BRISBANE MANUFACTURER EXPANDS IN TOUGH TIMES

Written on the 4 June 2013

BRISBANE MANUFACTURER EXPANDS IN TOUGH TIMES

TIMES are tough for manufacturers in Australia but Brisbane based electrical switchboard maker PSG is defying the trend by expanding.

Dunn & Bradstreet today reported falling expectations in Australian business for capital expenditure, new credit and employment in its latest Business Expectations Survey.

The survey’s capital investment index has fallen from a weak Q2 to an even worse Q3, from five to negative three, its lowest point in more than three years.

Actual investment in the March quarter dropped to negative six, its lowest level since early 2009, with no manufacturers surveyed planning on capital expenditure.

PSG general manager Denis Jackson says the market for manufacturers is flat, but the company’s diversified product range has it in good stead.

PSG is in the process of expanding its Eagle Farm facility from 3500 square metres to 6000 square metres. Jackson admits the decision to expand would have been harder if it was to be made today.

The company also has a second manufacturing facility in Melbourne.

“We would have been a bit more cautious. However, we are not too concerned about it as the diversification in the business can cater for that,” says Jackson.

“Whilst everybody is struggling a bit and we can see inquiry rates have dropped dramatically, we are still chugging along.”

Dun & Bradstreet director of corporate affairs, Danielle Woods, says the drop in capital investment is likely to have an impact on productivity and growth.

“This movement takes expectations back to levels seen during the GFC, and the corresponding movement in employment intentions shows businesses are continuing to bunker down and limit expenses.

“This will naturally have a knock-on effect for spending activity in the rest of the economy.”


Latest News

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

NEXTDC ENTERS BIDDING WAR WITH 360 CAPITAL GROUP FOR APDC

DATA centre operator NEXTDC (ASX: NXT) has started a bidding war with 360 Capital Group to take over Asia Pacific ...

THE AUSTRALIAN STARTUP THAT TAPPED IBM WATSON FOR ITS TECH-DRIVEN VOD SERVICE

VIDEO on demand technology startup Oovvuu has teamed up with IBM to launch a news platform powered by its AI produ...

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

Related News

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

NEXTDC ENTERS BIDDING WAR WITH 360 CAPITAL GROUP FOR APDC

DATA centre operator NEXTDC (ASX: NXT) has started a bidding war with 360 Capital Group to take over Asia Pacific ...

THE AUSTRALIAN STARTUP THAT TAPPED IBM WATSON FOR ITS TECH-DRIVEN VOD SERVICE

VIDEO on demand technology startup Oovvuu has teamed up with IBM to launch a news platform powered by its AI produ...

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter