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Sustainable Economy > Published by Guest, September 6th 2011 at 4:23 pm

Bombardier decision threatens thousands of supply chain jobs

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By Neil Foster of Progressive Polling

The government decision to award Siemens preferred bidder status for the Thameslink train manufacturing contract has already caused a great deal of consternation. Last month we highlighted the potential political consequences to the government’s stance on the Conservative party in Derbyshire.

Map-of-Bombardier-manufacturing-in-BritainToday a new business survey conducted by Survation for Unite the Union explores the full scale of the industrial fallout if this decision is not reversed. Survation’s 125 interviews with managing directors across the Bombardier supply chain reveals the substantial harm that is about to take place to an important strand of UK manufacturing.

The striking diagram of supplier locations charts the size and scale of the existing industrial ecosystem around Bombardier. This is far from an issue of concern confined to Derby and the East Midlands. Businesses and workers in local economies and communities across England and Wales will feel some form of impact.

The scale of job loss is significant. Two in five suppliers (41%) have already or will expect to experience job losses as a result of the Government’s decision. Our analysis of the survey data suggests that there could be between 3,000 and 3,500 jobs losses in the supply chain alone - more than double those lost directly at Bombardier itself. 

These findings demonstrate the need for the government to take urgent action. Of those expecting job losses, 74% expect them within the next six months. It had been previously suggested by the government and Conservative MP Heather Wheeler that the Bombardier supply chain would in fact benefit from the award of the contract to Siemens.

Yet today’s findings reveal fewer than one per cent of the firms surveyed believe the awarding of the Thameslink contract to Siemens will have a positive impact overall for their business.

Instead the decision will lead to dire consequences for many suppliers. One in three managing directors (32%) believe it will have a ‘substantially negative impact’ on their firm’s order book. Some suppliers reported in confidence that their entire business hangs in the balance and will fold unless the decision is reversed.

There is a very real cost to the Exchequer an excess of 4,000 existing manufacturing jobs are lost from the economy.

It is worth Treasury and Department of Business, Innovation and Skills ministers reflecting on this report, appreciating the nature of this supply chain and accepting how their decision will negatively impact on Small and Medium Enterprises in particular.

The survey showed that small and medium size enterprises are much more represented than larger companies in the highest category for anticipated job losses (20-50 job losses). The important ‘Brighter Future’ pamphlet published this week  reminds us that SMEs provide 60% of the UK’s private sector workforce. It may seem peculiar that the very part of industry needed to grow right now is the one that stands to hit hard by the initial Thameslink decision.

Within industry there is also a growing sense that the coalition is much more politically fascinated by overseas large multinationals such as Siemens than firms such as Derby’s Bombardier and the smaller UK firms they work with. 

An under-reported poll from ComRes last week revealed 61% of the public believe the Government ‘understands the concerns of banks & big business’ but only 23% say the same about understanding ‘small firms & entrepreneurs’. That should worry George Osborne, who previously called for “a Britain carried aloft by a march of the makers”.

Put together, there is an acute industrial and political challenge for the government. Tomorrow Ministers will hear further evidence for the detailed reasons why they should revise their Thameslink decision.

Most importantly they will hear from international procurement authority Professor Chris Bovis on the practicalities of how they can do this. It’s currently not too late for ministers to pull back from the brink, but time is running out.

  • http://twitter.com/c_a_jonestechno/status/111097688426151937 CAROLE JONES

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/CoanJPH

  • http://twitter.com/davidbrassell/status/111097740439715840 David Brassell

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/progpoll/status/111098217541795842 Progressive Polling

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/dodgerzulu/status/111098585432604673 Andrew Dodgshon

    RT @leftfootfwd: Bombardier decision threatens thousands of supply chain jobs http://t.co/zJAoFg6 …will govt listen to expert opinion?

  • http://twitter.com/lenarthur2/status/111098705683300352 Len Arthur

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/neilrfoster/status/111101796952444928 neilrfoster

    @unitetheunion Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/politicalplanet/status/111101816044912640 Political Planet

    Bombardier decision threatens thousands of supply chain jobs: A new business survey conducted by Survation for U… http://t.co/SzyMFKa

  • http://twitter.com/neilrfoster/status/111102079048757248 neilrfoster

    @paulwaugh Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/duncanweldon/status/111102297836224513 Duncan Weldon

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/neilrfoster/status/111102363523235840 neilrfoster

    @EdMPress Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu via @leftfootfwd

  • http://twitter.com/neilrfoster/status/111102490522558464 neilrfoster

    @jon_trickett Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111102543182053376 neilrfoster

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111102695816957953 neilrfoster

    @AnnPettifor Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111102832622579712 neilrfoster

    @menburke Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111102984531877889 neilrfoster

    @ns_mehdihasan Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/ciarannaidoo/status/111103415437885440 CiaranNaidoo

    Fewer than1% of Bombardier suppliers will benefit from Siemens winning Thameslink. What was DfT thinking? @leftfootfwd http://t.co/7Hdl28f

  • http://twitter.com/sowadally/status/111103698041716736 Stewart Owadally

    Great analysis on @leftfootfwd of, in my opinion, the Government's most shocking, incompetent & deceitful decision yet: http://t.co/2sKhed2

  • http://twitter.com/neilrfoster/status/111103905303236608 neilrfoster

    @abelardinelli Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111104027030335489 neilrfoster

    @ByronTaylor74 Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111104170827849728 neilrfoster

    @faisalislam Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111104206877900800 neilrfoster

