Lovells Springs Changing Tide!
Springing leaks as tide turns

The problem facing Lovells Springs at Carrington is fairly straightforward.
Some time in the very near future a wave of imported Chinese products will arrive in Australia, in direct competition to the metal springs produced at the Carrington factory.

Newcastle Herald article

"What we're hearing is the Chinese products will be priced at 20 per cent less than the steel we can buy here from One Steel, even before we start any manufacturing," the company's managing director, Simon Crane, said.
"And One Steel's selling us steel at a very good price, I might add."
How do you compete with that?
"Do you get out early and become an importer like a lot of people are doing? That would reduce our workforce from 50 to about six. Automate? That won't work because of the pricing. Try and make something else? That's kind of what we're thinking about doing. Or go to China and manufacture there," he said.
Crane chose the "go to China" option, and has a cautionary tale to tell as a result.
"It is utterly perilous as a business environment because they have no rule of law.
"You have no power.
"So if someone decides to turn on you, it can be difficult."
Crane was owed about $250,000 as the final 10 per cent of a contract.
"When he tried to collect "it was made clear to me I should leave the country".
And he's never been back.
That was four years ago.
Crane is one of many Hunter businessmen who used water terms like tide, and tidal wave and tsunami to describe the impact of China on Australian businesses.
It gave him a laugh.
"The first wave has missed us and we're sitting on the beach watching the water recede," he said.
"And what we're hearing about what's over the horizon is pretty scary."

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