Mining boom

[Muffinman]

Another interesting read .

Tax pushes down imports 22nd Aug 2012 Coal Industry

Carbon Tax introduced on July 1 is the most likely cause of a dip in imports for the month of June.

In the latest Sherborne Shipping data 1960 heavy machines, worth about $585 million, were imported to Australia in June. This continued the decline that started in March.

Overall machinery units imported in June decreased by 11 per cent and their value was down 15 per cent.

A total of 223 dump trucks were imported for the month and 16 drilling machines.

Just under a $100million worth of tyres were imported for the month, slightly down on May.

“We believe this decrease reflects the general industry uncertainty surrounding the government’s Carbon Tax,” the update said. “Customers seem to be placing fewer orders until the full effects of the tax are known and their own rising stock levels of equipment are reduced.”Tax pushes down imports
22nd Aug 2012
CAUTION surrounding the Carbon Tax introduced on July 1 is the most likely cause of a dip in imports for the month of June.

In the latest Sherborne Shipping data 1960 heavy machines, worth about $585 million, were imported to Australia in June. This continued the decline that started in March.

Overall machinery units imported in June decreased by 11 per cent and their value was down 15 per cent.

A total of 223 dump trucks were imported for the month and 16 drilling machines.

Just under a $100million worth of tyres were imported for the month, slightly down on May.

“We believe this decrease reflects the general industry uncertainty surrounding the government’s Carbon Tax,” the update said. “Customers seem to be placing fewer orders until the full effects of the tax are known and their own rising stock levels of equipment are reduced.”

 

[westminster]

Mining might be suffering but Oil and Gas is still going strong which will provide a lot of growth still in WA. I work for one of the major players which has tripled in size and will continue to do so to ensure projects.
I am not one to risk having an IP at the source though - Karratha, Exmouth, Onslow etc. I am more a slow and steady investor and happy to house the many people who work in the resources industry in the city or FIFO. I will go for my rule of location, transport, amenities.

In Perth that means for me:
- less than 10km radius from city
- easy commute to CBD or commercial areas
- above 2 are easily ticked if you go with suburbs along light rail plans
- not a suburb OVER developed (not Innaloo)

I have 3 IP in Westminster (Tenant A FIFO, Tenant B FIFO and Tenant 3 young professional) and trying to get a 4 unit development over the line in Gwelup.

I would like to add some smaller flats to my portfolio in the sub 5km from city radius but one project at a time

 

[lizzie]

on the coal face (literally) ... Xstrata are shedding 800 jobs and now Rio Tinto have put out a memo advising staff there will be some shoulder tapping this week at the front line, on top of some serious corporate/backroom cutbacks.

This is the Hunter Valley only.

All those mining jobs, the guys from the closing Kurri aluminium smelter thought they were going to get, are no longer there.

If mining tightens and sheds - where are the jobs now? There aren't any.

 

[Ausprop]

wouldn't worry too much... there was some research done a while back that mining was stealing jobs not creating them, so it will just flow back. That should be good for the south east of the country which has been hit the hardest. Oil and gas is still going gangbusters (has always been a good industry to be in!), the SKA project is coming up etc. The person that would be having sleepless nights would be Swanny, along with his buddy Jules. He's harnessed a horse that he thought was a winner only to see it falling behind.

The real danger is sentiment on the dollar. If Aussies think they are doing it tough now, wait and see what life is like under a weak dollar. The first place they'll feel that will be the petrol pump.

 

[Aaron_C]

I really do hope the dollar goes down. The high dollar is killing our service industry in Victoria, particularly tourism and education.

 

[Aaron Sice]

with QE3 around the corner, the USD is depreciating against all other currencies (ie inflating theirs) so dont expect a low dollar anytime soon.

in fact, i'd say a return to 109 is on the cards.

 

[lizzie]

wouldn't worry too much... there was some research done a while back that mining was stealing jobs not creating them, so it will just flow back. That should be good for the south east of the country which has been hit the hardest.

But are there any jobs left in the south east?

 

[sanj]

But are there any jobs left in the south east?

nope

none whatsoever which explains the rampant poverty, people on the streets, sky high unemployment rates, major unrest etc

 

[Aaron_C]

Don't worry there's plenty of jobs in the cafés down at Fitzroy.

 

[Ausprop]

here's what the brains trust reckon:

http://au.news.yahoo.com/thewest/bu...890993/mining-boom-has-years-to-run-says-rba/

 

[Peter 14.7]

nope

none whatsoever which explains the rampant poverty, people on the streets, sky high unemployment rates, major unrest etc

Tell that to Workers at Ford and Holden. Or Food Industries like SPC, or Heinz (opps sorry they went under already)

The fact are we are losing vital industries whilst the mining rolls on but when it ends what will we have left??

