JCB axes 650 jobs throughout UK.

[IBH]

JCB axes 650 jobs throughout UK.
Digger firm JCB has announced a redundancy programme that will result in the loss of 500 manufacturing and about 150 other jobs across the UK.

The move is a result of a rapid decline in orders, which has led to a 20% decrease in the forecast production schedule for 2008.

The construction industry has been badly affected by the credit crunch and rising raw materials prices.

The Rocester, Staffordshire-based firm has 11 factories around the UK.

Growing demand for JCB products in some emerging markets such as Russia, the Middle East and Brazil has not been enough to reverse the downturn in the construction sector in developed markets, said JCB group chief executive Matthew Taylor.

"These job losses are regrettable but absolutely necessary to ensure that JCB remains competitive and well-positioned to benefit from any market upturn," said Mr Taylor.

"However we do not expect to see a recovery until late 2009 at the earliest."
http://news.bbc.co.uk/1/hi/business/7506267.stm

[Nick Drew]

What terrible news !!

We seem to be in a bad way in UK PLC!!, How are our European friends finding it at the moment ??

Nick

[DozerDave]

Credit Crunch? Just a PC term for "RECESSION". Sad news about JCB nontheless. Just a tip of the iceberg.

[Robban_C]

... How are our European friends finding it at the moment ?? ...

We are talking about the business cycles, increasing interests, increasing fuel costs etc.
I expect to do less footings in the coming year or so as the house market are "holding its breath".
We are not that hard struck yet but some of us (at least me) are careful with investments (although I am searching for a used wheel loader).
But tomorrow is actually the first day this year that I am out of job. But I need a day of.
And the only reason that I am out of job is bad planning.

[IBH]

The economy is slowing but its NOT yet in recession

[martyn williams]

I think this news is very sad.JCB made record profits at the start of the year.I think firms will use this crisis to slim down their staffing levels regardless of their operating costs and profitability.
I think it will get worse,but think the media are making it worse by their reporting.
When you look at the bigger picture,you will se that nearly all the larger UK firms are now owned by non UK based multinationals.
The latest is the Santander buyout and the take over of Freightliner by a middle east country.
Then to rub it in, a suggested state funeral for thatcher
When she goes they should through her off a cross channel ferry

[bob]

some local building firms in norfolk \ suffolk are telling they workforce that they is to be redundancies and the rest have got to take a pay cut My brother in law have not been told yet if his to go or take pay cut ,they are story's that some firms are trying to cut wages by 20% This is what happen here in early 90s I have seen many recessions,it will sort out the chancers who have come into industry to make quick buck and a few good firms will go as well when banks think there is enough assets to pay of there loans .
Dont want to sound gloomy but I can not see it start bottom out for at least 2 years and starting to boom in about 5 years if past recession are any thing to go by
Bob

[IBH]

The residential and private commercial construction markets are being worst hit for various reasons and I suspect that some companies that are relient on these markets will have some very tough times ahead and some will go to the wall.
The companies with a strong presence in the public sector construction and those with 'Framework' agreements will do reasonably well.
Some construction firms have forgotten that ''Turnover is vanity, profit is sanity and cash flow is King''.

[Jeremy Rowland]

I think this news is very sad.JCB made record profits at the start of the year.I think firms will use this crisis to slim down their staffing levels regardless of their operating costs and profitability.
I think it will get worse,but think the media are making it worse by their reporting.
When you look at the bigger picture,you will se that nearly all the larger UK firms are now owned by non UK based multinationals.
The latest is the Santander buyout and the take over of Freightliner by a middle east country.
Then to rub it in, a suggested state funeral for thatcher
When she goes they should through her off a cross channel ferry

Naa they should put Thatcher in giant mincer and throw the pieces to the dogs thats what that old cow deserves.

Well I can report that things are slowing down in the service sector as well, must say I've had some "thumb twidling sessions" at work of late.
The real interesting thing is that we still struggle to get skilled people to work here, this is also part of the recession cycle where companies cut back on training new blood and as the older guys retire there are no replacements for them.

Yeh its bad news about JCB but look out all this is indeed the tip of the iceberg I think worse is to come and a real indicator will be the banking sector and fuel costs.

Jeremy

[tctractors]

I an sorry to read about the staff cuts at JCB ( I am well known for my thoughts on 3CX'S but jobs are so important to every-one) there has been some fare shake-ups around the West Midlands with loads of staff being "Canned", I myself seem to be doing O.K. as Co's select to repair and patch up half Knackered kit rather than the usual replacement with new, the landfill sites that I work on regularly are all reporting load totals down by at least 60%, even the dodgy tips, so the tipper drivers lot must be right crap, it would seem that I am getting all my work a good distance away from my home location, with a shortest round trip of 72 miles and an average round trip of 140 miles, and the cost of Fuel is realy painfull, but when your marching you are not fighting.

tctractors