A friend of mine worked at LDV. He had been there for years and worked his way up to foreman. He’s had two weeks’ pay and no work this year, and now he’s on the scrapheap, one of the 810 out of 850 workers at the Washwood Heath factory to be laid off so far.
We’ve been here before with MG Rover. Hopefully we won’t be there again with Jaguar Land Rover (although news that it can’t afford to carry out research and development is worrying). The images of worried workers milling around closed factory gates are becoming depressingly familiar.
It is not easy to work out who is to blame for LDV’s demise. Management strategy has failed over a number of years, and the Russians showed a lack of commitment. Should the government have done more? Such matters are sure to be aired in the months ahead, but fine words will butter no parsnips with the laid-off workers.
Those who can make a difference to the regional economy have moved higher up this year’s Power 100 (p15 of Midlands Business Insider July 2009). Large private sector companies are still the backbone of the regional economy, but when wholesale intervention is necessary we turn to the public sector.
Huge responsibility is on the shoulders of government ministers for the region, regional development agencies, council planning and development chiefs and housing agencies. They will be attempting to save jobs and create them. The private sector also has the regional economy on its mind. It is searching for green shoots generally (p28 of Midlands Business Insider July 2009) and for life in the commercial property sector specifically (p70 of Midlands Business Insider July 2009).
There’s always a danger of calling the bottom of a downturn too soon, and there will be no shortage of false dawns, but there are positive signs. A senior partner at one of the big four accountancy firms in the city told me this month that its insolvency work has plateaued and dealmakers are beginning to talk about buyers coming back into the market (p13 of Midlands Business Insider 2009).
While any upturn will give the newly unemployed better chance of getting another job, the immediate priority must be to redirect the skills lost when factories close or professional service firms ‘downsize.’ The strategies employed by those at the top of our Power 100 list will help determine the future of all the individuals, like my friend, who make up something called the regional economy. We wish them luck.
Andy Coyne, editor
Also in: July 2009
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Power in their Hands
Andy Coyne introduces this year’s list and ponders the nature of power.
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Conquering Adversity
Recession-proof sectors may not exist but there are some showing more resilience than others and offering greater opportunities to dealmakers. Claire Robson reports.
