Bowens Builders Bulletin - May 2013

May 2013 Volume 24 No. 4

www.bowens.com.au

Bowens

CONTINUED PAGE 2 >

BuildersBulletin

TrADEsmAN’s COrNEr

BUIlDING fOr ThE fUTUrE!Warren Gatt started his firm, Citiwest Group, thirteen years ago and since then he has seen the market and building industry go through both good and bad times.

CONTINUED PAGE 5>

From Beer to Housing JOhN BOwEN mANAGING DIrECTOr

In thIs Issue2 FireWardens–

MarkWoollard,OH&SManager

3 MAY-SIVE CLEARANCE SPECIALS!

4 AnIndustryThatKeepsShootingItselfInTheFoot–JeffHarvey,BowensTimberManager

4 What’sNewatBowens–NewProductsfortheBuildingIndustry

5 ApprenticesTheFutureofOurIndustry–BrianWelch,MBAV

5 The2013HIAAwardsProgram–GilKing,HIAVictoria

On a Friday night in the middle weeks of April my wife and I made our way into the heart of Melbourne’s CBD, joining a host of others to celebrate the opening of a friend’s restaurant/bar. The venue was interesting: fashionably retro for some, edgy for others. The carpet had been ripped from the floor, intentionally leaving the dried lines of glue for all to see. Kitsch light fittings were a feature retained from the previous owners and stools made from wooden discs and threaded rod were the extent of our seating options. As most would do I quickly found myself at the bar, ordering a glass of champagne and a pot of Asahi (no Carlton on tap). I handed over $50, receiving only $25 back as change. I nearly fell over; the beer was $9! A friend, more cunning than I, quickly identified some Melbourne Bitter long necks in the fridge behind the barman . . . they were $18 each. Had the world gone mad?

Mrs Bowen quickly headed off to find a more sensible group than the boys I was edging towards and without delay complaints about our country’s high cost of living dominated proceedings. As it happened a good friend of ours had recently visited Melbourne from the U.S. – he last lived here in 2000. We reminded ourselves of his shock at how expensive things in Australia had become. As his point of view furiously agreed with our own conclusions he was unanimously voted in as our expert witness. We were drinking beer, so that’s where the comparisons started. A six-pack of Heineken in Australia is priced anywhere from $16-$19. In the States – where you can buy beer from just about any convenience store – the same brand sells for $9-$10 (It tastes better as well. The American version is imported from Holland whereas ours is brewed in Australia).

FURTHER MARK DOWNS

OFF ALREADY REDUCED PRICES

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2 Builders Bulletin May2013

From alcohol we moved on to compare the price of sandwiches, cars, clothing and, of course, housing. Our friend recently spent less than $400k on a large house, in a great spot, in a good city. Using our beer goggles to guide us we judged the same property to be valued at least two and a half times higher in Melbourne. While our industry has slowed the adjustments are nothing in comparison with the devaluation of the U.S. and European housing markets. For Victorians, the past twelve years of constant value growth in housing stocks has provided a ‘wealth’ boost for many. But the creation of this wealth depends on a constant and growing flow of credit into the sector to maintain high prices.Each new marginal borrower and buyer of property has a much higher household ‘cost structure’ than someone who bought 10 years ago. To pay for ludicrously priced property, people demand higher wages. To pay for higher wages, businesses increase their prices – including the cost of 750ml bottles of Melbourne Bitter!Melbourne’s median lot price in the December 2012 quarter was $215,000, which represents a 3.1 per cent increase on the same period a year earlier. This is small biscuits when compared with where things sat ten years ago. By value, in the December quarter of 2002, the median price of Melbourne land was $160 per square metre, this price today has jumped to $481 per square metre – a lift of 200 per cent, or an average compounding increase of over 10 per cent per annum. A new Henley Home was $167,900 in 2004. The same model, with several upgrades, is now listed at $211,000. If I use the same calculation of compounding increases (as detailed above for lot values) this house would now be valued at $435,489! As a combination, a house and land deal that cost $247,900 in 2003-04 would now be selling or $650,489. Crazy numbers.Making the deal even worse for home owners, Melbourne’s average lot size has reduced almost as dramatically, from slightly more than 600m2 in 2002 to 447m2 by December 2012. A reduction of 25 per cent and smaller than what the Sydney market now offers (RP Data Residential Land Report – Dec 2012).Unsurprisingly the volume of land sales has decreased in line with the rising costs. In the adjacent table, generated by the HIA’s Economics team, the red line indicates the median cost of land (LHS) while the green bars refer to the number of sales made each quarter (RHS). The diverging pattern is unsettling for those looking for signs of recovery.I hate to be the bearer of bad tidings, so let me do my best to shed some positive light on our situation.The poorer unemployment numbers released so far in 2013 reflect some job losses and a decline in job vacancies, however full time employment has moved in a positive direction, ending 15 months of falls. While banks continue to make it tough for potential home owners to borrow money, once an applicant is successful they will find themselves in a much improved position. Housing affordability is now better than it has been for five years, house prices are flat and generally improving and real income growth is being realised on the back of an improving stock market.Best of all we continue to grow our population with younger, tax paying immigrants. Let’s hope our politicians don’t stuff this up with poor policy choices leading into this year’s election. Despite some generally difficult times for we Victorians, signs of improvement are evident. I only hope beer is given a reprieve as well.

