Newcastle says Ford's closure could be a blessing for Geelong

mcnews · 11-07-2013, 07:55 AM

Newcastle says Ford's closure could be a blessing for Geelong
By Adrian Raschella

Can the end of an industry be a good thing for a city?

Geelong is facing a future without the Ford car factory, but many say it could be the best thing to happen to the Victorian city because it will force the local economy to evolve.

Another city that went through a similar situation was Newcastle. It lost the BHP steelworks in 1999.

Newcastle leaders say the loss of the steel business was a blessing in disguise as it made the city evolve into a modern economy.

Hunter Development Corporation chairman Paul Broad says the region is now thriving.

"The best thing for Newcastle was to close BHP," he said.

"Newcastle, with its vineyards in the west, with its recreation areas around Port Stephens in the north, and a very diversified cultural set in the heart, was always going to be the better with taking away an old, yesterday's business in iron and steel out of the economy."

Newcastle now embraces innovation, education and cutting-edge medical research.

Dr Nikola Bowden is doing world-first work on melanoma at the Hunter Medical Research Institute.

"We got out of the rut of being a steel city and moved into other areas," she said.

"There was a lot of dread when BHP closed down, but it really brought Newcastle to life, and it really is a beautiful place to live and I can't imagine going anywhere else at the moment."

Geelong encouraged to be optimistic

Dr Bowden says people from Geelong should be optimistic about the future.

PHOTO: Some Ford workers don't hold much hope for Geelong. (AAP: David Croslin)
"I don't think it's a bleak future at all," she said. "It's a chance for opportunity and a chance for new industries to grow and get bigger, and things like medical research and universities to take on a larger role in the community."

Newcastle has also become a hub for the creative industries.

Fashion designer Jean Bas says it was a tough call to stay, but it has paid off.

"It confronted us as to what we would be," she said.

"I was aware that it was possibly my client base diminishing and we had to reinvent ourselves, and on that edge of change became the opportunities that many of us seized."

But before it looks to the future, Geelong will go through a grieving process, Ms Bas says.

She says losing the Ford factory will be painful.

"It will hurt and there will be challenging times. There were for us. We're still in the process of change. We're still in the process of reinventing, " she said.

"But have courage and go for it because it will just be an unbelievable exhilarating experience."

Cities reminded of need to promote themselves

Newcastle is also becoming home to an increasing number of young artists like Cassie Stronach.

She says the city's lifestyle and lower cost of living make it an attractive place to be.

"Definitely it's more affordable," she said. "There's a strong cultural community here and there are a lot of festivals and events that tie into each other that allow us the opportunity to get our work out there.

"It's of a scale where you can get a feeling for what's going on on the ground and there's plenty of opportunity within that by being so connected to your local community."

Those in the marketing business also say cities need to promote themselves.

Creative director at Newcastle-based Enigma Corp Brian Daly says that is especially true when a city is trying to forge a new identity.

"Things have changed more rapidly than the perception outside of Newcastle, so you need to actually bring people up to date with what's actually going on in Newcastle now," he said.

"That will encourage more investment and more growth.

"There is light at the end of the tunnel. There are really positive stories that people can take from Newcastle. The changing and diverse culture and lifestyle that's available now in Newcastle is really great."

Take on new challenges

Mr Daly says Geelong needs to start ramping up its own public relations.

"They can look at all the other benefits of lifestyle that there is in Geelong," he said.

"It's a great city. It's very close to Melbourne but it's not Melbourne. There are lifestyle opportunities for families and there's space there, and an opportunity for business to come in and fill that void."

It is a message backed by Paul Broad at the Hunter Development Corporation.

"Newcastle has grown up. Love our past. Respect our traditions. But you have to take on the challenges to create the jobs of the future that the young want," he said.

Mr Broad says in towns that are dominated by one industry, people become complacent and expect to rely on it forever, even if it is uncompetitive.

He says for a place like Geelong, losing the Ford factory will be a tough adjustment that will force the city to evolve too.

"I think Geelong, once it gets over the grieving processes of the change it's going through, will be the better for it in five years' time," he said.

He says the job is not done in Newcastle either, with big plans to continue to modernise the city and capitalise on its tourism potential.

gunner · 11-07-2013, 08:39 AM

Thanks for posting mcnews. What's the source?

Unlike Geelong, Newcastle has coal mines close by and has relied on this trade to survive. Without the mines Newcastle would be another country town with high unemployment.

So the logic of the article is that by closing manufacturing the local economy can then modernise. Why can't it modernise while manufacturing exists? Closing industry / manufacturing is not good for the Australian economy or the regional economy. It doesn't just affect unskilled employees, it affects all the TAFE educated and University educated employees too.

Did anyone else notice all the quotes in the article are from people with an agenda?

