Building with light - glass blocks
Building with light - glass blocks
forward tasmania sustainable school of thought building with light glass blocks a clearer view summer 2014 economy how many houses does australia need to build? legal keeping it in the business people are you really listening?
Get the new app from the Australian Window Association. From your mobile phone or tablet device, access: • WERS • Key Messages • AS 1288 Glass Selection Tool Images courtesy of Hanlon Windows, Azuma Design, AW Window Transport and Viridian Glass. support your awa supplier members support your awa supplier members AWA Supplier Members support our industry.
Let’s get together and support them. Visit awa.org.au and use the ‘Advanced Search’ feature for your product and service requirements.
Cover Twin Chainwinder.indd 1 10/11/2014 10:23:17 AM this summer windows magazine is a quarterly publication from the Australian Window Association cover Narrabundah ACT Monaro Windows Page 24 contents page DN400 Twin Chain Winder Doric Products magazine design Stephanie Grigg www.awa.org.au email@example.com features Sydney Pymble Corporate Centre Suite 1, Level 1, Building 1 20 Bridge Street Pymble NSW 2073 p. +61 2 9498 2768 f. +61 2 9498 3816 It is impossible for the publisher to ensure that the advertisements and other material herein comply with the Australian Consumer Law Competition and Consumer Act 2010.
Readers should make their own inquiries in making decisions and where necessary seek professional advice. Australian Window Association © 2014 All rights reserved. Reproduction in whole or part without permission is strictly prohibited. regulars 11 awa board nominations represent your industry in 2015 12 case study forward tasmania 30 ask an expert choosing glass for your home 02 chairman’s words 04 member profile glass block international 06 compliance parliamentary friends of manufacturing 08 people matters are you really listening? 14 economy how many houses does australia need to build?
16 doric racing 18 legal keeping it in the business 20 marketing 7 steps to advertising success 24 news 28 products 32 directory Melbourne Level 1, Unit 34 125-127 Highbury Road Burwood VIC 3015 p. +61 3 9808 0069 f. +61 3 9808 9009
2 Australian Window Association Summer 2014 W elcome to the Summer edition of Windows. As another year has simply flown by! It appears we are starting to feel the initial uplift in the market. With residential expenditure still forecast to grow at an annual growth rate of 2.3 per cent, this upturn in expenditure will result in strong growth in the residential building and renovation sector before moderating around 2017 to 2019.
Add to the mix interest rates at a record low, our businesses are going to continue to experience an increase in demand for manufacturing capacity. So now’s the time to get your ‘house in order’! Additionally, non-residential expenditure is also forecast to show moderate growth in the short to medium term, with spending in health and aged care, accommodation and entertainment driving much of it. Whilst South Australian non-residential activity continues to decline, all other states and territories are bouncing back or enjoying moderate growth with a national aggregate forecast in expenditure pushing through $35 billion in 2014 to just below $40 billion by 2022.
Great news for those members of the AWA who operate in the commercial sector.
So with an encouraging outlook for 2015, on behalf of the AWA Board of Directors I’d like to wish all our members a Merry Christmas and a prosperous New Year. I also ask that you join with me in thanking the great team at the AWA for their excellent work and efforts during 2014. Enjoy your well-earned end-of-year break, and we’ll see you next year. michael o’keefe Chairman of the Board tracey gramlick Executive Director chairman’s | words gary smith Marketing & Communications Manager W elcome to the final edition of the magazine for 2014. The year seems to have passed by in a blur, with the AWA busy responding to members’ needs and our members busy with the improving market and the work that brings.
Recent reports show the value of building construction activity in Australia is in an upward trend, with residential leading the charge. This is by far Australia’s biggest building sector and is forecast to grow by 13 per cent, but the stories vary from state to state. New South Wales, including the Australian Capital Territory, appears to have the busiest and strongest growing residential building market, particularly in the multi-unit area. Next year, it will account for 30 per cent of the national market and it has the most consistent upward trajectory. Victoria and Tasmania are also forecast to improve in 2015 to a lesser extent, with an estimated 15 per cent growth.
The Queensland/Northern Territory residential work dropped considerably in 2013-2014 but is set to more than recover next year with over $2 billion of work in the pipeline. Unfortunately, the picture is not as clear for Western Australia and South Australia with residential construction starts with individual houses still outnumbering apartments and units. Please remember that it is that time of the year again for AWA board nominations and Scholarship applications. You will find information regarding both inside.
I would also like to wish you and your families a merry and bright Christmas and, importantly, a prosperous 2015.
W ell, here we are already at the Summer issue of Windows, our final edition for 2014. I would like to take this opportunity to sincerely thank all of our advertisers and contributors to Windows this year. Your continued support has certainly improved the content and appeal of our magazine. This edition includes a great member profile on Glass Block Constructions in Western Australia, Tracey Gramlick continues her articles on the fight for industry compliance, Viridian look at choosing glass for your home and Harley Dale discusses the question, ‘How many homes does Australia need to build?’.
