Just how "big" is this so-called economic boom?

[BigBlackCock]

Okay, so there's an alleged skill shortage. The number of job ads has increased to a 5 year high and certainly the demand for WA's minerals and resources and ore/fuel projects are being signed.

But the reason I ask about how allegedly big the boom is, is that I suspect that like before; the economy is of a two parrallel type - one is the escalating mining boom economy and the other is your plain normal every day economy comprising things like retail, construction etc.

So what do you readers think of this so called boom we're having - is it so isolated to the minining industry only? A friend of mine advertised for a Customer Services Officer and was stunned to find close to 180 emails waiting for her today. She thought she'd get a quarter of that compared to the last mining boom we had about 5 years ago. Mind you, in these days it's so easy to just click on a mouse to send an application and she did find almost three quarters of the applicants weren't what she was looking for and weren't exactly unemployed either.

She's in the banking/finance sector but I gather retail's going through a harder time - again depending on the product you sell. One company selling lawnmowing equipment told me that the lousy winter rains last year and the excessive sun this year has seen them go through a lean patch for the first time in ages.

Another in the electrical goods industry admits he gets huge crowds over the weekend but the margins he makes on many of his goods are so small, he said he hasn't really made that much compared to previous years.

Any opinions or feedback? I find the statistical evidence versus the anecdotal views differ quite a bit.

 

[billybones]

Company I work for is claiming record profits in the paper but as soon as we ask for more staff, an upgrade on equipment etc they say we are not breaking budget so there is nothing in the kitty...
Staff lose moral and leave and then nobody gets replaced causing the staff that remain to stress even more.


We do surveys from time to time and most complain about prices being too high to afford and what happens??? The prices go up even more...

 

[Fudd]

My view is that this "boom" is mining sector related only and it too will feel an impact as China attempts to put the brakes on its economy (albiet only a small drop).

As far as the non-mining sector is concerned, it appears that the remnants of the Global Financial Crisis (GFC) has not yet ended. The USA Federal Reserve is still of the opinion that their economy is not out of the woods yet and continue to hold interest rates at 0%. It appears that there is a further GFC related sting yet to emerge and if this is the case, we will see more pain in Aust.

Locally, banks are still making small to medium enterprises jump through hoops in relation to funding. Spending is well short of the levels seen in 2008 as more people save rather than spend. Finally, look at the exchange rates. Even though the $US dollar is tanking against the $AUS, the $AUS has begun to fall against other major currencies (ie, the Euro & Pound).

There are more issues that could and should be examined. However, I too think that there are question marks regarding the statistical data when compared to what is actually happening in the market place.

Fudd

 

[Farm Boy]

http://www.x-rates.com/d/EUR/AUD/graph120.png


Hope that works and I think Aus dollar is worth 73 Euo today 27 April .

 

[BigBlackCock]

Billy, is your company public listed? I find many companies these days are committed to keeping shareholders and their dividends happy rather than look after their staff.

Some try to get round it by giving staff at the end of the year but I've met quite a few workers who do the math and realize the shares amount to just a dollar a day for over one year and dividends are a pittance compared to the 1000 shares they receive. There may be long term gains but the short term morale amongst workers is damaged.

 

[billybones]

BBC... my company is public listed and yes, most of seems to be always about the share holder.
I have been with the company a long time now and well.. for 10 years service was given a $50 shopping voucher by the boss, after 15 years... another $50 shopping voucher, this despite the fact sales have increased over 90%

But then when I was working for a family run resturant when I was younger, if it was a busy week each worker would get about $20 extra in thier pay pocket.

 

[Farm Boy]

Another in the electrical goods industry admits he gets huge crowds over the weekend but the margins he makes on many of his goods are so small, he said he hasn't really made that much compared to previous years.

That is because people look in his shop then shop on line.

 

[Happy2]

Yes there is a boom but it is only mining Great for FIFO & Treasury.
It seems strange to me that the people who live at the site of these booms are the ones who suffer Rent & food is astronomical
But if you are FIFO (and good luck to you if you are .Its hard work) You go back to the city or home town and reap the benifit.
How you do it is any ones guess but the "Boom" has to be spread over the state to be a real boon to the people of the state

 

[BigBlackCock]

Interesting point - I know 2 people who went to work as cleaners up north. Yes, they did make a very decent amount of money but then they realized that if they work the same hideous hours back in Perth on a 2 or 3 week on and 1 week off basis, they'd make almost the same amount of money. And still have access to a social network of sorts in the city.

Same can't be said of the skilled jobs though.

 

[WRXXR]

Anyone who thinks theres a boom is kidding themselves or they are in a very lucky niche industry. Retail is way down, building and construction is up shit creek and i assume its much the same across the board.

Doesn't mean companies make less profit mind you You just have to be a lot tougher on things. Watch every dollar closely.

Mining may still be going great guns but nothing on 5 years ago. Back then it was easy for some dipshit fresh out of school to become a TA but not anymore.

