ISSUE 4 NOVEMBER 2011
GIVING CUSTOMERS AND INDUSTRY THE EDGE WITH NEWS AND INNOVATION
Growing something special... Triggs Trellis Supplies & BlueScope Distribution IN THIS ISSUE Community Edge - LEADERSHIP & INNOVATION AWARDS 4 Cutting Edge Profile - Triggs Trellis supplies 8 Giving You The Edge - THE ONE MINUTE PRESENTER 14
DISTRIBUTION UPdate Australia’s steel industry faces continuing challenges.
WELCOME Welcome to the fourth edition of The Edge. In this edition we have gathered a series of case studies and steel industry articles from across the BlueScope Steel network that show the applications for steel products are as interesting as they are varied. Included are industry articles and case studies that involve some of the hot topics facing our industry. The carbon tax and changes to Australian Standards relating to steel products are covered, while the case studies demonstrate the wide ranging applications for the products we supply: from automotive stamping components to rotary dairy platforms and ventilation systems. As always, we have included an economic article to keep you informed, a general interest piece and our latest Community Edge story. I hope you enjoy this edition of The Edge. We have received great feedback so far and I continue to encourage you to send your thoughts on future editions and topics you would like to see more of. Please forward any comments or suggestions to: contributions@bluescopesteel.com
Dean Mehmet Dean Mehmet General Manager BlueScope Distribution
The mining industry is going from strength-to-strength and BlueScope Distribution is well placed to continue to supply quality steel and piping products into this market. Investment in mining is strong and is actually outpacing other industries at a substantial rate. Unfortunately we continue to see other key industries facing difficult times, with manufacturing and building and construction customers all facing weak markets in what is currently a two-speed Australian economy. The carbon tax debate has highlighted ever-increasing concerns surrounding the changes occurring in our environment and a greener energy future has become the focus of many businesses. The future of the renewable energy sector looks bright, with solar power and wind farms just two such applications where BlueScope Distribution is proud to be a supply partner to key contributors. As always, safety is our paramount concern. Recent changes within our business have only served to heighten our focus on our commitment to Zero Harm. At BlueScope Distribution the safety of our people and customers always comes first, and in challenging times such as our business faces now it is vital we keep safety top-of-mind. We’re currently seeing increases in the domestic steel market driven by movements in the A$/US$ exchange rate and continued historically-high levels of input costs. This will result in increased cost pressures on the Australian steel industry. At BlueScope Distribution we will continue to work with our customers to face these challenges with quality products, technical expertise and innovative steel supply solutions.
GLOBAL ECONOMIC UPD ATE Global economic volatility has remained a regular fixture over the course of 2011. Natural disasters have had a significant impact on key sectors including construction and transport. Large swings in global equity markets and ongoing sovereign debt concerns in the USA and the EU have impacted consumer and business confidence levels1. On the other hand, there has been continued strong economic growth in the developing world, especially China as it continues on its urbanisation drive2. Although the Australian economy is not entirely immune from the developments abroad it is still fairing much better than many of its developed counterparts, as it did during the Global Financial Crisis period. Much of this success is on the back of mining-related investment, driven by strong demand for commodities from developing economies3. Nevertheless, the local economy does face some challenging economic headwinds.
consolidate in the short-term, before expected seasonal upturn late in 2011. Further, CRU indicates that although volatility is evident and mixed sentiment exists, underlying global steel demand will improve in the coming months14. In summary, although challenges remain, the Australian economy is well positioned for solid economic growth and is likely to continue to outperform other developed economies in the coming years. Global factors impacting raw material prices are expected to remain, with the potential to impact on steel prices. However, it is expected that as confidence grows the rate of growth in Australia will rebound, particularly in the manufacturing and construction sectors. This will build on the solid platform established within the Australian economy, delivering subdued economic growth, with possible steel price increases expected in the latter part of 2011.
The floods during summer across Australia and the destructive effects of Cyclone Yasi in northern Queensland have had a dampening effect on GDP growth in the first and second quarters of 2011, impacting especially on coal exports4. The year-on-year rate of economic growth slowed to 1.2% in the June quarter, while on a quarterly basis GDP increased modestly by 0.2%5. BIS Shrapnel expects there will be further growth as the export supply chain recovers6. It is against this backdrop that a two-speed economy has re-emerged in Australia, with the booming mining sector remaining strong while challenges are evident for the manufacturing, building and construction sectors. Growthby-region also varies significantly, with the mining states of Western Australia and Queensland showing the strongest growth7. While investment in the resources sector continues to be very strong, related service sectors are enjoying better-than-average conditions. On the other hand, residential building approvals reached 2 year lows in June 2011, rising by a modest 1% in July. The Performance of Manufacturing Index (PMI) remains weak, hovering below the neutral 50 point mark8. The current 24 year high in household savings rate and, despite recent volatility, the historically high exchange rates are also having a dampening effect on the manufacturing, education and tourism sectors9. BIS Shrapnel does, however, report that activity in these sectors is expected to pick up in the next few years as confidence returns10. However, despite these challenges, the Australian economy remains fundamentally sound, supported by a solid banking sector, low levels of unemployment (near 5%), a AAA credit rating and a strong pipeline of mining and engineering construction projects11. Australian steel markets continue to face increasing costs. The ongoing mining boom has supported and maintained historically high steel making raw materials pricing, with iron ore prices remaining at near all-time highs over 201112. Iron ore quarterly contract costs will likely remain near their record high for the fourth quarter despite recent volatility. Further, the adverse Australian weather conditions in summer have also created spikes in coking coal costs. These inflationary cost pressures are ultimately resulting in higher global steel prices13.
