The government must tackle the economic downturn "head on" to reduce the impact on manufacturing jobs, the Engineering Employers Federation (EEF) has warned.
The government must tackle the economic downturn "head on" to reduce the impact on manufacturing jobs, the Engineering Employers Federation (EEF) has warned.
The EEF made the call after its survey of 800 such companies found job losses were now being predicted across the UK.
The EEF made the call after its survey of 800 such companies found job losses were now being predicted across the UK.
It said there had been a "sharp decline" in expectations for coming months in all manufacturing sectors.
It said there had been a "sharp decline" in expectations for coming months in all manufacturing sectors.
The government said it understood the pressure on manufacturers and was looking at ways to boost support.
Separate analysis of manufacturers' fortunes found that one in five firms saw their workforce shrink in August.
According to the Chartered Institute of Purchasing and Supply's manufacturing PMI survey, firms reported widespread job cuts for the fifth month in a row.
Overall, the PMI figures showed a modest improvement in manufacturers' outlook since July, when they reported conditions to be worse than at any time for nearly 10 years.
However, the survey of 600 companies found there was still a "marked deterioration" in conditions with new orders falling and cost pressures still acute.
'Taking their toll'
'Taking their toll'
The government said it understood the pressure on manufacturers and was looking at ways to boost support.
But with pressure on ministers growing to do something to limit the damage to business from the economic downturn, a leading economist said the UK was facing a year-long recession.
Charles Goodhart, a former member of the Bank of England's monetary policy committee, said the UK was "quite likely" to see "four quarters of negative growth".
The EEF study - conducted with accountancy group Grant Thornton - found that employment and investment plans had gone into reverse.
The EEF study - conducted with accountancy group Grant Thornton - found that employment and investment plans had gone into reverse.
The government understands the pressures on the manufacturing and other sectors as a result of the global credit crunch and high world oil and commodity prices Treasury spokesman
The government understands the pressures on the manufacturing and other sectors as a result of the global credit crunch and high world oil and commodity prices Treasury spokesman
It said only firms in London and the South East, and eastern England now planned to recruit staff.
It said only firms in London and the South East, and eastern England now planned to recruit staff.
"Manufacturing has shown considerable resilience in the face of a credit crunch, a global economic slowdown and a massive increase in its costs," said EEF chief economist Steve Radley.
"Manufacturing has shown considerable resilience in the face of a credit crunch, a global economic slowdown and a massive increase in its costs," said EEF chief economist Steve Radley.
"But there are now clear signs that these pressures are starting to take their toll on companies.
"But there are now clear signs that these pressures are starting to take their toll on companies.
"Given the Bank of England's hands remain tied in the short term, it is now essential the government tackles this turning point for the economy head on."
"Given the Bank of England's hands remain tied in the short term, it is now essential the government tackles this turning point for the economy head on."
The EEF added that the government "must avoid adding any further costs to business and put in place policies which will provide the building blocks for an upturn".
The EEF added that the government "must avoid adding any further costs to business and put in place policies which will provide the building blocks for an upturn".
It found that while export sales remained good, domestic orders were "plummeting".
It found that while export sales remained good, domestic orders were "plummeting".
The most recent official data showed that the UK economy was at a standstill in the first quarter of this year.
The most recent official data showed that the UK economy was at a standstill in the first quarter of this year.
Global problem
Global problem
"The government understands the pressures on the manufacturing and other sectors as a result of the global credit crunch and high world oil and commodity prices," said a Treasury spokesman.
"The government understands the pressures on the manufacturing and other sectors as a result of the global credit crunch and high world oil and commodity prices," said a Treasury spokesman.
"These are the same difficult circumstances facing every country at the present time.
"These are the same difficult circumstances facing every country at the present time.
"The government is currently in the process of speaking with businesses and regional development agencies in every part of the country to look at ways to build on existing support for businesses and families facing difficulties."Do you work in manufacturing? What are your experiences? Send us your comments using the form below.
"The government is currently in the process of speaking with businesses and regional development agencies in every part of the country to look at ways to build on existing support for businesses and families facing difficulties." />Do you work in manufacturing? What are your experiences? Send us your comments using the form below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
