Caravan firm forced to lay off workers as austerity hits demand

Cottingham-based Swift Group, which has started a 30-day consultation with staff, says it is anticipating a short-term drop in demand and has asked for voluntary redundancies from among the 800-strong workforce.

Group commercial director Nick Page said they hoped to keep compulsory redundancies to a minimum. “A lot of things have happened in the last four weeks, the Stock Market crashes and the Eurozone going into panic mode and the riots.

“Consequently although retail sales through the dealer network continue to be reasonably strong, all the indications are going to be that the winter is going to be quite tough and we don’t want to put ourselves in the position of building caravans which just sit at the factory.

“We anticipate a short term drop in demand over the winter so it’s prudent to take necessary action now to keep the rest of the workforce secure.

“People aren’t daft – they can see we are slowing production down. We have a works council and keep people abreast of what is happening.

“We had a really good time till the VAT increases and orders have been OK. But the dealer network has a degree of nervousness about how things will be in the next few months, consequently their confidence in ordering stock ahead of the winter months is somewhat suppressed.”

The industry is a cornerstone of the East Yorkshire economy and preparations are in full swing for next weekend’s Caravan Extravaganza at The Lawns, Cottingham, where people can see the latest touring caravans, holiday-home lodges and park homes.

Lord Mayor Councillor Colin Inglis, who is due to open the event, said: “It is well known that the caravan industry has been an extremely important one in Hull and it is suffering in the current recessionary atmosphere. But I think the Caravan Show will demonstrate its underlying strengths.”