This article was written in August 2011 after a career of many years concerned with Business Development in New South Wales Australia. I've not replaced it because, while the detailed economic parameters have changed, the underlying economic arguments remain the same (and it was a lot of work that I don't wish to repeat) for example:
- between Oct 2010 and April 2013 the Australian dollar exceeded the value of the US dollar and that was seriously impacting local manufacturing, particularly exporters;
- as a result, in November 2011, the RBA (Reserve Bank of Australia) reduced the cash rate (%) from 4.75 to 4.5 and a month later to 4.25; yet
- the dollar stayed stubbornly high until 2015, mainly due to a favourable balance of trade in commodities and to Australia's attraction to foreign investors following the Global Financial Crisis, that Australia had largely avoided.
|
2011 introduction: Manufacturing viability is back in the news. The loss of manufacturing jobs in the steel industry has been a rallying point for unions and employers' groups. The trigger was the announcement of the closure of the No 6 blast furnace at the BlueScope plant at Port Kembla. This furnace is well into its present campaign and would have eventually required a very costly reline to keep operating. The company says the loss of export sales does not justify its continued operation. The remaining No 5 blast furnace underwent a major reline in 2009. The immediate impact of the closure will be a halving of iron production; and correspondingly of downstream steel manufacture. BlueScope will also close the aging strip-rolling facility at Western Port in Victoria, originally designed to meet the automotive demand in Victoria and South Australia. 800 jobs will go at Port Kembla, 200 at Western Port and another 400 from local contractors. The other Australian steelmaker OneSteel has also recently announced a workforce reduction of 400 jobs. This announcement has reignited the 20th Century free trade versus protectionist economic and political debate. Labor backbenchers and the Greens want a Parliamentary enquiry. The Prime Minister (Julia Gillard) reportedly initially agreed, then, perhaps smelling trouble, demurred. No doubt 'Sir Humphrey' lurks not far back in the shadows.
|
So what has and hasn't changed (disregarding a world pandemic presently raging)?