Industry experts have highlighted a few niche areas where Australian manufacturing could do well.

With many lamenting the decline of various local manufacturing industries, analyst say there is plenty of room for Australian companies to make products that support mining – oil and gas in particular – around the world.

Robert Trzebski, Executive Officer of Austmine – a lobby for the mining equipment, technology and services (METS) sector - said that while big manufacturers face tough conditions, it is still possible to find success among the smaller, specialist, innovative manufacturers.

“The key characteristic of these companies is flexibility, plus being reactive, adaptable, able to listen and work directly with their customers and being innovative with materials and design. In short they must be smart,” Trzebski told industry press Manufacturers’ Monthly.

He said local companies should focus on “being able to collaborate with customers and understand their needs, and be able to easily and flexibly adapt to them”.

Mr Trzebski said it was a niche that he noticed several years ago in European markets.

“For example, when we visited Russia and Kazakhstan six years ago now, it was made clear to us how important services are to the mining companies there,” he said.

“They could buy much cheaper products from China, however there had been a change of thinking, a generational change, at the procurement, technical and engineering levels within the mining companies.

“One of the most important components of this change of thinking was regarding goods supply and the service level Australian companies could provide.”

But that was six years ago, and he says Russia is a different place today.

The expert suggested manufacturers focus on the American continent.

“These are the countries that have stability, large populations, and are fairly easy to enter.

“The US, for example, its coal industry is doing very well as a low-cost coal producer. They have reduced their labour and production costs, and are exporting a lot of coal now,” he said.

There is life in Asian markets too, he said, with a recent decision for Indonesian mining companies to process more ores in the country, before exporting them

“This is a big opportunity for Australian manufacturers,” he said.

“My message to companies is to diversify, offer similar products to different industries, be smart and be different to your competitors,” Trezebski concluded.

One such success story is that of Summit Matsu Chillers, an industrial refrigeration company that has enjoyed success in the mining sector.

About 80 per cent of its products are sold to resources sectors both domestically and internationally.

“Because we make niche product, general upturns and downturns do not have a huge impact on our business,” said Shane Carmichael, Summit Matsu Chillers’ Group General Manager.

He expects that the approach will continue to work.

“What we need is to be a little bit smarter with our engineering, and produce a unique product that is customised to the client’s requirements.

“Strong engineering is most important when manufacturing for the mining industry, it is a step above most other industries.

“Creating a dedicated packaged solution makes it easy for the customer to install and operate,” Carmichael said.