Grant Writing Example: excerpt from a successful Regional Job Creation Fund grant application


XXXX Equipment Upgrade — New Local Capability and Capacity Enhancement

XXXX acquired YYY Engineering on the 30th of June 2021, with the intention of increasing local engineering capacity in the Cooma-Monaro region to support Snowy Hydro, particularly Snowy 2.0.

YYY Engineering has limited equipment and personnel capacity, and operates small manual lathes, drills and miscellaneous workshop equipment. Much of YYY’s equipment will be relocated to an enhanced workshop that will be built on additional nearby property which was purchased concurrently.  In discussion with Snowy Hydro, it is apparent that all off-site machining and repair of parts is done outside the region, often interstate. The proposed project will acquire equipment suitable for the maintenance needs of Snowy Hydro, so that some of this work can be retained within the region, thereby creating local jobs.

42. Please provide a detailed description of your project scope.

The project will:

1. Upgrade workshop equipment to accommodate the needs of key local clients such as Snowy Hydro and the Snowy 2.0 project.

2. Increase local capacity to accommodate increasing demand by Snowy Hydro for engineering maintenance services. Eight FTE jobs will be created, including an apprentice, with 4 part-time jobs available during the upgrade and commissioning phase.

This capacity will include small-bore piping (stainless steel and non-ferrous), structural fabrication and machining.

3. Increase local capabilities to reduce outsourcing of maintenance beyond the region and interstate.

Capability in high-standard fusion welding to AS/NZS ISO 3834.2:1999 will be introduced. This capability does not currently exist in the region.

The project will be sited on the 2,750 sqm block (including a 540 sqm workshop and office) procured by XXXX, at WWW. In June 2022, XXXX also acquired a well-established local engineering company, YYY Engineering, to create XXXX Pty Ltd, based at Cooma. Snowy Hydro have indicated 15 maintenance items suitable for the upgraded facility (refer Opportunities to Provide Local Engineering Maintenance Services to Snowy Hydro included in Additional Information at Q122).

45. Short description of your project

XXXX acquired YYY Engineering in 2021, intending to increase local engineering capacity in the Cooma-Monaro region, particularly with a view to supporting Snowy Hydro and Snowy 2.0.  YYY Engineering has limited equipment and personnel, and generally operates small manual lathes, drills and miscellaneous workshop equipment.

XXXX also purchased a property at Cooma to establish an enhanced workshop facility using some of the acquired equipment from YYY, thereby establishing a presence in Cooma to better service Snowy Hydro,

All Snowy Hydro’s off-site machining and repair is currently sent out of the region and often interstate. The equipment acquired through the proposed project will suit the maintenance needs of Snowy Hydro, creating local jobs by allowing a proportion of the work to be done within the region. The project will increase local capacity, and introduce new capabilities, including high-standard fusion welding (to AS NZS ISO 3834.2) and small-bore piping in stainless steel or non-ferrous materials.

61. Who are your key competitors relative to this project and where are they located?

The proposed upgraded facility will provide much-needed extra capacity and new local capabilities. The facility will also service an anticipated significant increase in demand by Snowy Hydro over the coming years. And the increased sovereign capability and capacity provided by this project will be advantageous given increasing uncertainty on international supply chains.

An assessment of regional engineering services undertaken across a range of companies from Tumut, Goulburn, Eden, Albury and Wagga has concluded that none will provide the breadth of capability offered by this project.

Only one company, UUU in Albury, holds the fusion welding certification to AS NZS ISO 3834.2, as held by XXXX, however, UUU does not offer ‘jobbing’ services for fabrication or machining. ZZZ Engineering in Tumut has capability in fabrication and appears to have some in pipework, but no apparent machining capability.

An assessment of competitors is included in a capability matrix provided at Q63.

62. Describe how this project will grow the NSW economy overall

Investment in equipment for the Cooma facility, close to Snowy Hydro headquarters, will be a cost-effective and strategically significant addition to the State’s manufacturing sector. Our eight FTEs will enhance the NSW regional economy, in line with the NSW 2040 Blueprint’s aspiration for ‘vibrant regional economies, as will the much-needed vocational training and capability provided by our apprenticeship scheme.

Such opportunities will also stimulate regional NSW population growth through enhancement of employment opportunities. In lifting Cooma’s profile as a regional employment hub, we will also enhance NSW industry development, identified as Lever 7 of the Blueprint.

