The UK’s longest established joinery manufacturer, Allan Brothers Ltd, is to make a substantial amount of redundancies after forecasting a reduction of orders for the remainder of the year.
The Berwick-upon-Tweed company, established in 1811, told staff at a meeting that it was looking to reduce labour costs by the equivalent of 60 full-time people.
A 30-day consultation process has started with staff, with job reductions to be effected from late August.
Despite a buoyant first half, Allan Brothers expects demand to drop by 30% for the remainder of the year, due to orders drying up in the housebuilding sector.
The company said several of its major housebuilder customers had stopped further building work on sites.
“These are all sites where we have supplied windows and doors to previous phases and would expect substantial new volumes to be ordered under any other situation,” it said.
It also flagged up substantially higher electricity costs and higher distribution expenses, caused by the oil price hike.
“We operate across a number of different market sectors and this has sheltered us from the most immediate effects of the downturn in the housebuilding market,” said managing director Duncan Forster.
“However, the problem is so widespread and so many of our long-term contracts have slowed or stopped that we have been forced to react at this time.
“We remain confident that in the medium-to-long term we have great prospects but it is essential that we get through this difficult period in good shape first.”
