The FTMA Board travelled to Queensland for our May board meeting, which was held at our Strategic Partner, Vida Wood’s office.
The board were joined by the three CEO’s of the nail plate companies, Adam Lefkon (Multinail), Robert Stubbs (MiTek) and Sean McKiernan (Pryda) which allowed us to update the CEO’s on our three-year plan activities, our upcoming National Conference, the Carbon Warrior Program and other key issues we have been busily working on over the past few months.
Following the meeting, the FTMA Board and Nail Plate CEO’s joined other FTMA Members at The Colmslie Hotel for a networking dinner which included a presentation by Patrick Schweizer from Alares titled QLD Building Industry – Boom or Bust for Fabricators.
I must say the presentation didn’t lift the spirits in the room, as Patrick gave an overview of the current state of insolvencies and debt. The key take aways included:
Insolvencies
- Repayment holidays offered by the ATO and lenders are well and truly over.
- Past 6 months – has seen continued trend above pre-COVID levels.
- Next 12 months – we expect the current tend to continue.
ATO
- Current signs suggest the ATO will continue its course back to business as usual.
Supply Chain, interest rates and inflation
- Building materials and borrowing costs for developers have both increased significantly, whilst consumer borrowing ability and purchasing power have decreased.
- Feasibilities for new builds are not stacking up, new housing starts are low – housing supply shortage.
Government Policy
- Recent budget touted high immigration targets.
- But……no clear policy to increase housing supply – where will all our people live?
Patrick explained that there appears to be pent-up demand in the building industry for the next 12 months, but what happens after that?
Importantly, Patrick outlined a few things fabricators could do to manage the risk, including:
Due Diligence
- Make use of the tools available – reports, alerts, industry forums, meetings etc.
- No single service provider has all of the information.
- Maintain tight controls
- Ask questions
Internal Systems
- Make sure your ledger is up to date.
- Customer onboarding and ongoing review process – reports, alerts.
- Register PPSR
- Trade Credit Insurance
ATO Tax Debt
- Request a copy of the ATO tax portal – this will show outstanding ATO debt and repayment plans.
Patrick finished his presentation by reminding fabricators that avoiding your next bad customer is just as important as finding your next good customer.
If members would like to know more about the Alares Reporting, which allows you to monitor your builders for $5 each per year, please visit www.alares.com.au or contact Patrick Schweizer on 0418 739 921 or via email at patrick@alares.com.au
Top Right: Aaron Hillman (TrussCorp & FTMA Chair) with Ian Williams (AKD) & Colin Taverner (Meyer Timber)
Top Middle: Owen Fang (Beaudesert Frame & Truss) & Andrew Nguyen (Timber Truss Solutions & FTMA Board Member)
Top Left: Ashley & Lachlan Young (Fortruss Frame & Truss) with Lee Midgley (AKD)
Right: Peter McKewen & Jeremey Mead (Hyne Timber)
Far Right: Patrick Schweizer (Alares) & Travis Taylor (Multinail)
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