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:
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.
- 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.
- 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!
- 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.
- Metroll - always we come back to Metroll - import, cut prices, service with minimal cost and get in everywhere - they will not disappear anytime soon!
- 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 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: