Friday, March 8, 2013

Building Sector improves?

Construction results better for rollformers.

Building sector shows encouraging signs. That was the headline on SKY NEWS - good news for a change. The short article is at the bottom of this post - the opening lines were good news until I read further down.

In real terms this is the 33rd consecutive month decline in activity since June 2010. But because it was one of the slowest decline rates since that date - this is a false positive. One of the slowest decline rates - it is still in decline but not as fast as before. Confused? Lack of investor confidence and low levels of public sector demand have been highlighted as the barriers to to the construction industry.

Is it a coincidence that on the 24th June 2010, Julia Gillard became Australia's 27th Prime Minister and the first woman to hold the office?

One year later in 2011 BlueScope had just announced a loss of $1.18 billion loss, for the 12 months to the end of June. Ms Gillard then said her government would introduce a new “advance facility” into its Steel Transformation Plan (STP) of $100 million.

On the Friday before the election Ms Gillard stated categorically: “I rule out a carbon tax.” (The Australian, 20 August 2010). Later on 12 October 2011, the Clean Energy legislative package was passed by the House of Representatives, and is progressing towards becoming law - the CO2 Tax started 1st July 2012.

What needs to be done to bring back the construction industry where all the trades and manufacturers can benefit?

Here's the Sky News article. What does Ai Group director of public policy Peter Burn say in regard to a solution - to increase a favourable platform for the construction industry.
Come to think of it, what do the ALP, LIB, LNP, NAT & Greens have on their policies to aid the manufacturing & construction industries for this election? Real stuff , not just steel transformation plans, or men of steel, or a billion dollar buy Oz for construction - just start listing what you pollies are going to do?

Australian construction sector activity posted its strongest result in almost three years, helped by strong results in housing and engineering.

The Australian Industry Group (Ai Group) and Housing Industry Association's (HIA) performance of construction index (PCI) rose by 9.4 points to an index level of 45.6 in February.
It was the industry's 33rd consecutive monthly decline in activity, but the slowest rate of decline since June 2010.
An index level below 50 indicates the sector contracted during the month.
HIA senior economist Shane Garrett said housing activity posted its first rise in activity since May 2010.
'The strong rebound in house building activity captured in the figures adds evidence to the prospect of a modest recovery in this area,' he said.
'The nature of the housing recovery is, nonetheless, tentative and the overall weakness of construction activity merits further intervention from the Reserve Bank of Australia (RBA) in the form of interest rate reductions.'
The RBA cut the cash rate a total of 1.75 percentage points between November 2011 and December 2012, bringing it to its current level of 3.0 per cent.
However, Ai Group director of public policy Peter Burn said conditions still were not favourable for the construction sector.
'Tight credit conditions, lack of investor confidence and low levels of public sector demand are proving substantial barriers to recovery in the commercial construction sub-sector which contracted even further in February,' he said.
The engineering subsector reported a rise in activity in February, apartments building activity fell at a slower rate and commercial construction fell faster.

Rollforming machines - how long before they're gone in Australia?


  1. Just ask Linear on how good the market is!

  2. Thanks for the tip - any creditors should contact the below.
    Address GPO Box 2119
    ADELAIDE SA 5001
    Contact person Alissa Cannon
    Contact number (08) 8231 3323
    Facsimile (08) 8231 3324


  3. mccracken homes and now linear, there will be more but they all have been shaky for some time. linear have taken alot of suppliers and staff for alot of money rollformers in SA alone down about 1.5 mil between them whilst they got off scott free

  4. 4 resigned from fielders including sales manager galpin and rep d cummins?

  5. two commercial sales managers from major roll formers have quit the industry over the past fortnight - very telling litmus test of the industry as a whole

    1. This is worse than the late 1980s when many big roofers went broke like Cosmic Plumbing, Ceiling & Roofing Products (same owner as Linear Roofing), K.C. Roofing and also rollformers went broke including The Roofing Centre (16 franchises dragged down), Sheetmetal Holdings, and R.W. Fielder & Son.
      The Liberal Govt recovery might come too late !

    2. Woodroffe Sheetmetal almost went broke back then too, saved (!) by Hills Industries !

  6. Woodies were stuffed by bad management of detmold also dont forget cowells steel who were bought by hills/fielders and when owned by auspine were left for sale due to bad management who too there profits to prop iup timberand the best one with cowells that had steel framing super lock design and sold it off a building who now has made a name out of it and this building insdustry is bad as there is no work for a person like me in this industry with my verstile skill as an ex fielders employee i have had to go to a different field for work ...