A week before Christmas I spent four days in Rockhampton working with a family business operated by a couple who started twenty three years ago and, now have reached a point where the business is too big to manage on their own.
Without having senior managers who are able to take responsibility and run each of the six business units, the owners will burn out and the business will not grow. However , they are experiencing the same problem I find all over. They cannot find skilled employees. They face a particular problem in Rockhampton in that they suffer from the mining boom. The local paper advertised for mine supervisors at $300k a year, trades at $180k and I was told that cleaners can earn $100 + . That means that engineering and like companies in Rockhampton cannot find employees at a reasonable wage rates. Suppliers servicing the mining boom are critical to keep the wheels turning and do the maintenance etc.and they are forced to offer unrelaistic wages. In fact when I met with a local business banking manager he indicated that a few of the older company owners are just shutting up shop and selling the real estate.
This shortage of labour is just as critical in regional towns in Victoria where I visit every month. I have contacts who have full order books and struggle to meet delivery dates all the time.
Is there an answer to this issue ? I have yet to see a short term solution, yet it is an immediate problem. One issue is that we should encourage manufacuring as viable career option within our school system.
If we were in China or India then you would see the emphasis on engineering etc at school and tertiary level. We have a shrinking manufacturing industry and the polititicians just talk about it and do nothing at it at the coal face.