BadgeIsBack

The problem I have is that in some industries or retail models the consumer doesn't apparently care about quality and is happy to see a race to the bottom...

Swerv-o

Part of that is the throw-away nature of society today. Years ago, you would take things and have them repaired. Now, if something goes wrong, you just can it and move on to a new one, usually without blinking.

Where the price point of items has become so low, it's often cheaper or less bother to throw it away than to get it repaired.

Like the toaster I bought from Aldi last week. I imagine I'll get a year's worth of use out of it, but it was only $19, so really it's no skin off my nose if it breaks down out of the warranty period. I suspect it would probably be more bother than it's worth if id broke down in the warranty period too.


S

BadgeIsBack

I understand the economics and even the need but there are items and craftsmanship I think we might loose.

a gripe of mine is that quality goods carry high prices but are not that good.

I would rather spend more than rock bottom to get a better product but I fear we might lose the craftsmanship.

bcworld

Alcoa joins the Victorian manufacturing exodus:

http://www.theaustralian.com.au/busi...-1226830195047

berserk

Sydney is the "new" manufacturing capital of Oz.
http://www.smh.com.au/national/sydne...207-327c3.html

Interesting observation:
"Maybe some of the Victorian manufacturers got a bit lazy because they know there were some government subsidies flowing around. Whereas the NSW guys made sure they were running a tight ship and made a profit."

Swerv-o

Hmmm. Not seeing much evidence of this on the ground. Lots of my engineer friends are still very unemployed, and several decent sized technical companies have recently shut down.


S

berserk

Have they tried Melbourne?

Swerv-o

Yup, very little going on there either. Most are frantically retraining as Data Scientists, but there is very little technical work around.


S

GarryP

Err its more than things in Sydney are flat, but in Melbourne they've been losing companies and jobs. Given that Melbourne has been more blue collar manufacturing, and sydney more white collar, the differential effect of exchange rates is the driving factor.

The worrying/interesting thing is exchange rates have been heading in a more sensible direction, and Abbott's scrapping of any carbon charge should mean energy is getting cheap. However the companies are dropping like flies. The only two things it seems to be correlated with are the arrival of the coalition in power, and the RBA basically saying rates aren't going to fall much further anytime soon.

Two thoughts - they expected to see bigger interest rate drops, or they are finding it difficult to attract funds at those lower rates - making servicing the debts harder.

Either way, Abbott needs to stop being so useless, fast.

berserk

Errr. A 2.1% growth ain't "flat". It's significant for a non-mining economy in a developed country.

Beoz

..... and there goes Forge Group.

http://www.perthnow.com.au/business/...-1226829663477

1500 mostly skilled workforce gone.

bcworld

Assuming Garry was talking about manufacturing the 2.1% growth is not attributed to the manufacturing sector...more than likely it's largely related to property and business services.

GarryP

Well, firstly it's for the entire economy of sydney - and second it's not obvious that its inflation-adjusted.

berserk

The 2.1% is inflation-adjusted (ie based on volume).
Manufacturing declined by 0.2% while business services indeed contributed much of the growth.

Amazulu

This company is a mess. I know people who have lost their jobs, have not been paid and are not getting any of their entitlements - really sad

But it was entirely predictable. It has been widely known that Forge was 'buying' contracts - going in too low in order to get them, trying to get big too quick. And now you see the result. Upside is that the work they had will still need to be done - especially Roy Hill. The company I'm working for is bidding hard to get a slice of their order book