1. BIS Shrapnel – Economic Outlook, September 2011 2. International Monetary Fund, World Economic Update, September 2011 3. International Monetary Fund, World Economic Update, September 2011 4. RBA Statement of Monetary Policy, September 2011 5. Australian Bureau of Statistics, 5206.0 – Australian National Accounts, September 2011 6. BIS Shrapnel – Economic Outlook, September 2011 7. BIS Shrapnel – Economic Outlook, September 2011 8. Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index (Performance of Manufacturing Index), September 2011 9. Housing Industry Association – National Outlook, September 2011 10. BIS Shrapnel – Building Industry Prospects, September 2011 11. BIS Shrapnel – Economic Outlook, September 2011 12. CRU Monitor, August 2011 13. Steel Business Briefing – Global Market Outlook, September 2011 14. CRU Monitor, September 2011
Disclaimer: This document is made available to you on a strictly confidential and non-reliance basis. While every care has been taken to ensure the accuracy of the information, BlueScope Distribution Pty Ltd does not warrant the accuracy, completeness, currency or fitness for purpose of the information. You should verify and check the accuracy, completeness, reliability and suitability of the information contained in this document for any use to which you intend to put it. Except to the extent to which liability may not lawfully be excluded or limited, BlueScope Distribution Pty Ltd and its related bodies corporate will not be liable to you or any third party for any direct, indirect or special loss or damage however caused (including, without limitation, breach of contract, negligence and breach of statute), which may be suffered or incurred in connection with the information.
Steel Business Briefing reports that Asian prices look set to firm or increase slightly due to continuing demand and this suggests current steel prices will
THE EDGE | Issue 1
4
EDGE BlueScope Distribution Leadership & Innovation
Acknowledging the tenacity, dedication, selflessness, leadership and innovative thinking of the amazing individuals who are the driving forces in their communities. At BlueScope Distribution we value the communities in which we operate and recognise that our success as a business depends on the community supporting us. In turn, we look to give back to the communities that support us. The Regional Achievement and Community Awards and the Community Achievement Awards, organised by Awards Australia Southern, are two ways BlueScope Distribution is giving back to our communities in Victoria and South Australia. The awards seek out, encourage, highlight and promote positive role models to inspire other Australians. In doing so, they have become the most soughtafter, prestigious and publicly recognised community awards program in New South Wales/ACT, Victoria, Queensland and Western Australia. Within the overall Award’s framework the BlueScope Distribution Leadership and Innovation Awards acknowledge role models who, through their leadership, innovation and driving force pave the way for others to follow. BlueScope Distribution is in good company, with other individual award sponsors including companies such as Prime Super, Medibank, Fonterra and Beaurepaires. The awards are proudly presented by Prime7 and the Weekly Times in Victoria, and Channel7 and Southern Cross Media in South Australia. Commonwealth Bank supplies the prizes for the worthy winners. “These awards are about recognising community commitment and contribution and we congratulate all of the nominees for their achievements. We are delighted to sponsor these Awards and unearth many community champions,” said Paul Day, BlueScope Distribution Manager Southern Region.
(Left to Right) Paul Day BlueScope Distribution Manager Southern Region; Gary Kennedy, Debbie Kennedy, Lynden Kennedy and Cory Kennedy from Kennedy Trailers.
and enhance social, economic, commercial or environmental prosperity of their region. Such awards create an opportunity to say ‘thank you’ to businesses, community groups and individuals who work tirelessly in developing their chosen fields of endeavour. Kennedy Trailers of Bairnsdale won the prestigious BlueScope Distribution Leadership and Innovation Award in the 2010 Regional Achievement and Community Awards from a strong field of nominees. Kennedy Trailers has manufactured custom-built trailers for the logging industry; heavy machinery floats and side-tipping trailers for road trains for 30 years. It is a family owned business that started in a shed in the back yard, has grown to occupy a 2660 sqm, purpose-built factory and is the largest employer of apprentices in Victoria’s East Gippsland.
And in SA In South Australia, the Community Achievement Awards are about recognising individuals, organisations and groups who are making a difference in their local communities and state. There can never be enough encouragement and support for those working towards making their state a better place. Awards such as these create an opportunity to say thank you to those who work tirelessly to develop and improve in their chosen field of endeavour. Aaron Machado of Port Adelaide is founder of the Australian Marine Research and Rescue Organisation and he won the BlueScope Distribution Leadership and Innovation Award in the 2010 Community Achievement Awards.
Focus on Victoria
Aaron set up an all-hours emergency service in 2003 at his facility on Torrens Island. Now, all it takes is a phone call to ensure prompt rescue of distressed or injured marine wildlife, which are then rehabilitated at the facility.
Within Victoria, the Regional Achievement and Community Awards applaud and encourage those working in rural and regional areas helping to support,
Watch the next issue of The Edge for the results of the 2011 Regional Achievement and Community Awards.
Best Fab
Study
Case
B E S T FA B
generates its own resources
Melbourne company Best Fab Pty Ltd successfully attracts a diverse range of customers and there’s a lot to learn from the way it handles the projects it wins. Best Fab aims to provide consistently high quality steel and metal work to the building and construction industry, Australia-wide, actively bidding for work in the commercial, industrial, community, public and transport sectors. Through its processing capabilities Best Fab can provide structural fabrication, on-site installation, delivery and erection for any kind of steel construction project as well as full drafting and consultation services. The company’s success can be measured by a client list that has included heavyweights the Abigroup, John Holland, Thiess, Vicroads and Fulton Hogan. However, the resource industry is at the heart of what Best Fab does best.
Best Fab Contracts Administrator, Mohammad Sharief, points to a major project in 2006 as a watershed for the relationship with BlueScope Distribution.
“From my experience Best Fab is always looking for opportunities to put the best resources to work to get the job done,” said BlueScope Distribution’s Brad Saunders, who works closely with the company.
“We had won a contract associated with the construction of the Craigieburn railway station,” he said. “We were a relatively new business, cashflow was tight and we needed people to believe in us.
“They are very capable in terms of what they will tackle and they leverage relationships with companies such as BlueScope Distribution so they can maximise the throughput of their business without lowering their very high quality standards.
