Cost increases could kill businesses

Rodney Smith, managing director of fourth-generation, Brisbane-based signage company Albert Smith Group, has said the further cost increases could ruin many in the industry.

Smith, who spoke to the Courier Mail after yesterday’s PMI results showed the sector remained in contraction, said life would be “even more stretched” with electricity cost hikes added to fuel increases.

The federal budget last month included plans to increase the fuel excise – which has remained at 38.1 cents a litre since 2001 – twice a year in line with inflation.

“Logistics is a major cost in Australia,” he told the Courier Mail.

“A container from Shanghai delivered to my door is arguably cheaper than I can send a truck to Melbourne.”

Smith added that a wage increase could “deal a fatal blow to the many already struggling manufacturing companies out there.”

Albert Smith Group traces its beginnings back to 1873 and founder Samuel Smith, to whom Rodney Smith and sales director Mitchell Smith are great grandsons.

The company makes, installs, designs and maintains signs.

– Article by Logistics & Materials Handling

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