The state of the economy at the street level

Smurf1976 · 8 July 2015

Another example of where we've gone wrong.

http://www.themercury.com.au/busine...it-over-gas-deal/story-fnj6eg8g-1227433163254

It has been said that Qld will lose a lot of construction jobs as the LNG plants are completed. Nationally, we're going to lose a whole lot more once they start actually exporting gas.

However many jobs are created through gas export, we'd have a whole lot more if we used it here to manufacture things instead of just selling the resource.

sptrawler · 8 July 2015

Smurf1976 said:
Another example of where we've gone wrong.

http://www.themercury.com.au/busine...it-over-gas-deal/story-fnj6eg8g-1227433163254

It has been said that Qld will lose a lot of construction jobs as the LNG plants are completed. Nationally, we're going to lose a whole lot more once they start actually exporting gas.

However many jobs are created through gas export, we'd have a whole lot more if we used it here to manufacture things instead of just selling the resource.

That would by why onshore processing would be better, but neither Federal Government cared about that, as long as we get something we're happy.

Loser mentality.IMO

There should be some foreign investment rule put in place, to stop major importers of our resources, tanking the price to mop up our companies.

It boils back to market manipulation, which is difficult to combat, when you are fighting for free trade.

sydboy007 · 8 July 2015

sptrawler said:
Can't argue with that.

Also China will be buying up a lot of our struggling businesses.

Funny isn't it, we cranked up output, in reply to China's cry for resources.

Now they don't want them, they want to buy up the companies, and own the resources.

Wow that's clever.lol

It doesn't just apply to resource companies either, they will be buying any valuable asset, that is struggling.IMO

It is difficult to ask for a level playing field, when one side is publicly funded, and the other has a central governments bankroll.

It will end up having a huge effect on our standard of living, but I for one, have no idea how we can stop it.

You mean the China FTA that allows Chinese companies the same rights to buy up in Australia as NZ / UK / USA?

The same China FTA that allows workers in the below occupations from proving they have the appropriate skills when the Chinese companies make a claim to be investing in a large infrastructure project and entitled to increased labour flexibilities for specific projects:

Automotive electricians;
General electricians;
Specialist electricians;
Cabinetmakers;
Carpenters;
Carpenters and joiners;
General motor mechanics;
Diesel motor mechanics;
Motorcycle mechanics; and
Joiners.

What other country would allow it's leadership to sell them out so fully? Why do Australian workers have to compete directly in their own country with imported Chinese labour?

The skills shortages report from the Department of Employment, released in March, also revealed that “employers continued to recruit skilled workers with little difficulty”, “consistent with the softness in the labour market”. Further, “with the demand for skilled workers relatively subdued over the past few years, and historically high numbers of graduates entering the labour market from both higher education and vocational education and training, long standing shortages across many occupations have been addressed”.

sptrawler · 8 July 2015

sydboy007 said:
You mean the China FTA that allows Chinese companies the same rights to buy up in Australia as NZ / UK / USA?

The same China FTA that allows workers in the below occupations from proving they have the appropriate skills when the Chinese companies make a claim to be investing in a large infrastructure project and entitled to increased labour flexibilities for specific projects:

Automotive electricians;
General electricians;
Specialist electricians;
Cabinetmakers;
Carpenters;
Carpenters and joiners;
General motor mechanics;
Diesel motor mechanics;
Motorcycle mechanics; and
Joiners.

What other country would allow it's leadership to sell them out so fully? Why do Australian workers have to compete directly in their own country with imported Chinese labour?

The skills shortages report from the Department of Employment, released in March, also revealed that “employers continued to recruit skilled workers with little difficulty”, “consistent with the softness in the labour market”. Further, “with the demand for skilled workers relatively subdued over the past few years, and historically high numbers of graduates entering the labour market from both higher education and vocational education and training, long standing shortages across many occupations have been addressed”.

Well I am sure this has been happening prior to this Government taking office, I don't agree with it, but to lay it all at the feet of this Government is misleading.

As for other Countries workers, having to compete with imported cheap labour, Germany has been using cheap Turkish workers for years. In their car manufacturing plants.

It is`a bit like the extension I'm putting on my house, the gyprock fixers are all Chinese the sanders are Chinese, they are working for an Aussie company.

I needed some extra gyprock work done, so asked an aussie guy how much for a weekend job? He came in 30% higher than the bonafide company.

Then the guy rendering the outer wall asked if I wanted the outer wall texture coated $2,200. The company that texture coated the upper floor, quoted $1,300.

I think a wage shock is comming.

Another example, the roof guys putting on the colour bond, were N.Zers, I asked them how they were finding it here.

