A MAJOR supply chain research project aimed at improving the global competitiveness of the boat-building industry on the Gold Coast, Brisbane and northern New South Wales is underway. The main focus of the project, expected to take about 18 months, will be to initially define the existing supply chain in areas including inputs, costs, distribution and constraints, and then identify opportunities for cost savings through improved operational efficiencies.

The survey of around 50 builders and their major suppliers also aims to identify any potential for import replacement or additional cost savings through bulk buying of imported components and raw materials. "Increasing cost competition from mass-produced US imports and the likelihood of strong price competition from China in the near future means that to remain competitive, our boat-building manufacturing processes must continue to achieve cost savings and efficiencies, while operating at peak levels of productivity," says Gold Coast Marine Industry Association president, Charles Dickson.

"The supply chain is a significant area of the manufacturing operation where productivity improvements and cost saving may be gained," he says. "It covers the full range of activities from the earliest level of input, through the internal manufacturing/warehousing processes to the external distribution system. The input system covers the supply of raw materials/components, assemblies and packaging."

The cross border stakeholder group funding the project, comprises Gold Coast City Council, Queensland Department of State Development, Trade and Innovation, NSW Department of State and Regional Development, Tweed Economic Development Corporation, Northern Rivers Regional Development Board, Redland Shire and the Gold Coast Marine Industry Association. A successful application was also made to the Department of Transport and Regional Services for Regional Partnership funding through the Gold Coast and Region Area Consultative Committee.

The Gold Coast's leisure marine industry has experienced tremendous expansion over the past four years, growing to over 400 companies employing more than 4000 people.