Don’t miss important legal advice from Bryan Pickard regarding the steps you should take to protect valuable commercial information and David Esler continues his communication series with, ‘Are you really listening?’.
Our 2015 Scholarship program is now open for submissions. Make sure to apply if a family member is eligible. As always, we have case studies, new products, news and AWA directory sections. Don’t forget to download a copy of the media kit for 2015 and ensure you submit your case studies, news and new products for each edition of Windows. Visit www.awa.org.au and look under the News tab. I wish everyone a very merry Christmas and a wonderful New Year.
4 Australian Window Association Summer 2014 member profile | glass block technologies international W ith the availability of an immense range of colours, textures, finishes, thermal performance characteristics, light transmittance and noise insulation options, these multifunctional blocks are a stylistic treasure trove for inventive glazing and building professionals.
One of Australia’s pre-eminent suppliers of glass blocks, Glass Block Constructions, Perth, Western Australia, is at the cutting edge of glass block applications for both commercial and domestic settings. Managing Director, Bill Burke, started the company with business partner Ian Judge in May, 1980. Over the ensuing decades, the company evolved into a specialist enterprise dealing with all aspects of glass block supply and installation. Operating from a dedicated warehouse and showroom built in Malaga five years ago, the business is now run solely by Bill and a team of expert staff, following Ian’s retirement 12 years ago.
Distribution arrangements are in place to service the needs of clients in Australia, New Zealand and as far afield as Eastern Europe, France, the Middle East, India and Africa. about the blocks Historically, glass blocks used for architectural applications in Australia have been of a uniform size of 190 x 190 x 80mm, which Bill says is an optimal size to ensure strength, quality and evenness of construction. However, larger or smaller sizes are also available for particular needs. “Each block is made of two halves of pressed glass,” Bill says. “The halves are annealed to stop the stressing then they are joined together under extreme heat.
This gives them a partial vacuum to prevent condensation. There is even an ‘energy efficiency’ range consisting of a sheet of Low A new wave of glass block designs and technologies offers unlimited opportunities to creative designers. Glass blocks have been used for niche architectural features since the 1850s. Thanks to renewed interest in creative design involving light and texture, this fascinating product sector is enjoying a renaissance. Glass Blocks building with light E glass between the two halves which are then filled with argon gas on both sides,” explains Bill.
In this regard, glass blocks can function as mini Insulated Glazing Units (IGUs) on outer walls or as more decorative elements of interior spaces like bathrooms, kitchens or feature walls. Outcomes are limited only by one’s imagination. “For example, we have 327 different blocks in our range,” Bill says. “That includes a huge selection of colours and patterns of different configurations, including corner blocks.” applications Glass blocks are not designed to function as structural or load-bearing features. Nevertheless, modern installation techniques allow for glass block features of considerable size and sophistication.
Summer 2014 www.awa.org.au 5 “With our silicone installation system, which has a stiffener bar between each course, either horizontally or vertically, you can go externally to 10 metres (i.e. 52 linear glass blocks) in height,” Bill explains. “And based on restrictions to do with wind loading, it is possible to go perhaps three metres or 3.4 metres wide.” Designers, however, should be aware of dimensional caveats due to fire rating restrictions: “With mortar, you can only go six metres in any one direction because of the expansion between the mortar, the steel reinforcing and the glass. But with fire ratings, we are restricted to a maximum area of nine square metres.” Within these parameters, there is still plenty of flexibility to achieve design outcomes of originality and artistic flair.
Bill says, “Commercial applications tend to use plain clear or frosted glass blocks, whereas residential uses are now becoming more adventurous with the selection of vibrant colours or patterns consisting of differently coloured blocks.” In terms of finishes, customers can choose from an array of traditional patterns or configurations designed to allow for directional lighting (towards a ceiling, for instance).
Floor and ceiling paving made from glass blocks is also becoming increasingly popular as a means of illuminating unavoidably dark spaces. Glass Block Constructions can advise clients on the multitude of products now available to achieve aesthetic and performance goals. The company can also recommend or oversee professional installation processes for long-term satisfaction in different applications and climatic conditions. As a means of harnessing natural light while maintaining privacy, adding visual interest to a property and diversifying mainstream glazing features, glass blocks have the capacity to deliver a ‘point of difference’ in an energy-efficient manner.
For more information, contact Glass Block Technologies International/ Glass Block Constructions (Aust) Pty Ltd www.glassblockconstruction.com
6 Australian Window Association Summer 2014 compliance | tracey gramlick O n 29 October, co-convenors, Senators John Madigan and Nick Xenophon, invited the AWA to attend the inaugural meeting of the Parliamentary Friends of Manufacturing - extending me the privilege of being their first speaker. The Senators invited parliamentarians, staff and key industry representatives to join them to find the answers to the big questions facing our manufacturing sector: What is the biggest hidden threat to our building and construction industry? What are the factors that make some companies successful and others not? What are the global trends that are working in Australia’s favour? The attendance numbers were higher than expected and I was asked to specifically highlight the issue of compliance within the building sector and the impact of low cost non-compliant products on our conforming manufacturers.
