THE troubled manufacturing sector took centre stage this week, with a host of bad news in terms of jobs and profits.
Unsurprisingly, given the troubles in manufacturing and air transport, the week also saw the first rise in unemployment in a year.
The hike in unemployment by 4,300 to 951,000 sparked an accusation from a top union chief that bosses are ‘‘losing their nerve’’ in the tough economic climate.
On Monday, Wythenshawe engineering group Renold plunged £5.1m into the red as it was rocked by redundancy and restructuring costs of £6.4m after closing two UK sites with the loss of 300 jobs.
Finance director Tony Brown said business in both the firm’s key markets of North America and Europe was being affected by the downturn in the economy, particularly after the US attacks.
‘‘The events of September 11 have accelerated the downturn and had an immediate short term impact in our North American businesses,’’ Mr Brown said.
A further 48 jobs are to be lost in Stockport as paper products giant Mondi Packaging closes a cardboard box assembly plant in Hazel Grove.
Mondi says it has been forced into the move by tough economic conditions in the UK corrugated paper industry.
Job losses
More bad news in the manufacturing sector may yet be to come, as the Confederation of British Industry warned a further 30,000 jobs are at risk from the sharp drop in business confidence experienced in recent months.
Its latest regional trends survey reported business confidence had waned in every region of the UK, with the largest ever fall in export optimism since 1990.
‘‘This survey shows that in every region of the UK manufacturers, already under pressure from the slowdown, have had their confidence further knocked by the terrorist attacks,’’ said Sudhir Junankar, CBI associate director of economics.
After a torrid six months there was good news at last for British Airways. BA, which has seen its shares hit so hard as a result of the global slowdown and the post September 11 decline in air travel that it faces losing its place among the FTSE 100, received a boost on Thursday as the price of oil fell sharply.
Away from the troubles of industry, the week also saw activity on the merger front in Manchester’s booming legal scene.
Cobbetts, the long established King Street-based firm had looked liked always being the bridesmaid while numerous legal ‘marriages’ took place around it.
But in what is seen as a highly significant step, the firm, under the sound stewardship of managing partner Michael Shaw, is looking at merging with Leeds firm Read Hind Stewart.
Michael Shaw, who hopes the union will happen early next year, said the enlarged firm will focus on specialist areas of expertise such as commercial property.
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