How Is The Recession Affecting You?

[just]

The Clown government, sorry Brown government, may spin it and call it an "economic down-turn" rather than a recession, but a full-blown recession is what it is.

I am self-employed Carpenter and general builder working in the construction industry which is the largest industry in Britain and things are very, very bleak. Generally, during the spring and summer months, the phone is ringing off the hook. Usually in this period I am turning work away. Yet, despite advertising more than I have ever done in past years, I currently have no work at all booked for next week. And it's not just affecting me. I have recently done some work for a very large property development company who build here and in Ireland. The MD told me they are holding on to their land bank but have started laying people off and shelved all plans to build anything before next February!! Also, last week I was in two local builders merchant's yards. It was mid-morning and usually they are packed with builders and members of the public picking up and ordering materials. Both of them were practically empty. I spoke to one guy who has worked at one yard for over 30 years and he said, and I quote, "it is terrible. We've had slow times before but nothing, nothing like this".

Add to this the cost of rising fuel and food prices, mortgage rates and the state of the housing market, (as luck would have it, I am also trying to sell my house at the moment! ), and things are going to get very difficult for a great many people.

 

[barak81]

The Clown government, sorry Brown government, may spin it and call it an "economic down-turn" rather than a recession, but a full-blown recession is what it is.I am self-employed Carpenter and general builder working in the construction industry which is the largest industry in Britain and things are very, very bleak. Generally, during the spring and summer months, the phone is ringing off the hook. Usually in this period I am turning work away. Yet, despite advertising more than I have ever done in past years, I currently have no work at all booked for next week. And it's not just affecting me. I have recently done some work for a very large property development company who build here and in Ireland. The MD told me they are holding on to their land bank but have started laying people off and shelved all plans to build anything before next February!! Also, last week I was in two local builders merchant's yards. It was mid-morning and usually they are packed with builders and members of the public picking up and ordering materials. Both of them were practically empty. I spoke to one guy who has worked at one yard for over 30 years and he said, and I quote, "it is terrible. We've had slow times before but nothing, nothing like this".

Add to this the cost of rising fuel and food prices, mortgage rates and the state of the housing market, (as luck would have it, I am also trying to sell my house at the moment! ), and things are going to get very difficult for a great many people.

I'v litteraly been back in the conrty 5 minuites after 6 months away so have just come back in to the middle of it luckly ive been able to find work but am pretty shocked by the petrol and food prices!! My question is, and it may appear a simple one .... why are we in a resetion, what has trigerd it?

 

[Barn]

The short answer to what has triggered it is two-fold. Firstly the sub-prime lending particularly emminating our of the US and secondly the natural financial cycles that we go through. The sub-prime lending is a f*kin' joke, how these lenders got away with offering what they were and expected there to be no rammifications is beyond me.

As for how it's affecting me, in terms of work it's more a case of companies tightening their belts, pulling in any spending that they can - I work for an insurance company in London and the whole market looks seriously bleak at the moment. Things are going to get an awful lot worse before they get better, which is causing me many sleepless nights having just bought a big new house (big by my standards!). The generation of 20-35's will for the first time have to reign in their spending and that's going to be a massive shock, imagine not having even one big holiday every year, imagine not being able to afford a brand new car just because the old one need the water topped up????

I'm scared about it, it's going to get messy.

 

[just]

Aside from work, here's three examples of it's direct affect on me personally.

I live in a small village not far from Stevenage. We have no mains gas supply, so when we moved in I installed an oil fired heating and hot water system. At the beginning of April, due to rising fuel costs, I decided not to fill the tank but to buy the minimum amount of heating oil possible, 500 litres, which is roughly just under half a tank full for us. That cost me a total of £265.13. Ten days ago I brought another 500 litres, that cost me £322.88. An increase of £57.75 in just eight weeks!!!!!!

Secondly, as I said previously, we were hoping to move house. Four months ago we had our place valued by three estate agents. Two of the three gave identical valuations. The house has been on the market for six weeks now at £25K less than they valued it at. £25K less! And we have had only one viewing.

Lastly, for the last six years I have contract hired vans for work. Normally, the hire period is for two or three years then I throw it back to the dealer and get another one. It's far more tax efficient. My current contract expires in August. Question is, with the economy as it is at the moment, do I commit myself to another 24/36 month contract shelling out over £200/month for that period?