 

[BigBlackCock]

Thanks for posts people. The other thing people forget is that with this twin economy, the ones who aren't benefitting from mining-related earnings are doing it tough because the cost of living has gone up substantially in the last 2 years alone. Electricity rates up by almost 22%, petrol certainly, gas definitely has, rents too (if you're renting) but salaries haven't.

 

[benqaz]

That is because people look in his shop then shop on line.

Indeed I just recently brought a battery drill. Checked online first and found the recommended price for a couple models. Local shops turned out to be $100-150 more so I found the one I wanted, made sure I was happy with it and then walked out and ordered it online.

 

[BigBlackCock]

What make was it? I think shops still play their role however - after sales service (you won't get that at Bunnings however, sorry Bunnings Girl), hopefully telling you the differences and helping you with a problem you might have e.g. a leaking shower wall where the moisture is getting through to the other side.

But if you KNOW what you're looking for - perhaps the online option may be the way to go. That aside, it's not helping the two pronged economy when one prong is significanly weakening and the other is at an extreme.

 

[David_San]

all my work is in the mining oil & gas industry so its go go go, no rest for the wicked. Even during the GFC we were still flat chat.

 

[WRXXR]

FWIW, this week alone another 5 banks in US ended up in the financial morgue.

Bank Closing Information April 29, 2011
-Community Central Bank, Mount Clemens, MI
-The Park Avenue Bank, Valdosta, GA
-First Choice Community Bank, Dallas, GA
-Cortez Community Bank, Brooksville, FL
-First National Bank of Central Florida, Winter Park, FL

I dont care what anyone say's, when america sneezes, australia catches a cold and i think the next 12 month's is going to be interesting and i tell you, its going to catch a lot of people out. If it wasnt for the mining sector WA would be in deep poo. How long can it survive like it is?

Right now i'd be focusing on getting out of debt (hard with a 600K mortgage lol ) and trying to save as many pennies as possible. Remember the days of grandma keeping her money under the mattress, well they might be making a comeback!

Iceland Declares Independence from International Banks*****|*****NetRight Daily

 

[BigBlackCock]

WR, I actually put all my coins in a money box every day (apart from keeping about $10 worth of coins in the car to feed the odd parking meter) and at the end of the year I usually have enough to buy an economy seat to somewhere in Asia or buy very good Christmas presents for close friends without feeling the pinch.

I've long been a fan of saving - I rarely use my credit card except for online shopping which I don't do often. But there's certainly alot to be said for putting money aside. Japan's auto industry is in deeeeeep shutdown mode. I'd daresay it's on the brink of collapse really. I suspect China and Korea are going to capitalize on this and flood the market with cheap cars. John Hughes is already selling his Chinese-made car briskly - don't know the proper spelling of the name - "Jeilee"?

Admittedly, your 600k mortgage does sound scary - you doing it alone?

 

[BigBlackCock]

WR, I actually put all my coins in a money box every day (apart from keeping about $10 worth of coins in the car to feed the odd parking meter) and at the end of the year I usually have enough to buy an economy seat to somewhere in Asia or buy very good Christmas presents for close friends without feeling the pinch.

I've long been a fan of saving - I rarely use my credit card except for online shopping which I don't do often. But there's certainly alot to be said for putting money aside. I took all those measures and don't have a housing loan to pay now.

Japan's auto industry is in deeeeeep shutdown mode. I'd daresay it's on the brink of collapse really. I suspect China and Korea are going to capitalize on this and flood the market with cheap cars. John Hughes is already selling his Chinese-made car briskly - Geely - $12k. Not that bad but not that great in quality either, but will be okay for the city driver. And I'm sure there'll be more to come, the motorcycle industry is full of them already.

Admittedly, your 600k mortgage does sound scary - you doing it alone?

 

[Farm Boy]

FWIW, this week alone another 5 banks in US ended up in the financial morgue.

Bank Closing Information April 29, 2011
-Community Central Bank, Mount Clemens, MI
-The Park Avenue Bank, Valdosta, GA
-First Choice Community Bank, Dallas, GA
-Cortez Community Bank, Brooksville, FL
-First National Bank of Central Florida, Winter Park, FL

I dont care what anyone say's, when america sneezes, australia catches a cold and i think the next 12 month's is going to be interesting and i tell you, its going to catch a lot of people out. If it wasnt for the mining sector WA would be in deep poo. How long can it survive like it is?

Right now i'd be focusing on getting out of debt (hard with a 600K mortgage lol ) and trying to save as many pennies as possible. Remember the days of grandma keeping her money under the mattress, well they might be making a comeback!

Iceland Declares Independence from International Banks*****|*****NetRight Daily

I think paying down det is a very wise choose ,however the world economy has changed America is not sneezing more like sever economic flue .
In my view this was caused by not paying down the WW2 debit , the US never pay down det just grows the GDP one day it just wont be able to do this.