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SEMMA has welcomed the recent focus on the need for the Federal Government to review their existing procurement practices with Australian small and medium manufacturers. This has been particularly heightened by the Union movement ahead of the National ALP Conference and Ministers Carr and Tanner’s response.
SEMMA President Lyndon Joss said he welcomed the Minister’s remarks and said "it is a first step in the right direction to have these statements. However we need to be guarded in our applause as the degree of Government discrimination and prejudice shown against Australian SME manufacturers over the past decade has been very disappointing. We have constantly witnessed ‘the lack of a level playing field’ when local manufacturers quote against overseas competitors. In some cases access to quote for Government requirements is actually refused and in other instances, specifications, red tape, prejudices and the like have simply made it too hard."
SEMMA do not believe there is a need for Government to impose a pricing preference for local SME manufacturers in order to stimulate employment in the manufacturing sector - even in the short term.
"Any form of local industry ‘protectionism’ has the potential to be detrimental to the long term sustainability of the Australian economy in general, and to the manufacturing industry in particular" stated SEMMA Vice President James Sturgess. "In the majority of cases that we have witnessed, the Australian manufacturer would have provided a better product and with better value to the taxpayer than their overseas competitors, had they been given an equal opportunity to do so".
Mr Joss explained SEMMA’s frustration was that the answer to the problem was in fact simple: "Both the Federal and State Governments need to urgently adopt and embrace the explicit fundamentals of the Australian Industry Participation National Framework document to which they were co-signatories in 2001. This document clearly articulates that project proponents are encouraged to consider Australian industry in terms of the value for money it offers over the life cycle of the project, including supply-chain partnership and access to a technologically literate, skilled and talented workforce supporting superior business infrastructure. SEMMA believes that the fair and sensible application of these principles would immediately provide a substantial volume of additional ongoing business for many thousands of Australian SME manufacturers which in turn would create sustainable jobs and employment within the industry". This will mean the meaningful implementation of the practicalities required to give effect to the Minister’s statements.
The results of a business activity survey conducted during the second week of February 2009 by South East Melbourne Manufacturers Alliance (SEMMA) of a broad cross-section of manufacturers located in Melbourne’s south-east region were:
(1)
22% - Little Change 13% - Increase >20%
21% - Reduction > 20% 9% - Reduction 5%-10%
13% - Reduction 15%-20% 9% - Increase 5%-10%
(2)
25% - Little Change 13% - Increase 5%-10%
18% - Reduction 15%-20% 13% - Reduction 5%-10%
16% - Reduction >20% 12% - Reduction 10%-15%
(3)
41% - Little Change 9% - Increase 5%-10%
14% - Reduction >20% 9% - Reduction 10%-15%
10% - Reduction 5%-10% 6% - Increase 10%-15%
(4)
55% - Little Change 7% - Reduction 10%-15%
17% - Reduction 5%-10% 7% - Reduction >20%
9% - Reduction 15%-20%
(5)
Total number of respondents - 104 companies
All were local manufacturers
Size of the respondent companies was evenly spread - 85% with annual turnover between $1M-$50M
As anticipated the results highlight that in Australia’s manufacturing heartland, the effects of the current downturn vary greatly between individual manufacturers in Melbourne’s south-east. Results also indicated there is a general expectation there will be no major deterioration during the March 2009 quarter.
Some respondents advised that whilst their current sales levels are reduced this is in comparison to a period where they were experiencing unprecedented high levels of growth.
On Tuesday the 2nd December, SEMMA hosted our annual Xmas Cocktail Evening at the Drum Theatre in Dandenong.
This was an informal evening giving our members, partners, friends, associates and potential members an opportunity to relax, enjoy the company and lively banter.
With some refreshments and finger food, a pleasant evening was had by all.
Lyndon Joss did a great job as our MC for the night and David Fisken from British Midlands provided an overview of the opportunities available for our SEMMA members.
After a small presentation, everyone continued to enjoy the rest of the evening.
It was a great way to finish off the hectic year of 2008.
SEMMA member Jax Wax was named as a finalist in the 2008 Telstra Victorian Business Awards. They were among 24 other finalists.
Based in Officer Jax Wax is a husband and wife team of of Tina and Geoff Copeland. They produce blended wax which is used for a variety of products from surfboard makers, beauty salons and wineries.
Geoff said they were pleasantly surprised by the award and it was good to be recognised for all the company’s efforts and achievements.
Jax Wax employs four part-time workers and exports to Singapore, China, New Zealand, Iceland and the United Kingdom.
He said the company is not a retail business but sold through distributors.
"We sell products for a lot of unrelated industries that use wax products, from hair removal and beauty products to wax for corking bottles, snow-ski and surfboard wax and products for industrial laundries".
SEMMA wishes to congratulate Geoff & Tina on this great achievement.
OFFICERS:
President: Lyndon Joss Bainbridge Engineering Vic P/L
Vice Pres: James Sturgess Macpherson + Kelley Lawyers
Treasurer: Robert Saunders Trimas Corporation P/L
Secretary: Sandra George South East Networks
ORDINARY MEMBERS:
John Bennie: City of Greater Dandenong
Dino Alessio: Champion Compressors P/L
Peter Angelico: A Bending Company P/L
Cathy Carr: Linak Australia P/L
Tom Flintoff: GFC Kilns International P/L
Russell LaCombre: Ductmakers P/L
Peter Smith: Southport Engineering (Aust)
Peter Stone: Neoproducts P/L
Simon Whiteley: Corex Plastics (Aust) P/L
Michael Waterson: Lumen Australia P/L
SEMMA members Hilton Manufacturing and Lumen Australia were inducted into the 2008 Victorian Manufacturing Hall of Fame at a gala event at the Palladium Ballroom, Crown Entertainment Centre attended by 800 people.
In a first for this region SEMMA’s inaugural President, Doug Maxwell was also acclaimed on the Manufacturing Hall of Fame Honour Roll in recognition to his outstanding contributions to sustained manufacturing excellence.
All three were nominated by SEMMA.
The Victorian Government established the Victorian Manufacturing Hall of Fame in June 2001 to celebrate manufacturing excellence in Victoria and to showcase locally-based manufacturers whose innovative and sophisticated solutions to manufacturing challenges are world class.
Since 2001, 88 companies, 17 honour roll recipients, 2 lifetime members, and five Young Manufacturers of the Year have been recognised via the Hall of Fame program.
SEMMA congratulates Hilton Manufacturing, Lumen Australia and Doug Maxwell on joining the other eight previous SEMMA members who have been recognised in these prestigous awards.
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