Integrated or flexible manufacturing is a management strategy that integrates training and the organization of people with the modernization of hardware. It would allow Australian manufacturing organizations to produce value-added goods for niche markets and be competitive. Manufacturing organizations that identify and change their production strategies to meet new consumer requirements of cost, quality, choice, and innovation will establish themselves successfully in the market. Mass production techniques are constraining manufacturing organizations from improving their levels of efficiency, quality, flexibility, and innovation. As a result, increasing numbers of manufacturing firms are moving toward an integrated system of manufacturing. A vital component of integrated manufacturing can be found in new technologies that assist organizations in making the transition from the traditional mass production of standardized products toward the production of smaller batches of higher quality products targeted at niche markets. Implementation of flexible manufacturing may cause changes in job design (or redesign), job content, and skill requirements of the work force. Consequences of technological change may include skill twist, upskilling, and deskilling. Industry, government, schools, and education/training providers should be key players in educational planning. Issues include teaching the importance of lifelong learning, expansion or modification of curricula, and upgrading and generalization of skills. (Contains 83 references.) (YLB)