From Beer to Housing

JOhN BOwEN mANAGING DIrECTOr

frOm PAGE 1 >mArk wOOllArD Oh&s mANAGEr

fIrE wArDENs

Follow us on Twitter @ Bowensau

In this issue I would like to share some information about emergencies, assembly areas and fire warden training.

What is an Emergency?

“Any event that arises internally or from an external source, which may adversely affect persons or the community in general and which requires an immediate response”.

When you are out at our stores you might have noticed the new green signs hanging on our fences that state “Emergency Assembly Area”.

Under the OHS act we have a duty of care to provide a safe work place and one way that Bowens are meeting that is by training our staff as Fire Wardens and setting up Emergency Assembly Areas at our Branches.

Fire wardens are identified by a red baseball cap that has Fire Warden on the front which they would wear in the event of an emergency.

Our Chief Warden is the person who would have total control of the site in the event of an emergency and would wear a white baseball cap which has Chief Warden on the front.

The Emergency Assembly Area sign is a directional sign to direct people away from the incident until an all clear is given from emergency services.

The types of instances that we might encounter in the workplace include:• fireorexplosion;• flooding;• LPGgasleak;• motorvehicleaccident;• fireinanadjacentbuilding;• bombthreat;or• medicalemergency.

In the event of an emergency, by having trained Wardens and Emergency Assembly Areas set up with trial evacuations happening once a year, the risk of panic, loss of property or personal injury is significantly reduced by having your fellow work mates trained as part of an Emergency Control Organisation (ECO).

MAY-SIVE CLEARANCE SPECIALS!

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Terms and Conditions apply. Offer only available until Friday 31st May, 2013. Items may not be stocked at all stores.Terms and Conditions apply. Offer only available until Friday 31st May, 2013. Items may not be stocked at all stores.

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• AS/NZS 3190 and 3012 approved for construction, worksite, and industrial sites

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• Tempered heat-resistant glass

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• 500 watt halogen tungsten tube

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10m HEAVY DUTY EXTENSION LEAD – 10amp


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• 10 amp heavy duty lead

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mAy-sIvE ClEArANCE sPECIAls!

4 Builders Bulletin May2013

DIsCOvEr whAT’s NEw AT www.bowens.com.au. OUr wEBsITE INTrODUCEs mANy NEw PrODUCTs TO ThE BUIlDING INDUsTry . . .

what’s new at Bowens

Benefits and Features:•DesignedandmanufacturedinAustralia•Fittedwithbrasschromeplatedfittings–includesstainlesssteelballbearings•Includesasturdyandrobusttradegunwith¾threadforcommercial

applications•20mhoseinlength•Perfectforthetradieonanybuildingsite

HOLMAN TRADE HOSE, CHROME FITTINGS AND TRADE GuN

SOuDAL MuLTI SPRAY 8 IN 1 400ml

Benefits and Features:•AHighGradeUniversalSpray

with an 8 fold action•Worksasrustremover,

lubricant, cleaner, penetrating oil, resists corrosion, water – repellent, shock spray and contact spray.

•Canbeusedonscrews,bolts,nuts, moving parts, axles, hinges, chains, garden tools, etc.

•Corrosion–resistant•Penetratingactionand

protective film remains after cleaning.

•Won’tcorrodeplasticsormetals.•Prolongsthelifeofrubbers.

