Monday, December 3, 2012

Roofing & Rollforming downturn.

Roofing downturn. How Long?

The Australian Industry Group Performance of Manufacturing Index has more bad news:
A KEY gauge of manufacturing activity in Australia fell for the ninth month in a row, the latest sign a mining slowdown is weighing on the country’s resources-dominated economy.
The Australian Industry Group Performance of Manufacturing Index fell 1.6 points in November to 43.6 from a month earlier. A PMI reading above 50 indicates an expansion in manufacturing activity from the previous month, whereas a reading below indicates contraction…
The contraction in manufacturing activity in November was widespread, with steep declines in the petroleum, coal products, construction materials and metals sectors. Only the food and beverages sector expanded during the month.
 Electricity costs and transport seem to be the biggest problems for rollformers. Reduced production compared to 2011 - yet 2012 sees bills nearly the same or more.

Will the Reserve Bank Rate cut tomorrow be any help to the industry!

The Roofer submitted an article in TBF, about an ASX trading community on Boulder Steel starting a new steel mill in Gladstone. Full article here: Boulder Steel starting to Roll. 
This is the land.
Mount Larcom
This is the project.
Boulder Steel Facility
Well, an ASX listed company can start a new mill in Gladstone and BlueScope has trouble keeping one in Australia. These two companies have very different approaches to the steel industry. Although Boulder Steel is not into supplying coil for roofing - it will compete with and beat BlueScope in the automotive & parts industry. Lets hope it goes ahead - will be great to see an Australian based company exporting automotive parts to Mercedes Benz, BMW, VW, Porsche, Renault, Bentley, Audi and the aircraft manufacturers.

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