 

[coco]

I'm feeling it here, have been for 3 months or so. And its going to get worse when fuel prices go up again and filter through the business world, on top of that energy prices are going to increase by 40% over the next 6 months. :lol:

 

[mad_mac]

Made me really watch what I spend. Bills and all that come first. Think that Westerners need to stop lending so much cash to Asia also. We need to become more self sufficient

Scott

 

[Guest]

Recession?...

Not in Australia.

Particually not Western Australia.

The Clown government, sorry Brown government, may spin it and call it an "economic down-turn" rather than a recession, but a full-blown recession is what it is.I am self-employed Carpenter and general builder working in the construction industry which is the largest industry in Britain and things are very, very bleak. Generally, during the spring and summer months, the phone is ringing off the hook. Usually in this period I am turning work away. Yet, despite advertising more than I have ever done in past years, I currently have no work at all booked for next week. And it's not just affecting me. I have recently done some work for a very large property development company who build here and in Ireland. The MD told me they are holding on to their land bank but have started laying people off and shelved all plans to build anything before next February!! Also, last week I was in two local builders merchant's yards. It was mid-morning and usually they are packed with builders and members of the public picking up and ordering materials. Both of them were practically empty. I spoke to one guy who has worked at one yard for over 30 years and he said, and I quote, "it is terrible. We've had slow times before but nothing, nothing like this".

Add to this the cost of rising fuel and food prices, mortgage rates and the state of the housing market, (as luck would have it, I am also trying to sell my house at the moment! ), and things are going to get very difficult for a great many people.

Consider immigrating to Australia. We are desperately short of trades people and unemployment is running at 30 year lows.

 

[just]

Qaz, I'm 47 in less than three months time. If I was a younger man I would do it in a heartbeat as I think this country is broken and beyond repair. I have the formal trade qualifications needed. But I'm not brave enough to take the leap now and my missus would never do it, never, and it would be a massive wrench for our daughter.

 

[just]

Qaz, I'm 47 in less than three months time. If I was a younger man I would do it in a heartbeat as I think this country is broken and beyond repair. I have the formal trade qualifications needed. But I'm not brave enough to take the leap at my age and my missus would never do it, never, and it would be a massive wrench for our daughter.

 

[loz]

Main impact on us has been the fuel prices. Like Just I live somewhere which is not on the gas mains and we have an ugly great tank in our garden which Calor gas come round and refill every time they get an alert that it is under 20% full. The price to fill it is spiralling out of control. Our location also means I do a lot more mileage then I did where we previously lived as it is a 35 mile round trip to the nearest supermarket.

In terms of moving it simply wouldn't be possible for us. There are a number of houses on the market in our village now and they have been on it for months now. Two people we know through Mini Loz's nursery have an identical situation to yours Just. Asking price for their houses have been dropped twice now. One of them still has it on the market at an 'Offers Over' (Scottish system) figure which is £40, 000 less than they originally had it at. The other one has taken it off the market as they simply can't afford to let it go for the kind of money the estate agent is recommending they drop it yo.

 

[Lofty]

Ok, my in-depth economic analysis of the current situation:

I was already skint, now I'm even more skint.

 

[Backbiter]

Wind-up Just mode on:

With building work thin on the ground, does that mean builders will actually turn up for work when they say and won't just disappear for a few weeks?

We had a shower delivered in December. In Jan our plumber removed the bath and put in some pipe work, while the electrician put in some cable to allow the tiler to do his work.

The tiler failed to keep 6 appointmentments in the next 6 weeks before we eventually gave the work to someone else. The plumber could then come back and fit the shower, tray, screen etc and connect everything. That was in March.

In early April the electrician arrived to instal the electrics for the new shower and decided we needed a new fuse box, which he fitted, and left his cable reel in our living room saying he'd be back the next day to install the shower. He never turned up. And hasn't been seen since. For nearly 3 months.

Two years ago we had some alterations to the kitchen, and the same builder was going to build us a front porch. He left without finishing the kitchen or even starting the porch, for which we have bought a new front door which has been sitting in our lounge for the entire time.

The building trade has been booming for years and a slow-down was sadly inevitable, but I've had shocking service from tradesmen for most of that time.

Wind-up mode off:

I agree that things are very tough right now, but the last time the housing market slowed people did spend a lot on improving their own homes - extensions, loft conversions etc., so hopefully things will pick up. The problem at the moment is that mortgages are more expensive than they've been for a long time, even though historically they're still cheap. When I took out my first mortgage in 1987 they were 10.75% and hit 15% within a few years.

The oil price rise is pushing up costs all round, but again, the rise is relatively small compared to 1973-4 when it quadrupled and inflation hit over 25%.

