Doom and Gloom. Talk of a Recession.

[Leaping Lindner]

How about the timber factory in Tasmania ?

Reasons ?

Reason singular.

Financially incompetent management overstretching the companies sources on what was a non viable business venture.

[Jimmy_041]

How about the timber factory in Tasmania ?

Reasons ?

A lot cheaper to import timber from Asia

We actually export timber to Asia

http://www.itslimited.com.au/

[Sky Pilot]

How about the timber factory in Tasmania ?

Reasons ?

Reason singular.

Financially incompetent management overstretching the companies sources on what was a non viable business venture.

Where's fish when we need him? I'll have to fill in...so leaping L do you have any documented proof of this incompetent management and what facts are there to support the claim this was a "non viable" business?

[scoob]

Where is Fish to say there is no problems with the consrtuction industry?

http://www.abc.net.au/news/2012-10-05/c ... ng/4297254

The construction industry's multi-year slump worsened at its fastest pace in the past year during September.

The Australian Industry Group - Housing Industry Association Performance of Construction Index declined 1.3 points to 30.9 last month - a reading below 50 indicates contraction, and the further below 50, the faster the contraction.

The index shows the construction sector has been going backwards for 28 consecutive months.
Apartment construction was the worst sector (at 26), with house building also struggling (at 28.5).

Australian Industry Group chief economist Julie Toth says mining-related building work is simply not making up for the extreme weakness in home building.

"The capital-intensive activity under way at present in mining-related engineering construction work in some states is simply not filling the gap left by the severe national downturn in residential and commercial construction," she noted in the report.

"This is particularly apparent in the new orders and employment measures, which are yet to show a meaningful turning point but which should hopefully be supported by this week’s welcome rate cut decision."

Even the previously solid engineering construction sector fell 3 points last month to 32.7, with companies reporting the negative effects of slower resource sector demand, project delays and import competition.

The survey of around 150 construction firms reveals employment continued falling in line with a drop-off in projects, however wages kept growing at a moderate pace.

[heater31]

Some builders in Adelaide alone have a 60% drop in turnover

[southee]

Some builders in Adelaide alone have a 60% drop in turnover

I've shut my trade business about 4 weeks ago. Gone back to study (to get into another field) and wife has gone back to work full time.

Im not the only one either.

Apparantly to some on here the ecomomy is fantastic and booming and we are just sceptics or pessimistic.

[overloaded]

While there is a fair bit of mining construction work going on at the moment, new projects are dropping like flies. Resource focussed construction companies are struggling to fill their order book for next year. We are headed for a bumpy ride.

[southee]

While there is a fair bit of mining construction work going on at the moment, new projects are dropping like flies. Resource focussed construction companies are struggling to fill their order book for next year. We are headed for a bumpy ride.

New work in construction is dead. (building companies etc...)

Get ready for the ride!!!

[Gozu]

John Howard on our economy:

Turning to the domestic economy, Mr Howard endorsed Labor’s view that the economy is in relatively strong shape.

“When the Prime Minister and the Treasurer say that the Australian economy is doing better than most, they are right, I agree with them,” he said. “There is no doubt the Australian economy is doing better than most – our unemployment is remarkably low, our debt-to-GDP compares very favourably and on all the measurements, our inflation is low.

http://afr.com/p/national/revive_ir_ref ... bJkEBGK9rM

[Psyber]

John Howard on our economy:

Turning to the domestic economy, Mr Howard endorsed Labor’s view that the economy is in relatively strong shape.

“When the Prime Minister and the Treasurer say that the Australian economy is doing better than most, they are right, I agree with them,” he said. “There is no doubt the Australian economy is doing better than most – our unemployment is remarkably low, our debt-to-GDP compares very favourably and on all the measurements, our inflation is low.

http://afr.com/p/national/revive_ir_ref ... bJkEBGK9rM

Mind you, that is "relatively" and "better than most" and relative to how appallingly many other countries are doing!
Whether that translates to doing well in real terms is another issue...

[fish]

Where is Fish to say there is no problems with the consrtuction industry?

I never said there was no problems with the consrtuction industry - or the construction industry for that matter.

Clearly there is, and I reckon it's gonna get worse before it gets better again.

I'm just a bit more optimistic than you lot and don't buy into the over-the-top claims such as we're going to become a third world country...

[dedja]

is that worse than a banana republic?

[scoob]

Where is Fish to say there is no problems with the consrtuction industry?

I never said there was no problems with the consrtuction industry - or the construction industry for that matter.

Clearly there is, and I reckon it's gonna get worse before it gets better again.

I'm just a bit more optimistic than you lot and don't buy into the over-the-top claims such as we're going to become a third world country...

I never said we would become a third world country

[heater31]

2 Adelaide home builders went through the hoop yesterday.


Yet there is nothing wrong with the economy

[southee]

2 Adelaide home builders went through the hoop yesterday.


Yet there is nothing wrong with the economy

Yep !!! Nothing at all ....

[test]

2 Adelaide home builders went through the hoop yesterday.


Yet there is nothing wrong with the economy

Which builders???

[heater31]

2 Adelaide home builders went through the hoop yesterday.


Yet there is nothing wrong with the economy

Which builders???

Ian Wood and Nu-Steel. Both interrelated companies I believe.

[BIG SEXY]

im self employed in the auto industry and ive noticed a definete down turn in my figures over the last 8 weeks. without doing a graph over the last say 30 months i would guess it has been a slow decline with a decent dip about that 8 week ago mark. certainly not to the point of panic stations or anything crazy.

[bulldogproud2]

A lot of people here sure don't want facts to get in the way of a good story, but... check the ABS and you will find:

Australia's current unemployment rate of 5.1% is extremely low. Not until the year 2000 did Australia ever have an unemployment rate below this level and it was only in the period 2006-2008 that the unemployment rate was below 5%. In the 1970's and 1980's the unemployment rate averaged double what it is today. Also, the unemployment rate is continuing to decline, down from the 5.8% in August 2009.

Additionally, for the year June 2011 to June 2012, Australia's rate of inflation (CPI) was only 1.2%, the lowest rate for nearly 20 years.

Australia's economy is currently in great shape. The only thing that is wrong is people deliberately talking it down for political mileage. That can lead to a decrease in confidence amongst people, leading them to spend less, resulting in less business activity. There certainly is no reason, based on current economic figures, for people to be pessimistic.

Even John Howard admits that the economy is in great shape!!

Cheers

[bulldogproud2]

As for the construction industry it had to be expected that there would be a downturn. After all, the amount of construction work had been artificially high due to the stimulus given to the industry to help it through the Global Financial Crisis. With the projects now completed that were started with the handouts, which helped keep the economy afloat, unemployment down and ensured the GFC did not have the huge impact here it had elsewhere, of course construction work will slow down.
The industry is just lucky it did not happen four years ago, when it otherwise would have.

Cheers