By The Editor
The manufacturing industry is facing incredibly tough times at the moment, as the impact of the high Australian dollar plus a combination of other issues force many companies to cut back, necessitating many job losses in Victoria.
The latest manufacturer to feel the pressure is Alcoa, which has announced a review into the operation of its Point Henry aluminium smelter in Geelong, which employs about 600 people.
The review will be complete by the middle of the year, and Victorian Premier Ted Baillieu is seeking to meet with Alcoa’s Australian managing director Alan Cransberg to put the case forward for keeping the jobs in Victoria.
Alcoa is only the latest company to announce either a review of operations or job losses, as national and international companies strive to remain competitive in the global marketplace.
With an exchange rate at historically high levels and indications it will remain high for at least the rest of 2012, there are no easy solutions that will allow manufacturers to remain competitive while keeping and growing employment in the Victorian manufacturing industry. Overseas importers will continue to look at alternatives to Australia while the value of the dollar remains high.
There have been calls at federal and state level for governments to do more to intervene and support the retention of manufacturing jobs, such as upskilling workers or promoting innovation. These initiatives can and will assist the industry, but it cannot thrive without governments, industry and unions all pushing for the same outcome – a competitive industry that continues to invest and employ Victorian workers.
As all parties have identified, manufacturing closures and job losses will have an undesirable flow-on effect to other parts of the economy. The next few months are for constructive solutions to ensure manufacturing continues to play a key role in Victoria’s economic prosperity.
