August 2008

INDUSTRY IN CRISIS

The Quarry Products Association NI has issued the starkest warning yet regarding the

Future of what is one of Northern Irelands key essential industries. The Association  represents companies engaged in the supply of 95 % of stone, concrete and road surfacing materials to the Northern Ireland Construction Industry. Regional Director, Gordon Best, said “This is the worst operating environment that the industry has experienced in over 25 years and with no end in site to the credit crunch and high energy costs the short to medium future looks grim. These problems started in the late Autumn of 2007 and this year alone we have lost nearly 300 jobs across the quarry products and concrete sectors. A recent survey of members showed that if the current problems persist we could see a total of 700 jobs being lost by the end of the year, that’s a whopping 15% of the total industry workforce. We are not jumping on the bandwagon and joining the current chorus of woe that is coming from many business sectors. The stark reality is that in a core, capital intensive industry like ours where you have a rapidly declining customer base and sales, together with rapidly increasing raw material and energy costs, then jobs go and companies go out of business. In the past 9 months the industry has experienced a drop in business of over 30% together with an increase in production energy costs of 86% with transport costs increasing by 46%. Our members recognise that the cause of the current crisis is mainly due to global economic circumstances. However at a local and national level QPANI believe immediate steps can be taken to cushion the blow and by time for what is an essential industry. These are

1. The NI Executive to immediately begin discussions with the Construction Industry on the possible fast tracking of a number of the major infrastructure projects within the Northern Ireland Investment Strategy.
2. The Executive to influence and work with the financial institutions on ways to protect companies from insolvency and methods to kick start the housing market.
3. National Government to reduce the levels of duty on fuel and energy for certain key business sectors.

Mr Best added “ In times of crisis we need leadership, and believe me we are in a crisis. We need a joint effort between our Politicians and the Business Community in Northern Ireland in an effort to cushion the impact of what are economic factors out of our control. We are now calling on the Executive and our elected Political representatives for that leadership”

ENDS

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