How Australia’s manufacturing industry continues to shrink by sending jobs overseas

Sydney electrical engineer Martin Cordina, 43, has witnessed the manufacturing field transform into a dying trade, including at the printing company where he completed his apprenticeship – and no longer exists 

Factory workers across Australia fear their jobs could be the next to go overseas following nappy company Huggies’ decision to move production offshore. 

Parent company Kimberly-Clark Australia announced last week it will be shutting down its Ingleburn mill by the end of July which is expected to result in a loss of 220 jobs.

The company, which also has a facility in South Australia, revealed it is moving to Asia to enable ‘faster access to the latest research and engineering advancements in nappies and pants’.    

The move makes Huggies the latest Australian-based manufacturer to take its business offshore in what appears to be a growing trend among companies aiming to lower production costs.   

Electrical engineer Martin Cordina, 43, who works at Powered Innovations in Wetherill Park, NSW, told Daily Mail Australia that the industry’s move overseas has affected job security among tradies, budding apprentices, and has even altered the quality of goods.   

‘Huggies excuse was due to “research and development,” but it’s a nappy company. It doesn’t matter where the nappy is made, it’s the same technology, so it’s just an excuse for cheaper manufacturing to make more profit because the labour costs are too high here,’ he said. 

Mr Cordina, who has worked in the industry for 27 years, has witnessed manufacturing transform into a dying trade, including at the printing company where he completed his apprenticeship – and no longer exists. 

The Sydney tradesman fears the next generation will not only struggle to find jobs, but will also not be able to inherit highly-specialised skills. 

Parent company Kimberly-Clark Australia announced last week it is shutting its Huggies nappy mill in Ingleburn, NSW by July. More than 200 workers were informed the factory would be shutting down and production of the nappies would be moving to Asia (pictured above is a manufacturer in Texas, USA)

Parent company Kimberly-Clark Australia announced last week it is shutting its Huggies nappy mill in Ingleburn, NSW by July. More than 200 workers were informed the factory would be shutting down and production of the nappies would be moving to Asia (pictured above is a manufacturer in Texas, USA) 

Kimberley-Clark Australia revealed last week it would shut down its Ingleburn Mill (pictured) by the end of July – resulting in a loss of 220 jobs

‘Not only do we give away the product [overseas] but we give away the knowledge and expertise,’ he said. 

‘It’s a worry because we have to think a generation ahead. Not only do we have to think about people now – our friends, our colleagues – but we have to think about our children.

‘Are they going to be in a position to have jobs? They can go to university to get an education, but what will they use it for? Besides IT and warehouses, there will be no manufacturing, or very little.

‘I think companies need to have some degree of blame because they’re the ones wanting to make the same amount of profit, or greater, at the expense of the employees. The Government is also to blame because they’re allowing this practice to happen.’

Mr Cordina said the issue has influenced how he’ll vote in the federal election, but admits he does not think Liberal or Labor are well-suited to tackle the problem.  

‘It’s very disappointing. I’m upset… I’m angry, because not only are we sacrificing the standard of products but also safety.

‘The products that come from overseas are copies, but they’re bad copies, so someone’s safety can be at risk.’

Huggies’ departure is part of the US corporation’s ‘global restructuring program’ and comes four months after it announced it would slash 5,500 jobs globally over the next three years. 

Carl Drieman (far right) is a machine operator at recycling facility Direct Pallets in NSW, where he manufactures mulch and other wood-based products. He previously made mattress springs at Pacific Brands Group for 18 years when the company suddenly decided to take production to China

Carl Drieman (far right) is a machine operator at recycling facility Direct Pallets in NSW, where he manufactures mulch and other wood-based products. He previously made mattress springs at Pacific Brands Group for 18 years when the company suddenly decided to take production to China 

12 April 2019WWW.MATRIXPICTURES.COM.AUEXCLUSIVE PICTURES FOR DMVarious images of available factories and warehouse from near the Kimberley-Clarke Factory where the production of the 'Huggie' brand nappies is carried out. But as recent news suggested the workers at that Ingleburn factory have been told their jobs are moving to China. The area is predominately light manufacturing and fabrication and factories are quickly snapped up, suggesting booming business at least in this area.Note: All editorial images subject to the following: For editorial use only. Additional clearance required for commercial, wireless, internet or promotional use.Images may not be altered or modified. Matrix Media Group makes no representations or warranties regarding names, trademarks or logos appearing in the images.

