The job losses are expected to include 500 in Scunthorpe and 800 in Rotherham, with further losses likely to be made on Teeside. Community General Secretary Michael J Leahy described the news as ‘devestating’ for the steel industry that has seen global demand contract over the last year as the automotive and construction industries also struggle.

“This is bad news on top of bad news – this brings the Corus job cuts for the year to around 4,500 and that’s without the threat to thousands of workers on Teesside,” Leahy said.

Nissan laid off 1,200 workers at it’s Sunderland plant in January, but since the scrappage schemes have been announced they are seeing an increase in demand in all major European markets, most recently in the UK where the government scheme was announced in the April Budget.

The company has responded to demand by increasing production by 5% and taking on 150 temporary workers. While accepting that the increase is small the company are optimistic that it could lead to further moves. However Senior Vice President Trevor Mann recognises that “The scrappage scheme is unpredictable, so we have to be prudent.”

The 150 temporary workers are on currently employed on a four month contract which will be reviewed on a monthly basis.

toyota avensis

Japanese car giant Toyota has announced plans to reduce  staff pay and working hours in their UK factories by 10% from the 1st April an agreement that will run for twelve months.

Toyota UK and trade unions have agreed the unique deal which has been brought about by the sharp downturn in global demand. The arrangement will effect the Toyota factory at Burnaston near Derby where the Avensis and Auris models are produced and also the engine plant at Deeside in North Wales.

Car production at the Derby factory saw volumes fall by 20% in 2008 due to lower demand. Toyota has been looking closely at the situation over the past few months and had previously announced a four week shutdown, a freeze on pay and management bonuses and voluntary redundancies.

A statement from Toyota says:

“The agreement between Toyota Manufacturing UK and the trade unions will begin on April 1st and last for one year. During this time we will continue to monitor the market and company situation closely. We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.”

The EU directive that average emission for all new cars will be reduced to 120 grams per kilometre by 2012 or face a per gram penalty, has sent the luxury car maker into overdrive.

Perhaps more of an immediate problem to the company is the cost of fuel, its largest export base is the USA where sales of the thirsty Hummer have halved during the last twelve months, leading its manufacturer General Motors to launch a review of the business which could lead to it’s sale or closure.

Jaguar Land Rover were recently sold by Ford to Indian car giant Tata for £1.2million. Tata have approved the plan but will not be sending extra personnel to the UK to run the scheme.

The exhibition is aimed at companies who are planning to expand or trade overseas, offering them the opportunity to meet directly with senior representatives of Investment Promotion Agencies from over 45 countries, who are keen to show them what their country can offer their business.

Supported by FDI Magazine (Part of the renowned Financial Times Group), FDI Expo 2008 is the world’s only exhibition dedicated to Foreign Direct Investment.

Whatever the industry sector, FDI Expo provides a one-stop opportunity to make direct contact with Investment Promotion Agencies who want to demonstrate how foreign businesses can prosper in their countries.

Speakers will be available to talk to journalists before and after their seminars. They include: Rob Denman, Editor in Chief and CEO, Pathfinder Business; Lesley Batchelor, Institute of Export; Brendan Dineen, Director 2012 Games; Stephan J. Dreyhaupt, MIGA, The World Bank Group; Mark O’Connell, Chief Executive Officer and founder of OCO Global.

Seminars & Country Presentations

There are over 30 seminars and country specific presentations. Learn about expanding a business into the new emerging markets of Eastern Europe, South America, India, Africa and the Far East. Meet directly with experts and advisors who help leading companies develop their businesses locally.

Need advice and help?

FDI Expo is free for delegates to attend and meet face-to-face with country advisors from UK Trade & Investment and find out how to expand and trade overseas.

FDI Expo offers everything busy executives need to make informed decisions quickly, efficiently and with minimum pressure on their time.

In just one visit they will find fast, accurate, quality information and advice on all aspects of expanding, investing and trading overseas.

Exhibiting countries include:

Austria
Belgium
Bosnia-Herzegovina
Canada
Cayman Islands
Germany
Hungary
Ireland
Lithuania
Moldova
Montenegro
Iceland
Northern Ireland
Peru
Republic of Korea
Republic of Macedonia
Saint Vincent and the Grenadines
Serbia
Slovakia
Slovenia
The Netherlands
Tunisia
Turkey
Turks and Caicos Islands
United Kingdom

But having a successful, recognisable brand that is remembered, can allow SMEs to start punching above their weight.

This is the mantra set out by Darren Evans, creative director of The Engine Room. His formula for success – endorsed by the Design Council for SME work – follows these
key tenets:

• Strong Brand Perception [JFK noted perception was more important than reality 50 years back]
• Differentiate your company and product and communicate it; compete on price and you will lose.
• Design should resonate with your brand values; it influences people’s views
• Communicate with your customers before someone else does
• Brand delivers consistency of approach and links different business strands
• The Brand and the goodwill that goes with it, makes the business hot property and marketable
• On average, design will leverage 6.3% business growth
• 84% of businesses view design as key to maintaining an edge

What are you waiting for?

The main concern that all-embracing policies do not take account of the fundamental differences between micro businesses and the top end medium businesses, is supported by the ICAEW Enterprise Survey.

The survey indicates that the cumulative effect of dealing with Health & Safety, Employment law and taxation is a cost to business and the smaller that business, the more disprportionate that is. All this at a time when a higher percentage of small businesses are thinking globally and need not to be held back.

There is a call for evidence-based reform focusing on incomes, communicated easily through consistently applied standards and clear definitions of SMEs – allowing for the variations across Europe’s biggest sector. To this end a ‘micro test’ has been recommended.

As consumers start to feel the pinch of high street price rises, manufacturers are already there, having seen raw material prices rise by an average of 20.6%. Fuel costs have hit transportation overheads too. Increases in alcohol Duty in the budget have also impacted the producer output inflation figures.

As demand slows, figures for consumer inflation have also hit a nine-month high. The only good news is for exporters – the strength of the Euro giving a competitive edge abroad as UK products appear cheaper – but only providing raw materials are sourced domestically.