140,000 manufacturing jobs to go

More than 140,000 manufacturing jobs will be lost this year in the wake of a dramatic downturn cutting ever deeper into British industry – with bosses in the West Midlands among the most pessimistic.

A survey today from the Engineering Employers Federation (EEF) makes grim reading for the region, which is hitting the basement in a number of areas. The report says that the weakening automotive sector has had a major impact on the West Midlands economy.

The region has posted the weakest number of orders.

And pricing, margins, cashflow and capital expenditure are all at record lows.

Manufacturers believe things are not going to get any easier, with just eight per cent expecting an increase in orders over the next three months, and 60 per cent set to make further redundancies.

Smaller firms employing less than 50 workers were the most gloomy.

Peter O'Grady, West Midlands spokesman for the EEF, said: "There is simply no hiding the fact these figures make grim reading.

"The stark decline in the automotive sector over the past three months is clearly having a major impact on manufacturing in the West Midlands."

He added: "The priority for government remains getting credit flowing again and helping companies to invest.

"There is now an urgent need to support companies in hanging on to the skilled workers they will need for when the upturn comes.

"Government must now consider all possible avenues to help companies deliver alternatives to redundancy," said Mr O'Grady.

The EEF said it was predicting that manufacturing nationally will decline by 8.6 per cent this year, the worst figure since the recession of the early 1980s.

Chief economist Steve Radley said it was difficult to find any glimmers of hope in the study.

The EEF forecast forecast 140,000 jobs will be lost this year, but Mr Radley warned this could be higher if supply firms go out of business.