Future rests on a smarter workforce
Australia, like many countries, is at a crossroads on how its people earn a decent living.
The worldwide financial crisis has accelerated the effects of a trend where globalisation is forcing manufacturers to rethink how they do business.
The loss of 1850 jobs at Pacific Brands - owner of such well-known labels as Bonds, Holeproof, King Gee and Hard Yakka - is a terrible blow to the workers, their families and their communities.
But, sadly, it is not a big surprise. Nor is it the fault of the hard-working employees, who have been dealt a terrible blow by the vagaries of the global economy.
It is the harsh reality of the modern world in which Australia is exposed to competitive pressures from countries paying lower wages or using more efficient methods.
Our integration with the global economy also means Australian companies are increasingly exposed to the fortunes of parent or sister companies overseas.
We saw this with Mitsubishi.
We see it again in Holden being under pressure because of General Motors in the U.S., rather than any shortcoming in operations here. Decisions in Detroit have a direct impact on the shop floor at Elizabeth.
These trends clearly show there is no such thing as a state or country in isolation. It is a global marketplace for goods, services and workers.
We can respond in two ways - either try to stop the tide or seek ways to ride the crest to new prosperity.
The wrong way would be for Australia to try to put up the shutters and hide from the big scary world. Instead, we must embrace the challenge of change.
China, India and eastern Europe will beat us on labour costs every time. So, we must pick other ways to compete - such as quality, innovation and flexibility.
Many companies are already doing this. Hills Industries has reinvented itself from being a manufacturer of washing lines to being an electronics innovator. Optimatics (water management), Codan (radio) and Levett Engineering (aircraft components) have carved niche markets for high-value products.
Our best hope is a highly educated and skilled workforce which stays ahead of the game. There is plenty of opportunity for the most sophisticated - and best-paying - parts of the manufacturing chain to be performed here.
We must invest as much as we can in education now to build that workforce and forge a manufacturing base that can withstand the shocks of the future.
The Advertiser, Friday 27 February, 2009
