It’s the steepest downturn in the local building industry that Norm Allan of Bega Valley Tiles has encountered in 12 years of business. He can no longer sustain the impact and is closing his Bega shop.
Mr Allan broadcast the reasons for his action in a classified advertisement in the News Weekly advising of the business’s demise in which he stated, “We will be closed down 29th February 2012 due to the lack of building construction in the area.”
He said that the last two years had been tough and he and his wife Gay had held on as long as they could.
“The builders have got no bloody work and I put the blame right at the
top,” he said, referring
to the federal Labor
government.
But the Bega Valley Shire Council did not escape his wrath. He said that high council charges imposed on developers had frightened them off.
He said some customers who were thinking of building a home in the Bega Valley had discarded their plans when they factored in the council charges.
“They’re helping to bring the industry down.”
Mr Allan said that when he bought the business 12 years ago the building industry was strong and he was optimistic for its future.
He said that while competition had increased with two other tile retail outlets established they were not responsible for his business’s downfall.
“There was enough in it for us all.”
He said that the general economic malaise may see other businesses dependent on the building industry suffer a similar fate.
Mr Allan said that the building slump was not only caused by a big drop in new home building in the shire but renovations as well.
Battle-weary he said, “I’m closing the doors, chucking everything out and going fishing.”
Chris Edwards, owner operator of Pambula Tiles & Slate and Pambula Tiles in Bega echoed Mr Allan’s sentiments.
“Business is pretty slow and it’s the worst it has been since we bought the (Pambula) business seven years ago.”
He seemed to think the downturn reflected the lack of consumer confidence and uncertainty about the future.
He said that his suppliers were telling him NSW, South Australia and Victoria were suffering the same predicament.
“Sydney is really suffering where margins are being squeezed making it extremely hard to compete and survive.”
Mr Edwards said his sales started the downward trend three years ago.
He said that the glue companies were coming unstuck as a consequence of tile sales drying up. November was strong but their trade collapsed in December, January and February, he said.
“It’s pretty hard for us to hang on.”
He said that suppliers used to be agreeable to extend the terms of payment but that was not happening anymore.
Mr Edwards said that 90 per cent of businesses in the local area were owner-operators.
“It is very upsetting to see these businesses close and it’s not through anything they have done, but is due to external influences such as online retail. It’s not as though they are running around in Mercs.
“The pressure is on. It is a real battle for small business and the banks aren’t much help.
“I know builders here are not flat out and if they’re not busy, we’re not busy,” Mr Edwards said.
The Pambula tile shop started 25 years ago.
On February 10 the News Weekly asked the Bega Valley Shire Council for figures on residential building activity in the shire but at the time of going to press none were forthcoming.
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