CBI survey warns of tough times for small manufacturing companies

| February 1, 2009 | 0 Comments

A survey by the Confederation of British Industry (CBI) has revealed that jobs are disappearing at small and medium-sized manufacturing companies at the fastest pace in 20 years.

As the UK grapples with what is expected to be a long-lasting recession, SMEs can expect a tough first quarter as demand for goods from UK firms plummeted in the last quarter of 2008.

According to the CBI, over one third of the 492 firms surveyed reduced their workforce during the final quarter of 2008 and job losses are expected to accelerate among SMEs during the next quarter.

Russel Griggs, chairman of the CBI’s Small and Medium Enterprises (SME) Council, said firms are bracing themselves for a very difficult few months with output and orders expected to fall at a record pace in the next quarter.

Griggs explains that only the availability of credit will help stem the tide of job losses.

Meanwhile, the survey also discovered that only 7% of SMEs increased their workforce during the last quarter, while 13% of companies said that new orders had grown, while over half (54%) said they had declined.

Finally, the survey found that confidence about the business environment declined, as did expectations of new orders since the survey commenced in 1987.

Tags: , , , , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 3290 times, 3 so far today