ReCoila Reels Managing Director Mr Michael Pawson underlines the need for better understanding of the term ‘Australian Made’.
Mr Pawson of leading Australian hose and cable reels company ReCoila Reels observes that the importance of supporting ‘Australian Made’ can never be understated, yet the term itself may need some closer investigation. ReCoila Reels is constantly battling with imported products, many of which are inferior to locally manufactured products for the mining sector.
According to Mr Pawson, companies in Australia only have to show 50% local content to qualify as ‘Australian Made’; however, the term has some hidden realities that aren’t properly understood or are open to exploitation. The 50% component allows some companies to claim items such as tools used in assembly and the mere cardboard packaging and overhead expenses within the framework of the definition, leading to abuse of the process.
Mr Pawson explains the near-spurious 50% component regularly qualifies as the so-called ‘Australian-Made’ equipment that is then being purchased and used within many sectors of Australian industry. With the overall local component of manufacture effectively disguised, end users are exposed to potentially inferior products in the belief they are in fact quality locally made product. In such cases this can lead to unexpected maintenance costs, warranty costs and failure costs among other headaches.
Mr Pawson believes there should be a business community of ‘Australian Made’ suppliers working in a perfect circle, but even though businesses are learning more, education should be encouraged about the true stipulations of ‘Australian Made’ and how it is potentially open to various degrees of exploitation.
He adds that local industry should buy local product for the future success of local industry, local employment and technological advancement in the global market.