There goes another one.

[red750]

We've seen manufacturing in Australia disappear for years. And now, another one.

 

Plastics manufacturer Qenos was placed in the hands of liquidators and sold to an unnamed buyer who has no interest in returning the company to production. Qenos manufactured plastic used in household goods, such as wheelie bins, and in solar panels. They were the only company making these goods in Australia.Once again we are forced into importing these things we are able to make here. The company plants in Melbourne and Sydney will be closed down with the loss of hundreds of jobs. Just when Albo is calling for a return to manufacturing in Australia. It is claimed the increasing cost of electricity is the cause of the company going under.

[spenaroo]

yep,

same reason the foundry closed where we were getting castings.

we are in no way cost competitive on a world stage for raw manufacturing.

and will never be unless there is subsidy and a massive shift in power prices.

 

the death of the car industry was the cliff. once they let it fall we lost all the knowledge, experience and facilities.

(all those factories lost to the urban sprawl, snapped up by property developers. where would you build the plants now)

will take a generation to grow it back to where it was, and even if we did the world has moved on.

Edited April 18 by spenaroo

[red750]

This time in W.A.

 

https://au.yahoo.com/finance/news/home-builder-collapses-60-years-105800826.html

[red750]

A caravan maker as gone into liquidation despite a seemingly modest debt.

Victoria-based Highline Caravans Pty Ltd took voluntary liquidation on Tuesday owing $1.14million across almost 60 creditors. 

Highline Caravans owes $235,000 to the Australian Taxation office and a further $766,000 to 58 creditors, including Victoria's State Revenue Office. 

The company built custom caravans from a factory in Campbellfield, 13km north of Melbourne, with customers able to choose from 13 different models. 

[old man emu]

From what I've seen dealing with small businesses that make or fix things is that the creators of the businesses are usually very good at doing the making or fixing, but are just about completely lacking in the skills needed to keep a business functioning. Hardly any have a documented business plan, nor any plan to monitor trends in their business activities. Most operate on a "management by crisis" basis. Even those businesses that manage to exist year after year are more often only keeping their heads above water. Very few are walking on it.

 

When company folds with debts that Red calls "seemingly modest", I start to think about the other small businesses who are owed money and who themselves are likely to be in debt to their suppliers. I am also concerned about the fate of the employees of a failed business. If the business fails financially, it indicated a failure in financial management. I wonder, where is the money to pay wages, holiday pay and super?

[spenaroo]

Eh, I see the whole industry collapsing.

went completely nuts during Covid. could not build them fast enough.

and so many new brands and smaller brands expanded.
there are more caravan dealerships then car dealerships in my area....

last 4wd and camping show none of them were under 100K. (except the humble Jayco)

I know they had order books full for 2 years...

but a lot has changed in 12 months and would be surprised if the market hasn't crashed with the rise in interest rates.

question is why it failed? did they continue cranking them out and have a bunch on lots unsold, that killed the cash flow?
consignment interest rates are horrendous

Edited May 9 by spenaroo

[red750]

50 minutes ago, old man emu said:

debts that Red calls "seemingly modest",

Not my assessment, O.M.E., a copy and paste from the Daily Mail.

 

I know its onerous, but isn't failing to pay your taxes and state duties the first thing to get you behind the eightball?  I do agree about the consequences for other businesses relying on you.

[spacesailor]

" failure to pay taxes " .

Even when the books say ' credits are far more than the tax ' , your doors will be locked to stop you getting the money owed to you , & payment to your creditors .

Happened at least twice , possibly three times in Toongabbie nsw .

The only time you 'are guilty untill you prove your Innocence ' .

spacesailor

[spacesailor]

NOW , 

Air Vanuatu is grounded. 

TV news at this moment. 

spacesailor