A Melbourne coffin making business has been rescued from controllership with a new round of finance, but its managing director has warned the fragile nature of the manufacturing industry and competition from imports will make trading more difficult.
SJ Bambra was placed in the hands of controllers after suffering from both lower sales and a fire that caused significant damage in early 2010. The business and its assets were advertised as for sale, but financiers have stepped in.
However, Peter Bambra says the entire controllership situation is just another symptom of the manufacturing industry’s decline.
“Every industry has changed. Manufacturing processes and imports have changed a lot of things, and you really just have to try and evolve with it, try and modernise, and keep up with everything.”
“We have a lot of things to deal with now, especially imports and how that whole market is changing the industry.”
The manufacturing industry has been in decline for some time, with the high Australian dollar pressuring local businesses. Employment conditions have fallen and many companies are shipping work overseas.
While Bambra says the business isn’t suffering as much as other sectors due to its constant stream of demand, he does accept that imports are starting to hurt.
“We’re nothing like the furniture industry, with regard to imports. You can pack up furniture to be flat and ship it off, but you can’t do that with caskets, and they take up so much room.”
“We’ve actually started doing a little bit of importing ourselves. We have some very good support from loyal clients, and I’m confident we can continue to trade.”
Bambra, which is turning over about $3 million a year with 15 employees, also suffered a major fire last year, which the company says played a part in the controllership. “We all know what insurance companies are like with cashflow,” Bambra says.
Bambra says despite the challenges, the company will continue to trade but is gearing up for a number of new challenges.
“We’re not a huge company, but we’re not a corner milk bar either. We’re a mid-size organisation, primarily manufacturing done by us. We hardly outsource anything.”
“We have some refinance now, and with a little bit of luck we will continue trading. But there are challenges now, and there are outside forces in the manufacturing industry that are challenging. It’s become a little harder.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