They said it's great, in Auckland they were paying $500/wk rent and only earning $15/hr, doing the same job.

Maybe everyone is living in a fools paradise, I think they are.

Tyler Durden · 16 July 2015

Hooters in trouble:

Several companies with ties to entertainment venue Hooters Australia have fallen into voluntary administration, including five companies linked to individual restaurants in New South Wales and Queensland.

According to notices published by the Australian Securities and Investments Commission, Hoot Australia entered voluntary administration on Tuesday, with Neil Cussen and David Lombe from Deloitte appointed to manage the administration.

Cussen and Lombe have also been appointed administrators of Hoot Campbelltown, trading as Hooters of Campbelltown; Hoot Parramatta, trading as Hooters of Parramatta; Hoot Penrith, trading as Hooters of Penrith; Hoot Townsville and Hoot Gold Coast.

The company numbers of these five entities match those previously listed on the Hooters Australia website and seen by SmartCompany this morning. However, the ‘Our Locations’ page on the Hooters Australia website is not currently available.

A spokesperson for Hooters Australia told SmartCompany this morning all Hooters Australia restaurants are still trading and said the Hooters franchise in Australia is owned by a different entity that is separate for the companies that have been listed in the ASIC notices.

http://www.smartcompany.com.au/fina...alia-fall-into-voluntary-administration.html#

Klogg · 16 July 2015

Smurf1976 said:
However many jobs are created through gas export, we'd have a whole lot more if we used it here to manufacture things instead of just selling the resource.

We could, but the reality is the cost of labour is far too high in Australia. I imagine as the dollar falls further, this will become less of an issue.

craft · 16 July 2015

Tyler Durden said:
Hooters in trouble:

Hooters gone Bust

sptrawler · 16 July 2015

craft said:
Hooters gone Bust

Yep, apparently they couldn't stay abreast of their balance sheet.

DeepState · 16 July 2015

sptrawler said:
Yep, apparently they couldn't stay abreast of their balance sheet.

Perhaps they were anticipating a bounce in demand? But, ultimately, the demand for bounce did not materialise as had been hoped?

sptrawler · 16 July 2015

Yes the underlying support definitely wasn't there, which ultimately ended up in a declining product.

Back on topic, I was in the city today(Perth), I couldn't believe the lack of traffic. The roads were absolutely dead, I didn't even have to wait for the green man, to cross the roads amazing.

I haven't seen anything like it for years.

Smurf1976 · 16 July 2015

Klogg said:
We could, but the reality is the cost of labour is far too high in Australia. I imagine as the dollar falls further, this will become less of an issue.

Trouble is that by committing virtually all the gas to export, we won't be using it to manufacture things no matter how far the AUD drops.

Big users are having trouble securing long term gas supply at any price, well at least any price that's even remotely sensible, these days. We've thus effectively locked ourselves out of any sort of manufacturing that needs a lot of gas, and that covers a lot of sorts of manufacturing, at least unless someone's able to pay enough for gas to divert it away from export (and then there's the issue of there being contracts covering that export volume).

AUD at 70 cents won't do it. 30 cents maybe, but that's getting rather drastic.

Smurf1976 · 17 July 2015

sptrawler said:
Back on topic, I was in the city today(Perth), I couldn't believe the lack of traffic.

Is it school holidays in WA at the moment?

It is here in Tas, and there's a very noticeable lack of traffic on major roads during commuter times. Always happens that way - it's not only the kids who are on holiday, quite a few parents take that time off from work too hence the drop in traffic.

sptrawler · 17 July 2015

Smurf1976 said:
Is it school holidays in WA at the moment?

It is here in Tas, and there's a very noticeable lack of traffic on major roads during commuter times. Always happens that way - it's not only the kids who are on holiday, quite a few parents take that time off from work too hence the drop in traffic.

Good point, I wouldn't have thought it would make such a dramatic difference.

sinner · 19 July 2015

Here is a "street level" thought I had today while walking about the Inner West of Sydney.

Basically everyone knows about the "aging population" demographics, and so they are all investing in healthcare and retirement REITS and whatever.

But, for those who sometimes have the freedom to go to the local shopping complex during a weekday will have noticed, basically it is the aged population that is keeping the consumer economy going from 9-5pm while younger demographics are slaving away in their offices!

So, is the local Woolworths/Coles/Westfield also an interesting "aging population" demographics play? Daycare for the older generation with not much happening?

qldfrog · 20 July 2015

sinner said:
But, for those who sometimes have the freedom to go to the local shopping complex during a weekday will have noticed, basically it is the aged population that is keeping the consumer economy going from 9-5pm while younger demographics are slaving away in their offices!

