Labour shortages and a lack of housing in key regions of the State emerged as top issues at our latest Special Manufacturing Forum.
Held onsite at Capral Limited in Canning Vale, the Forum heard cost of doing business pressures, labour shortages and housing were key issues raised.
Forum members were also joined by representatives from the Department of Jobs, Tourism, Science and Innovation, who delivered an update on their Advanced Manufacturing Strategy.
‘Most expensive labour rate in the world’
The Forum heard that WA’s cost of labour was being driven by fly in, fly out wages, with one attendee noting that there was now not much difference between Perth and remote work in terms of labour costs.
Another forum member noted that their wages, on average, had increased 50% in the past two years.
“We are now close to, if not, the most expensive labour rate in the world, and about 30% more than the US,” they said.
Aggravating labour shortages is the uncertainty and cost of skilled migration, with forum members noting that it cost on average between $15,000-20,000 to hire skilled migrants.
The cost of gas and energy was also identified as a key issue, with power costs increasing to Eastern States levels, which was impacting on companies that focus on long-term contracts.
In other issues, for forum members based in and around Henderson, clarity around Henderson and consolidation of the Australian Marine Complex was a major issue.
Companies need to invest in, and seek approvals for, new infrastructure but they can’t start planning until they know what the future of the precinct looks like.
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