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deano_54321

Redundancies Where I Work....

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Howdy people.

I work for quite a large automotive supplier company in Staffordshire. Although things currently seem to be going ok from a sales point of view, redundancies are now being made, particularly at a senior level. I have to admit, I do not have the economical knowledge to see whats going on here, but could someone put into context what is happening here? I know this is an individual case, but we are seen as a 'growing' company, but cuts are being made. Are we REALLY seeing the start of a recession here? Are large companies preparing for and expecting hard times soon?

I guess if so I will have to try to hold onto my job in these difficult times, and maybe if I can see that through I will in a good position when the crash takes place. Its a nervous time, but I guess what is about to happen in this country in the next few years needs to!?

Any opinions would be appreciated on this post!

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As a tier 1 supplier to OEM's your company will not be able to pass on the cost increases seen over the past few years (steel, energy, aluminium, copper etc) not to mention your pay rises. To maintain profitability your company will be looking to cut costs (buy better and take out no-value added people)

This can mean redundancies

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Howdy people.

I work for quite a large automotive supplier company in Staffordshire. Although things currently seem to be going ok from a sales point of view, redundancies are now being made, particularly at a senior level. I have to admit, I do not have the economical knowledge to see whats going on here, but could someone put into context what is happening here? I know this is an individual case, but we are seen as a 'growing' company, but cuts are being made. Are we REALLY seeing the start of a recession here? Are large companies preparing for and expecting hard times soon?

I guess if so I will have to try to hold onto my job in these difficult times, and maybe if I can see that through I will in a good position when the crash takes place. Its a nervous time, but I guess what is about to happen in this country in the next few years needs to!?

Any opinions would be appreciated on this post!

Perhaps Mart knows your company; you don't say whether it's a Tier One supplier or not, or if it supplies the Aftermarket.

But it does make a change to hear that it's the senior levels who are taking most of the pain..

Mart's correct about the rises in raw material costs, though.

I'd add energy prices to that, too. On several occasions already this year, electricity 'pool prices' to industry have touched staggering levels.

There must be easier ways of making money than manufacturing at the moment. When you realise how much cheaper stuff can be produced in China and India, it makes you sick, really, doesn't it?

Good luck, I hope you manage to ride out the storm.

My advice would be to keep a close eye on the people around you.

Try not to get paranoid about it, just be aware that some people will stoop pretty low as they try to cling onto their miserable little jobs.

Usually these are the people with heavy debts to service, so they may not be sleeping too soundly at night.

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My firend in Norfolk not only works for the Unemployment Centre and has to re-apply for his job but tells me we are in a bad shape. Lots of redundancies here as well. And for quite some time.

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Howdy people.

I work for quite a large automotive supplier company in Staffordshire. Although things currently seem to be going ok from a sales point of view, redundancies are now being made, particularly at a senior level. I have to admit, I do not have the economical knowledge to see whats going on here, but could someone put into context what is happening here? I know this is an individual case, but we are seen as a 'growing' company, but cuts are being made.

It's about maintaining margins because they find it difficult to pass on costs, so the only alternative is to trim the fat. The price of raw materials, metals, red tape, anything oil derived (plastics, polymers), energy costs, transport costs etc, are undoubtedly having an impact and they may be locked into contracts or unable to pass on the full price rises because their customers are in a bit of a bind too. Some car manufactuers are struggling with over-capacity, any large customers may be putting pressure on your company to cut prices (or just keep them static) as they have rising input prices and need to make savings.

Also look at your competitors, this reflects the strength of the overall market, unless you're profiting at their expense it probably means things have gone off the boil and everyone will suffer to a degree. Does the closure of the GKN plant in Litchfield have any parallels to the stuff produced at your plant?

Look at the GDP figures, they may seem like abstract numbers but when growth is halved it has very real affects that you're now seeing on the ground.

Edited by BuyingBear

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Perhaps Mart knows your company; you don't say whether it's a Tier One supplier or not, or if it supplies the Aftermarket.

It looked that way for a moment, we are Tier One, but our raw material is unmentioned, so maybe not!

Maybe our position is unique, but I wondered if there was a general feeling in the Automotive sector that tougher times are ahead for all suppliers & OEM's.

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My firend in Norfolk not only works for the Unemployment Centre and has to re-apply for his job but tells me we are in a bad shape. Lots of redundancies here as well. And for quite some time.

