Here are 3 case studies how some Australian manufacturers are coping with the high Australian dollar and high labour costs on Australia.
Is there a place for old-style manufacturing in Australia’s future? Spring-making may seem like old fashioned manufacturing, but like many of the businesses we’ve heard from this week, to survive and be a success the Jubilee Spring company at Ourimbah on the New South Wales Central Coast has had to adapt and innovate. Managing director John Guest’s advice is: diversify. MORE
Times are tough for Australian manufacturing even though the Australian dollar has fallen from its recent highs. But while some companies are struggling to survive by going off-shore, a big US company is reversing the trend. Weir Minerals has moved its divisional headquarters to Australia to be closer to the production phase of the mining boom. MORE
The Prime Minister’s taskforce into manufacturing found that 100,000 jobs have been lost since 2008. Those companies that aren’t struggling or have gone under are operating well below capacity. It concludes that Australia is looking down the barrel of imminent danger of large job losses and a loss of capabilities as the workforce shrinks. Shane Infanti is the CEO of the Australian Manufacturing Technology Institute. He’s not sure if Australia is over the worst of it and he says there needs to be more industry-led research. MORE
ABC – AM 21/6/2013
- What are the problems faced by Australian manufacturers. Make sure you give examples in your answer.
- What strategies are being used by successful businesses in these difficult economic conditions?