Ajax Fasteners- the nuts and bolts of it....

[max]

Sad to hear another parts manufacturer's poor state of corporate health may interupt the life blood flow to car manufacturers. Its not the first case and it won't be the last. As if local car manufacturers are not finding it hard enough to compete with imports, this phenomena is a new hurdle they must factor into future operations. What are the chances of survival?

[BJ]

Ah you have that around the wrong way buddy. It was because of the car industry taking most of there work offshore that has coursed this to happen.

[Full Noise]

Originally Posted by BJ

Ah you have that around the wrong way buddy. It was because of the car industry taking most of there work offshore that has coursed this to happen.

Exactly right BJ.
It’s because of the car companies demanding cheaper and cheaper products from their suppliers that have caused this. Gone are the days when you just had to pay the price that the manufacturer demanded for a vehicle. When you walk into a car dealership, the first thing you do is haggle, and rightly so. If everyone paid the full price for a vehicle, in a perfect world this situation may not have happened. Sadly we don’t live in a perfect world.

A funny thing is that if you want to buy a Kenworth or a Harley Davidson, they tell you what the price is and that’s it. You either pay the price or **** off. The car industry has become it’s own worst enemy. When a new vehicle is designed, every part is put out to tender and Ajax has just hit the point where they just can’t operate for the money they receive.

And don’t forget, we still have to compete with China. Little Johnny Howard keeps telling us anyway. The more they keep pushing this BS, the more skills Australia will lose to other countries. Who was it last week, O’Brien glass in Sydney?

Who’s next?

[sfr rob]

I used to deliver for these guys up until about 2 weeks ago.
I probably wont get paid for the last few jobs i did...
It is a shame, they were the leading bolt joint down here until companys started importing and selling bolts for a 1/4 of the price of what Ajax could supply them for.
The thing is, they arn't the only Aussie company that has crumbled due to imported products. At the end of the day it all comes down to saving $, you wouldnt go somewhere to get a product if you could get it cheaper elsewhere.

I Dont know if there is anything that the government can do to deliver the entitlements of the workers down at Ajax, i would hate to be in there position right now.

[Outbackjack]

The implication of all of this countries manufacturing industries going off shore are very far reaching. What will we do in 5 or 10 years time when Australia makes nothing??We have no skilled workers left. No-one left that can operate a lathe or milling macine. What if the political situation between Australia and its main manufacturing country (ie China) turns sour? Our total economy could grind to a halt. This current situation with ajax will look like a pimple on a pumkin. Short term profits do nothing to prop up long term prosperity. It is hard to see anything but hard times ahead for this countries manufacturing industries, what is left of them.

[Jason[98.EL]]

Originally Posted by Outbackjack

The implication of all of this countries manufacturing industries going off shore are very far reaching. What will we do in 5 or 10 years time when Australia makes nothing??We have no skilled workers left. No-one left that can operate a lathe or milling macine. What if the political situation between Australia and its main manufacturing country (ie China) turns sour? Our total economy could grind to a halt. This current situation with ajax will look like a pimple on a pumkin. Short term profits do nothing to prop up long term prosperity. It is hard to see anything but hard times ahead for this countries manufacturing industries, what is left of them.

i totaly agree

i work for a local farming manufacturer and we are even finding it hard to compete

when we are busy we cant find good fabricators at any age

saying this i used to supply ajax fasteners and yes its sad to see another australian co go down the tube

jason

[SuperMono]

Australian manufacturing (not just the car industry) is continuing down the tubes across the board.
Unless the Australian community and government gets serious about goods made in Australia (by Australian owned companies) this won't get any better.
While we can dig things up and sell them without value adding, the perception is that the economy is 'healthy'.
Note that the Australian federal government has actively assisted local manufacturers to source components overseas as part of trading deals with other countries.
I deal extensively (as a supplier) with R&D around the world and can tell you that Australia has among the lowest level of support and R&D investment by far.
We manufacturer high technology products in Melbourne, but many of our suppliers now do everything but the actual sale offshore. It makes quality control a nightmare and for us has lead to price increases, not decreases.
End of rant.......

[XR Martin]

I bet the executives were still getting their multi million $$ salaries/bonuses up until this happened....

And people wonder why outsourcing goes to China.....

[Jeeepers]

Originally Posted by XR6 Martin

I bet the executives were still getting their multi million $$ salaries/bonuses up until this happened....

And still will is my bet...

[sfr rob]

I agree with all of you, do you think anything can be done though?

[Full Noise]

Originally Posted by sfr rob

I agree with all of you, do you think anything can be done though?

In the short term the car manufactures have to form some sort of bail out otherwise they won’t be building anything.

