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E L E CT R I C AL CONNE CT I ON
AUTUMN 2 01 5
NECA has recently released its 2015
Policy Statement. A first of its type for the
organisation, the statement has been
formulated as a result of internal engagement
with our members, state chapters and elected
Councillors. The statement was ratified by the
NECA National Executive in January 2015.
The NECA Policy Statement 2015 contains
eight key policy themes and thirty specific
policy recommendations that we strongly
believe, if actioned by the Government, will
lead to a more prosperous and effective
industry sector, presently generating an
annual turnover in excess of $23 Billion and
employment for 145,000 workers. These policy
outcomes would additionally deliver a boost
to Australia’s economy through the creation of
new employment opportunities and enhanced
safety and compliance standards.
Designed to highlight to policy makers and
key decision makers within the Government
the barriers, threats and opportunities that
presently exist for our industry, the statement
outlines the necessary solutions and
policy outcomes that can improve the lot of
businesses within our industry.
Some of NECA’s core themes are
highlighted within the statement, such as
calling for the establishment of a driver’s
licence model for national licensing, support
for the reform of the Vocational Education and
Training sector, the stability of payment for
electrical contractors in the event of a collapse
of a construction company and support for an
industry focused, national register to stamp out
the sale of non-compliant electrical products
and parts to name just a few.
Throughout 2015, NECA will continue to
engage with key stakeholders, on a range of
policy positions and in a number of forums.
We strongly believe that the ongoing advocacy
of our industry, via Parliamentary discussions,
parliamentary and departmental policy
submissions and policy forums, are a critical
element in effecting positive change for our
industry.
To find out more visit the NECA website and
look for the 2014 Annual Review which has a
full version of the policy statement.
NECA Releases New Policies
The 2013 survey found that even with a
7% increase in charge-out rates, the cost
of doing business rose by 25% overall,
leaving the average electrical contractor
considerably worse off than they were when
NECA conducted its 2011 Market Monitor.
NECA was concerned that though media
were reporting a rise in business confidence,
this change hadn’t been reflected in real
terms across the industry.
“Our industry – which employs more than
50,000 people across Australia – is in many
ways a barometer of the Australian economy,”
said our then CEO.
“[2013’s] overwhelming message is that
it is getting harder and harder for the smaller
businesses to survive, with rising costs
of materials and labour, higher taxes and
never-ending red and green tape… it is not
surprising that as many as 5% of contractors
doing business in 2011 have since closed
their businesses.”
The key findings of the 2013 Market
Monitor include:
x
The average contracting business
employed 13 people (increase of 9 since
2011).
x
Less than 8% of the industry employed
more than 25 people.
x
On-going maintenance work (in both
residential and commercial work) was a
considerably smaller percentage of the
work done in 2013 when compared with
2011’s study.
x
There was a 40% increase in
specialisation on the part of contractors,
up 40% since 2011.
x
Overheads rose by up to 40%.
x
Home automation - possibly due to
the NBN - emerged as a key skills
requirement.
x
The number of apprentices being taken
on fell.
x
The most significant ‘new technology’ skills
in the 2013 period related to renewable
energy and energy efficiency.
x
96% of contractors carried smart phones
– though the apps most commonly used
were banking, maps and the weather.
x
The mainstream suppliers grew their share
of the top-end of the industry.
x
The percentage of direct imports, while
small at the time, was growing.
This year, NECA anticipates dramatic
differences in the findings of our 2015 Market
Monitor. Read on to learn about the areas
being focused on in this year’s study.
Highlights of the NECA 2013 Market Monitor