Jobs in construction affected by Credit Crunch

pania

mortgage advisors who specialise in new build properties. aka me.

tomstickland

The local paper has run a few stories on Persimmon not starting any new projects. Now stories about cut backs in the associated industries are coming through. Electrical contractors were the latest to announce redundancies.
Sadly, we are facing the inevitable consequences of an economy based on infinite house price growth.

rog2

ZTD wrote: »

Is there anyone else affected - apart from the building trade?

I appreciate that that was a rhetorical question, zed, but of course all industries will be affected.
It was a similar scenario for me, four to five years ago, I imported and sold processing machinery to the Food Industry. Competition, from new EC member states, rising fuel costs that I could not pass on to my customers and the domination of the 'Supermarkets' were all major contributory factors to my own financial demise. Whereas five years previously I did not even have to 'look' for business - customers were looking for me - I spent the last two years propping up a 'failing' business, using my savings, because I stupidly believed what I was being told about the strength, and resilience of the British economy.
I now deliver 'Home Shopping' for one of those same supermarket giants who, driven by their own profit margins, would not support their UK suppliers. Now that same supermarket is lamenting because takings are down nearly 4% this year.
I sympathise, very much, with Blue Diamond and wot a life - construction workers always earnt well, but spent well - whether it was 'in the pub', holidays or filling up the supermarket trolley. It is the 'knock on' effect that a downturn in the construction industry will have throughout the whole of industry that we will all feel.

ZTD

rog2 wrote: »

I appreciate that that was a rhetorical question, zed, but of course all industries will be affected.

It wasn't a rhetorical question. All industries won't be affected - at least not at the moment.

Think of it - if you will - as a tidal wave moving across the commercial sea. Some things are affected first. Someone may remember me quizzing Snaggles about tightening underwriting criteria just before Natasha was born. Some things are being affected now - I was concerned to hear that light delivery companies are feeling under stress. Some things are yet to be affected.

And there are other cards left to play in this cycle.

Richard_S

ZTD wrote: »

And there are other cards left to play in this cycle.

Hi ZTD,

I think that rather worryingly we haven't even got close to the bottom of this cycle, so any other cards played are not going to be welcome ones.

Take the governments declining tax revenues, which are an inevitable part of any economic slowdown, take a look at the public sector that has become grotesquely bloated over the last few years, and the only conclusion to be drawn from that is significantly tighter budgets in the public sector. That will inevitably lead to more job losses and a further slowdown in the economic activity.

On the plus side, at least interest rates and house prices should fall to some extent.

Richard

Gemmzie

We are. Dad's self employed too and work is definitely affected, thankfully, he gets subbed a lot of council work and there's always work there to keep us going.

ZTD

Richard_S wrote: »

Hi ZTD,

I think that rather worryingly we haven't even got close to the bottom of this cycle, so any other cards played are not going to be welcome ones.

No. Alas they never are. Especially with peak oil and possible peak food on top of it.

Richard_S wrote: »

Take the governments declining tax revenues, which are an inevitable part of any economic slowdown, take a look at the public sector that has become grotesquely bloated over the last few years, and the only conclusion to be drawn from that is significantly tighter budgets in the public sector. That will inevitably lead to more job losses and a further slowdown in the economic activity.

On the plus side, at least interest rates and house prices should fall to some extent.

Richard

I think in the grand scheme of things, interest rates probably won't concern most people in a few years. It all depends about which wave you're speaking. I don't think this is going to be a common-or-garden slowdown.

On the bright side, I don't think the current financial crisis is "the big one". But I might just be in denial... :rotfl:

Bismarck

er...thanks ZTD...

I finished my degree in Economics in 1990 and your link brings back such happy memories!!

Must stock up on tinned goods and ammo again and stock the Bismarck bunker.

swampduck

My other half is also self-employed in the building trade and can turn his hand to anything and we are definately feeling the crunch.
We have the bills piling up, the phone ringing constantly asking when we are going to make a payment and then we offer a token payment they say cant accept it as it's not enough. Well I've got news for them - you take it when we offer it regardless of how much it is or I pay via the internet. They usually back down and take the money anyway!!
We have arrears on the mortgage which are coming down slowly and the council tax jobsworths take us to court on 15th May!!
I work fulltime but my wages wont pay everything - contrary to what the credit card companies think money is not elastic!!
We hav'nt gone the cccs or dmp route yet because we cant say much spare cash we will have in any given month - really frustrating!! Some months we can meet the payments and some months not.
We get no help at all from benefits - in fact a work colleague who is a strong labour supporter dared to say that I was better off under Labour. Got news for her!! She earns more than me, has nursery fees subsidised, gets child benefit and heavens knows what other help whereas both my partner and I have in the past brought up our own kids paying all Nursery fees etc from our earnings at the time. There were no free child places when we were bringing up our kids. Some people just dont live in the real world!!

Swampy

ZTD

Bismarck wrote: »

er...thanks ZTD...

I finished my degree in Economics in 1990 and your link brings back such happy memories!!

Must stock up on tinned goods and ammo again and stock the Bismarck bunker.

Don't forget to stock up on wheat and rice.



Unfortunately, the Elephant in the Room has come to play.