The Australian manufacturing industry and local jobs are about to take another hit when a Macarthur engineering firm closes down just two days before Christmas.
At its peak five years ago Strassmeir Industries employed 65 local people.
But on December 23 this family owned business which has been operating for more than 40 years will be no more.
Its closure, blamed on cheap imports from China and lack of government support for local manufacturers, has prompted new calls for action to protect local jobs.
“We have worked in this industry all our lives so it is with great sadness we make this decision,’’ says Max Strassmeir, who owns and operates the company from its Williamson Road, Ingleburn premises with his two brothers, Karl and Josef.
“It is with much thought and great regret we have decided to close our business on December 23, 2016.
“Over the last half dozen years constant competition from China and the decline in mining and metal manufacturing in Australia has seen our business downsize to only having 20 employees.
[social_quote duplicate=”no” align=”default”]“Now we want to close before things get so bad we end up with nothing and we can’t pay our employees their entitlements,’’ Mr Strassmeir said.[/social_quote]
“We decided to close 12 months ago but said we’d give it another 12 months – but you make a profit one month and losses two months, so it’s not enough.
“Now there’s only a couple of manufacturers left here in Williamson Road.’’
Mr Strassmeir said the decline in local manufacturing started 20 years ago, fuelled by the rise of China and when our governments stopped buying local.
“Why can’t the government say – we don’t want 100 per cent of these – of all the large jobs 40 or 50 per cent have got to be Australian made and the rest can be sourced from overseas,’’ he said.
Local community leaders agree with him.
“We believe that one of the criteria that should be used in assessing government tenders is whether the awarding of the contract to an overseas supplier is likely to cause a loss of employment to local industry,’’ says Mr Jim Jelich, the president of the Ingleburn chamber of commerce and industry.
“If so, then the cost to government of that loss should be taken into account in assessing the tender (i.e. a holistic approach should be taken in the tender process).
“If such a process were undertaken then we may not see some of the results we have seen to date (i.e. is the government really saving money or is it only a short term save for a long term loss).
“The additional criteria could be easily incorporated in the tender applicants submission for the tender,’’ Mr Jelich said.
Local MP Anoulack Chanthivong says it’s time the State Government put local jobs first.
“I am sad to hear a local company is closing down and my thoughts are with the workers and the owners at this difficult time,’’ said the Member for Macquarie Fields.
[social_quote duplicate=”no” align=”default”]“The current Coalition Governments put local jobs and industry last – just look at the decision to award the contract for 600 train carriages to South Korea.[/social_quote]
“We should have used Australian steel for this job instead of this short sighted approach of going for the cheapest tender.
“We make high quality steel in Australia and we should support our local industry at all levels,’’ Mr Chanthivong said.
The mayor of Campbelltown George Brticevic agreed that governments should support local manufacturing wherever they can.
“It is sad to hear of people losing jobs, especially so close to Christmas,’’ Cr Brticevic said.
“But we must remain positive and support the creation of new industries and jobs, such as the Perich milk processing plant in Williamson Road, which will export milk products to China.
“But it still doesn’t lessen the disappointment of good local companies like Strassmeir Industries closing down and the loss of jobs that comes with that.’’
Current councillor and former Campbelltown Mayor Paul Lake, who is a big supporter of a plan to create 5,000 job in a business park near the CBD, says that when it comes to local manufacturing jobs Australia needs a dose of Trumpism.
“We need someone like a Trump here to shake things up,’’ he says.
“Governments used to buy a minimum of 5-10 per cent local, and that’s gone now.
“The future jobs aren’t all going to be in IT.
“We have to make things in this country and governments have to support that,’’ Cr Lake said.
“But we will need someone like a Trump to shake up the system and make the changes that are needed.’’
Max Strassmeir says governments stopped buying local long before the end of the mining boom.
“Governments should be the leaders in making sure that what they purchase is Australian made,” Mr Strassmeir said.
“But unions have also crucified a lot of industries, it’s not just the government.
[social_quote duplicate=”no” align=”default”]“A lot of those workers, semi skilled a lot of them, who have lost their jobs will be on the dole for the rest of their lives.’’[/social_quote]