“BlueScope Distribution really assisted us because they ordered steel for us and then held it ready until we received payment from the project’s main contractor. They had faith in us and looked after us at the time and that has continued ever since.
“As well as supplying steel, our BlueScope Distribution branch in Westall does a lot of steel processing for Best Fab – cutting and drilling – anything to help their production levels.
“Through their own customer base they have put us in touch with companies from whom we have subsequently won work.”
“Best Fab even involves us as a resource in aspects of project management, especially when it comes to timelines for material processing and delivery to them.” Describing the detail of a healthy relationship that assists both parties, Brad points to multi-level liaisons that occur almost every other day. “It’s not as if the relationship is limited to one person,” he said. “Internally, our estimators monitor projects to keep an eye on timetables and our processing manager does a lot of work discussing details with Best Fab. “Quite a network of relationships have sprung up to ensure we have an effective partnership and not just an order taking situation. “They are a very dynamic company and there is always something new that they are working on. We’re there all the way through, from estimating to the fabrication stage.”
More recently, Best Fab benefitted from BlueScope Distribution’s customer loyalty when the fabricator won a large contract with Sugar Australia. “A significant steel price rise was coming through and we needed 700 tonnes,” Best Fab’s owner, Ihab Alazhari, said. “We bought the steel upfront and BlueScope Distribution locked in the existing price, kept the steel in stock and delivered it over nine months as we needed it.” More than price and supply considerations characterise this relationship, however. “There are situations when customers’ designers will indicate what they want us to fabricate and seek our feedback,” Ihab said. “In situations like that we consult BlueScope Distribution to see what the alternatives are in terms of steel grades and cost reduction for a project. We get a lot of valuable input.”
Product
UPDATE
LYSAGHT Living Collection
®
Outdoor home additions with the strength of Australian steel. Every Australian home can benefit from the LYSAGHT Living Collection® range of verandahs, patios, decks and carports. From outdoor entertaining areas to protection for a car, boat or caravan we’ve got the solutions – either DIY or supplied and installed.
Available in three distinct styles – Skillion, Pitched and Designer – all designs can be free-standing or attached, providing maximum versatility. And every design is pre-engineered, helping speed up the council approval process to keep customers happy. Unique Opportunities
Available through a network of specialist dealers, each LYSAGHT Living Collection® home addition is computer designed and individually engineered to Australian Standards to ensure perfect fit, finish and durability.
Unique and limited distribution opportunities are available for businesses interested in distributing the LYSAGHT Living Collection® product range within Australia.
Built from 100% Australian-made COLORBOND® steel components in hi-gloss colours with a low maintenance finish, every LYSAGHT Living Collection® home addition adds value while allowing home owners to make the most of the great Australian outdoors.
As a distributor you’ll be given access to our state-of-the-art quoting software – Cc Builder® – to design LYSAGHT Living Collection® structures. We’ll also work closely with you, providing training and granting you access to the LYSAGHT Living Collection® brand and logo for use in your communications activities. Additional support for the brand will be provided by BlueScope Lysaght through carefully targeted advertising.
Transforming a home is as simple as having a qualified LYSAGHT Living Collection® specialist complete a measure and quote. Using the specialised computer-aided design software they take customer ideas and quickly turn them into reality.
ONE MAJOR MILE®ST D BRAN FOR LYSAGHT
One of Australia’s longest established and most respected brands is celebrating its 90th anniversary as a local manufacturer. In 1857, Irishman John Lysaght bought a small galvanising works in Bristol to take advantage of the discovery that corrugating a thin sheet of iron could produce a very strong, versatile building material. Lightweight and stackable for easy transport, it wasn’t long before shipments of Lysaght’s Orb-brand corrugated sheets were regular arrivals in the Australian colonies. Throughout the Brand’s history the LYSAGHT® name has been an integral part of Australia’s development and in 1918 John Lysaght (Australia) Pty Ltd was founded, following supply shortages from the UK due to the First World War.
If you’re interested in becoming a distributor or want to purchase a large quantity of LYSAGHT Living Collection® structures for commercial use, please call 1800 044 151 or contact your local BlueScope Lysaght office.
A sheet steel rolling and galvanising works opened in Newcastle, NSW, in 1921 and in 1936 a Lysaght plant was opened at Port Kembla. By 1939 these two plants were meeting 100 percent of the local demand for galvanised sheeting. Following the Second World War Lysaght continued to expand its facilities and product range, commissioning a continuous galvanising line at Port Kembla and building its network of steel service centres around Australia. Innovation led to Lysaght’s introduction of special sheet steels, including COLORBOND® steel and ZINCALUME® steel, which have since transformed Australia’s architecture. By 1979 Lysaght was a wholly owned subsidiary of BHP, the company that was later to divest its steel operation as an independent, publicly listed company, which became BlueScope Steel. More than 150 years after their introduction, LYSAGHT® steel products continue to meet the changing demands of Australian architects, engineers and builders.
Study
Case
P r o d u c t i o n S ta m p i n g
“Often, the material specified by a customer can change during the prototyping stage and even at the production stage,” Jill said. “We work closely with our customers through those changes, but you need a supplier who can react quickly and deliver what you need. “We’ve had a strong relationship with BlueScope Steel Sheet Metal Supplies’ people for many years and we work with them regularly on a technical front. Often, the steel specified for automotive components can be an equivalent grade with which we are not familiar. That’s where BlueScope Steel Sheet Metal Supplies is able to assist.
