Ballarat has significant manufacturing heritage. The sector has contracted from its peak, but companies that survived have evolved—and automation is part of that evolution.

I visited several Ballarat manufacturers to see technology in action.

The Spectrum of Automation

Manufacturing automation isn’t binary. Companies sit along a spectrum:

Manual operations: Traditional processes with limited technology beyond basic machinery.

Process automation: Specific tasks automated while others remain manual. Most common current state.

Integrated automation: Connected systems where data flows between processes and management systems.

Advanced automation: Robotics, AI-driven optimisation, predictive systems. Rare but emerging.

Most Ballarat manufacturers cluster in the middle—automating where it makes sense while maintaining manual flexibility.

The Metal Fabricator

One fabrication company has automated their laser cutting and bending operations over the past five years.

“The laser runs overnight now—we load it at 5pm, it cuts until midnight, and parts are ready when staff arrive. We couldn’t do that volume with manual cutting.”

Their approach was incremental. Each automation investment was justified by specific volume and efficiency gains.

“We didn’t automate to be fancy. We automated because the numbers worked. If a process doesn’t have enough volume to justify automation, we still do it manually.”

They’ve added sensors throughout production that feed data to a central system—tracking throughput, quality, and equipment performance.

“When something’s going wrong, we know before it becomes a problem. That’s saved us from expensive breakdowns multiple times.”

The Food Processor

A Ballarat food processing company has extensively automated their packaging lines.

“Labour availability drove our automation. We couldn’t find enough people willing to do repetitive packaging work. The robots don’t call in sick or quit.”

Their packaging lines now use robotic arms for picking and placing products, automated carton forming, and machine vision for quality checking.

“The humans manage the machines now rather than doing the physical work. Same headcount, but different skills required.”

The transition wasn’t seamless. “Maintenance requirements changed. We needed different training. Some long-term staff struggled with the new environment.”

Automation in food processing brings regulatory considerations too—food safety systems need to accommodate automated handling.

The Small Batch Manufacturer

Not every manufacturer can automate extensively. A company producing custom engineered products in small batches has a different reality.

“Our runs are too short and too variable for robots. The setup time would exceed the production time.”

Their automation is targeted differently:

• Design software that speeds engineering
• CNC machines that accept digital designs directly
• Quoting systems that automate pricing calculations
• Inventory management that tracks components automatically

“We automate the admin and the precision. The flexible assembly stays manual because that’s where humans add value.”

This hybrid approach—automating what’s automatable while keeping human flexibility—may be the realistic model for many regional manufacturers.

The Skills Gap

Every manufacturer mentioned the same challenge: finding people who can work with automated systems.

“The old jobs were physically demanding but straightforward. The new jobs need people who can read data, troubleshoot systems, and think analytically.”

Training existing staff has mixed results. Some adapt well; others struggle with the transition.

“We’ve lost good people who were excellent at the old jobs but couldn’t adapt to working with automation. That’s a human cost we don’t talk about enough.”

Partnerships with Federation University and TAFE help, but graduate numbers don’t meet industry demand.

The Investment Challenge

Automation requires significant capital. Regional manufacturers often face disadvantages:

Access to finance: Banks may be more cautious about regional investments. Some automation funding programs favour metropolitan areas.

Supplier relationships: Automation equipment vendors are Melbourne or overseas based. Service and support involves travel costs and delays.

Scale economics: Larger Melbourne operations can spread automation costs over more volume. Smaller regional plants face higher per-unit investment requirements.

“We competed for a grant against a Melbourne company. Same technology, but their volume made their cost-per-unit numbers better. They won.”

Some manufacturers find alternative paths—used equipment, simpler solutions, or staged investments that spread costs.

AI and the Next Wave

Current automation is mostly deterministic—machines doing defined tasks repeatedly. AI introduces adaptive systems that learn and optimise.

“We’re piloting quality prediction. Instead of checking every product, the system learns what conditions produce defects and alerts us before they happen.”

Another manufacturer: “The AI analyses our production data and suggests schedule optimisations. It sees patterns we don’t.”

For businesses exploring these technologies, firms offering custom AI development can help assess opportunities appropriate for regional manufacturing contexts—where scale and resources differ from metropolitan operations.

The AI wave is early. Most Ballarat manufacturers are watching and learning rather than extensively implementing. That’s probably prudent—letting others discover the pitfalls before committing.

What’s Next

The manufacturers I spoke with see continued automation, but not replacement of humans.

“The future isn’t dark factories with no people. It’s fewer people doing different work—managing systems, solving problems, handling exceptions.”

The constraint isn’t technology availability; it’s economics and skills.

“If we could find and afford the right people, we’d automate more. The technology exists. The payback is there. We’re stuck on implementation capacity.”

Regional manufacturing will continue evolving. Companies that find the right balance—automation where it makes sense, humans where they add value, and the skills to manage both—will thrive.

Those that either resist automation entirely or pursue it without thinking through the human elements will struggle.

The technology is just a tool. How it’s applied determines success.