Identified in 2004 as an emerging issue, the supply and use of non- conforming building products is considered to have now reached the point of market or systemic failure, with the potential for significant replacement and rectification of newer buildings, fixtures and fittings by 2020.
I spoke about the building products sector that we, as the AWA, interact with collectively. The window industry represents approximately 16,000 employees and contributes $5-6 billion to Gross Domestic Product (GDP); the Building Products Innovation Council (BPIC) members represent approximately 160,000 employees contributing $50-60 billion to GDP and the Furniture, Cabinetry, Joinery Alliance (FCJA) represents another 130,000 employees contributing $30-40 billion to GDP. My main points, when I honed in on windows and glazing, included: • The ability for windows and doors to withstand site wind pressures and resist water penetration is crucial to their longevity and amenity.
• The use of appropriate glass being crucial to human safety and vital for energy efficiency. • Failure can be glass breakage, excessive water damage, gross deflection, hot box effect – often leading to irreparable damage to the building envelope, people getting cut (even fatally) or running costs prohibitively high. • Companies testing to standards and undergoing audits realise much higher costs to comply than those that don’t, with non-compliant products not being picked up until an event occurs. • The growing number of fraudulent documentation that is hard for surveyors to identify. Many overseas laboratories are now testing to Australian Standards but their reports have identified major testing and reporting flaws.
• In 2003, with almost 300 member companies, the AWA received three This is a combined product industry sector total of approximately 275,000 employees that contributes approximately $85 billion to GDP.
Parliamentary Friends of Manufacturing tracey gramlick AWA Executive Director Image: John Madigan opens the meeting in Parliament House
Summer 2014 www.awa.org.au 7 requests a year to deal with product or installation issues. In 2013, with more than 600 member companies, the AWA received three requests a week. • The issue is getting worse, not better, and more compliant companies are closing as they can’t compete. • We have a robust National Construction Code with the BCA, so we don’t need more regulation. We have Standards and verification paths and some associations, like ours, have accredited inspection agencies with mandatory audit processes.
Work is being done. In fact, the industry is working as a collective as never before. We have the AiG report and AiG working committees to identify solutions to governments and industry. There is now the APCC Procurement Guide to minimise the risk of purchasing non- conforming products. Political engagement is active with a pending round table between industry leaders and the Department of Industry. The MBA has run a forum and achieved QLD Government (QBCC) on line support. Joint FCJA and AusIndustry industry leaders’ forums are still running in major cities. We are pursuing facts and figures from states and territories, we are educating and we are communicating.
I believe what is not working for the building and construction industry includes: • The current system. • Voluntary industry compliance. • Clear, consistent understanding of minimum requirements by all players. • The increasing reliance on paperwork. • The decreasing reliance on site inspections. • A receptacle for documented issues that can and will be dealt with by a body with authority. I believe what we need to pursue includes: • Policing of conformance to current regulated requirements. • Penalties for not complying.
• Responsibilities defined at point of sale and certification.
• Equity, or what we commonly term a ‘level playing field’. • Licensing. • At a minimum, regulatory or government endorsement of accredited industry schemes. Rest assured, the AWA will remain at the forefront of this and keep you abreast of outcomes. I would be remiss to conclude without noting the other guest speaker for the event, Peter Roberts, who is a leading journalist. In 2013, he founded the LinkedIn Australian Manufacturing Forum which is now the country’s largest social media networking and discussion group focused on the manufacturing sector. Peter gave a splendid presentation about talking up the manufacturing industry in Australia, its abilities and innovation, and provided some wonderful overviews of Australian companies doing some incredible things.
HALF VERTICAL - AZUMA TESTING KIT.indd 1 10/10/2014 1:30:26 PM
8 Australian Window Association Summer 2014 people matters | david esler David Esler Principal Kaizen Executive Are You Really Listening? I n the Spring edition of Windows, I talked about sales professionals either not asking the right questions or asking questions that really do not add value to the required outcome or their customers. But what is even worse than that? Yep, that’s right, asking a very good or well crafted question and not listening to the answer. A number of you are shaking your head and asking, ‘how could that happen’? Whilst the majority of us (including me, I might add), are nodding our head and saying quietly to ourselves, ‘yep, I’ve done that before’.
How do you feel when you mentally arrive back and tune into your customer, only to find them looking at you in anticipation of engagement regarding their answer and you do not even know what the answer was! Doh!
