The burgeoning demand by the mining industry for equipment is actually not a boon for the manufacturing industry. Unable to meet the huge demand companies like Caterpillar are looking to import equipment from Mexico rather than construct it in Australia.
While this may be seen as a good sign for the economy the workers in the manufacturing industry say that it is not a good idea. It will decline the manufacturing base present in the country and after the boom is over there will be no worthwhile manufacturing industry in Australia to fall back on.
The Australian Manufacturing Workers Union has recently seen a hundred workers who manufacture mining truck bodies in Melbourne for Caterpillar being laid off. Of these 60 were fulltime workers and 40 labour hire workers as per the AMWU national secretary Dave Oliver.
Dave Oliver said that despite being a profitable operation making vehicles in demand by the mining industry operations will cease at Tullamarine on December 15. The company has told workers that the decision was made because it had run out of warehouse space.