Protecting You IP

This month sees a slight down turn in the commercial property enquiry with enquiry rates dropping marginally.  And yes – everyone is looking west, up the Hunter Valley to find the reason.

The reaction of the major coal companies is interesting to say the least – jettisoning staff and bringing in house commercial and industrial services they have been out sourcing, until now!

Considering (2014) will see a doubling of the out put over (2010) with contracts already  signed and committed too. Plus (2016) will see an almost 25% increase on this figure. The question is WHY?

One of my respected industrial property owners put it this way – “the big firms respond with knee  jerk reactions to short term fluctuations. Instead of protecting their intellectual property (IP) which resides in the minds of those they employ, they reduce staff numbers.  Loosing  the training, intelligence and skills they have worked hard to build.  All this when they should be looking  to utilise the skills and work their employees harder to ride through the downturn.”

These fluctuations in coal prices are not unexpected and yet its the major global players who are the worst culprits when it comes to reducing staff. These companies are the ones  with the power, knowledge and size to forsee and manage these aberrations.

Is it unexpected that a surplus of coal would find its way into the world market considering  the industrial wind down? I think not!  Will it be unexpected when the growing  urbanisation of Asia increases the need to consume more coal for power generation? I think
not!  Will it suprise anyone if the (A$) goes down to ($0.90)? I think not – and then all of a  sudden our coal will be competitive again.

Probably of greatest concern is the growth of gas fired power stations and the size of the coal seam gas fields around the planet, especially in the USA.

Congratulations to Jeff McCloy (Mayor of Newcastle), Bruce McKenzie (Mayor of Port Stephens) and Peter Blackmore (Mayor of Maitland) on their election. The people have spoken – they are tired of Councils infighting and are looking to strong dynamic leadership to hopefully bring the Councillors together while nullifying the  indecisive costly bureaucrats.

Director Raine & Horne Commercial – Newcastle

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