Peter Tamvakis (L) and Lindsay Guscott (R)
Forming Strong
Relationships. Relationships are a key component of business success and for Melbourne’s Production Stamping Company Pty Ltd, those relationships start right at the top. When any family business survives and thrives well into its third generation, it’s obvious the ongoing success is based on more than the talents of the founder. And so it is at the Croydon, Victoria, works of Production Stamping Company Pty Ltd, where Lindsay and Jill Guscott have ensured the enduring success of the company founded by Lindsay’s grandfather in the late 1940s. This husband and wife management duo (Jill looks after administration and Lindsay steers operations) has invested serious time, effort and capital to keep their specialised pressed-metal parts company prospering. Plant and equipment upgrades for the tool room and press shop have given Production Stamping Company 3000 tonne press capacity to produce parts for the automotive industry, with military, rubber bonding industry, building industry, heavy transport, vehicle accessories, dust control and access equipment applications. “We have our regular day-to-day high volume runs and then we have our sporadic monthly, quarterly or even twice-a-year orders,” Jill said. “We also have walk-in orders.” Production Stamping Company’s ongoing work for some of the automotive industry’s heavy hitters is testament to the quality of its output, the skill of its 16-strong workforce and the strength of its relationships with its customers and suppliers.
“BlueScope Steel Sheet Metal Supplies adds value to our business. We give them a floating schedule based on our customers’ forecasting and know with confidence that our steel needs will be met.” To achieve that outcome, Peter Tamvakis of BlueScope Steel Sheet Metal Supplies in Sunshine works with Production Stamping Company to forecast monthly hot and cold rolled steel product needs. These are held in stock to customers’ requirements and delivered on a weekly or even daily basis as required. “The team at Bluescope Steel Sheet Metal Supplies has built a strong partnership with the staff at Production Stamping over the years. We always fulfill their requirements and provide a streamlined service. By working closely with Lindsay and Jill we can ensure ease of business for their steel supply, allowing them to concentrate on meeting their customers’ needs.” Peter said. “BlueScope Steel Sheet Metal Supplies give us great support that we almost take for granted,” Jill said. “Peter will touch base with us even when he doesn’t need to and of course we know we can always contact him whenever we need to. “We get technical support, access to the full range of steels and materials we need, processing flexibility and accurate and timely deliveries which are paramount to our business.”
CUTTING CU S T OM E R P RO F I L E
Growing Something Special
How the Triggs have built a farm and business, with a little help from BlueScope Distribution... In the heart of Victoria’s Sunraysia fruit growing district, Rodney and Kim Trigg have developed a farm and business that’s making quite an impact. Little more than a decade after moving into the region the couple have become active primary producers and established Triggs Trellis Supplies Pty Ltd – an award-winning vineyard equipment and trellis supply company. Additionally, Rodney is chairman of the Mildura branch of Dried Fruits Australia. Rodney is also patent holder for the ViceBite® fence bracket, used throughout Australia and around the world. Impressively, the Triggs won the Mildura Business Excellence Awards for three categories in 2008/9: Primary Producer and Agribusiness of Year, Innovator of the Year and Small Business of the Year. “Rodney came from a farming background in dairy and potatoes,” Kim said. “When we moved to Mildura we spent a year doing regular jobs and observing the local farming scene before purchasing a property to produce sultanas.”
Determined to use best-practice on their farm, the couple met with local industry leaders, carried out extensive research and then undertook any course that seemed relevant to their farming plans.
and just make it,” he said. “Rodney’s more inclined to ask a lot of questions about how the trellising will be used and what outcome the grower is trying to achieve. He can demonstrate his own results.”
Previous experience as a plant operator and mechanic influenced Rodney’s determination to introduce mechanisation and innovation, to maximise productivity while minimising labour costs.
In recent years the Triggs’ relationship with BlueScope Distribution has evolved well beyond a traditional customer/supplier arrangement.
“Coming from out-of-town and outside the industry, we looked at it with fresh eyes and adopted approaches that aren’t the traditional ones around here,” Kim said. “We took on a new trellising system and negotiated to fabricate it under a royalty agreement, so that’s how we got into the manufacturing business, Triggs Trellis Supplies Pty Ltd.” The ViceBite® fence bracket was developed out of Rodney’s need for a strong, economical and simple trellis-post and backing-post joining method. Specially placed teeth on the bracket’s front and back sides bite into the timber when hammered to the required location on the post. Once the wires are tensioned it’s forced further into the timber, creating a vice-like effect that prevents the stay from sliding up or sideways, off the end or backing post. Stamped from 2.5 mm galvanised steel by a 5-stage tool, ViceBite® fence brackets are now used for general stock and land fencing in Australia, New Zealand, Switzerland, Belgium, Portugal, Spain, the UK and US. Complete trellis systems manufactured and supplied by the company are in service throughout Sunraysia and South Australia’s Riverland region, as well as in Queensland’s Emerald and St. George districts. The business began in a shed on the Triggs’ farm at Cabarita, six kilometres outside Mildura – a shed that has undergone multiple expansions. Trellis systems and components such as ViceBite® are part of a product range that includes pruning platforms, sprayers and wetting machines, all designed or substantially modified by Rodney to better suit industry requirements. “We chose not to have an in-town business because we can show our local customers alternative farming practices and demonstrate on our own farm what our products and equipment can achieve,” Kim said. BlueScope Distribution’s Mildura Branch Manager, Brad Thomas, thinks the decision has been a major reason for his customer’s success. “A fabricator might take a fruit grower’s specifications for a trellis system
The Mildura branch supplies Triggs Trellis Supplies with the 30 x 30 x 3 and 40 x 40 x 3 steel angle sections used in many of its products; plus purlins, roof cladding and steel reinforcing mesh for recent shed extensions. Triggs’ mobile pruning platforms have roofs made from BlueScope LYSAGHT® cladding and floors covered in checkerplate steel. BlueScope Distribution also co-advertises appropriate Triggs Trellis Supplies’ products and regularly directs customer enquiries to them. Currently, it is trialling the ViceBite® fence bracket for sale through selected Metalcorp Steel retail outlets. “We have an extremely close relationship with BlueScope Distribution,” Rodney said. “Our ability to purchase quality steel and have it delivered on-time, in the quantities we require, is crucial to our success. “We pre-plan from season to season and give advance notice of our requirements, but even when our requirements change, BlueScope Distribution meets our needs.” Rodney explained. To find out more about Triggs Trellis Supplies and the ViceBite® fence bracket visit www.triggstrellissupplies.com or call (03) 5022 2219.
