The demise of manufacturing in Australia

[EML]

If we want to keep our manufacturing we must have cheap labour...cheap labour comes from immigration when people move from depression(suppresion) to a better life and then work for better standards in their lives. Mexicans(and others) have traditionally moved to the US, got low paid jobs to feed themselves and worked up from there-when they had the drive to do so.
We have plenty of immigrants coming here, but they are joining the gravy train and not at the bottom of the ladder. The system here does not allow for cheap labour/2nd class citizens so we either have to do it ourselves and settle for less or lose the right to produce. Any clothing maker here either sidesteps the system with women working from home for stuff all, or they close down.
The only places this can happen-cheap labour- is in family run businesses like resturants and now days, gas stations and the like.
These migrants leave their homelands purely to gain economic growth/wealth-if they could do it at home they certainly would.
We are stuffed.

[Marc.com]

We are stuffed.

No I tend not to agree, the Germans have experienced almost a 25% increase in demand for their high end manufactured goods in the last 3 years since Lehmann, despite high labor costs.

What we have never done is developed our manufacturing industry to produce products for which there is a global demand and brand awareness, develop an education system to support the management and technical level required to produce the products. So what happened was you had a manufacturing sector that without Government subsidies, tariffs etc  wasn't to global standard either product or cost wise.

The service industries however did quite well with some stand outs like banking, due I think mainly to them being vastly more exposed to global competition so having to be competitive or go out of business. Plus they tend to attract a better educated work force which makes them more competitive. 

[T250K]

Plus Banking allows people to keep their hands clean, provides a better Social standing, and pays better.     
Forty years ago I was working for a manufacturing company with a very comprehensive machine shop and one of the best Toolrooms in Perth, but we were losing machinists hand over fist to the Service Industry.     Our guys could make a lot more money for less hours wearing an apron and managing a McDonalds or a KFC outlet.      It's going to be extremely difficult to re establish heavy manufacturing in Australia, a few niche markets maybe, otherwise I think we need to get used to the idea that it ain't going to happen. 

[vmx42]

We are stuffed.

No I tend not to agree, the Germans have experienced almost a 25% increase in demand for their high end manufactured goods in the last 3 years since Lehmann, despite high labor costs.

What we have never done is developed our manufacturing industry to produce products for which there is a global demand and brand awareness, develop an education system to support the management and technical level required to produce the products. So what happened was you had a manufacturing sector that without Government subsidies, tariffs etc  wasn't to global standard either product or cost wise.
 

Well said Marc, and all too true. We can give up as Walter suggests or make quality value added products that people want to buy. Quality and innovation will never go out of style…

[VMX247]

the plight of Vegemite

oops !! should of been the Holden in that post somewhere 

The changing face of Australia has been going on for sometime obvoiusly.With the immigrantes after the war and populating/clearing the land.
Though its happening at alarming rate at the moment and no care/cost for the middle man.
Oh well nearly the weekend and time for bikes 
cheers A 

[firko]

oops !! should of been the Holden in that post somewhere

Not so sure about that Alison, much of the components may be made slsewhere but the last I saw the good old Holden was still made here.

[Marc.com]

The reason I say we are not screwed is I think there are Australian manufacturers out there in quite different industries who are all world class and compete in markets where you would assume they are not competitive against the Chinese or Koreans or Europeans.

I think we focus too much on the so called 'iconic' traditional Aussie companies and business areas we are no longer going to compete in,  and not enough on Aussie companies operate at the standard of the benchmark Germans.  

http://www.matrixap.com.au/
http://www.dux.com.au/
http://onesteel.com/profile.asp

[lukeb1961]

What we have never done is developed our manufacturing industry to produce products for which there is a global demand and brand awareness, develop an education system to support the management and technical level required to produce the products. So what happened was you had a manufacturing sector that without Government subsidies, tariffs etc  wasn't to global standard either product or cost wise.

Hear! Hear!
In Germany, an Engineer is seen as an exalted position. A Professor is ranked up there. Yet here? FFS we rate Warrick Cappa or some Radio loudmouth higher...   No wonder we don't produce world class manufactured goods.

[VMX247]

The reason I say we are not screwed is I think there are Australian manufacturers out there in quite different industries who are all world class and compete in markets where you would assume they are not competitive against the Chinese or Koreans or Europeans.

True 
The Costa Group is Australia's largest private producer, marketer and exporter of high-quality fresh fruit and vegetables.  Based in Victoria, with production, trading and logistical operations throughout Australia and internationally, Costa is a full-service grower, packer, shipper, marketer, importer and exporter.  Investing significantly in farming, varietal research, purpose built 'value-adding' facilities, state of the art distribution operations, tier-one management systems and advanced warehouse technology, Costa has assisted in bringing world's best practice and horticultural innovation to Australia.

[Curly3]

Started working for myself in 1992, machinery & metal fabrication, instalation & repairs.
Struggled to get $30.00 an hour.
Today, $80.00 an hour and even that struggles to keep up with the bill's.

[TooFastTim]

In Germany, an Engineer is seen as an exalted position. A Professor is ranked up there.

I routinely and jokingly refer to some of my friends as "Herr doktor Professor Ing".

Luke, engineers have always been regarded as inferior in english speaking countries. Odd really because people like Brunel, Bazelgette etc were lauded.

[Marc.com]

I was offered a position at one of the Australian Technical Universities and they apologised in advance for the salary. It is probably about the same as an apprentice on a minesite gets. 

It is definitely true that the German speaking world has a much different regard for higher education. My own theory is that 'class' played a much greater role in England and Anglo Saxon society, where what school you went to had more importance than the actual knowledge acquired.

[Curly3]

Never a truer word Marc.
We have followed and looked up to the class system from the mother country for way too ffffing long and where you actually went to school is a complete & utter load of shit.
Nepatism achieves f all, apart from rewarding mediocraty.
Some one shoot me, I'm getting all serious.

[oldyzman]

money talks and bullshit walks, well not really money does talk and bullshit gets paid a lot these days. For how long is the question. The days are coming Money will allwys talk, Bullshit will walk and practical real people will have thier day just like other times and other places.
Brett

[paco]

I have only just read this post:and what a sad sick state of affairs we have.Is there any hope ?I started another topic about tarring and feathering because of the stone wall I have run into over a corperation,but only now do I realise the extent of the malaise that has befallen our country,Perhaps the people who are ocupying the city square have a valid point.Our goverments have been[ and still are] short sighted.They would not train new tradesmen [or trades people].And have folowed a policy of;"if you cant dazzle them with brilliance , then baffle them with bullshit".p