Episode 63 -- Richard Simpson from Furnace Engineering

@AuManufacturing Conversations

Welcome to this special episode of @AuManufacturing Conversations with Brent Balinski, one which we're running as part of our quest to identify Australia’s 50 Most Innovative Manufacturers.
Australia’s 50 Most Innovative Manufacturers is a new campaign by @AuManufacturing. It has been made possible by the generous support of MYOB, SMC Corporation Australia, and Bosch Australia Manufacturing Solutions. Be sure to check our website and social media channels for regular updates, including profiles of nominees and other information.
In this episode we hear from Richard Simpson, Managing Director at Furnace Engineering, a maker of custom furnaces and ovens.
Simpson tells us about the history of the Notting Hill, Melbourne-based business, which his father began in 1968, the role of confidentiality in projects, and how it approaches innovation.
Episode guide
1:17 – An introduction to Furnace Engineering and what it makes.

1:50 – A history going back to the late-1960s and Simpson’s father.

2:30 – Simpson begins his career as an engineer at Ford, before starting at Furnace and later taking over the business from his father in 2000. Diversifying the company away from the automotive industry and from a licencing model.

4:44 – The difference between an oven and a furnace.

5:18 – “Every piece of equipment is customised.”

6:20 – The importance of export sales, which began in the 1990s with the aluminium industry.

8:48 – The makeup of the company, which employs between 60 and 80 depending on demand.

10:27 – The importance of performing stimulating projects and being discreet about them. “Culturally we’re very, very comfortable with the idea that we need to respect people’s confidentiality. And if we jump out there and [are] willing to talk about everyone’s processes, whether they’ve given us permission or not, it’s probably not culturally aligned with what a lot of our customers would expect.”

13:24 – Furnace’s role in the emergence of a carbon fibre industry in Australia, particularly around Deakin University.

15:30 – Continuing with carbon fibre and its role in manufacturing locally.

17:32 – How innovation is understood and pursued at the company: novel solutions plus an appropriate amount of stretching.

18:48 – Continuing with the right amount of stretching.

20:39 – An important recent project with Deakin on a new, more energy-efficient process for making carbon fibre. A two-stage prototyping process, “a really interesting exercise” and a new patent for the team.

24:03 – One of the problem areas regarding collaboration with research institutions.

24:52 – There’s a lot of lip-service paid to the importance of manufacturing by governments.
Relevant links
Furnace Engineering's website
https://www.furnace.com.au
Lessons from Australia’s most innovative manufacturers
Nominations flood in for Australia’s 50 most innovative manufacturers campaign