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Saturday, 6 January 2018

Death of an industry


And that, sadly, is that.

Australia's auto production industry is no more. 

The Federal Chamber of Automotive Industries (FCAI) monthly figures recorded the production of one solitary vehicle in November. 

As recently as 2013 it was common to see 15,000-20,000 vehicles per month rolling off production lines.

However, the persistently strong Aussie dollar and high cost of manufacturing in Australia ultimately proved to be an obstacle too far.  

The Department of Employment projected that the factory closures at Elizabeth in Adelaide (Holden) and Altona in Melbourne (Toyota) could cost 27,500 jobs over the years ahead.

Many in the industry have been employed for more than two decades.

And consider how the world has changed since that time - there was no LinkedIn of Facebook back then, for example, and job applications were submitted on paper.

While the full impact on supply chains is as yet unknown, and despite some better industry readings of late, the manufacturing industry remains in a structural decline, with total employment falling again in 2017

I took a look at here at where future growth will come from instead.