Construction contraction blamed for steel industry job losses at Tata

[wednesday1 10]

Well woop di do for statistics.

 

It goes to prove how they can be massaged to suit any situation.

 

What you'll be overlooking is the fact that the orders may have been received, the planning apps gone in, CONSTRUCTION not yet started, and many a slip there may be before it does. Like I said to get back to your original point, try looking at ABI data, glenigans or any other construction data feed, and you will see that the trend is for a concrete frame rather than steel, so thats why the steel is not needed.I realise this will not give any creedence to your anti con-dem sympathies, but please dont shoot the messenger.

 

 

I don't know of such a trend, but even if there was one i doubt very much that it is significant as I have not seen a single mention of it in all the links about the job cuts.

[Tony 10]

It's not a trend, it was the weather. You remember the months of snow and freezing temperatures?

[wednesday1 10]

It's not a trend, it was the weather. You remember the months of snow and freezing temperatures?

 

 

Course it was Tone!

[Tony 10]

Your lack of industry knowledge is showing.

[wednesday1 10]

Your lack of industry knowledge is showing.

 

 

Don't work in construction Tone, just saying what the Corus people are saying:

 

 

Tata Steel to cut 1,500 jobs in Scunthorpe and Teesside

Monday, May 23, 2011

Tata Steel is set to cut 1,500 jobs at sites in the North of England.

 

The Indian steel giant has proposed cutting 1,200 jobs in Scunthorpe and 300 in Teesside at its Long Products division, which Tata says is loss-making due to falling demand for steel.

 

The firm also said it would invest £400m in the division over the next five years to help turn it around.

Tata is one of the biggest steel makers in the world, with operations in 26 countries.

In 2010, the company, which employs more than 80,000 people worldwide, recorded a turnover of $22.8bn (£14bn).

 

'Careful scrutiny'

 

The firm said demand for structural steel in the UK was only two-thirds of the level seen in 2007 and "is not expected to fully recover within the next five years".

As a result it proposed closing or mothballing parts of the Scunthorpe plant.

 

"We are proposing to take these actions only after going through an inclusive consultative process that involved very careful scrutiny of the Long Products business performance," said Karl-Ulrich Kohler, chief executive of Tata Steel's European operations.

 

He said the company would do "everything we can to provide [employees] with support and assistance".

 

However, the government said that the £400m investment being made by Tata showed confidence in the direction in which the economy was going.

 

"It's encouraging to see that they don't see this as something they shouldn't invest in at all," said Business and Enterprise Minister Mark Prisk.

 

"Their commitment of £400m shows that they have confidence in this over the longer term."

 

But Nick Dakin, Labour MP for Scunthorpe said that government policies had made things harder for Tata.

 

"The actions of the government certainly haven't helped in taking investment out of construction in the local economy and raising the spectre of carbon taxes coming in earlier in the UK than in other parts of Europe," he said.

 

'Real blow'

 

Unions said the job losses would have a major impact on local communities.

 

"This is a real blow for the region," said Unite's national officer Paul Reuter.

 

"We have already demanded that there should be no compulsory redundancies and we believe that this should be possible to achieve."

 

George Dunning, leader of Redcar & Cleveland Borough Council, also said the job losses on Teesside would represent a "bitter blow" for the local economy.

 

However, he said the council, along with Jobcentre Plus, would do all they could to support those affected.

 

"We have a strong track record of responding swiftly to precisely this kind of situation," he said.

 

North Lincolnshire Council, which covers Scunthorpe, is also setting up a taskforce and pressing the government to make sure that the development of the Marine Energy Park on the South Humber Gateway takes place as quickly as possible.

 

Council leader elect Liz Redfern said she was "shocked and dismayed by the news".

 

Tata has recently announced a number of investments in its Scottish and Welsh plants, including an £8m investment at its Clydebridge plant near Glasgow and a £53m investment at its Port Talbot plant.

[Tony 10]

And? Your lack of knowledge of the construction industry is still showing. there are enough clues and explanations above that will let you piece it together.

[mj.scuba 10]

YES I am saying that all those cancelled government projects shouldn't have been, It's better to create jobs in an economic downturn then cut public spending when the economy is strong. Fix the roof when the sun is shining.

 

In other words, we as taxpayers should expect our government to ARTIFICIALLY create demand, where there otherwise wouldn't be.

 

What a daft idea.

 

Why make a special case for this steel manufacturer? What about other industries that find themselves in difficulties during recessions? Aircraft manufacturers? Car makers?

 

If people are being made redundant at Rolls Royce, what do we do, decide to order 50 passanger jets for the sake of it?

 

If people are being made redundant at a car plant, then what, let the government order 10,000 cars out of sympathy?

 

A fine example of labour politics you are, and thankfully why we're rid of them for now!

[alchresearch 214]

YES I am saying that all those cancelled government projects shouldn't have been, It's better to create jobs in an economic downturn then cut public spending when the economy is strong. Fix the roof when the sun is shining.

 

So you're OK with:

 

1) The government throwing money at projects which didn't necessarily need to be built?

 

2) That the government didn't seek value for money when choosing suppliers and contractors?

 

You see, that's why we have so much debt.

 

Perhaps you should speak with someone involved in these projects and saw the costings before making assumptions. But I guess that's pretty hard to do from the vantage point of your armchair when your only sources are newspapers.

 

I've seen these projects first hand and the shocking waste of money spent on them.

[pbobrp 10]

all just a prelude to , moving busness, jobs oversea as many have all ready gone.

[wellyman 10]

In other words, we as taxpayers should expect our government to ARTIFICIALLY create demand, where there otherwise wouldn't be.

 

What a daft idea.

 

Why make a special case for this steel manufacturer? What about other industries that find themselves in difficulties during recessions? Aircraft manufacturers? Car makers?

 

If people are being made redundant at Rolls Royce, what do we do, decide to order 50 passanger jets for the sake of it?

 

If people are being made redundant at a car plant, then what, let the government order 10,000 cars out of sympathy?

 

A fine example of labour politics you are, and thankfully why we're rid of them for now!

 

We should build pyramids and in 5000 years time tourists will come and pay money to look at them.

[NorthernStar 11]

There is however a huge demand for housing in this country, but savy business types will not build them with the current market uncertainty. Perhaps the government could look into getting the ball rolling in that area it would solve many problems we face regarding jobs and housing.

Edited May 24, 2011 by NorthernStar

[wellyman 10]

There is however a huge demand for housing in this country, but savy business type will not build them with the current market uncertainty. Perhaps the government could look into getting the ball rolling in that area it would solve many problems we face regarding jobs and housing.

 

You make a very valid point. One of the main reasons why house prices spiraled over the last decade is the governments abject failure to build houses at anything like the promised level. As a result house prices increased because there simply weren't enough to go around and easy credit meant people were increasingly prepared to pay inflated prices until the bubble burst.

Perhaps if this government were to offer incentives to builders to provide houses at affordable prices it might get things moving again. But as house prices are still way above what most working class buyers need to get onto the housing ladder it will be a difficult task to balance borrowing against supply.