The loss of 5807 UK electrical contracting jobs is expected in the immediate future, with cuts due to late business decisions rather than short-term economic climate.
Job losses of 5807 are predicted for the UK electrical contracting industry in 2002. At least 68% of the industry will need to reduce staff levels in the next year and a cut of 814 people could be seen by one of the larger companies.

These figures are quoted in the newly released 1st Edition 2002 Plimsoll portfolio analysis: Electrical contractors. The cutbacks are necessary for fundamental business reasons that have a history much longer than the recent economic uncertainty, the publication states.

One of the primary reasons for the cutbacks is that salaries have been rising at a faster rate than the industry can afford: in the past three years salaries have increased by 41% whereas sales have risen by 30%.

Of the 79% of companies spending more on salaries, only around 50% are making more profit. One-fifth of these companies are now loss-making, with at least 130 companies in serious financial distress, says Plimsoll.

A 4·6% rise in salaries is predicted for next year's average salaries, with 38% of the companies analysed unable to absorb this increase.

A full analysis of the top 2000 electrical contractors is included in the publication, with speculations made as to the job cuts needed for the firms to remain in a competitive market. The analysis is available priced £325 from Plimsoll on 01642 257800. Readers that mention this article when ordering will receive a 5% discount.

Source

Electrical and Mechanical Contractor