Building and Construction Forecast for 2012-2013, South Australia

The last year has been incredibly volatile for the construction industry domestically and abroad. The next 12 months are critical for the long-term future of South Australia's building and construction industry.  Demand seems to be weakening in the the residential and commercial sectors. The most dominant sector of growth in South Australia is still engineering construction.

What about residential? It seems that the residential construction industry is going down hill in a hurry. The number of unit starts last financial year was down over 30% from the previous financial year. It was the lowest number recorded in almost a decade! The industry is hoping that cuts in interest rates and stimulus for multi-residential developments in Adelaide by the Government will boost the sector but optimism is low. The best we can hope for over the next couple of years is a stable market as opposed to a downward spiral.

On the commercial side of things, delays and concerns about the Olympic Dam expansion project have hit an already faltering sector with a bludgeoning blow. Negative capital growth is expected for at least 12 months if not 2 years. On the plus side, office vacancy rates in Adelaide CBD are holding up nicely at 7.7%. It is likely though that this has a lot to do with a lack of new supply as opposed to strong demand.

So what can we gather from all this? Well if you are a business moving into a new office in Adelaide, it might be a good idea to sign as short of a lease as possible. With such a volatile market, you could find yourself paying a lot more to lease your office space and furniture assets 12 months from now than the going market rate.

Local Storage Facility Adelaide, South Australia

Highly secure, dry and accessible storage catalogued and managed. With our asset management tracking process, Egans can pick and deliver your items to and from our facility via email request from our clients. We provide our customers with an up to date catalogue of their office furniture and other assets with bar codes, descriptions and pictures to correspond. This asset register is updated every time an item leaves or enters our facility.

We take security and confidentiality very seriously at Egans, as the majority of our clients are are a combination of public and private entities.  We understand that archiving is a legal requirement for many businesses and we offer a solution for the tracking and safe keeping of these documents. If you would to receive more information or a copy of our Record Management Policy, please contact us below;

info@egans.com.au
0403 342 002

Timber Workers Raid Government Building in Adelaide

The forestry union met with the South Australian Premier but the meeting failed to end the protest. Its all about the sale of harvest rights of timber to the American owned timber company the Campbell Group. Local timber businesses are finding it very difficult to compete with the international invasion of business. It's typically the local mining and forestry industries that find competition, well... difficult to swallow.

The protest made it's way into South Australia's State Administration building yesterday. The government is of the opinion that the tax payer is propping up Carter Holt Harvey with enormous money inputs and no output to show for it. The Government is prepared to assist the company to improve it's technology and thus products, but to just throw Australian's hard earned cash into Carter Holt Harvey's pocket again and again is very difficult to digest.  Carter Holt Harvey blames high log prices for their businesses inefficiencies and lack of competitive edge. The Government offered them a $27 million bailout last year.

Unfortunately, the problem is not that simple. Companies that can't remain competitive because of their bad management practices or unionised deficiencies can only improve with a cultural shift. Throwing money at the problem is no different to throwing your your income tax into the chip-mill each year.