In the high tech, high speed and high stress sales environment we work in, it is easy to have too much information going through our brains. At times, we almost overheat and cannot focus on what our customers are saying because we are still trying to process what happened at the last sales call or the discussion we had between sales calls on the phone. What we end up doing is just hearing what our customer says but not really listening and understanding what they mean or are searching for. Yep, I know. You’re saying, ‘so what is the difference?’ Hearing, quite simply, is a passive process that occurs without paying any attention at all.
You may hear something, but you are really not listening; a technique used extremely well at home when our partners are telling us something they think is important and we are trying to relax after a hard day at work.
Listening is different. It is an active, yes active, process involving both mental and observational behaviour that includes watching the person if they are with you, or if you are talking over the phone, listening for changes in voice tone. It takes a whole lot more effort to listen than it does just to hear. It has also become a rare gift; the gift of slowing down and taking time to listen properly. This is all nice information, but what does it mean when selling? When actively listening, we build relationships faster, solve problems more quicky, understand issues in more detail, resolve conflicts with more ease and improve our ability to react to our customer’s needs and requirements in a more efficient way.
Wouldn’t it be great to be able to do all this just by changing one thing you do, listen more?
Also, to understand the type of customer we are working with, we need to listen for the key to how they learn and understand information. Most people have one more dominant learning style and they will let you know this through the way they answer some of your questions. They are: For more information, contact David on 0420 905 580 or visit his website at www.kaizenexec.com.au
Summer 2014 www.awa.org.au 9 Auditory These types of customers learn through listening and think in words rather than in pictures. They will process information better through discussions and talking things through.
From the seller’s perspective, we need to be listening for clues, such as statements like: Lastly, my top five tips for developing active listening skills: 1. Always keep an open mind and focus on your customer. 2. Listen to the words and try to picture what they are saying. 3. Ask questions to clarify and to show you are listening. 4. Don’t interrupt or propose a solution early; sit tight. 5. Pay attention to what is not being said, the non verbal clues. Stay tuned. I will talk more about these non verbal clues in the next edition of Windows Magazine. Happy selling.
Visual A customer who is a visual learner will engage through seeing and thinks in pictures. They will either need to create a vivid mental image of the product or service and/or be shown. To engage them, use presentations, pictures, videos or practical samples. The clues for these types of customers will be statements like: Kinaesthetic This type of customer will engage and learn through activity or doing. They will process information by interacting with the product or service they are seeking. They also need to get a sense of ‘feeling’ for what they want to purchase. Your clues for this type of buyer are statements like: Having a keen understanding and listening for these clues will not only help you in determining what type of customer you are trying to engage and sell to, but also what method or approach you may want to use.
This will build rapport quickly and have your customer actively involved in the sales process.
• I hear what you are saying... • Tell me more about... • Can you please explain... • I see what you mean... • Show me how to do that... • Will it look like... • I would have to experience that to... • Can I get a grasp of that concept before... • Would you mind if I tried that...
10 Australian Window Association Summer 2014 MERRY HAPPINESS C H R I S T M A S WISHES EVERYONE A & GOOD HEALTH & AWA IN 2015 The 2015 Australian Window Association Scholarship Program is now open. The Scholarship is a one year, non-renewable scholarship of $2000 towards an engineering, technical or design field of study or apprenticeship.
The Scholarship may be used at any accredited college, university or vocational technical institution in Australia. The AWA Scholarship Program was established to provide the families of employees of Australian Window Association members with an opportunity to obtain financial aid for higher education and to encourage the growth of the building products industry. This scholarship was also established to indirectly support educational institutions nationwide.
To be eligible, students must intend to commence tertiary or vocational study at any level of university, accredited non-profit college or vocational technical institution in 2015. Students must be dependent children of employees of AWA member companies in good standing. For more information and to download an application form, visit the Members Only section of the AWA website: www.awa.org.au/members. Applications must be submitted by January 30, 2015. The scholarship will be awarded by February 27, 2015. 2015 Scholarship Program Applications Open Australian Window Association Award Purpose Eligibility
Summer 2014 www.awa.org.au 11 Composition of Board of Directors 10.1 The Board of Directors shall appoint a Board Nominating Committee to ensure that the composition of the Board of Directors is maintained in accordance with these Rules. 10.2 The Board of Directors shall be composed as follows: (a) Eight shall be members who have qualified for membership by virtue of being Manufacturers; (b) Two shall be members who have qualified for membership by virtue of being Suppliers; (c) The Executive Director. 10.3 Further to composition of the Board of Directors as provided for in Rule 10.2, a geographical balance must also be maintained, namely by drawing a representative number of directors from Australia as follows: (a) Northern Australia (QLD, NT) (b) Southern Australia (VIC, SA, TAS) (c) Western Australia (WA) (d) Eastern Australia (NSW, ACT) 10.4 The Board of Directors may appoint additional directors where it considers that particular sector of the membership may be disadvantaged if they do not have representation on the Board of Directors.
The appointment shall be for such period and on such terms as the Board considers appropriate in the circumstances.