SOuDAL SEALANT REMOVER 400ml

Benefits and Features:•Aready-to-useandfast

working spray based on terpenes for removing hardened, fully cured silicones and MS Polymers.

•Canbeappliedonmostsurfaces including, aluminium, coatings, ceramics, laminated board, paint and certain plastics.

•SealantRemoverisdesignednot to drip, and can be sprayed on vertical bead lines.

SOuDAL T-REx POwER wHITE 290ml

Benefits and Features:•SoudalT-RexPowerisahigh

quality, single component MS Polymer based adhesive sealant with a high initial tack.

•Ahighperformanceproductengineered for a wide range of sealing and bonding applications.

•Ahighgreenstrength,UVstable, can be painted/sanded, sets underwater and remains fully flexible.

•T-RexdoesnotcontainIsocyanates, silicone or solvents and is easily cleaned up with Swipex Cleaning Wipes.

•AlsoavailableinBlack,GreyandCrystal.

for more information on these products and to see more “what’s New at Bowens” products . . . visit our website: www.bowens.com.au

AN INDUsTry ThAT kEEPs shOOTING ITsElf IN ThE fOOTJEff hArvEy TImBEr mANAGEr

In my travels on the many site inspections I carry out, I come across situations I see (quite accidentally) that disappointment me in how timber products are used.

Recently after leaving a house with a flooring issue I noticed that the house next door had a picket fence and out of one panel with 15 pickets I counted at least four that were badly effected by rot (see photo). My guess was that the fence would have only been about five years old.Regular readers may recall I have written about the shortcomings of Cypress Pine and how the

sapwood part of that tree has virtually zilch durability. However, regretfully most of the timber pickets on the market today are produced from this specie. Well, why is it so? Sawmillers invariably cut their large section products from the inner part or the durable heartwood part of the tree. They then cut the smaller sections from the outside of the tree where there is less durable sapwood. The sapwood is always lighter in colour than the heartwood (in all species). In the case of Cypress Pine the contrast in colour is very easy to discern. It is like looking at the colours of the Hawthorn (AFL) Football Club (see photo of a pack of Cypress pickets, right).

Another product I have written about in a derogatory sense is Treated Pine Sleepers. Why? Because it is produced mainly from the centre of the pine tree. This part of the tree is the heartwood where the cell structure does not accept the treatment that makes Radiata Pine durable (untreated it is only durability class 4). Conversely the treated sapwood is where Radiata gets durability, but for the sleepers, they have too much heartwood (see photo below) to be a viable structural product, where I often see the product used.

Having said that, readers will recall I spoke of the mainly sapwood structurally graded Treated Pine Sleepers that came on the market just before the Christmas break.Other products that I have seen

poorly applied are: Treated Pine not used to the correct hazard level (e.g. H3 used inground); Merbau posts used ingound (it only has an inground rating of class 3); tongue and grooved Jarrah used in verandah situations – Merbau flooring is a better option (Merbau aboveground is durability class 2); claddings painted or stained with dark (heat effecting) colours; to name a few.To me, the industry I have been a part of for over 50 years has not done enough in the promotion and proper use of the products we sell. I have no doubt, in certain situations, the difficulty producers have getting rid of certain parts of their raw material is the main driver on how a product is derived, rather than it be Fit-for-Purpose.Accordingly, I invite any readers of this publication to contact me if you have

any queries on the appropriate use of the timber products we sell. Also I believe I am expert enough to suggest or advise the use of products that could be termed “non standard”. I have what I call a Fit-for-Purpose formula that I apply in these situations. This can even involve the use of recycled products.

I am available on 0412 550 740.

Sleeper Treatment Penetration (H4)

Garden Grade or Common Pine Sleeper

F7 Premium Grade Pine Sleeper

Why should I Reseal Treated Pine? - As with all treated timber in exposed, damp or in-ground situa-tions, it is essential to coat freshly exposed surfaces after cutting or machining with an “in can” timber preservative solution such as Tanalised Ecoseal or CN Timber Oil

The above photo shows the two distinct cell structures within the pine log. The two examples have been sprayed with a testing solu-tion that shows the heart material in a red colour. This is where the treatment is unable to penetrate. The blue colour indicates where the copper from the treatment has penetrated.

