News & Events

Digest - Monday the 7th of September 2015

In this week’s digest I would like to focus on the economy and the effect the rapid depreciation of the Australian Dollar is having on our industry. All of the major suppliers in our industry import the majority of their component parts or finished goods from Asia where their currency is pinned to the US Dollar. The upshot; imported goods will cost more.

As usual, topical industry and technology articles are also included for your consideration as is an exciting new Kingray product release.

I hope you enjoy the digest.

Have a great week.

Best regards,

John

The Australian Economy

The Australian Dollar

In this week’s digest I would like to focus on the economy and the effect the rapid depreciation of the Australian Dollar is having on our industry.  All of the major suppliers in our industry import the majority of their component parts or finished goods from Asia where their currency is pinned to the US Dollar.  The upshot; depending on the country of manufacture, imported goods will cost more.

NAS imports the majority of our range from China, Taiwan, USA, Italy and Spain.  The Australian Dollar has depreciated significantly against the pegged currencies (USD and EUR) over the past 12 months.  The AUD has fallen by approximately 26% against the USD in the past 12 months, falling to its lowest level in 6 years.  The AUD has fallen approximately 14% against the Euro during the same period of time.  In addition, when we pay our freight costs to move the stock from overseas, these costs are pegged to the USD and EUR.  As a result, not only do we pay more for the stock, we pay more to freight the stock to Australia.  As a result, the landed cost of imported goods have appreciated significantly in the past 12 months.

http://www.xe.com/currencycharts/?from=AUD&to=USD&view=1Y

 http://www.xe.com/currencycharts/?from=AUD&to=EUR&view=1Y

Having been involved in product importation for the entirety of my 20 year NAS career, I have spent quite a bit of time over the years tracking the dollar and its impact on our business.  During this time, we have witnessed periods of boom where the dollar reached and exceeded parity.  Quality goods could be landed at very competitive prices.  A plummeting AUD increases the price of imported goods.  When there are no locally produced substitutes, consumers either delay their purchasing decision or pay more than they used to.  The net effect, consumer confidence weakens.  Not great for our industry.  We all pay more for stock and our customers are increasingly keeping their wallets closed.

The government is banking on the premise that the benefits of a depreciated dollar will far outweigh the negatives.  The falling AUD should have a positive impact on the manufacturing, education, tourism and agriculture industries.  As the AUD falls, their competitiveness in overseas markets increases.  As these industries thrive, their appetite to pay more for our imported goods and services should increase.

The upshot - during challenging times, we all need to get on the front foot and control what we can control.  We need to look at options that differentiate us from our competitors and ensure we remain relevant in our markets.  I firmly believe that NAS can offer the necessary assistance, training and product range that will enable our customers to remain relevant and proactive in their markets.

The Economy - sure it's not all bad?

Following on from my article on the Aussie Dollar, I think it is imperative we all remain proactive and positive.  With this in mind, the following articles pose a more rosy picture of the economy than what is being espoused by many in the media who seem to be hunting as a pack.

Depressed economists should take a break and cheer up

Ross Gittins believes many of Australia's practicing economists should take a break and cheer up.  Gittins believes that weak growth is cyclical more than it is structural.  Gittins also believes that the same economists are also misleading us in their belief that government intervention is the main driver of an economy.  So much for free markets and the law of unintended consequences!  The article can be accessed Opens external link in new windowhere.

No GFC here: market rout an equities-only event, says Saul Eslake

"One of the country's most high profile economists Saul Eslake has challenged claims that markets are entering another global financial crisis, arguing the turmoil will be confined to equities markets and is unlikely to infect other assets classes."  The article can be accessed Opens external link in new windowhere.

AiGroup Performance Indices - August 2015

For the first time in a long time, the three AiGroup Performance Indices for August (Manufacturing, Services & Construction) have all expanded lending weight to the above premise that things are not all bad.  The results can be accessed Opens external link in new windowhere.

 

IoT

Five media-enabled devices per home by 2019

"By 2019, there will be the equivalent of five media-enabled devices per household around the world, according to research from IHS Technology. US homes are predicted to have 10 devices, on average, making it the biggest market."  The article can be accessed Opens external link in new windowhere.

Could Z-Wave New Director End Smart Home Headaches?

For those interested in affordable home automation and z-wave, the following article and interview with z-wave's new Director Mitchell Klein is worth a read.  The article can be accessed Opens external link in new windowhere.

NBN

ACCC chair says NBN should be broken up, compete with itself

"The chair of the competition regulator has repeated his view that the NBN company should ultimately be broken up into chunks that would compete with each other, in comments that appear to run directly contrary to the complementary network design model currently being pursued by the company."  The article can be accessed Opens external link in new windowhere.

Product Release

Kingray MDA15 Series

Kingray are proud to announce the release of the MDA15 range of low noise masthead amplifiers. The characteristics of the IC selected provide a very low noise figure and an output figure comparable to many distribution amplifiers, hence the name Masthead Distribution Amplifier (MDA). The MDA15 range consists of three models; MDA15V(VHF only), MDA15U (UHF only), and MDA15W (Wideband).

The NAS Product Release can be downloaded Initiates file downloadhere.