10.5 No two Board of Directors members can belong to the same body corporate, company, corporate group or similar. 10.6 In the event that the Director is not a natural person (such as a body corporate, company or corporate group) then that directors’ representative on the Board of Directors must be the Chief Executive or other executive director of that Director. If that representative is not available to attend any meeting of the Board of Directors, then the Director may deputise another person to act as its proxy, on the basis that the person: (a) Is of sufficient seniority and experience within the Director for that person’s contribution to the meeting to be of value; and (b) Has the Director’s proxy to act with the authority of the usual representative.
board nominations | awa T he AWA is a co-operative run by its members, large or small. Any member can influence the direction of the Association by nominating themselves for the Board of Directors. Board members are expected to commit to attend meetings, take an active role in projects and sub- committees and to travel at their own expense. Nominations for 2015 will open in December 2014. Voting opens 23 February 2015 and board members will be announced at the Annual General Meeting on Monday 2 March 2015. In 2015, there are five seats vacant: • Two seats for East. • One seat for West. • Two seats for Suppliers.
How to Nominate Nomination forms will be available on the AWA website from Monday, 8 December 2014. Nominations close on Friday, 20 February 2015. For more information, visit www.awa.org.au or contact the national office on p: 02 9498 2768 e: firstname.lastname@example.org Represent Your Industry in 2015 The AWA represents the interests of Australian manufacturers and fabricators of residential and commercial window and door products and their component suppliers.
12 Australian Window Association Summer 2014 Forward Tasmania sustainable school of thought case study | aluminium industries I n February and March, University of Tasmania students unpacked their bags and made themselves at home in the newly completed Newnham Apartments in Newnham, Tasmania. GP Glass fabricated the thermally broken aluminium window and door systems for the 180 apartment complex. GP Glass worked with managing contractors, Fairbrother, on the $16.8 million project, one of four the University has undertaken as part of the National Rental Affordability Scheme (NRAS), an initiative to create low income housing options.
Reflecting the University’s commitment to best-practice sustainability was a critical element of this project and drove the design and construction standards. “It was always our client’s intention that, where possible, with things like windows and insulation, that we maintain the green star principles,” said Andrew Blackberry, Engineering Solutions Tasmania. “And we’ve done that through the project.” Although not a five star green star rated building, the project’s architects and engineers researched and modelled the apartments to meet those standards. They placed emphasis on insulation, windows and façades to keep the rooms cool in summer and warm in winter.
GP Glass fabricated and installed the aluminium window and door systems for the apartments. To meet energy efficiency performance standards specified for the apartments, GP Glass needed a thermally broken window system with Low E double glazing. They chose the U-MAX™ 100 front double glazed suite with an awning sash, a unique arrangement for this particular product consisting of a fully revealed window, factory glazed with a captive wedge system. The exciting part about the system, from a fabrication and manufacturing point of view, is that the work is done in the factory, making it a lot less labour intensive than work completed on site.
In this configuration, the timber reveal aids in the overall performance of the window system (by allowing for sealing of the sides), reducing gaps, airflow and radiating heat and cold around the frame. Preliminary testing indicates the energy efficiency performance of the building is as they expected. “We were trying to get a five star green star building,” Andrew said. “And were able to achieve some of the Energy outcomes.” Elements related to construction, the short time frame of the project and geographic distance, ultimately cost the project the five star rating.
“Being that we were in Tasmania, it was quite difficult to get recycled materials and the transport,” Andrew said.
“So it was not necessarily the energy efficiency that cost us in the end, it was more about timing and being so far away from the mainland.” Electric heaters were installed in the rooms, however, they were reduced in size due to the temperature control achieved in the apartments through insulation, windows and façade. In addition to meeting their commitment to sustainable building practices, the University
Summer 2014 www.awa.org.au 13 wanted this project to engage the Tasmanian construction community. The tender was only open to local companies. Fairbrother awarded the contract to GP Glass due to their ability to meet the requirement for thermally broken systems. Brian Imlach of GP Glass began his career in the industry in 1969 as an apprentice joiner at Joinery Products Sales (JPS). GP Glass was established in 2004 when the glass and aluminium division of JPS was separated from the joinery division. From modest beginnings, GP Glass developed to become one of Tasmania’s largest window and door manufacturers.
Today, GP Glass leads with energy efficient thermally broken framing systems. EDGE Architectural Glazing Systems, a division of Aluminium Industries, developed and manufactured the U-MAX™ thermally broken framing systems. The research and development team at EDGE Architectural provided GP Glass with comprehensive documentation and testing data validating the thermal performance of the frames. In turn, GP Glass supplied the design, engineering and construction team working on the apartment project with information illustrating how their fabricated windows and doors could meet the required energy efficiency and insulation standards.