The premium grade sleeper is cut from the sapwood which is able to absorb the treatment because it is cut outside the heart wood. This does show however that a small percentage of material has not been penetrated and requires resealing if cut or machined

TrADEsmAN’s COrNEr5 Builders Bulletin May2013

My previous article in this journal focused on thedownturn in the number of Victorians undertakingindustryapprenticeships.AccordingtotheVictorianGovernment’s latesttrainingmarketreport,wesawadeclineof5.7percentinthenumberofnewapprenticeshipslastyear,downfrom26,200in2011to24,700.AtMasterBuilders,wehavebeendoingourbesttoencourageyoungpeopletonotonlytakeupanapprenticeship,buttocompleteit.Wesupportandencouragesmallbusinessestoemployapprenticesbutrealisethatmanyfactors,includingarecentcallfromunionstoincreasefirstyearapprenticewagesby33percent,makesthismuchmoredifficult.However, the reality is that we need more young people involved in ourindustry.Theyarethefuture.Whilewelobbyagainstthingsthatjeopardisetheongoingviabilityoftheapprenticeshipsystem,wealsoworktopromotetheextremelybrightandcommittedyoungpeoplewhochooseourindustryfortheircareer.WedothisthroughALink(ourapprentices’program)andtheApprentice of theYearAwards.Victoria’s top apprentices in regionalcommunitieshaverecentlybeenannounced,recognisingtheirhardwork,skill andperseverance.TheState’sbestapprenticewillbenamedat theStateApprenticeoftheYearAwardsatEtihadStadiuminMay.Wecongratulatetheworkofboththeemployersandtrainingproviderswhohaveguidedthesewinningapprenticesandtheapprenticesthemselvesforchoosingatradeandstickingwithitthusfar.WewishthemallthebestinMayandthroughouttheircareersandurgeotherstofollowintheirfootstepsandpavethewayforthefutureofourindustry.Congratulationsto:Gippsland–Section Winner - Ryan Wheeler; Employer Nominated - Andrew Holland; and Chairman’s Award - Adam DawsonNorth West–Section Winner - Jordan White; Employer Nominated - Jordy McInnes; and Chairman’s Award - Daniel GibsonBendigo–Section Winner - Thomas Wright; Employer Nominated - Samuel Hartley; and Chairman’s Award - Jack DouchBallarat–Section Winner - Rhys James; Section Winner - Joshua McVitty; Employer Nominated - Daniel Jones; Special Commendation - Blair Pearce; Chairman’s Award - Aaron Bartram; and Diploma - Helena RobertsNorth East–Section Winner - Matthew Miller; Employer Nominated - Lynton Simcocks; and Chairman’s Award - Mitchell WarehamGeelong–Section Winner - Dylan Watt, Employer Nominated - Travis Moore; and Chairman’s Award - William BongersWestern–Section Winner - Lee Mugavin; Chairman’s Award - Jeremy Coffey; Chairman’s Award - Sam Wilson; and Special Commendation - Mark Rantall

BrIAN wElCh ExECUTIvE DIrECTOr, mAsTEr BUIlDErs AssOCIATION Of vICTOrIA

frOm PAGE 1 >

Originally a carpenter by trade, Warren Gatt, the sole director of Citiwest Group, provides a full service building and development company.‘You have to be entrepreturial now adays,’ says Warren, when asked about the current state of the market. ‘You have to think outside the usual way of working. Right now there is minimal work and lots of competition, but opportunities can still be found if you look closely enough,’ he says pragmatically.One such project is the new development in Yarraville, The Kulin. Eight apartments and eight townhouses, all architecturally designed and on the edge of the Yarraville Village, have been a huge success, with more than half selling in just one week.

‘People want to be close to the city,’ Warren explains, ‘This type of development is the future for the Citiwest Group.’With between thirty to forty properties being built a year, Warren is a busy man, especially with twenty-four new properties to be built soon, again in Yarraville.

