The latest of the job losses, albeit, temporary, they say, is the result of a components supplier struggling to meet it's financial commitments.

I am afraid this may well be just the tip of the iceberg, as many businesses out ther are doing it really tough.

In fact, many are behind in their rent, that's if they are paying rent at all.

Retail is one of the hardest hit sectors, tourism and manufacturing as well, with many land lords trapped in the 'dammed if you do, dammed if you don't sinario, as, if they boot thier tenant out, they are often left with an empty shop, or, the incoming tenant is not paying rent either.

In fact, her in QLD, some LL's are starting to see the big picture and are slashing rents by as much as 50%, adopting the view of 'something is better than nothing'.

Now while that may seem like the way to go, many of them are also finding it hard to meet commitments, as rents for are their only source of income.

So when the likes of Ford are let down by a supplier this must play heavily on the minds of the brains trust, especially when it comes to major business investments.

As I warned four odd years ago, when the government effects both business and consumer confidence, look out. Well, they have done just that.

They have effected confidence in a number of ways.

First, was the new IR laws, which for many are unworkable.

Then, Mr Swan was out there telling us for so long what great shape we were in, only to now tell us, only a few months latter to brace ourselves.

I am afraid that this Ford situation may not be an isolated case.

To be the best, as Mr Swan see us, we don't have to be good, just better than the rest.

Of cause, we still have the soon to be introduced CT and the fuel rebate reversal for business to swallow.

So, for those with blinkers on, do you still think all is rosy?

Yes, business sources on the ABC Sunday a few weeks ago indicated that landlords are going to have to reduce rent for retail places. Retail is indeed in big trouble, as will be those who bought land based on certain expected returns.

New problems for Australia keep on mounting

Do you butch think it's fair to put the blame for consumer confidence on the govt; whether that is state or fed;
Lets not mention the GFC.
AU consumers are electing to bye cars from overseas, smaller and cheaper.
Retail is declining, and probably needs to, for it to be sustainable for the ones that persist.
I do not know of anyone with problems with the industrial laws. Employers were happy to see the end of work choices, it had an image problem.
Properties are probably better to forgo some rent as opposed to no rent.
AU is in transition, greatly due to the exorbitant wages mining company's are paying, which has depleted manufacturers of staff.
The mining sector is overheated and needs to contract, or else problems will not improve.

The blame may be laid at Fords feet too.
Growing contract price pressures are not new.
Cole's/Woolworth's have driven farmers to the brink under all forms of government.
And continue to do so.
Car components manufacturers have been in this spot before.
I doubt rents is other than a part of the financial strife they are in.
Land lord has every right to be paid, as you would know,if it was not for political advantage you can gain from such story's Rechtub.
Land lords often, too often, drive small businesses broke.
I however can see no government intervention that would not look like socialism.

You can tell 579 has never run a business in his life.He/she has absolutely no clue.

I reckon 579 is a staffer for some Labor polly. No one else but such could be so one eyed.

If I am right, the comments make sense, as no Labor staffer would ever have got close to any business, except funny business of course. Such a person could not be expected to have a clue of how it worked, & is probably wondering why, other than by the shadow of the Abbott in their opinion, so many are going down the tube.

Yes I know, they have been told a hundred times, but then we don't control the keys to the lodge so they can't hear us.

What we need is a major research project to try to find how to turn their collective hearing aids on. Unfortunately somehow I think you have to have control of those lodge keys to do it.

579, the loss of confidence is fair and square the fault of this government.

The GFC.

Yes, it DID have an impact and, if not for the billions that had been carefully saved by the previous government, god knows where w would be now.

But, while I accept that the GFC was the grounds for the Rud governments, failed stimulus initiatives, it was by no means the cause of post GFC flops like, fuel watch, grocery watch, the solar mess or the live export debacle.

Confidence starts from the very top, that being large business and, if large business is confronted by a government that wants to shift the goal posts, then they often hesitate.

Now when large business hesitates, this lack of confidence filters down the line, right to the consumer, many of whom are employees, who are either under employed, or, they are feeling insecure about their jobs about now.

Anyone who spends money needs the security of knowing they can replace it.

That security, to a large extent, has gone, and this is what has caused much of the loss of confidence and, this lack of confidence wasn't there mid 2000's.

*RehTub* I think essentially you raise a number of interesting points, but I do not know that you always hit the nail on the head when identifying the causes of the problems.

..

See, whilst I feel for the people who have lost their jobs, and whilst I strongly support Australian manufacturing, I am not a big fan of Holden and Ford. That's not to say that I wouldn't like to go for a fang in a HSV however ..

Back in 1987 when I was in Japan, I could buy a plum little Series 1 RX7 from most excellent auction facilities for $AU500.

The crew at that time ensured that all the boys got one for cost, and otherwise were selling them for far cheaper than the normal dealer price of about $AU10,000.

Back then, to put a new SkyLine up against the best from Ford & Holden and arguably they were largely equivalent. But when you consider that half the cost of the SkyLine was comprised of duties and taxes, well!?