KIWI-1 · 11-07-2013, 09:40 AM

Quote:

Originally Posted by gunner

Unlike Geelong, Newcastle has coal mines close by and has relied on this trade to survive. Without the mines Newcastle would be another country town with high unemployment.

No mines, but Geelong has many positives - among them:
Doorstep to the Bellarine Peninsula,
Doorstep to the Great Ocean Road,
The only community-based football team in the competition,
A proven fighting spirit - Pyramid collapse, Linton bushfires, etc.,
Switched on educators - Gordon Institute, Deakin University,
Business Groups & Council willing to plan for a future,
Trains to Melbourne every 10-15min during peak hours. $22 return.
It's a bloody nice place to live and visit.

Quote:

Originally Posted by gunner

So the logic of the article is that by closing manufacturing the local economy can then modernise. Why can't it modernise while manufacturing exists?

Because it doesn't need to... until pushed out of the Ford, Shell, Alcoa, Pilkington, etc. comfort zone.

Quote:

Originally Posted by zilo

Great...we can all pull lattes at the waterfront and stride through art galleries.

Geelong has already done that... IMHO the waterfront has been very successfully invigorated from what it was 10-15 years ago.

**Polyal** · 11-07-2013, 02:23 PM

Quote:

Originally Posted by KIWI-1

No mines, but Geelong has many positives - among them:
Doorstep to the Bellarine Peninsula,
Doorstep to the Great Ocean Road,
The only community-based football team in the competition,
A proven fighting spirit - Pyramid collapse, Linton bushfires, etc.,
Switched on educators - Gordon Institute, Deakin University,
Business Groups & Council willing to plan for a future,
Trains to Melbourne every 10-15min during peak hours. $22 return.
It's a bloody nice place to live and visit.

Because it doesn't need to... until pushed out of the Ford, Shell, Alcoa, Pilkington, etc. comfort zone.

Geelong has already done that... IMHO the waterfront has been very successfully invigorated from what it was 10-15 years ago.

All that sounds great, now how do you redeploy the workers of Ford, Alco and Shell? Its possible but I cant agree that Geelong has much else gonig for it.

Going to put them into tourism? Have you met the "general" line worker? Nice blokes but not particular fit for customer service.

Sure you need to be able to evolve..but that takes time, the city is going to be in a world of hurt as the government, both state and federal really have dropped the ball regarding investment into new technologies or processes.

Cant see to many blue collars starting a teaching career either.

KIWI-1 · 11-07-2013, 02:30 PM

Quote:

Originally Posted by Polyal

Sure you need to be able to evolve..but that takes time.

They've been planning for the possibility for 5, maybe 10 years.

**Polyal** · 11-07-2013, 02:34 PM

Quote:

Originally Posted by KIWI-1

They've been planning for the possibility for 5, maybe 10 years.

Really, and the grand plan is? Anyone actually talked about it and who is "they"?

mcnews · 11-07-2013, 08:42 AM

Was on ABC News on-line

cobramania · 11-07-2013, 08:49 AM

From someone in Newcastle, & others here will probably agree, yes, the closing of the BHP (Newcastle's largest employer) was a good thing for the city, it certainly cleaned up the air, the general feel & look of the place, but that took some time.

The job skill set changed, but that didn't happen overnight, & the BHP re-trained all staff, starting prior to them closing the steelworks.

There's still a lot of people out of work, many of them older workers who just couldn't re-train/skill to a new technological work set/employment.

The coal mining industry has kept Newcastle going, as quite a few BHP workers, moved into the mining industry over the years after some re-training, but even that's slowing now, mines are withholding further expansion & cancelling/putting off contractors/workers not directly employed buy the mine.

I certainly wouldn't agree with Paul Broad that the region is thriving. The Newcastle CBD is still a dead dump, especially in the West end, sure the Honeysuckle area by the harbour shore is thriving, but that's about 1/8 of the Newcastle city council area, if that, let alone the surrounding areas.

14 years after the BHP closed, the city is just starting to re-build & I'd say get on it's feet & standup by itself, but it's probably going to take another 10 years with a good economy, to really be thriving & solidly be standing on it's own 2 feet.

It may be a good thing for Geelong to rebuild, but it won't happen overnight & it'll be a long hard slog, with many bad times in the mean time, Geelong doesn't have the huge coal industry to "get them through" that Newcastle does either.

MarkAW · 11-07-2013, 09:09 AM

Having survived many years where that idiot Paul Broad was the MD of the company I work for, I wouldn't believe anything that came out of his mouth.

Just another wannabee polly out of the Greiner years.

Ben73 · 11-07-2013, 02:14 PM

Quote:

Originally Posted by cobramania

From someone in Newcastle, & others here will probably agree, yes, the closing of the BHP (Newcastle's largest employer) was a good thing for the city, it certainly cleaned up the air, the general feel & look of the place, but that took some time.

