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Topic: Job Shop forum / Recession

Page: 1

Posted: 21-10-2008 17:17 by Subcon Laser

I am sure there is a lot of people in manufacturing that has suffered a slow down in their work load.  I am quite sure we all know of companies that are on short time and or facing closure.  We in this industry have faced rocketing steel prices, fuel bills and gas/electric costs.

Those of us who deal with the so called major companies may also have been hit with the "We require cost downs on the product / line you supply"

As the government has pumped billions into the financial market to ease their problems, what does everyone think they should be doing for manufacturing.

Figures out Friday may prove we are heading into a recession, I say we are already knee deep in one. Anyone agree / disagree.

If we are in or heading into recession, will it be the worst in living memory? My own opinion is that this one is going to bite hard.  I deal with a lot of different companies everyday and I have never known such a general gloomy forecast from everyone I talk to.  Having been in engineering/manufacturing since the early seventies I have been through a lot of peaks and troughs, this one though may see the peaks get a lot higher and the troughs a lot deeper.

Regards

Tom Mongan

 
Posted: 21-10-2008 18:26 by CarrsBOM

Tony,

We are seeing a general slow down in our work, but have several 100 customers and there is always a few in that lot that are going backwards or need to cut back. We are finding now creeping payment terms over 60 days is normal now and the threat of bad debt is the biggest risk we face.

My opinion is always to focus on the positive, a recession only means a few per cent in the wrong direction. There is still 95% of the work out there, you just need to have a wide deverse range of customers. The best thing I ever did was to become less reliant on automotive. This sector used to account for over half my turnover; now it is less than 10%. Our best automotive customer gives us 10% f our turnover, and has dropped the schedule back on the Bentley by half. So we loose 5% of turnover, so I have to find another customer and convert them.

Solace from over companies in a similar predicament, is false comfort. Good luck.
Posted: 22-10-2008 11:53 by Lpro

Subcon said:

I am sure there is a lot of people in manufacturing that has suffered a slow down in their work load.  I am quite sure we all know of companies that are on short time and or facing closure.  We in this industry have faced rocketing steel prices, fuel bills and gas/electric costs.

Those of us who deal with the so called major companies may also have been hit with the "We require cost downs on the product / line you supply"

As the government has pumped billions into the financial market to ease their problems, what does everyone think they should be doing for manufacturing.

Figures out Friday may prove we are heading into a recession, I say we are already knee deep in one. Anyone agree / disagree.

If we are in or heading into recession, will it be the worst in living memory? My own opinion is that this one is going to bite hard.  I deal with a lot of different companies everyday and I have never known such a general gloomy forecast from everyone I talk to.  Having been in engineering/manufacturing since the early seventies I have been through a lot of peaks and troughs, this one though may see the peaks get a lot higher and the troughs a lot deeper.

Regards

Tom Mongan


 
Posted: 22-10-2008 12:31 by Lpro

There is a definite downturn. If our friend out there thinks that he is going to be able to maintain 95% of his turnover then I think he is going to be on his own and good luck to him. The problem we face, as subcontractors, is that we are totally reliant on our customers. If they are not busy then we are not busy - and very few of them are.

We have been too reliant, in the UK, on the money markets and they have let us down, it is now time for us to get back to basics and invest in manufacturing. I would ask that everyone out there lobbies anyone of influence in order to get the message across. I know that all manufacturing/engineering based trade associations are doing that at the moment and we should all get behind them.

The BBC reported, yesterday, that China is beginning to feel the pinch with regards to increases in fuel, raw material and labour costs and this is expected to lead to a return, to some extent to local manufacturing. In order for us to be able to take advantage of this we need to be ready in terms of investment facilities and skills availability.

Contact your local MP now and tell him/her that we need access to finance, a valid educational system and an immediate cut in interest rates to help restore confidence.
Posted: 25-02-2009 15:55 by Subcon Laser

UK CAR INDUSTRY CUTS
Map showing UK car industry production and job cuts
1: Aston Martin (Gaydon) 600 jobs lost, three-day week
2: Bentley (Crewe) 220 jobs lost, seven-week closure from March
3: Ford (Essex, Daventry, Merseyside & Bridgend) 850 jobs lost, four-day weeks, non-production days
4: GM Vauxhall (Ellesmere Port & Luton) 47,000 global job losses, four-day week
5: Honda (Swindon) Production halted until June
6: Jaguar Land Rover (Solihull & Halewood) 1,050 jobs lost plus production cuts
7: BMW Mini (Swindon & Cowley) 850 jobs lost, week-long stoppages planned
8: Nissan (Sunderland) 1,200 jobs lost, some shifts stopped
9: Rolls-Royce (West Sussex) 40 jobs lost plus non-production days
10: Toyota (Burnaston & Deeside) Some night shifts stopped, non-production weeks planned
11: LDV (Birmingham) 95 jobs lost, production suspended since December
Source: SMMT & BBC

 


Well I cannot believe it is four months since I posted a comment regarding the recession.  Even I, who is by nature the eternal optimist, believed that it would all come down to the situation the majority of us find ourselves in.  I have just highlighted the main automotive companies here, however the pattern is the same for a lot of different manufacturing sectors.  How is everyone else in our industry managing.  If I am honest our two axis side is ok but the five axis side is dire.  I think what makes it worse is that no one has a blessed idea when things are likely to improve.

I also would like to congratulate the powers that be for their support in helping our manufacturing industry.  That old saying about fiddling while Rome burnt never seemed so apt.

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