And then what, turns out that on the race track that the SkyLines were just so hot, that the wimpy sooks banned them from the big race.

I don't see that the current arrangements drive competition and inovation so, again, whilst I am concerned for the workers, I am of the view that this industry is well overdue for overhaul.

Westpac-Melbourne

by: James Glynn
From: Dow Jones Newswires
March 14, 2012 11:00AM
CONSUMER confidence slumped in March as uncertainty over the global economy persisted and major banks raised their home-loan rates in spite of two successive rate cuts by the Reserve Bank of Australia.

The Westpac-Melbourne Institute's index of consumer sentiment fell 5 per cent in March from February, taking it below the level in mid-2011, as confidence was also dampened by job cuts in certain export sectors of the economy hurt by the country's high currency.

The downward drift in the benchmark interest rate in the second half of 2011 was partly offset by major banks lifting their own mortgage-lending rates citing rising funding costs, a direct knock-on effect of the ongoing instability in global markets.

The consumer-confidence index fell to 96.1 points in March in seasonally-adjusted terms from 101.1 points in February. In annual terms, it dropped 7.7 per cent.

"With the Index below the 100 level, pessimists clearly outnumber optimists," said Westpac chief economist Bill Evans.

"With the two previous rate cuts in November and December being passed on in full by the banks, it is reasonable to assume that many borrowers expected a further cut.

"Instead, mortgage rates were actually increased in the following week, with banks raising mortgage rates by an average of 0.10 per cent," he added. "It is likely that this reversal has impacted confidence."

The hit to confidence also follows news that the economy shed 15,000 jobs in February while economic growth fell well short of expectations in the fourth quarter of 2011.

The economy scratched out growth of just 0.4 per cent in the fourth quarter, confirming that it is growing at a pace well below that expected by the RBA, and at a rate that may not be sufficient to avert further upticks in unemployment.

The RBA already expects unemployment to rise to 5.5 per cent by mid-year from 5.2 per cent currently.

Some economists say that forecast is starting to look overly optimistic, with significant job-shedding already taking place in areas of the economy such as manufacturing

So 579, are you now saying that you agree that all is not well.

I recall you recently told me to 'relax' as things were nit as bad as some might think.

Well, the mail is that rates will be cut, by as much as 5 points.

I am afraid this will be to little to late, and that's assuming the banks pass any rate cuts on.

In any case, any rate cut will be swallowed up by increases brought on by the soon to be introduced carbon tax.

Or are you still, in denial there to?

Can't imagine how a company, servicing the likes of Ford can go broke.

I guess it's like many businesses, whereby their costs have got out of hand.

I am afraid they are just the tip of the iceberg, as there will be plenty who follow suit.

Then what do you suggest we do, shut the gate after the horse has bolted perhaps!

My tip is we are headed for another recession.

Boy, this time I hope I am wrong.

Sorry 99, or 579 or whatever, but rehctub is right.

“Can't imagine how a company, servicing the likes of Ford can go broke.”

I don’t expect you to have any comprehension of manufacturing principles however; we do invite you and relish the opportunity for you to articulate any understanding you may have in relation to this matter.

Most manufacturers operate KanBan, which is part of the JIT manufacturing system. This system is managed and governed by the ISO 9000 and AS 35XX Quality control standards.

Each supplier to the supply chain is required to commit to, and guarantee compliance with the internationally certified standards. These require that not only will the product you supply be available to the JIT MFG process at the precise time and location to meet JIT specifications. It also requires that as a SUPPLIER, you are contracted to maintain financial viability and as a good corporate citizen (with specific contractual obligations). In the event that as a supplier, you are no longer compliant with the international quality control standards, you are legally obliged to notify both your upstream and downstream contractors.

So my little ignorant, illiterate and very vocal gob smacker, perhaps you might offer some insight as to why and how the due process of internationally recognized processes were a) bypassed b) interfered with c) ignored or d) politically overridden?

Before you go off into one of your traditional gobbledygook responses, let me offer both a word of caution and a clue. TRADE UNION INTERFERENCE!

Before you respond with something that causes you even more embarrassment, might I suggest you do a little research first?

Just a suggestion. Ready when you are.

We have a recognition award waiting for you, the “Troll of the Week Toady Award”

Yes spindoc, this 'shifting of the goal posts' (changing IR laws and or government/union intervention) is what causes much of the concerns and problems associated with running the modern day business, and it is something these guys simply don't understand.
G
Take a company that wins a contract to service the needs of a large company. Let's call it Ford.

They usually go to tender and, a major portion of their planning is thier staffing costs.

So off they go, investing millions and all is well.

Then, along comes one Julia Gillard, and her union buddies who, after having been sidelined for more than a decade, simply had an axe to grind with regards to IR laws.

Now one has to ask, pre FWA legislation, were the workers happy with their arrangements. Obviously they must have been, or why else would they have worked there for twenty plus years.