    @paulmasonnews Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/neilrfoster/status/111104447781933056 neilrfoster

    @mattdykes Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/byrontaylor74/status/111105569041027072 Byron Taylor

    @ByronTaylor74 Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/gplondon/status/111111241057050626 Geoffrey Pearson

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/neilrfoster/status/111112326329016321 neilrfoster

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/futuretssa/status/111112437893308416 TSSA

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/creativecrip/status/111112830996054016 TheCreativeCrip

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/labour52rose/status/111114714486030338 Alex Braithwaite

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/wcjTWiZ writes @ProgPoll’s @NeilRFoster

  • http://twitter.com/unisonleicspol/status/111117428460761090 Chris Hanrahan

    “@leftfootfwd: Bombardier decision threatens thousands of supply chain jobs: http://t.co/VvERm4D writes @ProgPoll’s @NeilRFoster”

  • Selohesra

    Agreed urgent action needed – time to leave EU so country can set its own tender conditions for major contracts and act in own national interest. And lets not forget criteria & process by which the tenders were to be judged was set by Labour (albeit they had their hands tied by EU rules) and not the evil Tories

  • http://twitter.com/telissa100/status/111122185845866497 telissa little

    Bombardier decision threatens thousands of supply chain jobs: The survey showed that small and medium size enter… http://t.co/IXBMKTi

  • Leon Wolfson

    What nonsense. The government could easily have adjusted the tender rules to favour British manufacturers, as they have admitted, but have chosen not to do so. Sure, a minor delay, but compared to this? Ha.

    If a fly lands on the wall, that’s a reason you’d quote to leave the EU. Never mind that free trade, and our economy for several decades, would be the first thing to go. France would insist, and get it’s way – the UK have been a consistent pain in the ass to the EU and we’ve ended up missing out of many of the benefits as a direct result.

  • http://twitter.com/theiancruise/status/111129954602856449 Ian Cruise

    RT @leftfootfwd: Bombardier decision threatens thousands of supply chain jobs http://t.co/Ypiy7qU

  • anyleftiwonder

    And it sends a message to the rest of the world that our government rates our workers at zero. No endorsements – no encouragement – no help as in Bombardier – Sheffield Steel etc.

  • Eddy Boyband

    No 3, And the last labour government must have sent out the same message, preferring eastern european workers over our own self employed construction workers.

  • http://twitter.com/tonyburke2010/status/111154292102139904 Tony Burke

    RT @leftfootfwd: Bombardier decision threatens thousands of supply chain jobs http://t.co/z38wXwx

  • http://twitter.com/richardjmurphy/status/111154695002796032 Richard Murphy

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/quietsilver/status/111155255399550976 Peter Garbutt

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/sesuk/status/111155638549225472 SESUK

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/roblugg/status/111155997443235840 Rob Lugg

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/cllrkrichards/status/111157112616398848 Kevin Richards

    Come on chaps you know it makes sense change the decision #Bombardier decision threatens thousands of supply chain jobs http://t.co/xVLwENC

  • http://twitter.com/jobk2/status/111160419103682560 Jo Bayly

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/idontbelieveit_/status/111167447654084608 Victor Meldrew type

    RT @leftfootfwd: Bombardier decision threatens thousands of supply chain jobs http://t.co/sf5PhJG

  • anyleftiwonder

    No4 – Agreed but it was remiss of Labour – not deliberate sabotage.

  • Leon Wolfson

    @3 – Yes, the forgemasters description, which was unambiguously this government’s, is a clear sign of the value they place on British industry.

  • http://twitter.com/robertjfrost/status/111194145091104768 Robert Frost

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/tonyburke2010/status/111349006701035520 Tony Burke

    LFF: Bombardier : http://t.co/EJtw4EG

  • http://twitter.com/cosmiqo/status/111366320964124673 Cosmiqo

    Bombardier decision threatens thousands of supply chain jobs: http://t.co/D5AyFV9

  • http://twitter.com/rtfirstcc/status/111386389685346306 rtfirstcc

    Fewer than1% of Bombardier suppliers will benefit from Siemens winning Thameslink. What was DfT thinking? @leftfootfwd http://t.co/7Hdl28f

  • http://twitter.com/mattdykes/status/111429123498455040 Matt Dykes

    @mattdykes Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/dallasragazziea/status/111611343500611584 Dallas Ragazzi

    Bombardier decision threatens thousands of supply chain jobs – Left Foot Forward http://t.co/eIXrE98

  • http://twitter.com/riverdale_tdot/status/111842002366246913 riverdale toronto

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/thesocialcsco/status/111859083346317312 The Social CSCO

    @RichardJMurphy Govt's #Bombardier decision threatens thousands of supply chain jobs across England & Wales http://t.co/ezj4Czu

  • http://twitter.com/viewyeslee/status/112607229349343232 Yesenia Lee

    Bombardier decision threatens thousands of supply chain jobs – Left Foot Forward http://t.co/bZwGNbN

  • http://twitter.com/dallasragazziea/status/112647474086289408 Dallas Ragazzi

    http://t.co/eIXrE98 Bombardier decision threatens thousands of supply chain jobs – Left Foot Forward

  • http://twitter.com/viewyeslee/status/113342786689966081 Yesenia Lee

    Bombardier decision threatens thousands of supply chain jobs – Left Foot Forward http://t.co/bZwGNbN

  • http://twitter.com/dallasragazziea/status/113472845648113665 Dallas Ragazzi

    http://t.co/eIXrE98 Bombardier decision threatens thousands of supply chain jobs – Left Foot Forward