The job skill set changed, but that didn't happen overnight, & the BHP re-trained all staff, starting prior to them closing the steelworks.

There's still a lot of people out of work, many of them older workers who just couldn't re-train/skill to a new technological work set/employment.

The coal mining industry has kept Newcastle going, as quite a few BHP workers, moved into the mining industry over the years after some re-training, but even that's slowing now, mines are withholding further expansion & cancelling/putting off contractors/workers not directly employed buy the mine.

I certainly wouldn't agree with Paul Broad that the region is thriving. The Newcastle CBD is still a dead dump, especially in the West end, sure the Honeysuckle area by the harbour shore is thriving, but that's about 1/8 of the Newcastle city council area, if that, let alone the surrounding areas.

14 years after the BHP closed, the city is just starting to re-build & I'd say get on it's feet & standup by itself, but it's probably going to take another 10 years with a good economy, to really be thriving & solidly be standing on it's own 2 feet.

It may be a good thing for Geelong to rebuild, but it won't happen overnight & it'll be a long hard slog, with many bad times in the mean time, Geelong doesn't have the huge coal industry to "get them through" that Newcastle does either.

The CBD is still a hole, but is that really due to BHP closing down? Surely all of the abandoned buildings were not all related to the steel industry.

I know the East end is improving, but there is still a lot to improve in the rest of the CBD.

cobramania · 11-07-2013, 03:08 PM

Quote:

Originally Posted by Ben73

The CBD is still a hole, but is that really due to BHP closing down? Surely all of the abandoned buildings were not all related to the steel industry.

No the slide started before the BHP closed down, but when it did & the BHP workers & those in the feeder & services industries that supplied the BHP lost their jobs, the money wasn't there & wasn't being spent, so more places closed & went to ruin.

Think about it, it's been 14 years since the BHP closed. If the place was thriving, people were spending money, & the workforce had changed careers meaning more retail space & large offices were needed, the place would've been revitalised years ago. They're only just starting to build large apartment blocks around the city now, which will slowly bring more people into the areas, wanting more retail & office space, but the fact is, the large pay packets & big economy that would revitalise the city just isn't there, & the large companies who may have offices in the city just aren't moving in, they're staying in Melbourne, Sydney or even OS.

It'll probably take another 10 years to get people to move into the city & surrounding suburbs, wanting nearby jobs & spending money, before the city will be truly re-built & thriving again.

The BHP workers used to spend their money around the city on the way to work, the way home & at meal times.

On closing day at the BHP there was still 2000 employees & 1000 contractors who were put out of work, + other feeder industries & services, (retail & other) who lost business to a great deal or all together.

Back in the 1980's, early 1990's the BHP Newcastle steelworks was a city in itself with around 12,000 employees + outside contractors & service industries employees. Just think how taking that amount of employment out of a cities economy will hurt it.

Newcastle's a much bigger city than Geelong (by around 100,000 people), & compared with BHP job losses, Ford job losses is only a drop in the bucket. Newcastle has the mining industry to get them through, Geelong doesn't. If Shell & Alcoa go as well, it will devastate Geelong, no matter how many positive things it has going for it, like KIWI-1 listed.

There's going to be some very tough times over an extended period, & while it's nice to be positive about re-building, you have to face reality of what's ahead, or you're deluding yourself, will get caught out & lose economically & emotionally.

Make no jokes about it, Geelong is in for a long tough ride.

BTW: I worked as a contractor at the BHP during '92-'94.
I was highly skilled & didn't need to retrain, I decided to leave where I was & work in my families Electrical contracting business, but it's been very tough times.
In-fact dad retired 2 years ago, & we decided to shut up shop, because all the electricians who worked at the BHP or for contractors & were laid off, most started their own contracting businesses, & we have all been undercutting each other ever since.

Now with mines laying off people too, they're doing the same thing.

It got to the point where on most jobs, you would be doing them at cost price or below, just to get the work, you couldn't/can't put prices up, because customers wouldn't/won't pay, there's plenty of others willing to do the work at a lower price.
Many trades suffered the same problems around town & still do to this day, (fitters, mechanics, plumbers, welders/fabricators, etc).

zilo · 11-07-2013, 09:15 AM

Great...we can all pull lattes at the waterfront and stride through art galleries.

Cheese3 · 11-07-2013, 09:16 AM

Well I do live in Geelong and I can see the optimistic side of it, but the major problem with Geelong that people are fearful is it's not just Ford is shutting down it is that shell and alcoa are likely to go soon too.

**Polyal** · 11-07-2013, 03:48 PM

cobramania that is what is happening in mining at the moment.

While I work for a larger company there are plenty of tradies who were on $120ph not long ago now hitting $60ph...and people hiring out equipment at rates that only just cover the finance...its bloody tough. But perhaps we got a bit greedy too.

cobramania · 11-07-2013, 04:10 PM

Quote:

Originally Posted by Polyal

cobramania that is what is happening in mining at the moment.

