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Some interesting stats released today, Per-Country Per-Capita government assistance to auto-industry:
Australia $17.80
Canada $96.39,
France $147.38,
Germany $90.37
Sweden $334.00
UK $27.00
US $264.00
Are wages here killing our manufacturing industry? Should the Govt do more to help our car industry, maybe subsidise Australian made cars? Make them tax deduction? Increase tarifs on imports???
I believe our high wages are killing all manufacturing
I think the Auto industry is going to be hard hit
We have a prolem in Australia, people want to get high wages, but pay the lowest price and are happy to buy foriegn product (made with chaeap labour)
and a lot of the times these people buy overseas too (through the internet)
But by doing this, our manufacturing and retail sectors are dying, therefore, less people employed, less money earnt, less money to be spent
A spiral downwards
Not everyone can work in IT
It worries me about our future
Its not just the direct jobs at Holden or Ford that we will lose, its all the other jobs that will go with companies that are associated with them
Agreed with all above, I see a lot of the cause comes from the mining industry, the wages they are paying are so exorbitant they are artificially pushing other sectors up to compete on the labour market. My parents have seen this with attracting farm workers, they have to pay more to compete for workers against the mining sector.
Look at it in my job, I could earn $60-80k a year serving the public or $120-150k a year sitting on my butt at a mine site, no wonder we are losing so many to the mining sector.
Time for a rationalisation of pay across all sectors within australia if you ask me.
Yep, agree with both of you, wages are the single biggest cost in nearly every item sold or manufactured in Australia.Quote:
Originally Posted by Gecko
Id bet atleast 40% of the cost of a Falcon is directly wage related, through either Ford or suppliers if not more.
I have to pay a 23yo uni graduate now with NO experience 50K a year!!
Agreed also. What sort of forum is this.
There is no one solution to what is going on in my opinion. I think the government are right in wanting to assist manufacturing, wrong in attempting to address climate change when the most likely penalty for business is to shift off shore. Regardless of if you support the notion of warming or change, how does Australia play a part in improving when business can shift offshore to countries that don't support our current regulations let alone anything new. Zero protection for our industries only works if there is a truly level playing field and in my experience that hasn't occurred and isn't likely to any time soon.
Then consumer need to change and support Aust businesses. This mentality of taking the money and running can only lead to a national importation levy. There will be no suitable alternative source of revenue to support what was an industry of substantial size in terms of indirect totality.
I have changed. Where every possible I am buying Australian. I earn money in this country I feel I need to invest back into the country that supports my lifestyle. We can't continue to price ourselves out of the market, we need to open our eyes and adjust the playing field so it is infect level and have a fighting chance of being competitive, and consumers need to appreciate the cost of losing these industries. Blind support isn't so if the consequence of not doing so is fully realised.
I work in manufacturing have done for 20 years. There is certainly a sentiment that if you can't get better in the product you provide in terms of cost and quality you deserve to go out of business. What is not understood is that the investment in supporting people is massive, environment, massive, safety massive, efficiency massive, all to the point where there can be very little left in the tank.
I applaud some of what the minister has said about the auto industry but this Government needs to realise before it's too late that the only manufacturing base projected to survive in this country is the one that supports the mining industry and much of that is export bound.
I know since I started running my own buisness (25 years) that the cost of buisness has increased so so much
The cost of OHS is high (believe a lot of OHS is necessary, but there is too much papaerwork involved in covering asses)
The superanuation levy of 9%
The amount of licesnses one now needs to have to operate
And now the carbon tax
The carbon tax is going to have a huge influence on my buisness, for instance, my stock holding will incease by $100,000. which is all Carbon Tax
Where in this economic climate do you find another $100,000 for stock?
And I am only a small buisness
I can imagine the effect that its had on large companies
Thank you, a lot of food for thought there.Quote:
Originally Posted by HSE2
He is an article by Toby Hagon
Why Australian car makers need support
"Toby Hagon
January 16, 2012
Why car makers are an important cog in our economy.
There’s been fiery and often ill-informed debate about the struggling Australian car industry this week – in particular whether it should continue to get taxpayer-funded financial assistance.
One side of the argument says the industry is in decline and is only heading one way, so if it can’t stand on its own feet it should be sent packing. The other side understands the broader implications – 60,000-plus jobs, the loss of significant investment from overseas, and a negative impact on Australia’s skills base.
If we took the same cut-the-ropes approach to other industries that many Australians want the government to take with the car makers we’d be devoid of anything useful.
Our mining industry would be nothing like it is today; it receives more in assistance than the car industry despite being the economy’s golden child. Farmers would be walking off the land and private schools would be out of action.
Don’t get me wrong, I can see faults with Australia’s car makers and some of the decisions over the years. They’ve been too slow to react to changing tastes and have at times made silly decisions when it comes to new models. But to quote a cliché, hindsight is a wonderful thing.
But there’s no denying they’re an important cog in our economy, something that is clearly understood by both sides of politics.
And this week’s Detroit motor show was a reminder of the impact Australians are having on the automotive world. We’ve exported world class designers over the years and an Australian is currently controlling the record growth General Motors is experiencing in China.
So even if you’re not lining up to buy an Australian-made car this weekend, the chances are their impact has probably helped your standard of living in some way – however small. "
That was posted on Drive.com
When it comes to manufacturing and Australia I don't think many people realise that that our total economy would be high teens in rankings at about 1 trillion dollars give or take a few hundred thousand. The balance of that is where claims of a comprehensive economy come from.
Making the wrong product for people's needs and funding its continuation is not the answer. Totality suggests a comprehensive review and understanding about what is required in the countries best interests and in my opinion something we all need to concern ourselves with.
It's this standard of living that's the issue here. We want to keep it we have to support it and I am not convinced enough understand the complexity and consequences of losing these industries.
I would hope that GM and Ford would not be accepting our support now just to pack up and leave in 5 years time. You would like to think our Government isn't that stupid and that there is some honour amongst thieves to some degree but there has to be a realisation that many companies parents are not based in this country. The decision is an easy one to make.
Hi to all,Quote:
Originally Posted by 4Vman
We should remember that there is a linkage between big cars, fleet sales, novated leases and government support to make the whole thing fly. We've seen a lot of upset in 2011, with car funding diverted while natural disasters abounded, a change in Fringe Benefit Tax levied on people with novated leases and fleets in general unable to access the LPG Falcon that they clearly like and Ford starting out 2011 with a stockpile of standard XR6s didn't help as well.
Funding is important and I think the three to one spending to funding rule on approved products will work in Falcon and Commodore continuing, the government needs to revisit its changes to novated leases on vehicles traveling over 25,000 km, I think this is crucial to all three local manufacturers. On top of that, I think the government needs to set some incentive for Falcon and Commodore to reach combined economy of around 6 to 7 l/100 km... the same as what was being achieved from small cars just two or three years ago.
2012 is going to be a much better year but January and February are always notoriously quiet and the hail storm that hit Broadmeadows damaging around 1500 cars is a set back but could provide a way for Ford to get pre delivery repaired discounted FGII stock to dealerships and have insurance companies pick up the tab...
Fingers crossed for a bigger and brighter 2012 to clear away the gloom and doom...
Nice to see you here John.