The Decline of Australian Manufacturing - It's OUR fault

Don't blame the companies, China or the Government....

Yesterday saw the move offshore of yet another iconic Australian company. This time it's clothing manufacturer Pacific Brands who have been forced to end almost 100 years of local manufacture and move to China to "remain competitive". They own names such as Bonds, King Gee, Yakka and Berlei. The move will have a direct cost of some 1,800 Australian jobs, with many more in flow-on losses.

Their shutdown of local manufacture follows many similar stories including South Pacific Tyres, Mitsubishi, Nissan, Blundstone and Birkmyre Canvas among others.

After the announcement comes the inevitable finger pointing of blame. Usually directed towards the company, or the government, or the other country that's 'stealing' our jobs. But to find the real culprit for Australia's manufacturing decline, we need only look in the mirror.

The problem is that we simply don't care about buying Australian. In some cases, we consciously avoid doing so. For some Australians there is a bizarre stigma attached to buying or owning an Australian product. Why do some people crave imported cars or furniture?

The vehicles we make in Australia now are absolutely world-class. They are exported and in demand all over the world, and yet some Australians turn up their nose. Wheels magazine describes the Ford Territory as an "X5 for Falcon bucks", alluding that the $40,000 Territory is better in many ways than BMW's $120,000 X5. Various experts rate the current Falcon as the best family-size car in the world, better than the latest Honda Accord. Holden export the Commodore to Europe and the Middle East, where it competes with vehicles that cost double the price here in Australia. Yet some Australians snub these Australian vehicles despite them costing tens-of-thousands of dollars less than the imports!

Now don't get me wrong, I don't advocate blindly buying Australian at any cost, or if the quality is not there, or where there is no suitable Australian product. For example I predominantly drive a Toyota LandCruiser, because there is no suitable Australian alternative. However when the time comes to replace my wife's car, we will most likely be buying a Ford Territory rather than something like an imported Toyota Kluger. Why? Because it's a better vehicle in almost every way, at a similar price, and it's Australian. It should be outselling the Kluger 10-1, rather than slightly trailing it. By choosing the Australian-made option, not only will we be getting a better vehicle, but we'll be supporting Australian jobs and industry. And not just at Ford, but at every company that supplies Ford as well.

This brings me to another point. Australian's don't care where their products come from because they don't see the flow on effect of their decisions. As an example I'll look at canned tomatoes. Down at my local Coles, I can buy Australian tomatoes for $1.05, or Italian imports for 99c. I'll spend that extra 6c every time, but many people are happy to save a few cents without realising that it's probably false economy. Because every time you choose the import, the list of losers probably includes you.

Australian tomatoes require Australian farmers. Australian fertiliser for the plants. An Australian cannery to package them. Australian metal for the cans. Australian paper for the labels. Australian electricity to run the cannery. Australian tradesmen to service the growing, harvesting and packaging equipment. Australian shops for the employees to buy their lunch and their clothing. Australian drivers and trucks to transport the produce. All these people and companies paying tax in Australia. So the simple act of buying imported tomatoes can easily flow through the supply chain to hundreds of companies, and millions of individuals. And increase the tax burden on everyone else. So is all that cost to Australia worth saving 6 cents?

This example can be transposed to almost every industry in Australia. Our ongoing loss of manufacturing carries with it a massive flow-on effect throughout the employment chain which negatively affects almost everyone along the way.

Among the biggest culprits are corporate and retail Australia. Although heavily impacted by recessions, they bring much of the effects upon themselves by choosing imported products over local, even when there is little or no financial reason to do so. For example, many fleets have downsized their vehicles, away from the traditional Australian Commodores and Falcons to smaller imported cars like Corollas. The companies sight running costs as the reason, but they could just as easily convert their Falcon/Commodore fleets to LPG and achieve the same running costs while supporting Australian manufacture and helping to ward off a recession that will negatively impact on their business overall.

Pacific Brands is a great example of a failure lead by corporate Australia. How many Australian businesses chose to buy Chinese workwear over Australian-made King Gee or Yakka? All to save a few cents per uniform. And now, those same Australian businesses will be complaining loudly that they have 1800 less potential customers, and that the recession is biting into their bottom line.

Buying Imports = Fewer Australian Jobs = Less Spending Money = Deeper Recession

Conservatively, the loss of 1800 jobs at Pacific Brands equates to around 70 Million dollars a year being removed from the Australian economy, and 20 Million dollars a year less income tax being paid to the government. While 1800 jobs may not sound like much, these losses will have an effect on every Australian, either through receiving $20M less in Government services, or the effect of $50M less money being spent in our economy.

If Australians keep their obsession with unneccessary imports, then there will inevitably be more "Pacific Brands" occuring over the next few years. More families out of work, higher unemployment, a deeper recession, and an uncertain future for our children.

It's time for Australians to take responsibility and ownership of the future. To rescue the future of our country and our children. It's time to take the few seconds to check the origin of the food we buy. To consider whether saving a few cents is worth the wider cost that will follow. Time to avoid that $6 ream of Indonesian copy paper, when the Australian paper is actually cheaper! To consider whether the better, cheaper, larger Australian-made car is a wiser choice than the overpriced, unreliable and expensive-to-service "status-symbol" that is the imported alternative.