INDUSTRY
UPDATE
BlueScope secures carbon tax support The Federal Government commits to helping Australia’s trade-exposed steel industry.
“In summary, the STP materially reduces the overall cost of a carbon tax on BlueScope. It is a substantially better outcome than the CPRS scenario presented in our ASX release on 3 May, 2011,” Mr O’Malley says. While the effect of the STP on carbon removes one significant hurdle, BlueScope Steel faces other macroeconomic challenges including the high Australian dollar, high raw material costs, low domestic demand and low prices. “The STP legislation and regulations are yet to be finalised, but the Government has worked with the Australian steel industry to achieve an outcome that recognises it is trade-exposed and that international competitors are not currently subject to such a tax. “The Government has listened to our arguments and our deep concerns about the carbon tax. In the STP it has produced a package that, if implemented as explained to us, deals with the steel sector’s carbon tax issues in a significant way for the first four years.
Following a campaign calling for a sectoral approach to the introduction of a carbon tax in Australia, BlueScope Steel has welcomed the Federal Government’s $300 million Steel Transformation Plan (STP).
“We recognise the wider community pressures surrounding this issue and have worked to achieve the best outcome available for the Company, our shareholders, customers and partners in the value chain,” Mr O’Malley says.
A four-year transitional support package for Australia’s trade-exposed steelmaking industry, the package has been acknowledged as a “pragmatic solution to a complex problem,” by BlueScope Steel Managing Director and CEO, Mr Paul O’Malley.
The Steel Transformation Plan provides:
“The STP will provide funds to minimise the impact of a carbon tax on the Australian steel industry for the first four years. It provides an independent review mechanism to assess the impact of a carbon tax and other unrelated factors on the steel industry. And it signals the Government’s intention to limit the potential pass-through of Scope 3 coal emissions costs onto steel makers.
• A $300 million package over four years to eligible Australian steel makers to provide support for innovation, investment and production. It will be split approximately 60% to BlueScope Steel and 40% to OneSteel, based on an agreed production/emissions formula • Funding will be paid six monthly in arrears to support eligible expenditure on existing EITF activities including slab-making and hot-rolling, coldrolling, metallic coating and painting • A review will be conducted if steel companies believe the impact of the carbon price mechanism has been greater than expected, or if other matters such as macroeconomic circumstances affect the competitiveness of the industry The Government will request the Productivity Commission monitor the impact of carbon prices on major internationally competitive industry sectors, including steel. The Commission will make recommendations about ongoing carbon pricing arrangements for these sectors in Australia. The Government will also commit to an independent review process to monitor and assess evidence if suppliers of coal attempt to pass through cost increases resulting from the application of the carbon pricing scheme to their businesses (known as Scope 3 costs). Mr O’Malley finished by saying the company will prepare an annual Clean Technology Report for the Government, specifying the measures it has taken to reduce emissions and improve its environmental footprint.
MAINTAINING STANDARDS Newly revised Australian Standards help ensure steel is up to the job. Revisions and updates to a number of Australian Standards applicable to the steel industry include changes to structural, building, fabrication and manufacturing material specifications. Many have been driven by customer demands for improved product traceability and conformance, due to increased volumes of imported products in the local market and the potential for varying quality levels. The aim is not only to improve compliance, but to increase confidence in the quality of steel available across all applications. Risk and reward Imported steels can vary greatly in quality due to significant variances in international standards and subsequent mandatory conformance criteria. Steel non-compliant with Australian Standards puts users at risk in terms of safety, reduced structural performance and even potential litigation. The rewards of using compliant steel products are many. They include knowing the materials used meet all design and safety requirements, helping ensure building integrity and preserving hard-won reputations. Compliant materials also lead to greater transparency and traceability of processes, providing recognised testing protocols that are easily verified by all parties. The steel industry recognises customers want quality assurance, minimising risk to themselves, their businesses and their customers. The revised Australian Standards help customers to ensure they are receiving products that conform to the standards they require. The new Standards Australian Standards AS/NZS 1163:2009 (hollow sections for structural applications) and AS/NZS 3679.1:2010 (hot rolled bars and sections) now have mandatory requirements for markings and test certificates. These let users check to see if the steel they’re buying is produced to Australian Standards and up to the performance required of it. This is good news because until now, all structural steel has appeared the same. The changes have been introduced in response to industry concerns regarding product quality, identification, certification and traceability. The major changes to these standards include mandatory requirements for: ❱❱ For AS/NZS1163:2009: Individual length identification marked on all exmill tube lengths with information such as the manufacturer’s name, site identification, traceable text identification
❱❱ For AS/NZS3679.1:2010: A rolled-in mark on the product identifying the manufacturer and also that it is produced to this Australian Standard, indicated by “AS” ❱❱ Specific information on test certificates ❱❱ Testing to be performed by laboratories with third-party accreditation from a signatory to International Laboratories Accreditation Cooperation (ILAC), such as NATA The changes make it easy to check the steel specified is produced to the appropriate new standards. Additionally, Australian Standard AS1397:2001 (steel sheet and strip – zinc coated), as applied to BlueScope Steel products like COLORBOND® steel and ZINCALUME® steel, has tangible benefits and users should consider these points: ❱❱ I mported material might have base steel properties different to those required by Australian Standards and therefore might have lower ductility and be more prone to cracking under design load. All steel manufactured by BlueScope Steel is quality assured to meet or exceed applicable Australian Standards, which can specify minimum requirements for mechanical properties e.g. ductility ❱❱ I f the metallic coated steel product is not legibly and durably marked with ‘AS1397’ then it might not comply with AS1397:2001. However, this requirement does not apply to pre-painted steel products. Metallic coated steel products made by BlueScope Steel that meet AS1397:2001 are