Rain, tax benefits boosts ag machinery manufacturing and employment

Long-awaited rain and the instant asset write off scheme have combined to boost ag machinery manufacturing and increase employment opportunities.

Good rain and tax relief has seen ag machinery production boom.

AGRICULTURAL machinery manufacturing in Australia is booming on the back of long-awaited rain and the added incentive of the Federal Government’s instant asset write off scheme.

Local manufacturers have reported an increase in sales and employment opportunities as farmers rush to buy new equipment.

The Government’s bid to stimulate the economy during the coronavirus pandemic by increasing the IAWO from $30,000 to $150,000 helped increase sales, with June recording the most sales for a month in 40 years.

However, manufacturers say while the IAWO has been a factor, it is the impressive season that farmers are having that has really boosted sales.

Goldacres’ sales and marketing operations manager Stephen Richards said the Ballarat-based spraying equipment manufacturer has had to operate two shifts to keep up with demand.

“I think it (IAWO) was a bonus, but it started raining at the Wimmera field days and it shaped up to be a really good season,” Mr Richards said.

He said employment opportunities at Goldacres increased with sales of smaller equipment up by 25 per cent and larger machinery by 20 per cent.

“We’ll be up to 200 staff by the end of the year – up from 150,” he said.

“The main increase is in production – it’s booming.”

Coolamon’s general manager Heath Hutcheon said orders for spreaders placed now are set for delivery in up to eight months.

Coolamon director Bruce Hutcheon (left) and son Heath report booming production. Picture Yuri Kouzmin

“There is a focus now on more jobs off the back of that, and more focus on local manufacturing – why buy from overseas when you can buy it in your country and create jobs,” Mr Hutcheon said.

“We ramped up production in April and have orders into 2021 – I’ve never seen it this early.”

Mr Hutcheon said the NSW company was struggling to find skilled workers, particularly welders, to keep up with production and queried whether the JobKeeper subsidy meant some people were holding off gaining employment.

“It’s a concern when the employment rate is where it’s at and its hard to find workers – I wonder if the wage subsidy is being held on for too long and we have people sitting on the government wages,” Mr Hutcheon said.

Ararat-based Gason, which manufactures farm machinery, has a six-month wait for orders to be delivered to customers.

Gason managing director Wayne Gason (left) and Ararat mayor Peter Beales. Gason is hiring 15 new welders and line managers as it expands its business. Picture: Andy Rogers

Marketing co-ordinator Oakley Gason said the company was seeking welders and had taken on more staff to keep up with production.

“To isolate staff and mitigate risk, we have put on two shifts, which has been more productive for us,” Mr Gason said.

“We feel like we’ve been more efficient than having the usual one shift.”

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