As someone who has a passion for all things engineering and manufacturing, and who has spent the past 20 years helping companies in this sector to grow, I welcome the announcement today that according to JP Morgan and Markit Economics global manufacturing is on the rise. Just.
The down side is that – if I may be political – under this Federal Government, Australia has become less and less competitive and businesses are drowning in a massive increase in regulations, legislation as well as union pressure which always seems to come from a Draconian land-of-the-dinosaurs direction.
Apparently (50 points is like zero, not growing or decreasing) the world’s manufacturing is sitting on 50.6 points. And it has been creeping up for the past 6 months. It was on 49 in May. The researchers said there were “solid rates of expansion” in the US, Japan, UK, Russia, Mexico (which is raising its head as the ‘next China’) and Switzerland. On the other hand Asia is slowing down. Bad news for us.
Even tho’ our dollar has fallen our manufacturing industry is suffering because it has been ignored for the past 6 years. A sudden fluctuation in the $ is not an instant life line. Rudd is going to have to be a lot more innovative and supportive than relying on the $. But, he didn’t have answers in ’07 and I doubt he will now.