In light of the huge impact the COVID-19 pandemic has had on the supply of local and imported Australian building goods, Local EPS (expanded polyester) manufacturer Foamex has won a sizeable contract because its Chinese competitor couldn’t deliver in the required time frame.

Foamex general manager Justin Kelsey (pictured) is the only Australian manufacturer of this material. While the building and construction industry is very cost-driven, COVID-19 can shine a light on the importance of having a trusted, local supply chain.

“We originally quoted on a large project in Queensland to build a distribution centre for a major food retailer, and we didn’t win the job in the first instance,” Justin says.

“But when they couldn’t get the overseas product in time, they came back to us and we’re now their supplier. This is a direct result of the COVID-19 pandemic but the issue is bigger than just the current situation.

“A lot of companies will be looking at their supply chain reliability as a result of the current crisis and we hope that we’ll gain more customers as a result.”

Foamex has experienced a spike in sales since the COVID-19 pandemic started around six weeks ago. This is also a side effect of the food packing and medical supply packing industries needed more material.

“The building and construction industry, in particular, is ramping up as if they expect some sort of shutdown. We’re certainly quoting more and delivering more. We expect there will be a slowdown in building, particularly the residential sector later this year due to unemployment rising and other knock-on effects from the COVID pandemic,” Justin explains.

“There are lots of people talking about the Australian manufacturing sector and how we are too reliant on overseas manufacturing, particularly China, and perhaps this crisis will lead to some changes in the market.”

Foamex has been in business for 30 years and employs about 175 people manufacturing polystyrene products in five states.