Modern and private, these self-contained single occupancy studio apartments boast their own kitchen and bathroom. Located on the northern end of University’s Newnham campus, the complex is grouped into four three-storey buildings, with courtyards and pathways linking them. The Newnham project represents the first of four the University is to complete as part of the NRAS scheme. The West Park Apartments, with 40 apartments in Burnie, are scheduled for completion in January 2015. The Inveresk Apartments, with 120 apartments in Inveresk, and the Melville Street Apartments, with 430 units in Hobart, are scheduled for completion in 2016.
Engineer: Engineering Solutions Tasmania Glazier: GP Glass Framing System: EDGE Architectural Glazing Systems Get our new 83R DWH DOOR and WINDOW REPLACEMENT HARDWARE Catalog. Order, View or Download at crlaurence.com.au OVER 700 PAGES OF DOOR AND WINDOW REPLACEMENT HARDWARE DOOR and WINDOW • Screen Wire, Supplies, and Tools • Storm Door and Window Supplies • Commercial Door Hardware • Insulating Glass Supplies and Tools • Patio Door Hardware • Home Security Hardware • Residential Window Hardware • Shower Enclosure Hardware Acrlaurence.com.au AUSTRALIA ® PHONE: 1 800 424 275 FAX: 1 800 813 013 C .
R . L A U R E N C E O F A U S T R A L I A JAB297B _ 3/14 REPLACEMENT HARDWARE
14 Australian Window Association Summer 2014 economy | harley dale I t is widely accepted by a majority of companies, organisations and individuals involved with the residential construction industry that Australia accumulated a considerable shortage of housing over the last decade (or a little more). That doesn’t mean there has been (or still is) a shortage of dwellings everywhere around Australia. Indeed, research undertaken by HIA Economics prior to the last Census showed there were many markets in Australia that were not undersupplied.
Australia has, however, recently come out of the longest aggregate trend decline in new home building activity in its post war history.
This decade plus experience incorporated a considerable period of time when the rate of population growth in Australia was accelerating. This was also a period, not coincidently, when the new home building sector and the wider housing market in New South Wales (NSW) suffered considerable weakness. New dwelling commencements in NSW fell to a recessionary level in 2005 and remained there for six out of the subsequent seven years.
That NSW experience is the unfortunate catalyst for many involved with the industry understanding the meaning of the words ‘housing shortage’, not to mention comprehending the adverse consequences this situation brings with it. Not everybody agrees that Australia had/ has a housing shortage. I suppose we can’t expect everybody to be able to count accurately. To return briefly to the NSW example – it is, frankly, insulting to the residents of the state to suggest there is an adequate supply of housing available. We came to the view some time ago that a different perspective and approach is required to assess whether or not the nation is on track to adequately house its growing and ageing population in the decades ahead, irrespective of what one makes of the starting point.
In the Foreword to the research HIA Economics recently released reflecting this new approach, I highlighted the following point: It is not about ‘where we are’ or ‘where we have been’, the focus needs to be on meeting the future demand for additional housing.
This new research, Housing Australia’s Future, plugs a gap left by the now disbanded National Housing Supply Council. Namely, one of the Council’s remits was to quantify the stock of dwellings that the nation will require to house the population in the future. To have a successful stab at this quantification, which we believe we have done, it is important to recognise a couple of starting parameters. Firstly, there is a very wide range of possible population growth trajectories Australia could experience over the years to 2050. Secondly, overlaying this situation with the wide divergences of possible economic growth trajectories, and also considering the potential changes in the way households utilise housing, highlights that there are seemingly infinite possibilities for what Australia’s actual demand for new home building could look like over this projection horizon.
The research that HIA Economics undertook over many months has taken the challenge of recognising this vast array of outcomes ‘by the throat’, so to speak. The research ultimately yielded an extensive database of possible scenarios in terms of new home building activity over coming decades, all or some of which can be made available if required. The analysis has been conducted at both a national level and for each state and territory. The model allows for further disaggregation to be undertaken. That’s enough bedtime reading and research to keep somebody awake (or maybe help them get to sleep) for many a year.
The Housing Australia’s Future report, which was released on 12 October, represents the starting point of the deeper story. It is an accessible report because it makes an assumption regarding how many people there will be per household and from that base narrows the analysis down to a range of possible new home building levels. Allowing for variation in the rate of population growth and growth in real household income, while leaving the number Harley Dale HIA Chief Economist How Many Homes Does Australia Need to Build?
Summer 2014 www.awa.org.au 15 of people per household constant, the report suggests that the average number of homes required to be built each year between now and 2050 lies within a range of 135,795 (see Series C in the table below) and 248,186 (see Series A in the table below). The report finds that, in aggregate in 2013/14, the additional housing demand required to accommodate newly formed households and the demand for additional housing from existing households implies there was a need for the construction of between 182,000 and 187,000 homes.
Under this ‘likely median scenario’, around 151,129 homes would provide housing for new households, while a remaining 35,626 dwellings would offset demolished homes and satisfy the demand for additional housing attributable to a rise in real household incomes.
