Caravan jobs go as downturn hits leisure industry

Dec 1 2008 by Peter McCusker, The Journal

A UNION says more than 120 jobs have been axed or face the axe at the country’s second-biggest caravan and motorhome maker as the economic downturn has led to a dramatic fall in orders.

In May this year The Journal reported that 50 of the 420 staff at the Consett-based Explorer Group had lost their jobs, with management warning more were to follow.

The GMB union says 50 more workers have been made redundant since then and last week management said a further 19 jobs were at risk.

This mirrors job losses across the sector with a number of companies in Hull –the hub of the UK’s caravan industry – already shedding more than 700 jobs this year.

Stephen Thompkins, Durham organiser for the GMB, said: “While the company says it’s hopeful things will pick up in the new year, 2008 has been tough for the staff.

“Over the year 120 people have lost their jobs. The problem in the sector is that caravans and mobile homes are discretionary purchases and families are putting back discretionary purchases due to the current economic uncertainty.

“What’s happening at Explorer mirrors problems elsewhere in the UK caravan manufacturing industry.” No one was available for comment from Explorer but earlier this year commercial director Chris Whitham said: “We have had to tailor the business to what we expect the market to be over the next two years.”

Explorer made 5,700 units last year but has budgeted for 5,200 in 2008. Last year’s turnover was £57.1m, with the need for caravans and mobile homes to house flood victims boosting sales from £56.7m the year before.

But profits fell from £3.3m in 2006 to £2.8m, with European components costs up as the pound fell 12% against the euro.

There has been a raft of job losses in Hull which is home to a number of major caravan companies. The Swift Group made almost 400 people redundant and is also stopping production of the Ace brand of motorhome and the Abbey and Ace touring caravans once existing orders have been completed.

Some 289 jobs have been lost at Cosalt Holiday Homes, 99 at Willerby Holiday Homes, 80 from Atlas Holiday Homes, all based in Hull, and 50 from ABI in nearby Beverley.

The Caravan Club said bookings for the UK caravan market were up year on year and sales of second-hand caravans were strong.

“It’s regrettable that manufacturers are trimming their workforce but, if it is does sensibly, it leaves the industry in good shape for a future upturn,” a spokeswoman said.