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PLUMBING CONNECTION Winter 2022
However, partnering over the
longer term with local manufacturers
means that businesses can forecast
requirements and ensure continuity
of supply. When there is short supply
of imported product, it is very difficult
to ramp up production quickly to meet
unexpected requirements. Supporting
local manufacturers with a longer-term
commitment means that the product
will be there when customers need it.
CONGESTED FREIGHT NETWORK
You may have noticed the cost of
products increasing over the past 12
months. A big part of that is due to
international shipping rates being at all-
time highs due once again to COVID-19
disruptions. Shortages of containers,
increased demand, congestion at major
shipping hubs, and delays at dispatching
and receiving ports, have all led to
exorbitant increases in the cost to ship
from offshore.
The scramble for available space and
shipping route congestion have also led
to shipment delays and cancellations
impacting almost every sector. All
indications are that this may not
improve for some time, so offshore
sourcing is fraught with risks and high
costs for the foreseeable future.
It is now time to be looking at locally
manufactured options as a longer-term
sourcing strategy for many plumbers
and businesses to mitigate the
associated risks.
GEOPOLITICAL TENSIONS
It’s no secret geopolitical tensions have
the world on a knife edge, and one of the
greatest power plays employed by rival
nations usually centres around trade.
This may be through trade restrictions,
tariffs, restriction of supply or similar
tactics. In any situation this can lead
to uncertainty of supply availability,
with the impact likely to be so fast that
Australian distributors, businesses, and
plumbers would have little time to look
at contingencies – if any are available.
The sourcing of locally manufactured
products reduces some of this risk,
particularly with critical service
products like copper tube. MM Kembla’s
local manufacturing capability means
the nation is self-sufficient in ensuring
ongoing and critical construction,
repairs and refurbishments are not
impeded by geopolitical power plays.
BE RESPONSIBLE
The charter for the commitment to
sourcing sustainable and responsibly
produced products is becoming
increasingly important in the
construction industry. The recently
implemented Copper Mark responsible
production program now provides
the framework to demonstrate that
commitment, which is why MM Kembla
is proud to be a partner of The Copper
Mark.
More recently, BHP’s South Australian
Olympic Dam copper mine site, from
which MM Kembla’s locally produced
copper tube is sourced, has made its
commitment to responsible mining
of copper by being awarded Copper
Mark certification. The commitment to
responsible and sustainable practices
by Australian supply chains is even
more a reason for us to be looking at
supporting these local supply chains.
THE SOLUTION IS ‘HERE’
Whilst many of our manufacturing
industries still rely on the global supply
chain to support their manufacturing
activities, a large degree of their raw
materials, supplies and other resources
are locally sourced. The ongoing supply
chain disruptions associated with global
sourcing strategies are certainly cause
for concern. As demand prioritisation,
trade restrictions and costly global
freight arrangements and delays impact
on the ongoing activities of our plumbers
and construction businesses, there
is no better time than now to throw
support behind locally manufactured
products and maintain our rich history
of Australian manufacturing.
In the plumbing industry, there
haven’t been many that have existed
longer than Australia’s last remaining
copper tube manufacturer, MM Kembla.
With copper tube available right across
the country, and with around 87% of it
being produced in Australia, make sure
the next time you purchase Copper Tube
you ask for the Kembla brand – isn’t it
time we started to look local?
John Fennell has been
the chief executive of
International Copper
Association Australia since
1998.
COPPER CONNECTION -
JOHN FENNELL
Copper made in Australia provides local jobs while delivering the Quality Assurance
that local markets demand.