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Toyota Australia's local component suppliers are being encouraged to increase productivity and diversify their business operations to improve their global competitiveness.

To help achieve this, Toyota invites two non-automotive manufacturers to its established- supplier-development forum: Thales Australia and BAE Systems, which specialize in building defense vehicles.

Some 20 parts makers from Victoria, New South Wales and South Australia attend the forum, which offers an opportunity to share ideas for productivity improvement.

Barry Budge, Toyota Australia's corporate manager responsible for supplier development, calls the meeting an opportunity for local components providers to demonstrate their capabilities and extend their businesses into new areas.

“Our suppliers are amongst the most highly skilled advanced manufacturers in this country,” he says in a statement. “One of the key ways our local suppliers can become more sustainable is to diversify their business.”

Budge says rather than rely on one industry, suppliers should try to identify other industries requiring similar capabilities. Makers of defense vehicles, for example, may require components like those used in the automotive industry.

“Similarly, there may be companies that are currently importing parts that can easily be made by our local suppliers at a competitive cost,” he says. “If we can facilitate these introductions, our local suppliers can strengthen their businesses and become more efficient.

“This will lead to a stronger local supplier base, which is critical to Toyota Australia and the future of local manufacturing.”