Tuesday, February 14, 2012

Rollforming Industry Bailout!

The Rollforming Industry has to embrace unions to survive!

After reading NEWS of pay rises for Holden factory workers today - it is little wonder that the rollforming industry is struggling. Divided and with as many as 50 rollforming factories across Australia under the major companies and as many again as single operators - this industry has nearly as many employees as the automotive manufacturing groups!

Here's the unity of the automotive industry with this group shown below:

Holden chairman Mike Devereux, General Motors chairman Dan Akerson, Manufacturing Minister Kim Carr and Premier Jay Weatherill at the North American International Auto Show in Detroit.
 Good grief - the car isn't even a Holden - it's a Chevy! Now what we have here is 2 Aussie pollies in the USA with the Oz Chairman in Detroit spreading the love! Sickening - Kim Carr says it's not a handout? This is on the 30th January 2012 - yet today - we get this announcement - more pay to everyone. (Plus a nice holiday in Detroit).
Seems to mirror the management pay increase when BlueScope announced job losses and the Government bail them out with big dollars. This is becoming unacceptable. Let's look at Alcoa - this company uses over 5% of all electricity in Victoria - and is in the top 20 biggest polluters of that dreadful CO2 molecule (comprising of 1 carbon and 2 oxygen atoms) that will bring in to the government $430 million in Carbon Tax in 2012-2013 alone! Not only is it paying the cheapest price in Australia for electricity ($ per Kw) the government says we have to stop these polluters! Do they? NO NO NO - they will give them the bailout of the decade - a free ride in carbon offsets until the end of 2015! The prediction is that the workers at this plant will get rewarded the same as our union friends at Holden!
The result for all the above is - The Company is HAPPY, the Government is HAPPY and the Workers are HAPPY! Guess who will loose in this deal - ALL OF US! Very UNHAPPY!

So the end result is for rollformers (including all the independents and stud frame guys) to unite and form a huge powerful lobby that Government can't ignore. Forget all the infighting and jealousy - unite and beat this - especially the CO2 Tax and favouritism with union based industries. The rollforming industry can sort out who is going to survive and who is not - by competition and product innovation. But make sure that we determine this! This will occur anyway regardless of a future lobby group!

NOW - that's all explained - let's look at current performance of the existing rollformers.
  1. Lysaght (and distribution) of BlueScope is still going to give a negative EBIT (1/2 Year) - simply they are buying customers and regardless of staff cuts, price cuts, and favouritism. But being the largest - they will survive if BlueScope survives (still under question). Lots of senior management need to culled for progress to be achieved.
  2. Fielders - well here's a basket case - the 1/2 year report is not good for this one. Worse morale of staff of the top five. One stockbroker is not happy with this mob - and until Hills get rid of them - they are history! Fielders business deterioration hits Hills . Hills themselves are improving by simply investing in the industries they know! Their share price is also gaining slowly - but will be held back if Fielders is still run by the current management!
  3. Stramit - still managing to survive and have the support of FBU that seem to be able to see the future of this group. The unknown player out of all the rollformers - and possibly will dominate in a few years.
  4. Metroll - always we come back to Metroll - import, cut prices, service with minimal cost and get in everywhere - they will not disappear anytime soon!
  5. Stratco - No - these guys are capable of doing everything without relying soley on rollforming - and have a good staff base plus good cash flow with retail expansion. Gets back to family. But still extremely capable in the rollforming industry.
There are others such as Steeline and Apex etc - but too numerous to go through - they are all doing it tough but most will survive the construction downturn through great customer service.

There will be a photo exhibit of these rollformers in regard to performance - based on Italian motorcycle racing aces and captains - keep turned to all the corners in this photo exhibit! But just one example below:
Metroll Rossi
There are many comments regarding the bias of this BLOG by the Roofer (especially the previous one on Revolution) - but please be aware that the only interest of this BLOG is the success of rollforming as an industry - I do not work for any rollforming industry directly - but do have shares in HILLS and BlueScope - so do I make money from these? NO!

4 comments:

  1. So many bloodly whingers in this industry - Stramit and Stratco are too busy to comment, metrol haven't even got a clue that you (roffer) exist, and lysaght is just waiting for the bosses to tell em what to do. Fielders I don't know about but seems harmless as a competition - Revo - gung ho and no proof yet! I just sent an email as an independent little shit rollformer to my member of ripoff saying if you don't do something about the stupid regs we have to obey - your vote is gone! The industry or owners have to get together and cream these idiots in canbera - jesus c - it cant be that hard to put a united front together for a short term gain - then we can be at each others necks after! Eh! what do you reckon?

    I am sick of working my guts out for these idiots in government - we'e end up like greece and the rest of the basket cases - just import and no manufacture at all!

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  2. Thanks Corro

    My thoughts are with the independents also - probably 50% of the rollforming industry - but to unite and join the big 5 of the rollforming industry is near impossible! Maybe a sub group of independents could do the job instead of the top group? Give it a go - contact here and it will be achieved! Including stud framing guys also.

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  3. Im with you Guys on this one as the big 5 need to get together with the other small one and get help for our industry we dont want other going for alternative roofs

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  4. From a Stud Framers point of view, we are all in this together. Steel, we are all tarred with the same brush and affected by the same bad decisions in Canberra. I combined front is required. Look at timber, that's the model. Almost mandatory association with the timber body through the suppliers of bracketry and so on. You can either buy Pryda/Miitek/Multinail connectors and those three companies advertise heavily with the timber body and the same with the timber supply companies, CHH, Hyne et al.

    An entire industry getting together to make it work.

    My hand is up.

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