From humble beginnings in 1856 on what is affectionately known to locals as “beehive corner” in South Australia; came the genesis of the Holden motor car company- Australia’s first mass car manufacturing plant.
Since then, Holden has gone on to produce 7.6 million cars in in history in Australia and has been a key employer in the Australian manufacturing industry.
On Friday the 20th of October, the 1000 remaining staff were on hand to witness the final Red V8 Commodore roll of the production line, signalling the end of mass car production in Australia.
With the factory closure, it is estimated that the decline of the car manufacturing industry has resulted in the loss of nearly 6000 direct employees however the impact is far more widespread.
In a report conducted by the productivity commission, it was estimated that the decline of the manufacturing sector would have a potential cost of 40,000 jobs spread across the supply chain industry.
For the suburbs that hosted these large manufacturing plants; closure has resulted in the displacement of many hundreds of people and in turn, had a larger impact of families and the wider community who have limited transferable skills and alternative employment prospects.
This significance removal of employment has the ability to adversely affect house prices as people look to relocate to areas with greater employment prospects.
On the international scale, we need only look at the decline of General Motors and the impact of its closure on the once thriving “Motor City” in Detroit to see how devastating the loss of industry can be.
When it comes to property investment, it is important to identify suburbs that have a diverse employment base, therefore mitigating risk of decline in the event of economic downturn.
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