Various images of available factories and warehouse from near the Kimberley-Clark factory where the production of the ‘Huggies’ brand nappies is carried out. The area is predominately light manufacturing and fabrication and factories are quickly snapped up, suggesting booming business at least in this area

Huggies' move is reminiscent of that of Australian-based Pacific Brands Underwear Group, also known as Bonds (pictured) which moved production to China in 2009. Bonds' closure led to a loss of 1,850 jobs across New South Wales and Victoria

Huggies’ move is reminiscent of that of Australian-based Pacific Brands Underwear Group, also known as Bonds (pictured) which moved production to China in 2009. Bonds’ closure led to a loss of 1,850 jobs across New South Wales and Victoria

Specifics over which facilities would shut were not disclosed, but union reps and workers said the Sydney mill closure ‘came out of left field’ and that there was ‘no indication’ it was heading in that direction.  

The corporation said it would continue operations at its Millicent Mill in SA where it currently employs 400 workers. 

The move is reminiscent of that of Australian-based Pacific Brands Underwear Group, also known as Bonds, which moved production to China in 2009.  

Bonds’ closure led to a loss of 1,850 jobs across New South Wales and Victoria. 

Carl Drieman, a machine operator from Sydney, had been making mattress springs at Pacific Brands for 18 years when he was suddenly laid off due to the business decision. 

Pacific Brands beds and mattresses are still produced locally but the metal springs are manufactured in China. 

‘It is a concern. If manufacturing goes offshore then there are less jobs. In our factory there were maybe 15 people, but all the wire we used came from Newcastle so those people were also affected.

‘It’s disappointing. Fewer manufacturing jobs means a lot more people are competing for jobs and that drives wages down. So even if you do get a job, the pay is not gonna be as good,’ he said. 

Mr Drieman now works at recycling facility Direct Pallets, where he manufactures mulch and other wood-based products and thanks to the niche market, he believes his job is secure.

The 50 year-old family company Dunbier manufactures boat trailers in its Melbourne headquarters.  NSW State Manager, Scott Ellison said the company relies on steel and galavanised material - which have become expensive for manufacturers due to spiking prices in Australia, causing them to raise their own prices on consumer products

The 50 year-old family company Dunbier manufactures boat trailers in its Melbourne headquarters.  NSW State Manager, Scott Ellison said the company relies on steel and galavanised material – which have become expensive for manufacturers due to spiking prices in Australia, causing them to raise their own prices on consumer products

Pictured above are the locally assembled units of trailers for its smaller range - now made in China

Pictured above are the locally assembled units of trailers for its smaller range – now made in China

President of the Australian Council of Trade Unions (ACTU) Michele O’Neil has blamed the shift in the Australia’s manufacturing scene on big businesses and the Federal Government who she’s called on to support local businesses. 

‘It doesn’t have to be this way. When we get Government policy right, manufacturing thrives in Australia, as we have seen with the Victorian rail projects that are currently underway. There is significant potential for Australian manufacturing to grow and provide people with jobs they can count on in coming years,’ she told Daily Mail Australia.

‘If the Federal Government supports Australian manufacturing through a coherent industry policy, procurement decisions that support local manufacturers, early adoption of advanced technologies and integrating resources and manufacturing supply chains.’  

The trend also appears to have infiltrated Western Australia’s industrial district where steel manufacturing jobs have drastically dwindled after businesses began outsourcing production from Malaysia. 

State secretary of the Australian Manufacturing Workers Union (AMWU) Steve McCartney, 58, told Daily Mail Australia that work at major Australian-based manufacturers including Pacific Industrial Company (PIC), Chevron, AusGroup (AGC), Civmec, and mining company BHP, has severely diminished over the past 15 years.  

Where there was once 24,000 tonnes of steel work in Australia, there is now reportedly a mere 860 tonnes. 

For Chevron – 400,000 tonnes of work for structural and fabricated steel for the Gorgon gas project on Barrow Island has been reduced to 5,000 tonnes.

‘They are not hiring boilermakers or scaffolders, it’s all going offshore. Manufacturing companies here aren’t growing,’ Mr McCartney said. 

‘All these companies are doing the same thing. They [United Group, AGC and PIC] used to have 600 workers and now it’s gone down to 40 over the last five years.’

‘They are telling workers they can’t provide work because they’ve gone offshore… they are turning companies into shopfronts.’ 

Mr McCartney said he believes federal laws have allowed businesses to obtain cheaper work internationally because the State Government has little power to keep them local.

Some of the affected sites remain in the area but have become assembly facilities instead, he said. 

‘Western Australia has been turned into a big assembly line where we put together Chinese and Malaysian manufacturing, and you don’t get any skill development by putting things together. 

