Gladstone – Drafty/Builders

Crikeys ,vsixtyfour, I hope you're not about to supply more rental accomadation there! Too much competition already!

If you want to PM me i can give you a list of builders whom to deal with, im sure one of them can recommend a good draftsman.

We're just starting to settle into the correction phase now. Rents have come back and prices are just starting to ease as sellers realise that the good times aren't coming back anytime soon. It will take another 18 months I'm guessing before we hit bottom. By then most projects will have completed or be near completion. You're going  to be left with just plant work force demand only which will be about a tenth of what was.

What's worse is that a lot of this capacity (resources) that has been built may not be utilised immediately. Production may even contract. The big consuming economies are broke and looking for much cheaper raw  resource prices. Both volume and price are at risk. That suggests shut downs, idling of plant and care and maintenance are likely scenarios going forward. If anything demand could contract more than just the ending of the construction phase. 

We are now seeing overshoot in resource towns due to the lag in matching supply with demand. There are many out there who will loose their shirts because they didn't align those two components correctly. In just about every resource town I look at there is significant oversupply building.

You're what I call the tail enders. The players that come along at the top of a boom and who for the most part are trying to get some action before the opportunity disappears. Tail enders tend to lack patience because they fear missing out. Unfortunately that engenders the wrong emotional mindset and leads to poor decision making in most cases. It can be a hard thing to deal with when you've raised your hopes only to come to the realisation that you're probably too late. Tail enders don't really want to hear 'it's all' over and are prone to ignore negative info in favor of positive messages that reinforce their ambitions. 

Getting your head around reality can be challenging.