A lot of 50 something blue collar long term unemployed person needing assistance but unable to be retrained. Kids of these families in financial distress so not getting the education they could learn but cannot afford. Leading to Depression, drugs, alcoholism.

I know this sounds so glum but seriously think about it.

You are honest and proud man who have worked hard since 16 in one industry if not employer doing what he is told to be best he can do. All he wants is to simply put foot on the table, buy a new commodore eery 10 years or so and own on retirement an average house over his head but at 52 he is washed up. On the scrap heap despite all his best efforts because the rest of the world has GFC disease and we have mines making some people mega rich.

So we have high $ and it is more profitable to import tomatoes from Italy than grow them in Australia. Import fruit from spain and label it as AUS and Imported ingredients because the Aus bit being water added to the syrup. Oranges from the USA and let the one in Mildura rot on the tree.

ANd let kill off the Ford Territory and import Great Walls at half the price but don't mind the asbestos in the parts and lead in the paint and the fact they don't get a 1 star safety rating.

No things are just peachy in the East.

Rant off, Peter

 

[sanj]

Tell that to Workers at Ford and Holden. Or Food Industries like SPC, or Heinz (opps sorry they went under already)

The fact are we are losing vital industries whilst the mining rolls on but when it ends what will we have left??

A lot of 50 something blue collar long term unemployed person needing assistance but unable to be retrained. Kids of these families in financial distress so not getting the education they could learn but cannot afford. Leading to Depression, drugs, alcoholism.

I know this sounds so glum but seriously think about it.

You are honest and proud man who have worked hard since 16 in one industry if not employer doing what he is told to be best he can do. All he wants is to simply put foot on the table, buy a new commodore eery 10 years or so and own on retirement an average house over his head but at 52 he is washed up. On the scrap heap despite all his best efforts because the rest of the world has GFC disease and we have mines making some people mega rich.

So we have high $ and it is more profitable to import tomatoes from Italy than grow them in Australia. Import fruit from spain and label it as AUS and Imported ingredients because the Aus bit being water added to the syrup. Oranges from the USA and let the one in Mildura rot on the tree.

ANd let kill off the Ford Territory and import Great Walls at half the price but don't mind the asbestos in the parts and lead in the paint and the fact they don't get a 1 star safety rating.

No things are just peachy in the East.

Rant off, Peter

Im glad you mention a lot of the above points, my business is affected by them everyday. Im in the food business and from Australia 90% of our business in in export and manufacture of dairy, wheat flour etc so please dont try to lecture me about the dollar nad how hard it is to compete with overseas imports.

We have also had an office in Singapore since 1992 predominantly supplying the Japanese market so once again i am well versed in what it is like to have to deal in tough economic times, Japan has been in a recession for a very long time and we also had the asian financial crisis to deal with in the 90s.

My whole point is that yes, there are a lot of challenges but there are still a lot of opportunities. The question was "are there any jobs left in the south east" - of course there are. Let's not be overly dramatic here.

Re the employees who have lost their jobs and have no other skills - it is tough and i genuinely feel for them but unfortunately it is also their fault.

The car industry has been going backwards in this country for decades. This can hardly come as a big shock to anyone involved but unfortunately a lot of people choose to ignore the problems and hope they get lucky. This is the land of opportunity, it continues to be today but it will be harder for some people to simply skate through. Unfortunately these are tumultous times in the world economy but that is simply the way it is. The guy at 52 can choose to deal with it or yes, turn to alcohol like youre suggesting might happen.

Either way, it does not change my viewpoint that there are still plenty of jobs out there. For god sake if people fresh into the country from overseas can get jobs what is the excuse for locals?

 

[sanj]

By the way im glad you have the above feelings, so many people are so apathetic towards the plight of local producers but i do think things are slowly starting to change.

 

[Aaron Sice]

IFor god sake if people fresh into the country from overseas can get jobs what is the excuse for locals?

you don't get it sanj - when them damm immigints take our jobs it's a travesty.

i want 6 spare jobs for when i get fired for being a lazy automaton worker bee.

 

[Peter 14.7]

By the way im glad you have the above feelings, so many people are so apathetic towards the plight of local producers but i do think things are slowly starting to change.

Sanj we are on the same page.

I don't want Gov charity but I don't want the government to say, all is good, jobs galore, when that is only for some jobs.

