Reality Check

[oompah]

http://news.bbc.co.uk/1/hi/wales/8458854.stm
I'm sure the 900 affected by this won't think so but is the worst of the recession over (or however it is described)or is it a false dawn with many more of this type of announcement to follow.The retail sector is reporting strong sales but one suspects all that is sold by them is manufactured abroad so no help at all to our industry's.Obviously the car scrappage scheme has done little to help this site.

 

[Thermo]

even when a recession is over job losses tend to continue for some time after

 

[ColJack]

recession is time delayed..

this for example is a result of people having hours cut etc, so they can't afford that new car, so they stop making as many new cars which in turn means that they need less parts, so less people making them means less people spending at the supermarket which means less things sold and less things ordered and less things grown and so on....

once the recession is "over" it takes time again to get back to normal..
people doing more hours in one job means they can afford a new car, so the stocks or new cars start to drop in a few months, so they start making more, needing more parts, and the stocks of parts at the parts plant starts to drop so they need mor people and hours to make more and so on..

 

[dave.m]

One very clever thing that these companies have going for them is that after the recession, councils and government fall over themselves offering incentives such as council tax free offers for two years or more to move into the area to help unemployment, assisted building grants for a factory, which are all rather attractive.
Then after the 'free period' find an excuse to close down and move the business to another area.
Look at the past records of some of the big named companies, where they have set up for about three years then closed down again and moved to another area with incentives.

I know it is 'business' but it doesn't help the rate payers nor the unemployed over a long term.

 

[Whitespirit66]

recession is time delayed..

this for example is a result of people having hours cut etc, so they can't afford that new car, so they stop making as many new cars which in turn means that they need less parts, so less people making them means less people spending at the supermarket which means less things sold and less things ordered and less things grown and so on....

once the recession is "over" it takes time again to get back to normal..
people doing more hours in one job means they can afford a new car, so the stocks or new cars start to drop in a few months, so they start making more, needing more parts, and the stocks of parts at the parts plant starts to drop so they need mor people and hours to make more and so on..

One thing to add: Bosch aren't stopping production, they're just shifting it to a country (Hungary) where the pay rates are a lot lower. health and safety isn't stifling, and no doubt employment rules are more relaxed.

Doesn't appear to be lack of demand, although this is poss a contributory factor. More to do with fierce competition and cost cutting.

 

[ColJack]

but it does have to do with less demand..
now is a good time to move because the down time won't cause major snarl ups while they re-tool or whatever they have to do to shift production..