Blog: Manufacturing - not for everyone, but the way ahead for others

IT'S not unusual for a manufacturing company to be bought by accountants. These professional service providers have the skills and opportunity to see where profits are made and the ways that wealth can be distributed. What they do not see, and generally do not understand or appreciate, is the technical and engineering knowledge and skills that, year after year, make the business successful. The history of some of the best known boat building companies is evidence of this trend.

There seems to be an obsession by the non-manufacturing section of our industry about Australian manufacturing. So who is it that keeps bleating about Australian manufacturing? Is it the importers, and those that flog their product, outboard motors for example? And why do they do this? They rely on Australian small businesses to retail and service their imports, however, with the influence they can exert on state BIA associations, and the media, I am not so sure if their reasons are not political. What else would cause those associated with these importers to complain about the demise of Australian manufacturing?

One boat manufacturer told me now is time to make their boats offshore; to be an Australian designer, and manufacturer, sell an enhanced product, and make better money. It was hinted that they were in discussion with overseas outboard dealers with regards to importing the boats with the motors fitted. This has been the way with inboard engine craft.

The question for the present outboard importers - do they want the sale of these boats , spares, and the associated servicing of these motors to me done by their legally authorised agents, or risk a parallel system developing because of customer demand? No outboard servicing business will knock back a chance to service these imports, provide the consumables and spares. There seems to be no problem in having so called grey imports serviced now, and it would be a saviour for struggling businesses who make next to nothing out of new outboard sales.

Should be an interesting few years ahead!