Things are looking grim but we've lived through a lot worse. The economy is still growing, just a fair bit slower than it has been.

 

[Loud and Proud]

I've just come back to the UK after 7 months of travelling and have been looking for a graduate position in Construction management and all but one of the main building contractors have stopped taking on graduates for this year already. I think it's going to be pretty hard for me to get my foot in the door anywhere and will definitely consider moving abroad if it comes to it.

 

[dkw]

Consider immigrating to Australia. We are desperately short of trades people and unemployment is running at 30 year lows.

was thinking about moving over to australia actually. did an online test on a site and got a phone call saying me and my partner would be eligible for a two year sponsored visa. girlfriends got a degree in marketing, im a EC&I draughtsman. would we get work ok? and what area would we get work?

 

[Scott]

I've had to start drinking 12 yr old Talisker instead of 18yr old.

Damn GWB !

 

[Guest]

was thinking about moving over to australia actually. did an online test on a site and got a phone call saying me and my partner would be eligible for a two year sponsored visa. girlfriends got a degree in marketing, im a EC&I draughtsman. would we get work ok? and what area would we get work?

Like I said, unemployment is running around 30 year lows right now. There is a desperate shortage of people in most skilled areas. You will likely earn less here than you would in the UK, but by the same token your cost of living would be far lower than in say London.

As regards to where in Australia, anywhere but the western suburbs of Sydney and your doing fine. However, Western Australia is the boom state and is actually growing faster than China. Definately the place to be.

Industry wise, it's all started (and will probably end) with the resources / mining sector of the economy. One of our major miners Rio Tinto just negotiated something approaching a 100% price increase for their iron ore exports to China and market commentators are suggesting they could have got more.

 

[clubhappy]

JUST, a lot of my mates are tradesmen, all in a similar position as youreslf. One mate, an electrician, 3 years ago was doing so well he was holidaying 3 times a year , sking, city breaks and bought property . Now, he's taking on part time work driving . Spoke to him on Friday and he's thinking of heading to the UK for the construction for the olympics in London. About 6 weeks ago he was asked to price a big job for a contractor, he quoted just ove 35,000 euro and at that , he was doing it cheap just to get the contract. He got a call a week or so later only to be told that a group of Polish workers got the job for 18,000. That is a serious issue here and most skilled tradesmen are being priced out of work for that reason.

My own industry is starting to suffer, less people spending money over the bar in clubs and pubs, going out later, drinking at home before they head out, midweek trade is practically gone compared to 4 years ago we could get 400 plus in a club for an 80's night on a Tuesday or Wednesday , now clubs are not operating from Monday to Thursday. I had up until 4 weeks ago a decent 70's/80's gig going with steady flow of punters on a Tuesday , its taking a hit now with a sh*t load of regulars going missing . We started free admission with 1st drink free last week, thats how bad it's got .If it dosent improve then it will be knocked on the head and im out of a nights work. People are afraid to spend, im the same , was planning a holiday in late July and hopefully a bit of work on the house , now it's decision time , do we cancel both and just wait until things improve ? because were afraid if the club and bar work dries up between now and this time next year, we wont have a decent income to survive on. My other half works full time , always has and without 2 incomes we'd be in trouble. Prices here have gotten out of control, people are travelling to the North of Ireland to shop because it's cheaper and you could save almost 80euro a week on shopping , in turn business sufferes south of the border. House prices have taken a serious tumble too, 3 houses on our estate have dropped by up to 40.000 euro from the starting asking price, still not sold, i know of young couples with 100% mortgages falling short on repayments because of interest rate rises.

I have plans for the rest of the year within the industry im involved in , a bit of money up front with hopefully a good return short term but im holding back because i just cant predict the market so i'll have to put more thought into it and either run with it or scrap the idea. 3 years ago i wouldnt have thought twice about it.

