Small Manufacturers make Record Redundancies
Small manufacturing firms are being forced to lay off staff at the fastest rate since the early nineties, according to the Confederation of British Industry (CBI).
Research from the CBI revealed that 38% of small manufacturers cut staff in the last quarter of 2008, while just 7% recruited. The resulting balance of -31% represents the steepest fall in employment in the sector since January 1992.
"The jobs picture among smaller manufacturers has deteriorated markedly since last July in the face of rapidly declining demand for UK-made goods at home and abroad,"
said CBI SME Council chairman Russell Griggs.
"Firms are steeling themselves for a very difficult few months with output and orders expected to fall at a record pace in the next quarter," he added. "As a result, job losses are expected to accelerate among small firms. Only the availability of credit will help stem the tide."
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"We need real and practical measures from the Government to encourage future growth," he said. "The Government continues to make headlines with its injections of funding for the manufacturing sector, but many of these appear to be unavailable to small businesses or miss the target in terms of support.
"Measures such as reinstating first year capital allowances up to £250,000 in the advanced engineering sector would be a big incentive for investment and help stimulate demand for capital goods," added Dewhurst.