‘There are grave concerns about workers’ kids not getting employment through apprenticeships because they’re not getting the work done in Australia.

‘I think there will always be fabrication sites but the size of the manufacturing industry in WA is being determined by multinational companies, not the federal government,’ he said. 

And even brands who proudly boast their ‘Australian-made’ tags have had to resort to offshore products in the last few years.

Boat trailer manufacturer Dunbier has been locally making and supplying marine goods since 1969 – marking its 50th anniversary this year.

The last Australian-made fridge was produced in 2016 after Electrolux announced it would cease production at its NSW plant in 2013 and make the products in Asia and Europe. Pictured above are post-WWII migrants working at the factory in Orange

The last Australian-made fridge was produced in 2016 after Electrolux announced it would cease production at its NSW plant in 2013 and make the products in Asia and Europe. Pictured above are post-WWII migrants working at the factory in Orange 

The company relies on steel and galavanised material – which have become increasingly expensive over the last few years, and has led the company to raise prices on its consumer products. 

Scott Ellison, NSW State Manager for the company, said Dunbier’s smaller range began using materials from China about eight years ago due to the scarce amount of galvanising facilities in Melbourne, where they are manufactured. 

‘Steel’s just gone up 26 to 28 per cent here in Australia. Whilst we’re making our bigger range we still make our trailers in Melbourne, we had to increase our prices. Galvanising went up 52 per cent,’ he said. 

‘It’s just the cost of everything… steel, galvanising.

‘The Australian one [boat trailer frame] is smoother. But as far as price, it is a $200 difference to the dealer between the one made here and the Chinese one.’ 

Mr Ellison, however, revealed sales for the Australian products remain high as some customers are still willing to pay more for quality.

The last few decades has seen Australia endure a steep decline of manufacturing in textiles, automobiles, whitegoods, among others products – making up less than ten per cent of the country’s GDP. 

Currently, there are less than 20,000 people working in textile manufacturing jobs in the country, according to the Financial Review. 

As for the auto industry, local production for brands such as Ford, Toyota, Holden and Mitsubishi, which once had major plants across the country, has completely vanished in the last decade. 

Truck and bus manufacturers such as Bustech, Denning, IVECO and Paccar still operate locally.   

But even as Australian workers face the threat of outsourcing, recent reports reveal they also face losing their jobs to new advancements in machinery and technology.

In September, chocolate company Cadbury announced it would be cutting 40 jobs in Tasmania to spend $20million on new technology that will replace human labour.

The Committee for Economic Development of Australia (CEDA) also reported that more than five million Australian jobs – or 40 per cent – will become obsolete in the next ten to 15 years due to automated technology.

FROM BONDS UNDERWEAR TO CARS: AUSTRALIAN PRODUCTS MADE ELSEWHERE 

BONDS UNDERWEAR

Pacific Brands Underwear Group manufactured its apparel in New South Wales up until 2009 when it moved production to China. 

HOLDEN

General Motors-Holden manufactured motors in its Melbourne plant while vehicles were produced at its South Australian facility from 1994 to 2017. The first Holden rolled off the production line at Fisherman’s Bend, in Melbourne, in 1948.

Holden cars are now imported from Germany, US, and Canada.  

FORD

Ford Australia, a branch of the US automaker, ceased production at its Victoria sites in 2016 after declining sales. The cars had been manufactured in the country since 1925.  

TOYOTA 

Toyota Australia, a branch of the Japanese branch, had manufactured cars in Victoria plant in Altona since 1963. The company stopped production 2017. 

MITSUBISHI MOTORS

The last Australian-made Mitsubishi car was made in 2008. The motor company announced it would end producing vehicles out of Adelaide in February 2008 – 28 years after it took over Chrysler’s Australian manufacturing operations.

REFRIGERATORS   

The last Australian-made fridge was produced in 2016 after Electrolux  announced it would cease production at its NSW plant in 2013 and make the products in Asia and Europe. 

The facility had manufactured more than 1,000 refrigerators and freezers a day for various brands including Westinghouse and Kelvinator. 

SIDCHROME TOOLS

Sidchrome manufactured automotive tools in Melbourne after WWII up until 1996 when the company moved production to Taiwan

KODAK

Photography company Kodak closed its Melbourne plant in 2004 after producing film in Australia since 1965.

BRIDGESTONE TYRES

The company had a manufacturing plant in South Australia from 1980 to 2011.

HUGGIES  

The nappy company announced in April 2019 it will be shutting its Sydney factory by July. The brand’s nappies and pants will be produced in Asia.     

  

Read more at DailyMail.co.uk