legibly and durably marked to visibly show compliance, as required by the Standard ❱❱ M any foreign standards use Total Coated Thickness (TCT) to describe steel product thickness that might not be suitable for design loads under Australian Standards. The thickness of BlueScope Steel products is specified as Base Metal Thickness (BMT) not TCT. BMT is the relevant measurement for structural strength Quality and support guaranteed BlueScope Distribution supplies an extensive range of quality, approved steel products. These include plate, sheet and coil, reinforcing fabric, bar and building products, merchant bar, structural steel, tubular, engineering steel and aluminium products. BlueScope Distribution is a quality-accredited organisation focussed on customer satisfaction – your satisfaction. To find out more call 13 72 82, email sales@bluescopesteel.com or visit your closest branch. Useful links ❱❱ B uilding & Roofing Products: Visit steelselect.com/check or call BlueScope Steel 1800 022 999 ❱❱ Green Star™ Building Credit Points. Call Steel Direct on 1800 800 789 ❱❱ A ustralian Authority for Reinforcing Steel (ACRS) www.acrs.net.au ❱❱ T echnical Bulletins & Datasheets visit http://steelproducts.bluescopesteel.com.au ❱❱ Australian Steel Institute www.steel.org.au
Study
Case
Y a r r o w eya h E n g i n ee r i n g
Milking export markets At a time when Australian manufacturers and fabricators are under severe pressure, a small Victorian company is set to pass a significant export milestone. In fact Yarroweyah Engineering is one of the great unsung manufacturing success stories. As the world’s largest exporter of rotary dairy platforms, Yarroweyah Engineering has brought prosperity to the tiny town whose name it bears, 10 kilometres west of Cobram in northern Victoria. The company it is about to deliver a rotary dairy platform to South Africa, the 51st country to which it has exported milking infrastructure over nearly 30 years. Most have been for cows, but the Australian made platforms have also been used to milk goats and buffalo. Graeme Hargreaves, Yarroweyah Engineering director and boilermaker, set up the business in 1980 repairing and maintaining farm machinery and was later joined by his brother, Stephen. The company built its first rotary platform in 1984 and the business grew as the local dairy industry expanded. Major opportunity knocked in 1992 when German dairy equipment specialist Westfalia offered a contract to supply the New Zealand market. Westfalia was so impressed with the quality produced by Yarroweyah Engineering that the company was asked to supply platforms to Westfalia distributors across the globe.
Westfalia is now part of Germany’s industrial technologies specialist, GEA Group, and Yarroweyah Engineering equipment is in demand on every continent where there are dairies. BlueScope Distribution has been a long term supplier to Yarroweyah Engineering, providing tube, pipe, structural beams and channel, black sheet and plate, flat and round bar and galvanised coil. Technical support is provided either through BlueScope Distribution’s Albury branch or direct from the steel mills. And when Yarroweyah Engineering installation crews are working around regional Australia, BlueScope Distribution can deliver concrete reinforcing mesh or other steel requirements directly to site. With first class equipment including laser cutters and robot welders, Yarroweyah Engineering designs and fabricates rotary dairy platforms, packs them into shipping containers and exports them. At last count the company had manufactured nearly 2500 rotary platforms, ranging from a 9-stand platform for a Swiss dairy to a 99-stand rotary shipped to Mexico. Australian sales average around 20 platforms each year. Whether for local or export use the rotary dairy platforms are shipped in kit-form, assembled and commissioned on-site by expert installers trained by Yarroweyah Engineering. The company, which provides employment for 45 locals in regional Victoria, also takes as much care in its choice of suppliers as it does with training installers. “We rely on steel from BlueScope Distribution because we need steel of consistently high quality,” Graeme said. “We do a lot of tube bending and our components need to be galvanised after we make them. Those are two very good reasons why we wouldn’t consider imported steel. “When the quality of the steel is consistent you can set up equipment and know you won’t have to alter settings because its properties have changed from one piece to the next. “You also get a consistent result from the galvanising process with Australian steel from BlueScope Steel, whereas imported steel with varying silicon content galvanises very unpredictably. We wouldn’t risk our reputation.”
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P a r a g o n pl u m b i n g
Paragon Plumbing sealing success with Victaulic ® system By any measure the $2 billion project to construct Perth’s new Fiona Stanley Hospital is hugely impressive. Named to honour eminent WA doctor and Australian of the Year, Professor Fiona Stanley, the new facility is on track for a scheduled opening in 2014. It will be the major tertiary hospital in south metropolitan Perth and will offer health care services to communities south of Perth and across the state. It is the largest building infrastructure project ever undertaken by the WA State Government. With a building footprint equivalent to 4 city blocks; 150,000 sqm of floor space over 5 main buildings; 6300 rooms; 783 beds and a 3600 sqm basement plus ground level and multi-storey car parking bays, this is health care on a grand scale. Brookfield Multiplex is managing contractor for stage one and Sydneybased Paragon Plumbing has made the most of its expansion to the West by winning a major contract for fabrication and installation of plumbing and mechanical services. “We are providing piping for chilled, heating, condenser, tri-generation and steam systems,” Paragon Plumbing’s project manager, Shane Gow said. “We began work on site in October 2010 and will complete our installation by December 2012. “The scale of the job is larger than anything else we have tackled and my biggest challenge is meeting the construction program deadlines. Coordination with BlueScope Distribution has certainly assisted there.” BlueScope Distribution is supplying pipe for the project in various sizes from 250 mm nominal bore (nb) to 900 mm nb in lengths up to 12 m. It has also made a six figure investment in roll grooving equipment to make the pipe compatible with Victaulic mechanical coupling systems, which are now available through BlueScope Distribution. “We’ve used the Victaulic system before,” Shane said. “It has a very quick installation time compared to electric welding. You can install an 800 mm coupling in 15 minutes, whereas a pipe that size could take a full working day to weld, cut-back and inspect. “Even considering the cost of the couplings, the cost benefits still favour the Victaulic system.” BlueScope Distribution’s Pipeline Supplies Manager, Bill Inglis, says Victaulic mechanical coupling systems give users the opportunity to save up to 40 percent on their labour costs. “They can use installers who can be quickly and easily trained in how to install and assemble the Victaulic product rather than having to hire ticketed welders,” he said.
