One area that is helping WA, but may yet be cause for concern, is the apartment construction sector.

Business needs to stay the course

Several factors have combined to ensure WA businesses are in better shape than may have been expected, considering the speed and depth of the boom’s collapse. 


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The strength of Western Australian industry has been a boon and at the same time a curse. The curse of apparent strength has bought eastern states business to WA, many of whom, in an effort to establish themselves, has caused them to in effect buy work undercutting the market, and dumping product which has led to additional supplier and smaller business failure. The failures force service companies to be even more tough so they will not be open to be burnt a second time. For some this apparent strength in industry it is expressed in the increased M&A activity where the weakened balance sheets international players are entering the market in the larger company segment. This revised ownership has changed policy with the consequences of sharp practice in product supply and of a hard time for subcontractors in many areas. The boon is in the form of learned flexibility and toughness which was necessary to become established during the heady days of the mining construction boom. This retained strength is equally a curse as it is seen as that we are in a better position than we are in reality, but we survive.

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