 

[lauren]

JUST, a lot of my mates are tradesmen, all in a similar position as youreslf. One mate, an electrician, 3 years ago was doing so well he was holidaying 3 times a year , sking, city breaks and bought property . Now, he's taking on part time work driving . Spoke to him on Friday and he's thinking of heading to the UK for the construction for the olympics in London. About 6 weeks ago he was asked to price a big job for a contractor, he quoted just ove 35,000 euro and at that , he was doing it cheap just to get the contract. He got a call a week or so later only to be told that a group of Polish workers got the job for 18,000. That is a serious issue here and most skilled tradesmen are being priced out of work for that reason.My own industry is starting to suffer, less people spending money over the bar in clubs and pubs, going out later, drinking at home before they head out, midweek trade is practically gone compared to 4 years ago we could get 400 plus in a club for an 80's night on a Tuesday or Wednesday , now clubs are not operating from Monday to Thursday. I had up until 4 weeks ago a decent 70's/80's gig going with steady flow of punters on a Tuesday , its taking a hit now with a sh*t load of regulars going missing . We started free admission with 1st drink free last week, thats how bad it's got .If it dosent improve then it will be knocked on the head and im out of a nights work. People are afraid to spend, im the same , was planning a holiday in late July and hopefully a bit of work on the house , now it's decision time , do we cancel both and just wait until things improve ? because were afraid if the club and bar work dries up between now and this time next year, we wont have a decent income to survive on. My other half works full time , always has and without 2 incomes we'd be in trouble. Prices here have gotten out of control, people are travelling to the North of Ireland to shop because it's cheaper and you could save almost 80euro a week on shopping , in turn business sufferes south of the border. House prices have taken a serious tumble too, 3 houses on our estate have dropped by up to 40.000 euro from the starting asking price, still not sold, i know of young couples with 100% mortgages falling short on repayments because of interest rate rises.

I have plans for the rest of the year within the industry im involved in , a bit of money up front with hopefully a good return short term but im holding back because i just cant predict the market so i'll have to put more thought into it and either run with it or scrap the idea. 3 years ago i wouldnt have thought twice about it.

things are nasty this side of the Atlantic too. Houses in foreclosure, house prices down and nobody can sell. It's a renters market here in Florida as snowbirds are not visiting and people are leaving the state. Few people go out to dinner any more and restaurants are closing all over. I sold my restaurant over a year ago thank goodness and am working for a doctor as a medical assistant which is fairly recession proof tho patients don't come as often as they used to unless they are on monthly narcotics.

Gas (petrol) is over $4 a gallon now up from a year ago at around $2.80. Please do not say wow that's only 2 pounds a gallon it is not. If you are earning $30000 or 30000 pounds it's the same percentage of your salary. Food costs have gone through the roof too. I shop very carefully and try to get as many 2 for 1 items and whatever is on sale. Hardly buy clothes or anything else. Electricity and water are also expensive here. If you own an SUV or 4x4 you cannot sell it - nobody wants a gas guzzler. This is a full blown recession.

 

[just]

Wind-up Just mode on:With building work thin on the ground, does that mean builders will actually turn up for work when they say and won't just disappear for a few weeks?

We had a shower delivered in December. In Jan our plumber removed the bath and put in some pipe work, while the electrician put in some cable to allow the tiler to do his work.

The tiler failed to keep 6 appointmentments in the next 6 weeks before we eventually gave the work to someone else. The plumber could then come back and fit the shower, tray, screen etc and connect everything. That was in March.

In early April the electrician arrived to instal the electrics for the new shower and decided we needed a new fuse box, which he fitted, and left his cable reel in our living room saying he'd be back the next day to install the shower. He never turned up. And hasn't been seen since. For nearly 3 months.

Two years ago we had some alterations to the kitchen, and the same builder was going to build us a front porch. He left without finishing the kitchen or even starting the porch, for which we have bought a new front door which has been sitting in our lounge for the entire time.

The building trade has been booming for years and a slow-down was sadly inevitable, but I've had shocking service from tradesmen for most of that time.

Wind-up mode off:

I agree that things are very tough right now, but the last time the housing market slowed people did spend a lot on improving their own homes - extensions, loft conversions etc., so hopefully things will pick up. The problem at the moment is that mortgages are more expensive than they've been for a long time, even though historically they're still cheap. When I took out my first mortgage in 1987 they were 10.75% and hit 15% within a few years.

The oil price rise is pushing up costs all round, but again, the rise is relatively small compared to 1973-4 when it quadrupled and inflation hit over 25%.

Things are looking grim but we've lived through a lot worse. The economy is still growing, just a fair bit slower than it has been.

Sorry to hear about your building contractor troubles BB. Of course, I assume you were doing the sensible thing and using only bona fide tradesman - fully insured, VAT registered, recommended by previous customers etc. - and not employing cash-in-hand cowboys to save money? Also, you could employ a professional Building Surveyor to appoint contractors and project the manage the work for you.

Incidentally, I didn't think our economy was growing. I thought we were living in a period of "Stagflation". A stagnation of economic growth combined with rising inflation?