Digging for Gold
28 May 2015 by Lucinda Stacey
JCB is perhaps one of Britain’s largest manufacturers and is well known for its yellow diggers. Along with many other companies, JCB are facing a loss in profits as it is reported that sales and earnings fell last year.
The manufacturer’s turnover fell from £2.68 billion to £2.51 billion. The company sold 64,028 machines in 2014 which was down from 66,227 in 2013. To add to its losses, JCB also undertook a restructuring exercise of shutting its German factory and moving production of compaction equipment to the UK and India, costing the company a further £11million.
JCB’s chairman, Lord Bamford commented that “For different reasons, each of the ‘Bric’ markets of Brazil, Russia, India and China was sharply down in 2014.” He went on to comment further that “the broad spread of our business enabled us to benefit from the better conditions in North America, Western Europe and particularly the UK.”
Graeme MacDonald, JCB’s chief executive, has also voiced his opinion that he feels that Britain would be better outside the EU if it meant UK businesses had to deal with less “red tape and bureaucracy” from Brussels. Mr MacDonald said “I don’t think it’s in anyone’s best interest to stop trade. I don’t think we or Brussels will put up trade barriers.” This popular opinion has been voiced by many in the UK and many share the opinion of Mr MacDonald that David Cameron needs to either negotiate a better deal with Europe or leave. Mr MacDonald went as far as to say that “It’s a burden on our business and its easier selling to North America than to Europe sometimes.” This could certainly explain why JCB enjoyed a record year with sales up 23 per cent in North America.
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