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Realistbear

Wales Reeling After Shock Job Loss Announcement

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http://www.telegraph.co.uk/money/main.jhtm.../29/cnpan29.xml

Panasonic to close south Wales plant

By Stephen Seawright
(Filed: 29/08/2006)
A factory that makes car speakers in south Wales will shut by the end of the year with the loss of 242 jobs, its Japanese owner confirmed last night.
Japanese electronics giant Panasonic said production is being transferred from the Port Talbot plant to Asia and Slovakia after the speakers produced by the factory suffered "severe price declines"
brought on by tough competition
.

The clock is ticking a little faster day by day, week by week. The jobs are going because the UK can no longer compete in a global marketplace. Soaring sterling, high wages to pay for high house prices--not good. HSBC are calling it correctly, IMO. 2007 will see a correction in house prices, if not sooner.

Edited by Realistbear

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Added this one yesterday morning.

http://www.housepricecrash.co.uk/forum/ind...c=34592&hl=

Your post will probably get more attention though!

Its big news for Wales as they have been losing manufacturing jobs steadily for quite a while. Made so much worse because HPI has hit them harder than most areas in the UK given the low wages etc. I recall the EAs hyping South Wales as "the New British Riviera" justifying stratospheric house prices overlooking the glorious English Channel from quaint Port Talbot..... :lol:

Whatever is left of Asian industry in Wales will be gone in 12 months IMO. Its too expensive for companies to do business in this country so they leave.

1 U.K. £ =

1 US $: 1.9006 Euro: 1.4817

Little wonder the UK is losing its ability to compete in a global marketplace. Wages too high, cost of doing business too high, cost of living to high, houses too high, currency too high. :o

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Thats a sad announcment. Port Talbot is depressing enough as it is without losing your job. The mountain bike centres are growing all the time inland from there but that's not going to provide that many jobs.

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The clock is ticking a little faster day by day, week by week. The jobs are going because the UK can no longer compete in a global marketplace. Soaring sterling, high wages to pay for high house prices--not good. HSBC are calling it correctly, IMO. 2007 will see a correction in house prices, if not sooner.

I thought the correction was already underway - you've posted on a number of occasions and backed up your argument with statistics :blink::huh:

I believe the UK can compete in the global marketplace very well in a number of sectors - your own former profession is a good example.

Wage inflation has been remarkably restrained and the influx of immigration from other EU states is certainly having a downward pressure on wages in a number of industries.

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The simple answer is to close off these markets that are undercutting us.

What do we export to China?.

What do we Export to India?

Blockade those nations that have poor human rights, and eat rice for tea.

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The simple answer is to close off these markets that are undercutting us.

What do we export to China?.

What do we Export to India?

Blockade those nations that have poor human rights, and eat rice for tea.

Simplistic yes, but far from simple.

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The so called low cost centres are working cheaply as they are heavily subsidised by their own workforce who live and work in apalling conditions. It is not a level playing field, be under no illusion in decades to come they will want compensation as they level charges of exploitation by the West yet again just like the old days of the empire.

The additional pollution as a result of their industrial revolution is going to cause great problems for us too. Whilst we are busy fining our citizens for putting Kellogs Cornflake packets in the wrong bin and creating a new class of criminal, they are busy spreading the countryside with toxic chemicals and polluting the Ozone with everything they can muster.

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The simple answer is to close off these markets that are undercutting us.

What do we export to China?.

What do we Export to India?

Blockade those nations that have poor human rights, and eat rice for tea.

We should maybe go with equalised trade - we can only buy off countries who we sell to. OK we'll starve within 3 months.

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Its big news for Wales as they have been losing manufacturing jobs steadily for quite a while. Made so much worse because HPI has hit them harder than most areas in the UK given the low wages etc. I recall the EAs hyping South Wales as "the New British Riviera" justifying stratospheric house prices overlooking the glorious English Channel from quaint Port Talbot..... :lol:

If it's news to them then they haven't been paying very much attention to what's been happening in the world.

Whatever is left of Asian industry in Wales will be gone in 12 months IMO. Its too expensive for companies to do business in this country so they leave.

1 U.K. £ =

1 US $: 1.9006 Euro: 1.4817

Little wonder the UK is losing its ability to compete in a global marketplace. Wages too high, cost of doing business too high, cost of living to high, houses too high, currency too high. :o

The cross rates with the Euro and the US dollar do not matter, what matters to Panasonic is the crossrate with the Yen, the operating profit, costs, the corporation tax and other taxes. The basic issue with this plant, and operating in Wales is that the profit margin is too low compared to what could be achieved elsewhere. This is due to higher taxes, higher construction costs for the plant, higher bills, and higher wages.

The corporation tax is 10% higher here than Slovakia or China which is money that could be profit for Panasonic instead. Electricity costs 1/2 of what it costs in Wales which could be profit for Panasonic. Wages are probably 100%-400% higher which could be profit for Panasonic. If they had wanted to expand it would cost a fortune compared to elsewhere.

Edited by Della

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We should maybe go with equalised trade - we can only buy off countries who we sell to. OK we'll starve within 3 months.

Why would we starve, we are currently paying farmers across Europe to sit on their hands and leave their fields to go to waste.

We should drop the idea that we are going to save the world, a world that doesnt actually want foreign intervention, and we should concentrate on our own, leading the way on progress.

Current state of play, the West is hardly a role model and a benchmark for democracy and freedom.

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The simple answer is to close off these markets that are undercutting us.

What do we export to China?.

What do we Export to India?

Blockade those nations that have poor human rights, and eat rice for tea.

Jobs and money seem to be the only things we export to those countries!!!

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Guest wrongmove

The simple answer is to close off these markets that are undercutting us.

What do we export to China?.

What do we Export to India?

