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Manufacturing in Australia

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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)?

 

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Travel

Bali

 

 

 

 

 

At the end of February 2016 Wendy and I took a package deal to visit Bali.  These days almost everyone knows that Bali is a smallish island off the east tip of Java in the Southern Indonesian archipelago, just south of the equator.  Longitudinally it's just to the west of Perth, not a huge distance from Darwin.  The whole Island chain is highly actively volcanic with regular eruptions that quite frequently disrupt air traffic. Bali is well watered, volcanic, fertile and very warm year round, with seasons defined by the amount of rain.

Read more: Bali

Fiction, Recollections & News

The Secret

 

 

 

Lansing Michigan was a fine place to grow up, she guessed.  It was nice; and safe.

Her dad worked in the Michigan State Government and her mum stayed home. They weren’t rich but they were comfortable. Their new house was big, the nicest they had lived in and it was in a really good area. 

She had never been overseas, unless you count nearby Canada, and that was mainly on trips to Niagara Falls, usually when one of Mum’s sisters came to stay. When they passed through Sarnia, into Canada, Dad would always say "Yea! Overseas again!". It was about his only joke.

Sometimes they went through Detroit. But after what had happened there the last time, she shut that out of her consciousness. No wonder she is timid and takes fright easily. Now if a friend even seemed to be driving in that direction she would go into the foetal position and shut-down.

Read more: The Secret

Opinions and Philosophy

Electric Cars revisited (again)

  

Electric vehicles like: trams; trains; and electric: cars; vans; and busses; all assist in achieving better air quality in our cities. Yet, to the extent that the energy they consume is derived from our oldest energy source, fire: the potential toxic emissions and greenhouse gasses simply enter the atmosphere somewhere else.

Back in 2005 I calculated that in Australia, due to our burning coal, oil and sometimes rural waste and garbage, to generate electricity, grid-charged all-electric electric cars had a higher carbon footprint than conventional cars.

In 2019, with a lot of water under the bridge; more renewables in the mix; and much improved batteries; I thought it was worth a revisit. I ran the numbers, using more real-world data, including those published by car companies themselves. Yet I got the same result: In Australia, grid-charged all-electric cars produce more greenhouse gasses than many conventional cars for the same distance travelled.

Now, in the wake of COP26, (November 2021), with even more water under the bridge, the promotion of electric cars is back on the political agenda.  Has anything changed?

 

Read more: Electric Cars revisited (again)

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