May 2020

News May 2020 www.pwemag.co.uk Plant & Works Engineering | 0 9 If a week is a long time in politics then the last couple of months have felt like a lifetime. At the time of writing in week seven of the lockdown it’s clear that for Britain’s manufacturers it’s going to be a long way back towards anything like normality, whatever that new normality will be. At the start of May Make UK published it’s first COVID 19 Monitor showing that industry had experienced a collapse in demand as the impact of the global lockdown due to coronavirus hammers home with a warning that conditions are unlikely to return to anywhere near normal for some time. We also warned that the extent of the fall is likely to mean that the recent Office for Budget Responsibility (OBR) forecast of a 55% fall in manufacturing output in the second quarter is likely to be an underestimate as things stand. Furthermore, the extent of furloughing which has taken place within the sector and, the prospect that a significant number of companies will not take staff off furlough until they see orders increase, means the Government will have to consider extending some form of job retention plan beyond the end of June when the current scheme is due to finish. According to the survey some four fifths of companies had seen their orders decrease with a significant number saying their orders had fallen by a half, while a similar number of companies had furloughed staff. The forward looking indicators showed that most firms felt it would be at least twelve months before trading conditions were normal with a third of companies only aiming to take staff off furlough once they start to see orders increase. Looking at these conditions it’s likely that we will continue to successfully work with Govt on schemes to support companies through this crisis and also an extension in some form of the Job Retention Scheme which we were successful in calling for. Protecting jobs and livelihoods at this time is a critical factor for Make UK and we’ll continue to do everything in our power to support the sector through this difficult period. By MAKE UK chief executive, Stephen Phipson MAKE uk - the manufacturers’ organisation monthly news comment Responding to the news that Rolls Royce is looking to cut up to 8000 UK jobs, the country’s leading manufacturing union, Unite, called for the company to `hold firm’ and avoid short-term action which could hamper its emergence from the COVID-19 crisis. The union is urging Rolls Royce and other manufacturing companies to avoid `knee-jerk’ reactions and instead work with Unite and the government to develop the industrial strategy that will develop and deliver the jobs of tomorrow. Steve Turner, Unite assistant general secretary for manufacturing, said: “We say to Rolls Royce today, step back from drastic, short-term responses and work with us to shape a positive future for a world class business, our highly skilled workforce and our communities. Help us to deliver a government led industrial strategy to build our way out of this crisis and meet the challenges of the future. “These are unprecedented times. We understand the challenges to our industries from COVID-19 and the impact of government measures to protect public health on both the immediate and longer-term outlook for manufacturing as well as the wider economy. “However, at a time when we are working hard to protect jobs and businesses through this pandemic with pay protection, government loans and other industry specific packages backed by the Bank of England, right now we are asking Rolls-Royce, along with others across manufacturing, to hold firm and defer from short- term reactions that will both damage the economy and undermine our ability to emerge from this with job security and consumer confidence intact. “Our economy is changing and our manufacturing sector has to be in a fit shape to rise to these challenges. The demands of climate change and major public infrastructure projects will require engineering solutions and UK manufacturers stepping up and diversifying production to meet national demands.” Rolls Royce urged to avoid short-term action that will hamper the business and economy