Catch-Up/Overtake

Originally posted by kingpins: ↑

Hi MM
I said the culture of the Australian manufacturing section and workers in general need to change, because we are too much like the UK and the USA

Little story -- when pollution controls were being introduced on cars the US Gov gave their motor industry 10 years to have them on all cars, the Japanese had all their cars equipped to reg within 3 years and at the end of 10 years the US manufacturers said they wanted more time. t was not that the US could not do it but their programs were too slow to be able to accommodate "rapid" change
Talked to a guy who made electronic equipment and he said he had just got a good order from Singapore and I said how much does he sell to the Aus. government, --- he said nil as they needed 12 months to even answer a letter
I have dealt with the government and my experience has been the same

It is not that they can't do it just a fact that they don't see why they should
How can you trust a governemnt department that stuffs up all the defense orders on equipment ?
To me it's the culture, far too close to the Yes Minister comedy

This is the same reason that total Government control of any sort of business is pathetic and doomed to failure

The politicians do not shoulder any responsibility for what they do
The PS can't be sacked, effectively they do not have any bosses
They have zero concept of how a business needs to be run

They have have made many derogative comments about Pauline Hansen but as a small business operator she probably has more knowledge of how to run a business than the whole of the PS put together

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I hear what you are saying on a micro management level but my suggestion is simply to emulate Japan & Korea with accommative Government policy that assures Australian Owned & operated manufacturing ; not fractured multinational processes like we have now .

For example Alcoa has been smelting Alumina oxide in Gladstone for 35 years (plant now obsolete) on a small scale producing aluminium
ingots. Rather than alloying/moulding the molten aluminium into valueable castings , the company has persisted in quenching the molten metal into silly ingots, exporting it to Japan & Korea where it is again smelted and then moulded into auto castings with energy generated from Aussie coal & gas.

The old chestnut argument that Aussie factory processing labour is too high is obsolete because both Japan & Korea have caught up with us and in some cases , their input lobour costs are higher than Aus particuluarly since the ass fell out of our Peso.

The key to internationally competitive manufacturing is:
-cheap base materials
-cheap electricity/energy
-economy of scale (mega factories)
-hi-tech processes & automation
-insular/Tax Free manufacturing zone to prevent domestic add on costs
-global marketing capabilities.

I have specifically chosen the casting & machining of Automotive Components because:
(a) Australia has Free Trade Agreements with Japan, Korea, Thailand ,China & the USA*; all mega Auto manufacturers
(b) Aluminium Auto components are high value/hi-tech and , IMO, would have a good multiple of added value
(c) That Aus is a stable economy and can provide Japan, Korea , Thailand & the US with Non-Chinese Auto components

Aluminium alloy casting & machining can be extended to cover a host of products such as small engines, domestic appliances, tools etc over time.

It seems absurd to see the shipping of DSO bauxite from Queensland, the processing of it overseas with imported Aussie energy when all we have to do is to pull a finger out and internationally compete.

The Government has recognised the need to educate/train our youth in engineering & hi-Tech but its putting the cart before the horse without a 20 year economic plan underpinned by policies to industrialise Australia beginning with the onshore processing of our raw materials and secondary manufacturing to meet global demand particuluarly from emerging economies.

Successive Aussie Governments have cut FTA with a mix of trading partners but has failed to capitalise on extra trade; instead these FTAs have
put downward pressure on Aussie wages rather than improve the economy for all; so much so that we should review some to see if they are still fit for purpose (EG Singapore, Chile)