Australia is losing a lot of manufacturing, and we’re about to lose more, Ace Wire Works General Manager Simon Blashki says.
“It has a snowball effect,” he said.
“One manufacturer has the ability to take two down with it.
“Business is encouraged overseas but discouraged here.”
Ace Wire Works was established by Mr Blashki’s grandfather in 1954.
The Australian-owned family business in Hallam, Victoria, designs and manufactures high quality wire and mesh products and point-of-sale, display and merchandising stands and accessories for the Australian market.
“We're seeing weaknesses in our supply chain and in our customers,” Mr Blashki said.
“We've got well-known customers leaving Australia, closing their businesses and going overseas. That has an impact on us.
“As manufacturers, you're only as strong as your suppliers and customers.
“A manufacturer can't stand on its own.”
“If you look at manufacturing versus GDP, you'll find we’ve been on a constant slide down — it’s currently about 5% compared to around 20% decades ago.
“Covid highlighted the vital need for locally produced goods. A shortage of the diesel exhaust fluid, AdBlue, almost crippled the country during the pandemic because our trucks were virtually grounded.”
These days, most of the companies Ace Wire Works does work for are fellow manufacturers.
“We’re usually supplying a solution,” Mr Blashki said.
“But some of our top customers have decided they can’t make things in Australia anymore, so they’re moving their plants overseas.
“Global competition means manufacturing cops it, because we can import goods, usually at a lower cost.
“That impacts us, because we won't be supplying those plants anymore.
“Our suppliers are also impacted.”
“The reality is, the Government is doing nothing to encourage local manufacturing,” Mr Blashki said.
“They’re doing everything to discourage it.
“Payroll tax is one example. Copping a tax for employing someone is ridiculous.
“You’re trying to do the right thing by giving people jobs, and you get penalised for it.
“I’m not sure how many countries around the world have something like that, but I suspect we're in the minority — and that sort of sums up government's position on business or manufacturers.
“It’s awfully expensive to do any business in Australia; we're probably the most expensive place in the world to do business.
“We’re copping it on a state level, too. The Government of Victoria has increased land taxes by 1200% in the past five years.
“Couple that with everything else that is thrown at you, it's obvious that manufacturers are not the flavour of the month in this country.
“It makes competing for business overseas much more challenging and as such, manufacturers are responding by leaving.”
“The Australian Government, by its own admission, spends many billions of dollars,” Mr Blashki said.
“They should be one of our customers, but they're not.
“We can do work for Toyota Motor Company, one of the best-known manufacturers in the world, but you can't get into the Australian Government.
“The Australian Government will say they’re going to do something to help manufacturers. They'll give you a grant, but a grant without work is useless.
“We don’t want grants, we want work.
“If the Government gives us work, we will invest. We don't need them to help us invest. We know how to invest. We've been doing it for years. We know what we're doing. We don't need taxpayers’ money for that.
“In business, you need sales.”
“The multitude of IR and WHS requirements on business means our attention is being diverted from production,” Mr Blashki said.
“We’re being forced to focus on all these side issues.
“Mental health, for example, is very important, but surely it should be dealt with by medical professionals — not by employers. We're not trained to do it.”
“I would love someone to go get every book that every Australian employer is supposed to read and drop them on a politician's desk and say: ‘This is what you're expecting employers to know.’
“Businesses overseas are not ladened with this level of regulatory burden.
“If you're good at something, you start a business, off you go.
“Here, things like IR, the different tax rules, all that sort of stuff, it's just a burden that really needs to be looked at.
“Is it even necessary?
“Most Australian businesses are fairly ethically run.
“There are some bad ones; by all means, throw the book at them, but don't incumber the rest of us with all this extra work.
“It’s taking us away from our goal and making us uncompetitive against the rest of the world.”
The next Government needs to listen to manufacturers and understand the challenges they deal with, Mr Blashki says.
“Once you lose manufacturing, you're not going to get it back.
“Government needs to work hand in hand with business and not overburden them.
“You need people in jobs.”
Simon Blashki spoke to Ai Group Communications Manager Wendy Larter
