A respected think-tank has analysed the knock-on effect of the steel plant closures and the findings will send shock-waves through the industry
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Britain's steel industry faces a double-whammy as a further 1,400 jobs are in jeopardy in the supply chain, the Mirror can reveal.
A respected think-tank has analysed the knock-on effect of the steel plant closuresand the findings will send shock-waves through the industry.
In Redcar, Teeside, 2,200 job losses have been announced, but a further 880 could follow as back up firms see work dry up.
In Scunthorpe , North Lincolnshire, and Motherwell and Cambuslang, in Scotland,where a combined 1,200 jobs will go , a further 480 workers could face the axe.
Some 4,760 jobs may be lost: 3,400 from the plants directly and 1,360 in the supply chain, but the impact could be more far-reaching.
Possible job losses
Experts say it does not take into account lost demand in the local economies from reduced spending power of workers and their families, hitting shops, services and local businesses.
Researchers founds that supply chain job losses are likely to hit hard the basic manufacturers and suppliers of iron, manufacturers of machinery, and processes and suppliers of coke and petroleum to the steel plants.
Mat Lawrence, research fellow at IPPR, said:“British steel is facing difficult global headwinds as these job losses suggest, but the impacts will be felt hardest in the steel-making communities where thousands of people now face the prospect of unemployment.
“The job losses are not confined to the plants themselves and the shockwaves will be felt beyond the factory gates in the local economy.
“If the sector is to survive and prosper, action is required in the short term to protect British steel-making from the temporary over-supply of steel from overseas.
“But more importantly, in the longer-term a coherent industrial strategy for steel is needed if metal manufacturing is to remain in the UK.
“Strategic thinking on increasing investment, improving export finance, support for firms to move up the value chain including into low-carbon steel production, and protecting industrial clusters would all be steps in the right direction.”