That gives you a ‘base case’ scenario of 186,391 homes per annum! In 2013/14, Australia commenced 180,648 dwellings, so we nearly got there! Unfortunately, a match of this kind between what we need to build and actually build (or near-match to be totally accurate), is an aberration - throughout much of the last decade there was a considerable mismatch between the level of demand for housing and the amount of new home building undertaken. Indeed, over the last 20 years the average number of new dwelling commencements has been around 156,500. The magnitude of the policy challenge, plugging that housing supply gap, implied in the previous paragraph, is not universal across Australia.
The report illustrates that fact very clearly and transparently. It is, nevertheless a massive national challenge to confront.
The responsibility of addressing this challenge rests with governments of all levels. Federal, state and local level governments need to implement policy settings that will enable alignment of demand and supply to persist over the long term by taking into account the variations in demographic requirements for housing and the fluctuations in economic cycles. That’s no easy task, but governments can sit back and observe an accelerated decline in the growth in Australians’ living standards if they’d rather. I can’t imagine that latter outcome ultimately securing political success. Enquiries regarding this demographic research, including the Housing Australia’s Future report (which is free to HIA members), can be directed to Kirsten Lewis on 02 6245 1393 or email@example.com Population in 2012 22,721,995 22,721,995 22,721,995 Population in 2050 41,939,543 37,593,636 34,349,728 Implied annual population growth rate 1.6% 1.3% 1.1% Additional dwellings required per annum 195,293 151,129 118,164 required annual build rate Low real income growth 212,924 168,760 135,795 Medium real income growth 230,555 186,391 153,425 High real income growth 248,186 204,022 171,056 Series A Series B Series C population growth scenario Source: HIA
doric racing Support the Doric Racing family of ambassadors by following Doric Racing on Facebook! www.Facebook.com/doricracing All the best images are available on Instagram, just search for ‘DoricRacing’ Touring Car Masters #18 John Bowe Doric legend and ambassador, John Bowe, continues to defy his age and leads the Touring Car Masters series. JB, in his 42nd year of racing has won races at Sandown and Bathurst. JB will be looking to seal his third Touring Car Masters championship at the final round of the season at Phillip Island in November. Check out JB’s facebook page to keep up to date with all of his news.
The Doric Racing family of drivers enters the final part of the season on a high after winning the Bathurst 1000 for the second year running. The Doric sponsored Ford Performance Racing (FPR) went back to back at Bathurst with young gun Chaz Mostert and co-driver, Paul Morris, making history by starting last and finishing first in the 2014 edition of the Bathurst 1000. In an intense and emotional battle, Mostert passed series leader Jamie Whincup on the last lap to take his first Bathurst 1000 victory and cement his place as one of the sport’s rising stars.
FPR team mate, Mark Winterbottom, had a challenging endurance season and is now second in points heading into the last two rounds of the season.
With the championship a long shot, Frosty will be looking to finish the season on a high. Doric ambassador, Will Davison, capped off a great day for Doric at the Bathurst 1000 with a fourth place finish, just missing out on the podium. Will was also on track for a top five finish at the Gold Coast but car failure put an end to that result. Will sits tenth in points as we enter the final straight of the season. V8 Supercars #5 Mark Winterbottom, #6 Chaz Mostert and #9 Will Davison Images: (top) Chaz Mostert and Paul Morris after winning the Bathurst 1000; (bottom) on the track at the Bathurst 1000.
18 Australian Window Association Summer 2014 Bryan Pickard Greenhalgh Pickard Solicitors and Accountants Keeping it in the Business legal | bryan pickard W hen a person is an employee, the law requires that they must act in their employer’s interest and, other than in the course of their employment, not disclose their employer’s confidential information. These terms are implied by common law into all employment contracts, except where excluded by agreement or legislation. Confidential information (sometimes referred to as trade secrets) can take many forms. Traditionally, processes and formulae only known to the employer were regarded as trade secrets.
However, information about customers, sales, pricing, costing and accounts has come to be regarded as confidential information.
For information to be regarded as confidential it must: • Not be publicly available. • Be information that, if disclosed to a competitor, could cause real or substantial harm to the employer. • Be information that the employer has taken steps to secure and employees have been made aware that the information is confidential. The information will not be regarded as confidential if it is: • Trivial. If it is information that is secret but incidental to the business and its use or disclosure would not compromise or threaten the employer’s business.
• Information or know-how that an employee acquires through the work they perform for their employer.
• Information that can be obtained from sources other than their employer. An employee can be restrained from disclosing confidential information by using the implied duties in the employment contract while they are an employee. This includes information an employee may prepare or collect in anticipation of leaving the employer. But what about the employee who has left, gone to the competition down the road and is using your customer lists and pricing information?