While I work for a larger company there are plenty of tradies who were on $120ph not long ago now hitting $60ph...and people hiring out equipment at rates that only just cover the finance...its bloody tough. But perhaps we got a bit greedy too.

Yeah I know, my brother works in the mines, he's directly employed by one though, so he's safe (for now).
He's seen plenty of work mates working for contractors go over the past 6 months.

The contracting company he worked for in the mines before he got directly employed, has just lost their contracts at a number of local mines & most of the workers are now out of work, the company is pretty much just a skeleton management now, waiting/hoping for better times again.

Some of those have started or gone into private contracting (out of mining industry), only exacerbating the over trades supply, under available work problem.

Bossxr8 · 11-07-2013, 07:01 PM

What a stupid article. So the average bloke in the factory is going to go work in medical research is he?

And as for customer service etc, I would rather shoot myself than do that for a living.

Things are going to be tough here and if/when Shell and Alcoa go it will just be a massive sh*tstorm.

At least i'm young and can speak English, I'd hate to be over 50 or one of the migrant workers who can barely speak English. They are screwed. Maybe they can get jobs doing medical research or in customer service.

KIWI-1 · 11-07-2013, 07:41 PM

If you don't have the brains for medical research and don't like customer service you could always paint some more bollards.

"Newcastle is also becoming home to an increasing number of young artists like Cassie Stronach."

**Fordman1** · 11-07-2013, 07:53 PM

Quote:

Originally Posted by KIWI-1

If you don't have the brains for medical research and don't like customer service you could always paint some more bollards.

"Newcastle is also becoming home to an increasing number of young artists like Cassie Stronach."

That is a stupid insensitive comment ...

It's funny how your post count is going up exponentially since the Ford closure announcement.

That along with the quote above, shows that you thrive on other peoples misfortune.

**PG2** · 12-07-2013, 01:08 AM

Quote:

Originally Posted by KIWI-1

"Newcastle is also becoming home to an increasing number of young artists like Cassie Stronach."

We're in trouble if you think that young artists are going to be part of the solution to the Newcastle's CDB revival.

Maybe Geelong could look at the positive and negative aspects of Newcastle's strategies of reviving Newcastle when BHP closed down and implement accordingly?

Itsme · 11-07-2013, 07:45 PM

Quote:

Originally Posted by Bossxr8

And as for customer service etc, I would rather shoot myself than do that for a living.

"Beggars can't be choosers"

You will do any thing in desperate times & employment is not getting any easy, Australian employment is going on a down hill slide atm.

Buntz · 12-07-2013, 01:14 PM

And apparently this can just happen to any city, not anything unique about Newcastle that kick-started other trades? Pretty general to say the same thing will happen for Geelong. As a man, fashion and art have no appeal to me, so I wouldn't wish it on Geelong.

The last remaining hope is that Kim Carr tells Mulally to keep FoA plants open, or he will sit on him.

EWT · 12-07-2013, 02:12 PM

I've been looking back at my old data base from my sales rep days and have together with other colleagues, counted over 500 company closures in recent times.
I reckon I know about half, which means well over 1,000 "Manufacturers" have gone to the gods.
And what is our government doing to help the situation.
Rubbish Free Trade aggreements sucking the life out of this country whilst we are complainiing about it on a "Ford Forum"
Maybe someone with the real balls is required to run the country and bring back some pride. Who would that be I wonder?????
When was the last time you heard someone say this about Australia, The lucky Country.....
Makes a man bleed.
Enough dread for now I think.

Crazy Dazz · 13-07-2013, 05:21 AM

That’s like saying it’s a good thing if I kick you in the teeth, because then you can get them straightened.

I doubt Geelong is wholly dependent on Ford, but losing manufacturing, jobs, and investment is NEVER a good thing.

I’d also question what they mean by a “modern economy”? Manufacturing can be modern!
If they mean one based on wine, tourism, education, (ie “Service Industry”) that’s great, but you need people with money to require those services.
The problem with the GDP numbers is that that they fail to consider the flow-through effect, and are heavily weighted towards the top end. If a farmer grows wheat, a Miller makes flour, the baker bakes bread, and the lunch-bar makes you a toasty, the “value added” by the lunch-bar is greater than all the others combined, leading politicians to claim that we have a service based (aka “modern”) economy. When in fact without the farmer, the miller, and the baker, the lunch-bar would have no bread and you’d be hungry.

mr smith · 13-07-2013, 09:20 AM

First step for Geelong is cleaning up the Mall rats. CBD Geelong is a poo hole.
I grew up there, water front is nice but the rest is not getting better.

I would be targeting the retirement set, Geelong's position to some of the worlds best coast line should be a big seller. Cashed up oldies will want nice restaurants/cafés and a safe environment for some night life.