[Outbackjack]

Originally Posted by sfr rob

I agree with all of you, do you think anything can be done though?

One upon a time we had tarrifs to protect our home industries. But no more. We have "a level playing feild" apparently.

I dont know what the answer is, and neither do our elected masters.

[4Vman]

Originally Posted by Outbackjack

One upon a time we had tarrifs to protect our home industries. But no more. We have "a level playing feild" apparently.

I dont know what the answer is, and neither do our elected masters.

Unfortunately import tarrifs will make things allot more expensive to buy here and also create a lazier and more complacent workforce...

[Outbackjack]

Originally Posted by 4Vman

Unfortunately import tarrifs will make things allot more expensive to buy here and also create a lazier and more complacent workforce...

Cough, cough, Im gonna leave that one alone...... Some comments are better left to wallow in their own doo doo.

[Walkinshaw]

Originally Posted by 4Vman

Unfortunately import tarrifs will make things allot more expensive to buy here and also create a lazier and more complacent workforce...

Whilst not getting into any debate. The man has a point.

[Outbackjack]

Originally Posted by Walkinshaw

Whilst not getting into any debate. The man has a point.

If you really want to draw a long bow...... But if there was any protection for Australian industry in Australia, perhaps more companies/industries would be created and remain viable. I am not suggesting that this country should introduce tarrifs, but at the moment only a mad man would invest in a manafacturing industry at this point in time. Like I said earlier, I dont know what the definative answer is, but killing our home industries and sending local jobs overseas is not doing this country any good at all. We are becoming a nation of waiters and shoe polishers. If the natural resource market takes a turn downward, what will we have to offer the world? Our land? Our oceans......?

[coyote]

Originally Posted by sfr rob

I agree with all of you, do you think anything can be done though?

It's very simple either lower your living standards or support Australian made and owned

Buy your kids a job Buy Aussie made.

[Outbackjack]

Originally Posted by coyote

It's very simple either lower your living standards or support Australian made and owned

Buy your kids a job Buy Aussie made.

Well said, even if it costs a little more, I will buy Australian every time. But so many people buy on price alone. Maybe they have no choice. I did some research and found that Caltex retains more profit in Australia than any other oil company. I ONLY buy caltex fuel now. If Australians want proper jobs for their children we should take some of the pain now. And minimize what we hand on to our kids.

How many here can honestly say that they buy Australian in preference?? I know that I can.

[Full Noise]

Originally Posted by Outbackjack

I did some research and found that Caltex retains more profit in Australia than any other oil company. I ONLY buy caltex fuel now.

Good to see that the company spin doctors are succeeding here. And after the major shareholders receive their dividends, where does the money go then?
I can assure you that it doesn’t go back into the company’s terminals etc.
Caltex shaft everyone, just like all of the other oil companies. They’ve just succeeded in convincing Joe average that they look after Australia. That’s BS. They look after themselves.

[4Vman]

A combination of increasing wages pressure and high Australian dollar is to blame.
If the Australian dollar doent drop in value soon there will be allot more companies folding too...

[XR Martin]

Fact is when you have the executives making 50 times what the guys on the shop floor are making and then wonder why they cant compete because their costs are too high. How often do you hear of them taking a pay cut so the battlers can stay on? Never.


If you re introduce tariffs, no one else is going to want to trade with you. They will introduce tariffs against you, imports will be expensive, the cost of living will rise, you will no longer get your cheap Tvs, tools, parts, food, cars.
We rely on our import market more than our export.

Have a look at some countries who have tarriffs to protect their market, their cost of living is hurrendous, look at the cost of living in Europe for example, and the unemployment.

[Outbackjack]

Anybody read what James Hardie directors are awarding themselves. These people are sick.

[agony]

Maybe a sad day for AJAX but for us being the opposition and with our business going ahead great this is a fantastic time for us to grab all there work and make for a brighter future for ourselves!

[Outbackjack]

Every man for himself.

[agony]

Originally Posted by Outbackjack

Every man for himself.

Thats it mate and with the past being the past alot of those guys will be biting their tongues now wishing they had not said the things they had. And we are waiting to see how long before some of them come back here looking for jobs because to those guys the door is shut!

[Outbackjack]

Yep, what comes around, goes around. No-one is immune.

[shane3]

Didn't they make 64 MILLION last year?

[agony]

Originally Posted by shane3

Didn't they make 64 MILLION last year?

sounds more like they lost it not made it.

[Bill M]

Is it in Australia's interest to reduce tarriffs faster than our competitors?
Who is going to benefit long term?
Where will we be in 2026?
Food for thought