Friday, June 7, 2013

Roofing Politics June 2013

Rollforming and Manufacturing in Australia June 2013.
Construction Industry in Downturn.
Government in a Mess.
Politicians support Manufacturing - as long as its a CAR.
How much can this Industry take?

I don't know which heading to use, so I included all of the above. The state of business and manufacturing confidence is at an all time low. The facts prove this as follows:

Here is the Manufacturing %GDP in Australia:

Manufacturing % of GDP Australia
Now here is the Government Expenditure as % GDP Australia:

Government Expenditure as % GDP Australia
 Now more bad news,

"Australia's construction sector has now spent three full years in decline, and there are few signs the beleaguered industry's fortunes will change any time soon." 

The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (PCI) shows the sector contracted for the 36th consecutive month in May.
Ai Group director of public policy Peter Burn said housing and commercial construction remained weak while the sector was also suffering due to declining mining investment.
He said low interest rate cuts had not revived the sector.
'Successive cuts in interest rates by the Reserve Bank have been welcome, but, so far, they appear only to have steadied the decline in building activity,' he said.
The Reserve Bank of Australia cut the cash rate to a record low of 2.75 per cent in May.
Housing Industry Association chief economist Harley Dale said there was no sign a sustainable recovery was on its way for the sector.
'The balance of risks points to a modest increase in building activity in 2012/13, followed by a subsequent pull-back next year,' he said.
'That's hardly the desirable result for the tens of thousands of businesses and hundreds of thousands of people who rely on new home building for their livelihood.'
The PCI rose 0.1 points to an index level of 35.3 in May.
An index reading of below 50 indicates a contraction in the sector and the lower the reading, the greater the speed of the decline in the month.

What is really happening? Well the Government is spending like mad, giving billions of dollars to industries that are closing and can't compete on the international stage like Holden and Ford. They throw millions at around 2,000 job loses, while basic small business is shedding 10,000 for each 100 in the unionised industry. What's the agenda? Fairly simple really, you're either part of the Union and ALP or NOT. Take it or leave it. This is the biggest lose, lose situation ever in Australia's history.

Also they are giving billions to solar and wind turbine industries which are driving up the cost of electricity especially in states like South Australia. It has to stop and economic growth is the only alternative for construction, manufacturing and contractors.

Updates for June:

1. Auction for Fielders stuff cancelled - WHY?

Auction cancelled?
Why would this happen, is someone buying Fielders and don't want the equipment on the market, or more likely that there are no interested parties. Who is after Fielders at the moment? Fletchers? BlueScope? or maybe a another rollformer. APEX or Metroll. With no offers at near the $30 million, this company is a steal, and will be sold at probably a lot less than this.

2. BlueScope announce winner

For a trip to Italy today after spending $100 million on next generation Zincalume. The winner is:

Patrick Hayes of New Farm in Queensland. Well done Patrick.
He has just won 1st prize:
The first prize winner gets a trip for two to the Venice Biennale, valued at approximately $10,000.
Five 2nd prize winners will receive a 16GB iPad, each valued at $679.
Third prize is one of 125 tickets to the BlueScope Steel Business Lounge located at the conference, each valued at $135.
Fourth prize is one of 125 Staedtler architects' mechanical pencils, each valued at $30.
I entered but didn't even win a pencil.

3. The coldest workshop in the world?

Here it is, not rollforming or roofing - but looks terrible, that's snow on the train carriages behind the chap grinding.
Snow, cold, where are the solar panels?
This is a good read on the Steel Guru site "Yamal Peninsula Railway Line"  regarding railways in the coldest area on earth.

The September election may bring some good news to the construction and manufacturing industries, but it's going to mean that the new government cannot accept manufacturing and green energy can exist together. This industry has to be told which way they are going to go now.


Kevin Rudd tells all the other ALP MP's to pull their head in.
Mark Latham calls Kevin Rudd a lunatic.
Julia Gillards spin doctor John McTernan applies for another job with 2GB radio man Ben Fordham.

That's just a start, I am totally fed up with politics, and to think we have less than 99 days to go brings no joy, IT WILL ONLY GET WORSE.


  1. tp will write fielders off as a loss and close all branches . Concentrate on electronics shares in hills will increase good time to buy just like jhl has done for the last couple off weeks very smart lady.

    1. Your're probably right there, Ted only has Orrcon to dispose of and then they may get back on track. Fielders will go for a song in the end.

    2. Its a shame so many new managers with no experience in the metal industrie try to reinvent the wheel when they would not even know how to put air in their own tyres .Cheap managers/ wrong decisions will destroy the australian roofing industrie within ten years all roofing will be imported no warranties on fadding or corrosion.By By fielders and orrcon.

  2. Looks like Julia is about to go, too late for our economy, too late for many builders. It will take 10 years to recover from the worst government in Australia's history.

  3. Item 1. Why ? Any fact to the rumor that rev roofing are moving in & do they need well used discounted machines..

    1. Stramit are moving in for the kill and have ordered Hills to pull the auction

    2. Tax time looms, Nice time to write off bad debts.. New financial year & fielders new owners have a new start. Game On !

    3. You wannabe Gordon Gekkos really have no idea. You've read the Financial Review a few times and think you're corporate geniuses.
      Stramit are the least likely player to buy Fielders while the statement about tax and bed debts makes no sense at all.

    4. Surely it's out of only Stramit and Lysaght to buy Fielders ? Only another big rollformer could make it work .

  4. The problem in the metal industry isn't a lack of metal experience. There is a ton of steel experience across all the companies. The real problem is a lack of leadership and vision.

    A great leader will be great whatever the product and an incompetent leader will still be incompetent with or without the steel experience.

    People just find it easier to bluff using 'experience' in good times.......until the bad times come and show them up for what they really are.

  5. What's happened to all the Fielders machines at Northgate since the auction got cancelled?

  6. Stramit will announce Fielders purchase any day, now meeting the staff and inspecting factories. Where's Gordon Gekko ?

    1. It can't be a done deal or Hills would have needed to announce it to the stock exchange. Wait until you see the ink on a contract

    2. BS. Fletchers are totally mismanaging Stramit with misguided cost cutting creating a loss of gross margin much greater than the cost 'saved'. In other words reduced costs and reduced profit. Clever....not

      And it won't be any different with Fielders.

  7. Fielders staff will be very pleased to have a committed new owner in Fletchers. Great news for the industry if it happens. Fletchers/Stramit will be unbeatable with Fielders in their camp.