In addition, our facility will reduce the adverse impact of road transport on our natural environment. Stressing of our environment due to such impacts has been identified as one of 5 global megatrends in the NSW 2040 Blueprint. Transport carbon emissions accruing to work undertaken locally will decline due to the proximity of the Cooma-based XXX workshop facility. The reduced environmental impact will contribute to the achievement of NSW’s Net Zero 2050 target, the key to our state’s continued economic prosperity.

64. Please demonstrate how your project aligns to the relevant Regional Economic Development Strategy (REDS) including emerging industries since the REDS were published

This proposal is strongly aligned with the Snowy Monaro Regional Economic Development Strategy (REDS).

This REDS identifies manufacturing as an ‘Engine of Growth’, the harnessing of which will enhance the region’s economy, promoting economic recovery and resilience through job creation and encouragement of population growth. The latter will deepen the region’s internal markets for goods, services and is a key REDS strategic priority.

The new capabilities and extra local capacity proposed by XXXX will enable the company to cost-effectively address maintenance concerns for Snowy Hydro and Snowy 2.0, the most significant economic activities in the region. If this proposal is successful, Snowy Hydro will no longer have to send all off-site machining and repair work out of the region or interstate, thereby retaining jobs and economic growth within the region.

The project is also consistent with the REDS principle that a region should use its natural endowments to build strong industries and encourage economic development. Finally, the eight FTEs will double XXXX’s current workforce, in line with REDS job creation priority.

65. Please demonstrate how your project aligns to the 20-year Economic Vision for Regional NSW – Refresh and the NSW 2040 Economic Blueprint

This proposal strongly aligns with the 20-year Economic Vision for NSW which emphasises the importance of the following NSW Government actions aimed at fostering regional economic growth:

• building on each region’s strengths and endowments to support development of strong industries and regional economies

• ensuring regional businesses are responsive and able to meet industry and customer demands

• diversifying a region’s economy by better supporting emerging industries

• supporting the expansion of existing businesses to support industry growth and job creation

• attracting growing businesses likely to enjoy a competitive advantage in regional NSW.

The project will also support the growth of the manufacturing sector, which is identified as a priority industry by the 20-Year Economic Vision for Regional NSW.

Upgrading of equipment and development of new capabilities will enable XXXX to manufacture and repair equipment currently sent outside the region or interstate for that purpose. The project will also include 8 ongoing full-time roles, and 4 temporary roles during the establishment phase. Finally, the project will develop a higher skills base in the region with respect to small bore piping (stainless steel and non-ferrous) and fusion welding capabilities.

68. If NSW Government assistance is not provided, what will happen to the project and its intended outcomes?

XXXX does not have the financial capacity to undertake the proposed project without the assistance of the Regional Jobs Creation Fund. If unsuccessful, the project would not go ahead. We will transfer the small workshop’s equipment from YYY Engineering to the XXXX site at WWW and continue to develop the general engineering business.

The intended outcomes — creating 8 full-time positions and provision of enhanced engineering capability and capacity to the region and to Snowy Hydro — will not be achieved. All Snowy Hydro off-site machining and repairs will continue to be undertaken outside the region or interstate, resulting in an economic loss to Cooma and the region. The lost employment opportunities would impact internal markets for goods, services and labour, and the proposed apprenticeship program would be scaled back.

69. What are the barriers to undertaking the project and why is government assistance required?

The primary barrier to the project will be the ability to recruit suitable trades staff in a labour market short on skills.

This is exacerbated locally due to the high labour demands of Snowy 2.0 and the wages available on that project. Whilst preference will be given to members of the local and regional community, it is anticipated that a concerted campaign will be required to recruit suitable staff from elsewhere in NSW, interstate, or potentially internationally.

80. Please explain how you are aiming to achieve employment outcomes for young people.

Initial contact has been made with the federal Department of Education Skills and Employment regarding the recruitment of young people through Youth Jobs Path. This will be further explored during project implementation.

Contact has also been made with the career’s adviser at Snowy Monaro High School, and other local avenues will be considered.

83. Please explain how you are aiming to achieve employment outcomes for people with disability?

XXX will consult with organisations such as NOVA Employment to explore job opportunities for people with disabilities. Managing workshop and on-site safety present natural challenges in this regard, however, all options will be considered.