Blockade those nations that have poor human rights, and eat rice for tea.

Protectionism - yes, that has a great track record of success.

We Brits have always "lived by the sword", I don't think we are ready to "die by the sword" just yet. We have to work out ways of competing. Remember, about 40% of Chinese exports are from foreign companies (including uk) that are based in China. These products are designed and retailed over here, to our profit. If we are to insist on having a standard of living that is much higher than emerging countries, we are going to have to earn it IMHO.

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The next generation of offshoring has already begun! :D

http://www.newtechusa.com/ppi/main.asp

:lol:

Blimey, they're 'cheap as chimps' ! 47 cents an hour :D Not suprising really as they are such a close relative that we've descended from, as RB will confirm ;)

Edited by Saving For a Space Ship

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Protectionism - yes, that has a great track record of success.

We Brits have always "lived by the sword", I don't think we are ready to "die by the sword" just yet. We have to work out ways of competing. Remember, about 40% of Chinese exports are from foreign companies (including uk) that are based in China. These products are designed and retailed over here, to our profit. If we are to insist on having a standard of living that is much higher than emerging countries, we are going to have to earn it IMHO.

Why not vote with your wallet. Here are a few ideas:

  • Stop buying non-essentials - new MP3 player, mobile phone, latest TV, etc.

  • Check the 'made in' label and avoid buying anything not made in the EU (sometimes there is no alternative, or you may have pay a small premium).

  • Start buying seasonal produce and try only buy food grown in the UK.

  • Avoid branded products where possible (generally worse VFM as a 'brand' premium has already been added).

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Why would we starve, we are currently paying farmers across Europe to sit on their hands and leave their fields to go to waste.

We should drop the idea that we are going to save the world, a world that doesnt actually want foreign intervention, and we should concentrate on our own, leading the way on progress.

Current state of play, the West is hardly a role model and a benchmark for democracy and freedom.

We would starve because crops aren't instant. We don't have enough food growing in the UK to feed us.

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We would starve because crops aren't instant. We don't have enough food growing in the UK to feed us.

I said "try" to buy food grown in the UK. If there is no alternative and you need to eat, then you might have to buy food from elsewhere in the EU, or starve if you prefer! Or, shock, horror, try to grow your own, start a small veg patch or try to get an alotment, at least then you know the food isn't coated with various chemicals.

We started using a local farm shop near us about 8 months ago and I have been amazed at how little food we can now get away with buying from the supermarkets.

Edited by redalert

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I think "Roger & Me" by Michael Moore should be required viewing for all our politicians so they get off their collective bottoms and start dealing with big business for the benefit of the UK.

"Roger & Me" was Michaels first film, not as well known as "Farenheit911" or "Bowling for Columbine" and it tells the tale of General Motors closing down mildly profitable factories in Flint, Michigan and moving them to Mexico.

I am guessing that Panasonic along with lots of other multinationals were given grants and tax breaks to set up in Wales? If they go perhaps they should pay these back?

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Not much to add here, but I know the company too well, have been to the factory itself and saw the speaker assembly line in progress. It made all the car speakers for Ford and Jaguar. I had never been in a factory before, so was mildly interested.

Panasonic has been moving production out of Wales to the East for some years now. TV production was mainly shifted out to Czech Republic from Cardiff some years ago, with a big loss of jobs. Low wage Wales could not compete with lower wage Czech and their higher productivity.

It will be tough for those losing their jobs to find new work, especially in the semi-skilled sectors. Eastern Europe is not only competing for their jobs from abroad but also from their door step.

I am guessing that Panasonic along with lots of other multinationals were given grants and tax breaks to set up in Wales? If they go perhaps they should pay these back?

I can assure you that Panasonic lost quite a lot of money in Wales.

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Daewoo pulling out of NI now which is also an overpriced market with rampant HPI and need for much higher wages to survive:

http://www.belfasttoday.net/ViewArticle2.a...ticleid=1726311

(Tuesday, August 29) Daewoo axes 200 jobs as competition taps market

MORE than 200 jobs are to go at one of Northern Ireland's manufacturing plants after electronics firm Daewoo announced a drastic restructuring yesterday.
The Korean company is to shed 205 of its 285 jobs at the Antrim plant which makes televisions and DVDs.
A spokesman for the company said it was hoping to make most of the redundancies on a voluntary basis and hoped it might be able to grow again in the future.
The firm recently achieved sales to western Europe in excess of $100m.
However, in the face of global competition from cheaper Turkish and Chinese imports, the announcement spells a significant blow for a plant
once hailed as a shining example of job creation
in the Province.

Another blow to British industrial prowess. The clock just keeps on ticking for Gordon's economic miracle as sterling just goes from strength to strength before it too hits the wall. :o

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The Port Talbot unit reported a net profit of £175,000 in the year to March on sales of £15.6m

They should have invested it in BTL!!!! :D:blink::o (kidding)

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Could it not be the case the the Labour Government see the offshoring of UK jobs as part of their Global Social Justice, Redistribution of Wealth project ?.

If that be the case, then surely they must be removed from office and brought to task in the UK criminal courts.

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Could it not be the case the the Labour Government see the offshoring of UK jobs as part of their Global Social Justice, Redistribution of Wealth project ?.

If that be the case, then surely they must be removed from office and brought to task in the UK criminal courts.

No, more like once you have poor countries joining the EU, anyone who set up a factory in the UK as it was a cost-effective EU base will simply up sticks and move on. Most likely these companies have had a number of non-refundable grants, and will be able to pick up a new grant elsewhere while still being able to manufacture inside the EU (and therefore not be subject to import restrictions/taxes/etc.) in a more cost effective manner.

This is the result of selling your product/workforce/country purely on price and not on quality.

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  • 339 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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