Trailer builders are operating in an increasingly complex manufacturing environment.
Volatility in raw material pricing, broader economic pressures and the challenges of managing extended global supply chains are making it harder to maintain margins while continuing to grow sustainably.
In this environment, the balance between upfront cost and long-term reliability has become more critical than ever, particularly as lower-priced imported aluminium continues to enter the market.
While the idea of low-priced materials may seem enticing at first, they often come with a number of hidden costs as a result of rework, inconsistent supply, delays, compliance issues and warranty exposure. This is why Capral Aluminium emphasises the importance of choosing Australian-made products that have been manufactured locally and to higher standards.
“Choosing Australian-made products has never been more important,” says Capral Aluminium Industrial Division General Manager, Luke Hawkins. “Imports often experience significantly interrupted supply chains, delays in trans-shipment and increasing freight costs driven by the fuel crisis. However, these risks can be significantly reduced when working with local suppliers who offer greater visibility and responsiveness.”
Given the current geopolitical situation, Luke says imported products can introduce additional uncertainty for trailer builders and the Australian market which can be alleviated by using Australian-made products. This, he explains, is why purchasing the cheapest product doesn’t necessarily mean getting the cheapest option – because although it may be the lowest-priced option in terms of cost per length or kilo, the impact of poor quality can potentially cost more than what that small saving is.
“Imported products can be much more expensive due to the risks they bring to businesses and their production processes,” he says. “Imports introduce additional variables into production planning, particularly around delivery certainty, quality consistency and the potential impact of rework.”
One of the primary advantages of selecting Australian-made products (beyond quality) is supply. Local manufacturers can provide trailer builders with short lead times and help alleviate working capital arrangements associated with import supply chains – solidifying production processes by large margins.
“Having a sovereign capability and complete end-to-end supply chain in the transport market is critical,” Luke says. “Lead times for imported rolled products or extrusions can be up to three to five months, with customers paying for materials months in advance while the prices continue to escalate.
“Locally manufactured products can be supplied the next day from stock or ordered within a three-week lead time. They’re clearly much better from a flexibility and time perspective.”
Investing in Australian-made products can support greater consistency in quality and performance while also reducing the risk of rework, compliance issues and delays. Furthermore, it has the potential to trigger a chain of beneficial consequences for customers such as decreased costs, significantly lowered quality risks and compliance issues, a reduced need for repairs and increased safety.
“The majority of people want to have an Australian-made sentiment, so they buy Australian-made products,” Luke says. “But sometimes lower-priced imports flash up and they turn people’s eyes away.
In practice, decisions based purely on upfront price can overlook the downstream impact on production efficiency, rework and overall project cost.
“We need to think about the upstream impact on the broader economy as well – the companies we buy from and the people we employ,” Luke adds. “Investing in Australian-made products brings major benefits to the Australian economy, and they’re taken away when you invest in imports.”
Capral is a perfect example of local manufacturing in the transport sector. The business has been at the forefront of Australia’s aluminium production industry for more than 90 years and has demonstrated its commitment to high-quality and domestic production by joining the official Australian Made Campaign.
“Capral’s model is built around supporting customers across the full supply chain,” Luke says. “We have an extensive range rolled products and extrusions. We have consistent supply in every state, and stock can be delivered the day after purchase.”
Capral’s lower carbon and recycled products also continue to play an important part in the business’ own offering as well as Australian manufacturing as a whole.
“This is an area where locally produced aluminium can offer greater transparency and confidence, particularly for customers working to meet sustainability and ESG requirements,” Luke says. “An increasing number of customers are looking for a way to differentiate themselves, and we offer them our lower carbon aluminium and trials of recycled content to service those needs.”
Capral also has a whole variety of fabrication capabilities such as CNC machines as and painting, cutting, drilling equipment which can help trailer manufacturers reduce their work in process, drive down working capital and reduce their investment requirements.
“We can also reduce weight in different sections of our extrusions to reduce costs further,” Luke adds. “We will take the necessary measures to help our customers take costs out of the fabrication process because we’re invested in the industry.
“We’ve got a long history within the Australian transport sector, and we’re here to stay. Local manufacturing is very important for this sector. If we lose it, imports will have price control and the balance we currently have will be eradicated.”
