Why is this? The Australian dollar, productivity, management, sales, margins, competition, imports etc!
While the industry is bleeding at the moment, why is that many Australian contractors are winning construction contracts within the resource sector through importing the steel product they require? Fairly simple - cheaper - read this article first on New Shed at Wacol raises questions!
Why is that building contractors can deal with Asian companies, get it delivered on site cheaper than Australian steel suppliers? Price, price, price!
|Manufacturing needs support?|
Why isn't the rollforming industry doing the same - importing large quantities of cheaper imported coil? Quality and Standards are not the same - but in the real world this will only result in lost sales. When it comes down to a contract - the price is GOLD! Adaption is the only solution currently until the government insists on equal standards of engineering etc. The majority of engineering for the big resource companies have been done to accommodate international standards (ie any supplier that meets the engineering). Even the engineering drawing and details are not done in Australia. Good grief - what government department is capable of checking these projects - NONE? They can't even organise insulation in a house ceiling cavity!
Where is the protest coming from in this regard? The ASI has voiced concerns that China is undercutting our prices, Peter Beattie says we have to innovate to win these contracts, Melbourne economist Selwyn Heilbron cautioned against the innovation angle, Australian Industry Group chief executive Heather Ridout said we needed to look at government giving more support! Here is the article where these gems of information come from Dollar surge leaves manufacturers reeling!
I think the end is near for the likes of BlueScope (massive debt, huge asset sales, staff leaving, overpaid management, overpaid boards, and shareholders who just what their money back) as a manufacturer of coil steel for the rollforming industry. Lysaght will no doubt be dragged down in the whirlpool of the sinking ship. Yet this fool - Mr. Peter Beattie is still running around the world, Australia and boardrooms as the great caped crusader of the manufacturing industry. A $1,000 a day for what! I am currently writing to the Australian Government (now Mr. Combet looks after manufacturing Innovation) asking for a report on the findings of this Mr. Beattie and what stage of the solution he is up to? This appointment is a joke and the money $365,000 per year could be spent elsewhere - not on this dill!
Fielders is obviously still up for sale and shareholders are waiting for this to occur - the chances of a sale? Maybe NIL and NONE. As with Lysaght, Fielders just had a mass exodus from their Brisbane branchs.
Metroll is adapted for import - so will carry on as usual with cost cutting where necessary!
Stratco is surviving on their increased retail sales, sheds and patios.
Stramit is just doing what is normally does - sell, supply etc.
Independents - still all nipping at the heels of the big four!
|Imported Steel - any difference?|
Interesting times ahead for all these groups - but one thing for certain is importing is the only survival method if you are in rollforming.
Who will be the first to GO?