Manufacturing jobs 'now at risk'
September 1, 2008
The government must tackle the economic downturn "head on" to reduce the impact on manufacturing jobs, the Engineering Employers Federation (EEF) has warned.
The EEF made the call after its survey of 800 such companies found job losses were now being predicted across the UK.
It said there had been a "sharp decline" in expectations for coming months in all manufacturing sectors.
The government said it understood the pressure on manufacturers and was looking at ways to boost support.
'Taking their toll'
The EEF study - conducted with accountancy group Grant Thornton - found that employment and investment plans had gone into reverse.
It said only firms in London and the South East, and eastern England now planned to recruit staff.
"Manufacturing has shown considerable resilience in the face of a credit crunch, a global economic slowdown and a massive increase in its costs," said EEF chief economist Steve Radley.
"But there are now clear signs that these pressures are starting to take their toll on companies.
"Given the Bank of England's hands remain tied in the short term, it is now essential the government tackles this turning point for the economy head on."
The EEF added that the government "must avoid adding any further costs to business and put in place policies which will provide the building blocks for an upturn".
It found that while export sales remained good, domestic orders were "plummeting".
The most recent official data showed that the UK economy was at a standstill in the first quarter of this year.
Global problem
"The government understands the pressures on the manufacturing and other sectors as a result of the global credit crunch and high world oil and commodity prices," said a Treasury spokesman.
"These are the same difficult circumstances facing every country at the present time.
"The government is currently in the process of speaking with businesses and regional development agencies in every part of the country to look at ways to build on existing support for businesses and families facing difficulties."
Print this page