City jobs ‘lost to high dollar’

Andrew Mathieson
AUSTRALIA’S strong dollar is preventing Geelong manufacturers hiring workers, according to an industry representative.
But Geelong Manufacturing Council executive officer David Peart said companies contracted to supply Australia’s resource-rich mining industry had held strong during the unexpected currency rise.
Other businesses reported saving money on cheaper imports.
The Australian dollar peaked above US$1 this week after weeks in the high 90s and a brief stint above parity.
Industry analysts have predicted the dollar could rise above the weak American greenback to $US1.10.
Mr Peart said the strong Aussie dollar was making life tough for Geelong exporters.
“The high Australian dollar makes local manufacturing less competitive and makes exporting more difficult. A sustained dollar also makes securing further work more difficult,” he said.
“There is some evidence that companies are missing out on securing new work to the higher dollar.
“I do have some companies that I have talked to about that. It’s not existing work but it’s certainly new work.”
“The significant appreciation (of the dollar) in the last two years has put pressure on Geelong manufacturing – no doubt about it.”
Mr Peart declined to name the Geelong manufacturers struggling with the high dollar.
The manufacturing council was now urging Geelong manufacturers to pursue “innovation strategies” to survive, he said.
Geelong’s manufacturing industry boomed in 2008 when the dollar sunk to US60 cents.
But Mr Peart said the strength of the dollar was creating a “two-speed economy” among Geelong manufacturers.
“Companies with current contracts in place, whether they’re in domestic markets or with the mining and resources industry, seem to be doing relatively okay,” he said.
Rip Curl Group financial officer Lachlan Farran said the strong dollar had “somewhat” improved the costs for the Torquay import-based company.
“The close-to-parity situation between the Australian and USA currencies recently does give us some greater buying power but we’re also facing significant cost pressures from China in increasing labour and materials costs,” he said.