Being without contract, and my wife made redundant a fortnight ago [as well as her whole team working in an office for a Qld organisation], we "enjoyed" and shared that feeling about 60y+ at the mall during the week; actually many younger too here in qld...
(that is for the street lkvel snapshot)
but the question is are these pensionners really spending much, or even anything? I do agree they are where the disposable wealth is and not in taxed job slaves /younger couples who are feeding CBA dividends, but the spending is still minimal.

sinner · 20 July 2015

qldfrog said:
Being without contract, and my wife made redundant a fortnight ago [as well as her whole team working in an office for a Qld organisation], we "enjoyed" and shared that feeling about 60y+ at the mall during the week; actually many younger too here in qld...
(that is for the street lkvel snapshot)
but the question is are these pensionners really spending much, or even anything? I do agree they are where the disposable wealth is and not in taxed job slaves /younger couples who are feeding CBA dividends, but the spending is still minimal.

Good perspective from QLD, thanks.

Around here, what I have noticed is that in general almost all the shops are only open between 9-6pm. By the time wage slaves knock off work and make their way to Broadway Shopping Centre, Marrickville Metro or other nearby shopping precints, the only thing that still open are:

* Woolworths/Coles
* McDonalds/KFC
* Kmart/BigW/Target
* Nearby resturaunts/bars/etc

So surely, to the extent that businesses aren't shuttering their doors and still paying rent, the cashflow in their books must be coming from the aging demographic?

sptrawler · 21 July 2015

Smurf1976 said:
Is it school holidays in WA at the moment?

It is here in Tas, and there's a very noticeable lack of traffic on major roads during commuter times. Always happens that way - it's not only the kids who are on holiday, quite a few parents take that time off from work too hence the drop in traffic.

Well smurph, went back into Perth CBD today, to pick up the Chinese visa. School holidays are over.

Traffic still really low, there is definitely a downturn in the CBD.IMO

sptrawler · 29 July 2015

Things don't look as though they will improve, any time soon, in the mining sector.

http://www.watoday.com.au/business/...e-job-cuts-mine-closures-20150728-gimm93.html

Let's hope the housing sector doesn't fall over.

nioka · 29 July 2015

There used to be a saying during the depression, " Things are crook at Ballarook and they are 0ut of work at Bourke". Things ARE crook. Here is one aspect.

I own a commercial property that is tenanted. The tenant wants out and cant sell the business because it is no longer profitable. Last week we tried to auction the property with vacant possession. After extensive advertising we got no bid. This is prime real estate, large block with 3 street frontages and great exposure. We were prepared to take a "hit" of around $200,000 to sell.

Talking to one agent he told me that he has several businesses listed for sale and none of them are capable of making a decent wage. Told me that he went to list a business last week. The owner's partner was "minding" the shop while to business owner was "over the road" working at a coffee shop to earn some cash to pay the rent on her own business.

Things ARE crook.

Small businesses are plagued by people shopping and trying out for size and suitability and when they decide what they want they get on the internet for a better price. They are giving the service for someone else to make the sale.

If you are one of those that shop this way then don't expect the local business to still be there for your convenience.

sptrawler · 29 July 2015

nioka said:
There used to be a saying during the depression, " Things are crook at Ballarook and they are 0ut of work at Bourke". Things ARE crook. Here is one aspect.

I own a commercial property that is tenanted. The tenant wants out and cant sell the business because it is no longer profitable. Last week we tried to auction the property with vacant possession. After extensive advertising we got no bid. This is prime real estate, large block with 3 street frontages and great exposure. We were prepared to take a "hit" of around $200,000 to sell.

Talking to one agent he told me that he has several businesses listed for sale and none of them are capable of making a decent wage. Told me that he went to list a business last week. The owner's partner was "minding" the shop while to business owner was "over the road" working at a coffee shop to earn some cash to pay the rent on her own business.

Things ARE crook.

Small businesses are plagued by people shopping and trying out for size and suitability and when they decide what they want they get on the internet for a better price. They are giving the service for someone else to make the sale.

If you are one of those that shop this way then don't expect the local business to still be there for your convenience.

Your not an orphan nioka, a mate of mine sold up his business premises, couldn't sell his business despite it being there for 40 years.
There is some real shocks coming, to our way of life, that only those over 60 understand.IMO

Our saving grace is, we have a great climate, are geologically isolated and have a small population.

Someone will buy us. lol

The state of the economy at the street level

Smurf1976

sptrawler

sydboy007

sptrawler

Tyler Durden

Klogg

craft

sptrawler

DeepState

Multi-Strategy, Quant and Fundamental

sptrawler

Smurf1976

Smurf1976

sptrawler

sinner

qldfrog

sinner

sptrawler

sptrawler

nioka

sptrawler

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