“There is still a full quality assurance process because every pipe end groove is inspected before it arrives on site and is supplied with documentation to confirm the groove is the correct depth and width suitable for mechanical coupling. “Some of the largest diameter pipes are being installed in service tunnels at the hospital site and you can’t easily weld in those enclosed spaces, so the Victaulic couplings BlueScope Distribution provides are a major problem solver.” Because of the size and complexity of the Fiona Stanley Hospital, Paragon Plumbing has 10 employees working off-site on fabrication work to support its 15 on-site installers. BlueScope Distribution works closely with Paragon Plumbing to schedule deliveries to both locations and has also coordinated the production and supply of pipe lengths with welded flanges required for the hospital’s plant room. “Every length of pipe that arrives has an ID number that makes it easy to work out where it needs to go. Through Victaulic and BlueScope Distribution we also have access to expert technical assistance and quality assurance inspections,” Shane said. “Partly as a result of our work here we have also won another contract for work at the QE2 Hospital in Subiaco – an even larger project for us than this one.”
THE ONE
MINUTE
PRESENTER Tips on how to cut through the clutter and make truly engaging presentations in a world with a very short attention span...
Too many presentations
Recommendation
1. You, the presenter
Many people are afraid of public speaking. The formal name for speechmaking anxiety, which affects three out of every four people, is glossophobia. Are you a glossophobe? If so, take heart: Presentation expert Warwick John Fahy has the answer to your problem. He details eight steps toward becoming a more confident public speaker, including some “fearbusters” to conquer your dread of making presentations. This easy-tofollow program can help anyone present fearlessly. The Edge recommends Fahy’s valuable advice on public speaking.
To be an effective presenter you must be unassuming and sincere. Catalogue your present speaking strengths, build your authenticity by citing your experiences and be confident and candid. Use these “fearbusters” to overcome trepidation: •W ork your body – How you feel physically directly affects your speech. Treat yourself well before you present, do a few stretches and have a drink of water before your talk •G et mentally prepared – Visualising success works for great athletes and it can work for you •D eep rhythmical breathing – The more oxygen you can draw in, the better you will feel • Find a support group – Toastmasters International is a good one •H ire a learning coach – To build presenting skills, work with a professional trainer
No attention Increasingly, cable television, video games, email, the Internet, social networking, instant messaging and smart phones provide constant distraction. Amid this information overload onslaught people often tune out public speakers. Digital Natives – people born after 1980 – are particularly bad audience members. They’ve grown up with the Internet, which shapes how they think and process information. Their motivation is “instant gratification” and their attention spans tend to be severely limited. “Poor interactions” also negatively affect attention. The majority of business communications are not interactive, so people quickly tune them out. Time pressures, language barriers and multitasking are other obstacles to audience attention. Stressed people have a hard time calming their anxiety enough to listen well. Presenters trying to secure the attention of busy, distracted, harried and unfocused audience members face a major challenge.
Speechmakers usually talk too much for their listeners to tolerate. Fortunately, there are proven presentation techniques to enhance your message and get your audience members to sit up and pay close attention. This is true whether your listeners share your demographics or are diverse and multicultural. These techniques work even when presenting to Internet-driven digital natives, a growing part of today’s “customer base and workforce.” Follow these eight steps to make compelling presentations to anyone at any time:
2. Treasure your audience The more you know about your listeners, the better you will be able to connect. Determine what they consider important and figure out the most topical angle to pursue. When presenting, adopt a “SWIIFY” mind-set, telling your listeners, “So what’s in it for you?” Show how your talk will help them “solve a problem, meet a need, reach a goal” or “answer a question.” Explain why this is important to them. Focus on your listeners, not on yourself.
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T h e o n e m i n u te p r ese n te r
3. Produce your message Have an exact goal, such as compelling your audience to think or feel a certain way, or to do something specific. Develop a concept. As Steven Spielberg puts it, “If a person can tell me the idea in 25 words or less, it’s going to make a pretty good movie.” An example for the movie Alien would be “Jaws on a spaceship.” People love stories. Give it an opening, a body and a close, with a simple, clear message. Make sure your audience can grasp your ideas without difficulty. Develop key words – concepts that deliver your message directly – and structure your presentation to highlight them.
4. Create your connection You must establish rapport with your listeners to communicate effectively, but this requires their attention. Set some ground rules during your presentation – for example, no emailing, texting or ‘phoning. Use eye contact to build a bond and keep them engaged by periodically changing pace. Introduce some form of interactivity every 15 or 20 minutes. Get the audience on your side by referring to something relatable that is topical or local. Show your enthusiasm and energy at all times. Use appropriate body language.
5. Deliver with style Ensure your voice is strong and vibrant. The best way to monitor vocal performance is to record and play back your presentations. Always speak with a microphone. Use the appropriate speaking pace and speed for your content and occasionally pause to help your audience refocus. Periodically adjust the pitch of your voice to keep listeners engaged. Emphasise certain words. Gestures are good for emphasis but avoid nervous motions such as playing with your glasses or adjusting your clothes. Maintain proper posture. Use PowerPoint for clarification, but keep your slides to the minimum. Focus on your audience, not your images.