I agree some Aussies can be very complacent but that 52 year old may well have been told work hard, worker harder, all is good only to find he is redundant. I am an employer and I find the older guys have the skills but todays workplace is beyond them and they fear computers, change etc...they give up.

From your name you may be a new immigrant and like many, hard workers who have added to our great country and also know how other countries are just waiting to take our place in food production, mining, agriculture, etc.. Goon on e you for having a go.

As to empathy it comes form my Dad.

Dad worked 30 at SPC in the "can shop" as a leading hand, one step up from bottom. He worked the night shift from 3pm to 12pm every night for 30 years. He didn't drink, smokes a bit and loved watching his sons play footy and daughter march.

Dad was a big man and as fit as Mallee Bull (being a ex farmer) but could not read or write. He would be 83 if he had not died at 63 from overwork. He left with gold watch and a final per annum wage in 1990 of $27k a year.

On this he feed a wife and three kids and paid off a housing commission home and his pride and joy was his Car and Garden

In 1985 SPC almost went under and the Unions said "screw the company" when they asked for wages relief that canning season and if we make it, workers will be paid back. The workers told the Union to screw you and SPC survived and then flourished but is now owned by Coca Cola and importing peaches from Spain.

In his last years Dad's health meant he could not do much except walk around with a stick hitting cans that got stuck in the machine rails and mow the lawns on the ride on mower. But he did it with pride and would umpire the annual social club cricket match (poorly I may add).

Fast forward to 2012 and the once proud Labor Party is too busy spending union fee on Sex Workers and Hotels. They don't care our country manufacturing is dying and cannot seem to "organise a chook raffle". Workers like my dad don't need a free ride but they don't deserve to be screwed. They need wiser people to protect them and help them move in the new economy.

But our work laws mean productivity is stifled and we hike up carbon Tax here but sell our cheap energy in coal to the Chinese. What chance do they have.

Regards Peter 14.7

 

[Aaron_C]

Without getting too political, it's all about trade offs. If there exists $1,000,000 of wages to be allocated to workers, there are lots of permutations of what can happen:

$100,000 for 10 workers each year; all the way down to
$10,000 for 100 workers per year.

The unions try to go to the other end of the scale, more pay per person. Personally I prefer a mixture of both, but would learn towards more people having a job and getting paid less than the other way around. Businesses may be able to absorb this but there comes a point where you just can't pay people that kind of money and still make a profit or expand your business. This is why the (modern) ALP cannot manage the economy and they have ridiculous policies because they are controlled by such militant unions who are unreasonable.

 

[BayView]

Businesses may be able to absorb this but there comes a point where you just can't pay people that kind of money and still make a profit or expand your business.

This is why the (modern) ALP cannot manage the economy and they have ridiculous policies because they are controlled by such militant unions who are unreasonable.

Yeah; I have a chuckle every time I see some Corp who has just cut X amount of jobs, and there is the Union spokes-dude on the teev bleating on about how bad it is that these jobs have been cut, or about to be cut, and he's bangin' on how the Comrades will fight to get the jobs back, or better conditions, or whatever.

Simple math - Employers cut jobs because they can't afford the overhead - staff. The reasons are numerous, but basically the business is going through a tough time most likely.

Cryin' for the jobs to come back won't change anything, and trying to gouge the Corp for more will only end up in more tears sooner or later.

Do some Companies cut jobs to improve the share holder's mood? Yes.

But; there's the risk, and it's just how it is unfortunately when you work for a Public listed Company, or any company for that matter.

The business has to make a profit or there are no jobs for anyone. If the owners make a good living out of it then good luck to them; they take on all the risk. The workers take on none. No good asking for more when they are showing folks to the exit.

If the employee doesn't like that arrangement there are other Companies to work for...or start their own.

 

[BayView]

But are there any jobs left in the south east?

Across the board - jobs are in contraction.

Some niches are doing well, but many are merely treading water.

All this is my anecdotal info from contacts I have, but you also only need to look at the teev to see some of the evidence regarding large amounts of job losses here and there.

I've reported numerous times of businesses shedding staff, businesses closing etc; the climate is not too good.

Many here have just poohoo'ed it and reckon it's better than that......

 

[Ausprop]

1 of 7 countries to hold AAA... what a sad state of affairs!

http://www.perthnow.com.au/money/australian-economy-gets-aaa-rating/story-e6frg2uc-1226477281917

 

[Aaron Sice]

peter, considering sanj has more of an aussie accent than me, i would not say he is a "recent immigrant" - how old were you sanj - 4? - when you emigrated here?