But Citiwest Group also builds houses in outer Melbourne, helping people achieve their goal of owning their dream home. ‘We have expert building knowledge and workmanship, so we can ensure the home is built with higher quality construction and finer finishes,’ Warren explains. ‘We don’t mass-produce, therefore we can provide personalised service at every stage and customise your dream home or development exactly to your individual needs.’This attitude is similar to the Bowens service ethos, and is what has kept Warren using Bowens for the last thirteen years.Citiwest Group uses Bowens for many supplies, including framing, fixtures and internal fixtures and lockup.When asked about why they remain with Bowens, Warren is candid. ‘Their brand says a lot, having being around for so long,’ he says. ‘There is a quality of service, value and pricing that you get with Bowens that you don’t get elsewhere,’ he explains. ‘We rely on their advice, especially now we are moving into more development work,’ he says.Contracting and expanding according to the market is vital to evolve in any business and Bowens representative, Bob Krstevski, who manages the account, says, ‘Warren is a smart business man, who is focusing on the future, which is the only way to survive.’Warren is now involved in high level thinking, having applied for the national Rental Affordability Scheme. The Scheme seeks to address the shortage of affordable rental housing by offering financial incentives to persons or entities such as the business sector and community organisations to build and rent dwellings to low and moderate income households, at a rate that is at least 20 per cent below the market value rent. Warren is hopeful for the future for his company and the industry. ‘You have to find your own work, and take every opportunity that comes your way,’ he explains.And Bowens will be along the way, doing what they do best; helping Victorians build.

APPrENTICEs ThE fUTUrE Of OUr INDUsTry

HIA’s Housing Awards program presents the ideal way to showcase outstanding workmanship and design, and to make your business stand out to consumers looking to build or renovate.

HIA Award winners receive widespread exposure through local print media, on HIA’s consumer-focussed website housinglocal.com.au, in HIA Top Homes magazine and recognition at the Awards night in front of industry peers, colleagues, manufacturers and suppliers. This puts your business in front of potential clients and reassures them they are building with the best.

In 2013, HIA is pleased to announce the introduction of new categories that progress to the Australian Housing Awards:

• Apartment’ complements the newly-named, ‘Apartment Complex’category; and

• ‘Townhouse/Villa’complementsthe‘Townhouse/ Villa Development’ category.

Winners in all four categories progress from the Victorian Housing Awards to the Australian Housing Awards.

The introduction of these new categories now allows individual apartments and townhouse/villas as well as the entire development/complex to be entered into the Awards competition. Please note only the ‘Apartment’ and ‘Townhouse/Villa’ categories (i.e. the individual home) will be eligible for the Home of the Year title.

In previous years there has been some confusion regarding Display Homes and what is included in the ‘Display Price’ and therefore the sub-category entered. In 2013, Display Home entrants will be required to complete a separate entry form to other categories. This new entry form clearly stipulates all inclusions.

Please note entries this year close on Friday 24th May. For entry forms and further information on this year’s HIA Awards, call the HIA Events Team on 03 9280 8255, email [email protected] or visit housinglocal.com.au

Good luck!

GIl kING hIA ExECUTIvE DIrECTOr – vICTOrIA

ThE 2013 hIA AwArDs PrOGrAm OPEN NOw!

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FURTHER MARK DOWNS



MASSIVEPOWER TOOL

&





Bowens are supporters of:Bentleigh East 717 Warrigal Rd Ph 9579 1188

Croydon 352 Dorset Rd Ph 9723 0394

Epping 13 Scanlon Drive Ph 9408 6566

Hallam 48–50 Hallam Sth Rd Ph 9796 3088

Hastings 1820 Frankston-Flinders Rd Ph 5979 1267

Laverton 163 Cherry Lane Ph 9353 7700

Mt Evelyn 26 York Rd Ph 9736 2588

North Melbourne 135–173 Macaulay Rd Ph 9328 1041

Phillip Island 83–85 Settlement Rd Ph 5952 5633

Rowville 963 Stud Rd Ph 9763 7522

Shepparton 7 Wheeler St Ph 5822 2364

Taylors Lakes 45 Melton Hwy Ph 9390 8899

PREFaB. PLaNT:Dandenong 267 Hammond Rd Ph 9792 2888

TIMBER TRUSS:Belmont 40 Crows Rd Ph 5244 8400

STI:Kilsyth 213 Colchester Rd Ph 9728 1333

Proprietor: BOWEN & POMEROY Pty Ltd ABN 78 004 174 887 Reg. Office: 48-50 Hallam South Road, HALLAM 3803

www.bowens.com.au � followusonTwitter@Bowensau��[email protected]

www.hbfuller.com.au

From coast to coast, the new Max Bond formula

guns out easier in ALL conditions

EASY TO GUN OUT

Bowens Builders Bulletin - May 2013

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Transcript of Bowens Builders Bulletin - May 2013