

igni

tabi

lity

BS 3

962

Fini

shes

for w

oode

n fu

rnitu

re

BS 3

962.

2 Pa

rt 2

: Ass

essm

ent o

f sur

face

resis

tanc

e to

wet

hea

t BS

396

2.3

Part

3: A

sses

smen

t of s

urfa

ce re

sista

nce

to d

ry h

eat

BS 3

962.

4 Pa

rt 4

: Ass

essm

ent o

f sur

face

resis

tanc

e to

col

d liq

uids

BS

396

2.5

Part

5: A

sses

smen

t of s

urfa

ce re

sista

nce

to c

old

oils

and

fats

BS

396

2.6

Part

6: A

sses

smen

t of r

esist

ance

to m

echa

nica

l dam

age

ASN

Z

AS/

NZS

443

8:19

97

(Am

dt. 1

:199

9)

Hei

ght A

djus

tabl

e sw

ivel

cha

irs

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

No

Oth

er S

tand

ards

AS 2

281

Fl

exib

le c

ellu

lar p

olyu

reth

ane

for s

eat c

ushi

onin

g an

d be

ddin

g AS

228

2

Met

hods

for t

estin

g fle

xibl

e ce

llula

r pol

yure

than

e AS

228

2.3

Pa

rt 3

: Det

erm

inati

on o

f app

aren

t den

sity

of fl

exib

le

cellu

lar p

olyu

reth

ane

ASN

Z

AS/

NZS

468

0.2:

2000

Fu

rnit

ure

-Fix

ed h

eigh

t cha

irs

Part

2: D

eter

min

atio

n of

st

reng

th a

nd d

urab

ility

No

Free

sta

ndin

g fu

rnitu

re

Not

hing

N

othi

ng

No

No

AS/

NZS

468

0.3:

2000

Fu

rnit

ure

-Fi

xed

heig

ht c

hair

s Pa

rt 3

: Det

erm

inat

ion

of

stab

ility

-U

prig

ht c

hair

s

Oth

er S

tand

ards

ISO

717

3 Fu

rnitu

re—

Chai

rs a

nd st

ools

—De

term

inati

on o

f str

engt

h an

d du

rabi

lity

AS/N

ZS 4

688

Furn

iture

—Ch

airs

AS

/NZS

468

8.2

Part

2: D

eter

min

ation

of s

tren

gth

and

dura

bilit

y

72

AS/

NZS

46

80.4

:200

0

Furn

itur

e -F

ixed

hei

ght c

hair

s Pa

rt 4

: Det

erm

inat

ion

of

stab

ility

-C

hair

s w

ith

tilt

ing

or

recl

inin

g m

echa

nism

s w

hen

fully

recl

ined

, and

rock

ing

chai

rs

Oth

er S

tand

ards

ISO

717

4

Furn

iture

—Ch

airs

—De

term

inati

on o

f sta

bilit

y IS

O 7

174-

1

Upr

ight

cha

irs a

nd st

ools

AS

/NZS

468

8

Furn

iture

—Ch

airs

—De

term

inati

on o

f sta

bilit

y AS

/NZS

468

8.3

Pa

rt 3

: Upr

ight

cha

irs

Stan

dard

A

SNZ

Nam

e Re

f in

NCC

In

dust

ry

Indu

stry

pr

otec

tion

Cont

rol

Mec

hani

sm

Lice

nse

ACC

C M

anda

tory

st

anda

rd

73

74