So, in come the changes, in come the unions and whamo, the bottom line is slashed, because the likes of Ford simply can't afford to pay any extra for their car parts, as they to are effected by the changes to IR, so this company has to take the loss.

They have to take this loss, as they have millions invested and dont have the luxury of just walking away.

Now it's not only this project that is effected, but often, this company won't take that risk again, as the uncertainty about costs is to greater risk, as these costs, along with rates, fees and consumables, have become to unpredictable.

Continued

Continued

Another example of this is the transport industry.

Many have invested up to half a million in their rig, or more, and now they look set to loose their 19c per Lt fuel rebate.

Take an interstate semi, doing three trips per week Bris to Sydney region.

Round trip, 2200 Km, 3 trips per week, that's around 28000 Km per month.

That's 340,000 Km per year, 2.5 Lt per Km, that's 850,000 Lt @ 19c = $161,500 per year, off the bottom line, and that's before any price rise, by way of the carbon tax.

Remember, this is a one man, small operation.

Spare a thought for those with multiple trucks.

I heard just yesterday that one company closed recently, they owned one thousand semis/trucks.

Imagine their fuel rebate loss.

They simply don't get it and have no idear of the pain caused by government intervention.

While our life blood may be our mining, another industry suffering from shifting goal posts, the actual blood of our nation, is our transport industry, as everything we eat, drink, use or wear spends time on a truck.

The loss of this rebate will cause just bas much pain, if not more, than the carbon tax will, yet it appears to be slipping under the radar somewhat.

rehctub, the issues you just addressed are also compounded by the fact that many of the 16,000 rules/regulations changes imposed this bunch of sixth form goons, are often implemented DURING the FY.

So you start off the FY with a plan to succeed and before you even get to the EOFY you realize your plan has gone down the gurgler because the business assumptions were changed. Doh!

It’s also fascinating that so many on OLO who pontificate on business issues sound just like Gillard, Combet and Swann et al? Wonder if there is a message here?

The ALP plan to get themselves into “small business” is to start off with a “big one”!

Heaven help Australia

Verbal diarrhea. Butch and spindoc.
Why should the tax payer support fuel subsidies for miners.
Commercial trucks will pass on the costs.
IR laws are farer now than with workchoices. Even TA says that.
God only knows what that has to do with ford; unless you think the place is full of duds.
Best you keep your eye on what is happening in QLD.

579, please explain just how on earth the transport company can pass on that extra expense.

It works out to over $1000 per trip, that's over three Gand per week.

Now as for you, or anyone for that matter, who cringe about these companies getting subsidies, just bear in mind, if any of the above are on a health care card, family assistance, an aged pension, or any form of welfare what so ever, it is the likes of these 'risk takers' that not only provide the jobs out there, but also subsidize the many handouts that are all to often, taken for granted.

You my friend have no idea of how business runs, or the kayos the likes of this 'I'll constructed' plan can cause.

But then again, you can be excused, as you hold the dilutional belief that the carbon tax will simply 'slip in ' un noticed and not have any effect what so ever on the way we run businesses, or the way we live our lives.

Continued.

Continued. GY, if you're here, you really need to review this 350 limit.

Spin doc,
you are dead right in what you say.

A business owner should be able to go into business, with the comfort of knowing that all expenses, including wages, are linked to CPI adjustments.

At least this would give business the confidence to borrow money for the purposes of taking the risk.

I know a guy who had three restaurants, all doing quite well.

The day the new IR laws came in to effect, he lost $100,000 off his annual bottom line.

He closed one, sold another and now finds himself in a better position, as he has 30 odd less staff and no longer pays pay roll tax.

Unfortunately, he no longer opens on public holidays, as he simply can't make money.

His staff are upset, because they were very happy with the former pay deal, it's just that Julia and her unionists had an axe to grind.

And havnt they ground it with this, the hospitality industry.

The shameful part of all this, is that due to the billions WASTED this government is finding new ways to tax the very people who take the risks and provide the jobs along the way, many of which are simply taken for granted. But not for to much longer, I would suggest.

Butch old boy you must have nightmares. Of course fuel costs will be moved on, or put the truck on gas.
Miners have got them-self in strife with the gigantic wages they pay out, to steal labour from industry.
If restaurants can't pay appropriate wages they are in the wrong business.
The country is overrun with bakeries and restaurants, everyone expecting to make huge profits, no matter where they are situated.
The unemployment figures do not reflect your dire remarks.
Job ads exceeded 200,000 for march.
So your problems i suggest are state issues.

Hey rehctub,

I think I’ve finally cracked the 579 code.

5+7+9=21 x mental age (x7) = 147

Therefore 147 x 2pi FL divided by 579 = 0.277

Therefore 0.277 x temp coef. of copper @ T degrees C = 597

The other way is to ask 579 the question “what time is it?” which will guarantee the answer “it’s a long green one with a zipper down the side”.

This appears to be the only way to keep the ambiguity and the relevance in the box at the same time.

Well 579, we will just have to wait to see who is right.

Boy, I hope for everyone's sake, you are right.