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PLUMBING CONNECTION Winter 2022
IS IT TIME TO LOOK TO LOCALLY
MANUFACTURED PRODUCTS?
T
he COVID-19 pandemic has
certainly left an indelible mark on
the lives of many over the past
two years. In the global supply chain
bubble, the impacts have seen empty
shelves and many sectors scrambling
for supply of critical goods – even at the
very highest level of Government. As
the world begins to look for a way out,
a perfect storm has manifested itself
that is impacting Australian plumbers’
ability to maintain productivity and set
themselves up for an inevitable increase
in activity.
Like many other sectors, the supply
shortage of plumbing products has
been regularly reported due to reduced
access to employees, a global freight
network that sees demand outstripping
supply, exorbitant increases in global
freight prices to unprecedented levels,
and geopolitical tensions potentially
affecting trade globally.
The impact of this over the past
two years has led many to question
Australia’s reliance on global supply,
increasing the focus on maintaining
and building our local manufacturing
capability. Australia has a rich and proud
history of manufacturing, particularly
within the metals sector where our
rich ore deposits have serviced the
manufacturing industry for metal
products for some time.
Manufacturing business like MM
Kembla, who still produce around 87%
of their Kembla copper tube used in
plumbing, HVAC, refrigeration, and
medical gas service lines out of their
Port Kembla, NSW, manufacturing
facility, are becoming a rare breed in
the plumbing products industry. (MM
Kembla is Australia’s only copper tube
manufacturer.) So, is it time for us –
as plumbers, businesses, and proud
Australians – to make a concerted
effort to choose locally manufactured
products and strengthen our local
manufacturing capabilities? The effect
of which will improve the availability and
continuity of supply to plumbers, reduce
the uncertainty of offshore product
availability, sidestep shipment delays
and rising freight costs, and ultimately
reduce our reliance on a global supply
chain over which we have very little
control.
LOWER-PRIORITY AUSTRALIA?
As Governments look to boost
economic activity and lead the way
out of a pandemic, the global demand
for goods is outstripping available
supply. Availability of input materials,
production capacity, and the impact
of fewer available employees due to
isolation periods, infections, and border
closures, have led to increased and
variable lead times on product supply.
The imbalance in supply versus demand
will likely lead to ongoing issues and,
unfortunately, when it comes to global
suppliers, the Australian demand
may not be as critical as the demand
from large countries – leading to a
prioritisation of demand that could lead
to our businesses being further down in
the pecking order.
In the current volatile global marketplace, it may be time to start looking more seriously at sourcing
locally manufactured plumbing products as a more reliable and sustainable strategy, says
John Fennell
from the International Copper Association Australia (ICAA).
COPPER CONNECTION -
JOHN FENNELL
Local copper manufacturing plants like MM Kembla, NSW, are gaining popularity
thanks to the reliability of the company’s supply chains, and, crucially, their
transparent regulatory compliance.