When people working for the job centre lose their jobs that either means things are very good or very bad.

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Does the closure of the GKN plant in Litchfield have any parallels to the stuff produced at your plant?

No, not in our case, but I have heard this mentioned locally.

Edited by deano_54321

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I know 7 friends who have been made redundant or laid off in Jan. Havent heard of that many people being made redundant since the 90's and in various industries like accountants, scaffolders, & programmers.

I am also seeing my customers turning over less so they need to cut costs to stay in business. A viscious circle.

Hi Mr Rose

Just a quick comment - my previous company, a large American IT services and computer manufacturer, made about 100 people redundant in 2002 (me included, though voluntary) in the UK and several hundred around Europe. I think there have been thousands more since.

The IT industry rarely grabs the headlines but these things went on throughout the 18 years I was in the industry (including the hugely profitable times for the companies around Year 2000 and the dotcom bubble) - no unions of any note to back up the workers of course, we all walked meekly to the slaughter.

Now just about everything has moved to India and will move again soon as they get too expensive - there'll be some people in Africa training up as I write getting ready for the slave wages.

I fully expect unemployment to be the trigger for HPC in the near future.

Regards

LL

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The German-based company Continental AG makes tyres, rubber parts and lots of other components for the automotive industry. They're shedding jobs aggressively, profits are growing strongly, and the shares are one of the best performers on the Frankfurt exchange.

So it doesn't automatically follow that companies shed staff because they're doing badly.

The automotive business is global. Top managers are encouraged to literally scour the earth for cheaper ways of doing things. If they don't, their competitors will.

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It looked that way for a moment, we are Tier One, but our raw material is unmentioned, so maybe not!

Maybe our position is unique, but I wondered if there was a general feeling in the Automotive sector that tougher times are ahead for all suppliers & OEM's.

Ask yourself. Do you believe there will much, if any, car manufacturing in this country in 10 years time?

The signs are there.

If these are true, Freelander to India, Defender to Russia or Eastern Europe.

All the factors discussed on this site, energy and material costs, pension liabilities, business rates, infrastructure, education levels etc. and the likely future direction of many of these must be leading to much corporate strategic thinking about future plans regarding plant location.

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Read this and cry - a client near Aber who purchased much of his business with credit cards two years ago and expanded from 3 to 14 now has a semi-redundant workforce he's got involved in jobs unrelated to skills. Really worried - they're a great bunch of people and talented with it. :(:(:(

Edited by gruffydd

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I have been chasing a Tax Rebate since October 2005, I have rung the office several times and each time they have said they are sorry but they have a massive backlog due to hundreds of thousands of people losing their jobs. Not only that, they too are expecting redundancies as the government pull staff out of the rebates section in order to delay the return of hard earnt overpaid taxes.

Just listen to local radio and you will hear Government adverts about contacting the tax offices to fill in self assesment forms, beware the 'Government are tight for cash and would cut their grandma's throat to get more revenue in.

Gordon and Tony are finally getting what they deserve, and I trust we will all make their exit from politics an enjoyable one, one they wont forget.

Good Ridance to New Labour, the parasites of the 21st century.

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Good Ridance to New Labour, the parasites of the 21st century.

Hear, hear.

Labour have become good with making some of the poor feel richer, but its perceived wealth. Employment was growing because of all the local govt jobs created but now watch it all go downhill. I bet that's why Blair wants to exit and put Gordon in charge - shift the blame.

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when you consider that the average british worker represents 75% of the workforce with 25% in public service and those in public service are earning 80k then you can see that there is a problem on the horizon.

Borrowing might fill the gap, but one day soon someone will have to dig real deep to keep up the momentum and they will find the cupboard is bare.

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My industry ( Print) has already been decimated, over the past 5 years.

Not much left and those that are, are cutting each others throats.

We’ve finally run out of steam. I honestly thought we would have been in the depths

of a recession by now, but no... not until ‘Tony’ says so! and he won’t... he will

be gone just before the sh!t hits the fan.

Watch for the troops coming back home early (token force that is) then

exit stage left Tony Blair. [ seriously vulgar swear words ]

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I'm way behind with whats going on in the world but i only just found out ARGOS made a load of redundancies just before christmas, apparently they dropped all team leader titles (i think that was it) Seeing as we saw the demise of index stores earlier in the year i would have though business would be booming for argos?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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