Courts will restrain an employee from using a former employer’s confidential information where it can be proven that the employee has taken the information from their former employer, and it is what the law regards as being confidential. Proving that the former employee has the information is often difficult. While legal process provides a means to obtain an order for searching for the information, it is an onerous task and opens an applicant for an order for damages if the search or the restraint action is not successful.
What can you do when your top Sales Rep leaves and sets up down the road in competition to you - where they take away your customers and beat your quotes for work?
Summer 2014 www.awa.org.au 19 1. Have an employment contract that restrains an employee on leaving your employment from approaching and soliciting your customers or working for a competitor within your market area for a period of time. A restraint will be enforceable where it can be shown that it is not against public interest (in other words to have a competitive market) and is limited to protecting a legitimate interest of the employer. In considering what is reasonable, a court will consider the extent of the geographical area of the restraint, the period for which it will apply and the activities it restrains.
The geographical area should be no larger than the area of your market. The time should take into account the character of the confidential information that you want to protect, such as currency and use. The activities restrained should be limited to the tasks carried out by the employee such as sales or providing estimates to existing customers.
The restraint should be clear, unambiguous and reasonable. It should be negotiated before the employee commences employment and the employer should regularly remind the employee of what it regards as confidential information and the necessity to not disclose that information. 2. Identify your confidential information. Make sure it is made available to those who need it. Mark it ‘Confidential’. Conduct regular audits to see who has access to the information and how it is being used. 3. Monitoring the employee, especially when it appears they are becoming dissatisfied with their work, appear to be applying for a new job or there is a review.
This includes monitoring emails, copying of files, lists and other documents and transferring information from work computers to their own.
4. When the employee submits their resignation, cut off or limit access to computers and sensitive information. Have them return any company laptops, phones, and tablets. Keep the information from those devices so if it becomes necessary, you can have the files examined to determine if they have been copied. If they use their own appliances, have them provide an undertaking that they have deleted all employer information, software etc and not retained copies. Have them produce the devices to check removal. 5. Act quickly when you suspect breaches of the employee’s confidentiality obligations and start gathering evidence.
What if a director of the company has left and set up down the road and is using confidential information taken from the company? There are provisions in the law regulating companies that makes it an offence for a director to use their position for their own or someone else’s advantage. It is also an offence if they fail to exercise their duties honestly and/or not in the best interest of the company. Where a director commits an offence of this type, a civil claim for breach of duty can be brought against them for loss sustained by the company and/or restrain them from using the confidential information.
There is one thing that you should take away from this article. It is better to act to protect your commercial information at an early stage than try to recover your business after the employee has bolted. So what steps should you take to protect your valuable commercial information from walking down the road with your former employees? [CONFIDENTIAL] [CONFIDENTIAL]
20 Australian Window Association Summer 2014 A dvertising is an essential for the success of any growing business. So often, however, businesses believe that they can’t afford to advertise or, worse still, they create ad hoc campaigns and then wonder why they don’t work.
The key to successful advertising is consistency. If you only have $1000, it is better to spend $100 ten times than ‘blow’ the lot all at once on one major push without testing or qualifying your market, your offering or even your creative.
Test and measure is the key Always use your marketing budget wisely to test the waters and determine what exactly works. This is done by establishing what is called ‘a control’. This is the advertisement, mail pack, email broadcast, social media message, press advertisement, radio or television commercial, or whatever medium you choose that gains results for you. It may be an existing one or one you have created. The point is, this is where you start to measure your results. Record the responses, feedback or ‘hits’ you receive from this advertisement – your ‘control’ piece. Once this is established the trick is to test against it.
See if you can improve the response ratio. Do not test with a completely different concept as this is too far removed from your control. Change the headline or the offering. Make sure you can track the results effectively.
Small businesses have an advantage over big business – they can change quickly and respond to the demands of their customer base in order to capitalise on the market opportunities. The trick is to avoid the many pitfalls that so many companies fall into along the way. Advertising is a straight forward process. And when you follow the rules, you will gain success – step by step. Remember, though, it rarely happens overnight. To get you started, here are seven simple steps to follow when putting together your campaign. If you stick with them, you will be well on your way to success.
7 Steps To Advertising Success marketing | stephanie dale Stephanie Dale Managing Partner DMC Advertising Group For more information, contact Stephanie: t.
02 9912 4400 e. firstname.lastname@example.org w. www.dmcadvertisinggroup.com.au 1 Offer a Premium Version Price isn’t always the main focus for your customers and clients. Often many will pay a higher price to receive a premium product or service. By adding a more flexible range to your products or services, you can boost your total revenue. Try combining a range of your products or services together in a special premium package and offer it at a premium price. Value-add the services so that the package you are offering has an increased appeal to your audience without necessarily costing you any more.
For example, as an advertising agency we offer free activity reporting with our website packages and a free email broadcast announcing the launch of the new site. This offering gives us a competitive edge and the additional costs are minimal, however, the perceived value to the customer is sufficient for them to view our proposal favourably.