6. Manage all interruptions Interruptions undermine presentations, but the more you prepare for them the better your presentation will go. Basic rules about interruptions include: No matter what happens, always maintain a sense of humour and control your ego. Arrive early to check everything, including microphones, projectors, etc. The best in-room temperature for an audience is around 23°C. Make sure all light switches work. Go over your presentation plan in advance with the lighting professional. Learn his or her name so you will sound professional if you ask for help. If a technical glitch occurs during your presentation, be courteous and respectful to the on-site support staff. And never start a presentation over again at the request of a boss who arrives late; offer to update the boss later.
7. Master the Q&A Many presenters fear question-and-answer sessions because they’re not prepared. You cannot control the questions but you can anticipate most of them. Before your presentation, sketch out and practice viable responses to the most likely queries. Limit people to one question each, and use the “4As method” for each response: “Attend to the question in full. Acknowledge the questioner. Ask to clarify and check. Answer the question.” Pause briefly after each question to think carefully about your best response. If you don’t know an answer, don’t fake it. Admit you don’t know. You might need to respond to an overly complex question later. Handle it this way: “Let’s set up a time to talk about that. Can we meet afterward? Great. Thanks.” After each response, show consideration for the questioner by saying something along the lines of “Does that make sense to you?” At the end of the Q&A session, briefly summarise your presentation’s main message.
8. Finish on time Starting and finishing on time is a sign of respect for your audience. Never go on longer than planned. Carefully organise your presentation and accurately time rehearsals. Devote 50% of your time to content development and 50% to rehearsing your presentation at least 10 to 15 times. Practice is the key to any effective presentation. Spend approximately one hour in preparation per every minute of your presentation. A 20-minute presentation requires a full 20 hours of planning, preparation and practice. Once you have perfectly memorised your material, begin to add gestures and points of emphasis to enliven it. These steps will help you build and rehearse your material: 1: Develop content first by getting it down on paper. Start with a basic outline of your primary ideas and main points. 2: Expand your ideas by saying them out loud over and over. Figure out what works well and sounds best. 3: Record how you sound. Do not sit down while you are recording. Stand as if you are speaking in front of an audience. It helps to practice in front of a mirror. 4: Note how long it takes for you to say each section of your presentation. Strict time notations will help you edit your material. Include “time marks” next to each important section so you can monitor your delivery more effectively. 5: Video your last series of rehearsals so you can see how you come across during the presentation. Plan your emphasis points and your body language accordingly. 6: Ask trusted individuals – work colleagues, friends and family members – to watch you perform a test run of your presentation.
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Steps to successful business presentations in a short attention span world
In today’s hyperactive, multitasking world, few people truly focus. Audiences routinely tune out most speakers and presentations. You can break through the clutter and engage your audiences by using eight techniques • F irst, overcome your fears by visualising, practicing, training, exercising and talking to other people about things not related to your presentation •S econd, learn about your audience members so your words will be compelling to them • T hird, have a firm goal and a 25-word essential message in mind. Tell a story • F ourth, build rapport with your audience. Use eye contact. Cite local topics • F ifth, record and listen to your voice. Build a strong vocal presence •S ixth, prepare to manage interruptions with professionalism and good humour •S eventh, get ready for Q&A sessions so you can handle them easily • E ighth, rehearse. Put in up to an hour of preparation for every minute you speak in public
THE EDGE
E L I F O R P STAFF
13 72 82 incorporating
Jason Smith
Manager Northern Region Location: Northgate, Queensland Time in Position: Two Years Time with BlueScope? Four years, since the acquisition from Smorgon Steel and twenty two years of service through four acquisitions.
1800 010 247
1300 661 156
1300 306 204 THE EDGE newsletter has been prepared for information purposes only. BlueScope Steel makes no representation or warranty as to the completeness or accuracy of the information contained in the newsletter. You must make your own assessment of the information contained in the newsletter and rely on it wholly at your own risk. Published by BlueScope Steel Limited. ® are registered trade marks of BlueScope Steel Limited. ™ are trade marks of BlueScope Steel Limited. © 2011 BlueScope Steel Limited ABN 16 000 011 058
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Be SAFE at Work!
Good OH&S practic e is to keep your workplace as safe as possible. A good way to achieve this is to memorise these four, simple SA FE steps:
Responsibilities? The safe, effective, consistent and proactive management of staff across branches in Queensland and Northern NSW. Engaging key customers, both formally and informally, to understand their business requirements and how our business can change or improve to support their requirements. What satisfies you most about your work? The fact there is always a challenge at hand, opportunities to learn new skills and meet new people. I can say I have never been in the dreaded mindset of not wanting to get out of bed to go to work (there might have been the odd time I’ve been tested, though. Several State of Origin deciders comes to mind). What challenges do you see ahead? There are the well publicised challenges around the high Australian dollar, low demand, imported material and imported finished goods currently receiving a lot of press. I also believe our industry needs to adapt to how we remain relevant to, interact with and promote ourselves and products to new generations of potential customers who have grown up using iPad and iPhone-type products in their daily lives.
VICTORIA / TASMANIA Westall Ph: 03 8543 3666
How do you relax? I could say I enjoy a run or going to the gym but those who know me well would be rolling around the floor in laughter. I enjoy renovating our house, having a punt, watching a game of league or bike riding with my daughter on weekends. What are you reading right now? James Halliday’s 2012 wine companion (don’t mind a drop of good red) and the Saturday Form Guide.
Spot the hazard Assess the hazard Fix the hazard Evaluate the results
STATE OFFICE CONTACT DETAILS
NEW SOUTH WALES Auburn Ph: 02 9714 8000 QUEENSLAND Northgate Ph: 07 3622 9222 SOUTH AUSTRALIA / NORTHERN TERRITORY Ottoway Ph: 08 8245 3801 WESTERN AUSTRALIA Kewdale Ph: 08 6250 1000
Keeping alert for ha zards and not leavin g it to others could sa ve a life – and it mi ght be yours. Be SAFE and stay safe!
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