Economic advantages of reverse engineering

8/9/93

Reverse engineering could reduce Western Australia's reliance on imports, create jobs and cut costs, Commerce and Trade Minister Hendy Cowan said today.

"Reverse engineering - manufacturing spares and replacement parts locally for equipment sourced overseas - will stimulate local industry by replacing imports and bring cost-savings to Government," Mr Cowan told a seminar in Bunbury.

The seminar was jointly organised by the Institute of Metals and Materials Australasia, the Department of Commerce and Trade and the Small Business Development Corporation.

Mr Cowan said the advantages of reverse engineering were diverse.

They included:

• local control of design and quality;

• faster delivery;

• security of supply;

• a reduction in costs;

• additional jobs for Western Australia. 

"The Government is encouraging both private and public sectors to adopt the practice, where it can be effectively and efficiently implemented, to help make our industry become more competitive," Mr Cowan said.

"An inter-departmental committee has been established to pursue opportunities in the public sector.

"The concept is becoming a normal commercial practice with prominent local enterprises.

"Mining companies such as BHP Iron Ore and Alcoa already practise reverse engineering.

"SECWA has been very successful in pursuing reverse engineering with the local manufacture of power plant spares.

"This has resulted in $5.8 million in orders being placed locally in 1991-92 and multi-million-dollar price reductions compared with using imported spares.

"SECWA now sources through this program 1,650 different items and a further significant number of items have been identified as being potentially available for local manufacture.

"I would urge industry and public sector agencies which are seeking to diversify their business or source product locally to take up the challenge of reverse engineering. 

"The Department of Commerce and Trade and the State Supply Commission will assist companies and public sector agencies to introduce reverse engineering and I urge any firms who believe opportunities exist for its application to contact the department."

As well as explaining and encouraging reverse engineering, today's seminar also discussed corrosion protection and wear-resistant materials.

"Corrosion and wear is expensive," Mr Cowan said.  "It has been recently estimated to cost the UK economy, for example, some $12 billion per year in additional costs through energy, servicing, refurbishment and downtime.

"Only recently has it been possible to engineer surfaces to reduce or eliminate degradation.

"The State Government has recognised the problem and has assisted in the establishment of the Curtin University Corrosion Testing Facility, which brings together the resources not only of the university and its faculties, but also allows access to CSIRO and the University of Western Australia in providing solutions to corrosion problems."

Media contact: Peter Jackson 222 9595