Buy Your Kids a Job - Buy Australian Made


Comments (12)

exzaccary
I've been telling people this for ages. Not only that, there's the false economy of buying cheap chinese crap. Sure in the end it may cost the same when you buy three of the same products to last the same as a well made one, but there is the inefficiency of making three products that end up in landfill and their inherant manufacturing pollution as well as the three extra trips and inconvenience when you need to travel to get another tool or product in the middle of a job etc. I'd rather buy well, and buy once where possible (sometimes it's no longer even possible to find a good quality product) even if its from offshore like germany or the US.
#1 - MILO - 02/27/2009 - 13:43
I couldn't agree more
I could not have put it better myself. The only addition I'd make is that our CEOs are a massive part of the problem. With their disgusting, skyrocketing saleries based on bonuses, every small saving for any company is hailed as a reason to throw a few more millions in their direction. These pathetic lowlives should stop paying themselves millions of dollars a year and really concentrate on the big picture of what is best for their company and their country. If they took their eyes off their bank balance for just a few moments they might find that they are one and the same.

It's time Kevid Rudd took Obama's lead and reined in executive greed.
#2 - Paul Jonstone - 03/01/2009 - 21:00
Hmmmmm
1. Don't blame me for globalisation.

2. Yes thats right you do drive a Toyota and do you REALLY need it if all that you say is so important to you.

3. Since when does Ford Australia make better cars than Toyota. I don't think so.

4. Not everyone may be as cashed up as yourself.

5. CEO's yep your right there. I wish they would sack me and pay me out milions of bucks for running a company into the ground.
Well "they" make the rules I guess. Pffff Democracy my a#@$%.

6. Stock Market, Lawyers and Bean Counters. Thats where I say is the problem. Companies and CEO's are there only to make a profit for share holders. Lawyers are well known for being full of it and making the rules to suit themselves. And Bean counters are only doing the job that the previous 2 want them to do. So maybe you are right. If everyone got rid of the shares they have invested in to... make money, drive business out of Australia and pay big bucks to "unaccountable" CEO's to make sure that they are paid dividends then maybe we'd have a start. Try and stop that train though. Hmmm. I guess that's where the saying "If you can beat em.....join em" comes in. The coorporate monster is so big, influencial, and controlling now. I really don't know what the answer is.

6. GOOD LUCK.
#3 - Does My Name Really Matter - 09/19/2009 - 20:38
Chinese imported CRAP
Why do we import so much cheap and nasty Chinese crap, if it doesn't work you can't get a refund as they don't want the money or profits to be in Australia, you can complain that it does not do what is advertised and the comment they give is that must be our fault.NO REFUND, will exchange why would one in a carton work if the others don't.
We should be ashamed to be called Ozzie at times because we allow these inferior items to be imported.
We import the food items and sell them in our main supermarkets even after we are told of their very un-acceptable practise of growing this food, and full country boycott of these products would be a step in the right direction.
#4 - Tricia - 11/24/2009 - 16:29
Buy Australian Made
Hello All

We promote ONLY Australian made products and services on our website www.BuyAustralianMade.com.au . Our aim is to make it easy for people to find the Aussie made alternative.

Stephen
#5 - Stephen Gately - 02/23/2010 - 10:29
Aussie Cars
Screw the all toyota's, nissan's and the other jap crap I drive a Kingswood
#6 - George - 03/19/2010 - 19:29
Our Government places too much regulation on Australian Manufactured goods, where as the Chinees imported goods arrive free of this scrutiny. All I`m saying is that the imported goods need to go through the regulatory measures that local Manufacturers need to comply with ie. Quality assurance accreditations, Safety Standards, Taxes and also 100% cash refund.
If the product does not meet your expectation return it! Soon the distributors will get the picture and start looking abroad to maximise control.
#7 - Chris - 02/05/2011 - 11:57
The companies sight running costs as the reason, but they could just as easily convert their Falcon/Commodore fleets to LPG and achieve the same running costs while supporting Australian manufacture and helping to ward off a recession that will negatively impact on their business overall.
#8 - Ahmed - 05/30/2011 - 15:59
Strong Australian dollar. Whoopee
When I hear the nightly news caster boasting of how great it is that our dollar has risen again I feel like strangling them.
The more our dollar goes up the less likely we are to sell any of the stuff we make. And the more likely we are to rush out and buy another of those flash Chinese Lcd televisions.
If this keeps up you'd better learn how to cook chicken chow mein
#9 - Bill - 08/08/2011 - 00:23
Import Duty
Shoot me if you will but I always thought import duty was a great idea. If you realy wanted to buy the imported gizmo rather than the one made here then fine. But you had to pay extra and that went straight into tax revenue. So import duty was a protectionist strategy. Shame, I'm sure American or Japanese goverments have never induged in protrcting their own industries:)
#10 - Bill - 08/08/2011 - 00:32
If you want people to buy Australian, our manufacturer's need to offer better quality and value than imported goods. Unfortunately, when we compete with countries with an artificially deflated currency and no award system, it is very difficult. However, protecting our industries from foreign competition is unlikely to make our industries perform better. Consider the building industry as a case in point.

The real issue is not that manufacturing is declining, but that the workforce needs to be retrained to function in a post industrial economy.

200 years ago, 90% of the population worked on the land, yet we don't see 90 percent plus unemployment because there are 'no jobs on the land anymore'. As agriculture became more efficient, less people were needed to produce food and new industries developed. That is why we have the standard of living we do today; because people trained themselves to do something other than subsistence farming.

It is the same in our society; all developed economies will move toward service and knowledge based economies over the next 100 years. Rather than complaining about 'our jobs going offshore' or suggesting that we lower everyones' standard of living by paying inflated prices for basic manufactured goods, get off you a**, go back to night school and get some skills that we can use in our economy.
#11 - Adrian - 08/15/2011 - 20:42
Reality
Thats globalisation mate. The consumer is always right and if he decides to buy Asian or European products at the cost of Australian products, its mostly a well thought out decision.
Australian labour is overpaid and the costs simply dont justify the product.
#12 - SAM - 08/22/2011 - 22:16
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