JOBS lost in Kidderminster's carpet industry over the years have effectively been exported, said the managing director who has reluctantly been forced to axe employees at one of the town's top manufacturers.
Alan Bullock, who has been with Worcester Road-based Victoria Carpets for more than 30 years, said the firm's Axminster division had been a victim of both cheaper labour costs overseas and changing taste in the domestic market.
Ironically, the closure of many of Kidderminster's former carpet-makers had come back to haunt Victoria, which will shed up to 85 jobs - a quarter of the Kidderminster workforce - by the end of March.
"What has really been the nail in the coffin is a lot of those manufacturers that went out of business had plant and equipment that they sold offshore," said Mr Bullock.
"That plant and equipment ended up in Third World countries - for example China, Thailand, India ... places like that. The labour costs over there are tiny compared to the rates of pay in the UK."
He said weavers in Kidderminster were paid the equivalent of around $600 US dollars a week. The corresponding rate of pay for a worker in China was £35 US dollars a month.
"We have, basically, exported our jobs," said Mr Bullock, "We have sold the plant and equipment offshore to low-cost areas. Those manufacturers with low labour costs, no social costs, no government red tape to worry about have started to export their carpets back into the UK.
"That undermines the price we can be paid for our carpets. The margins we can achieve are unacceptable."
Referring to changing fashion trends, he said: "Probably about five or six years ago, there was a big switch in consumer taste, away from patterned carpets in the home.
"If you go back 20 or 30 years ago, Axminsters were probably in most people's homes. It was perceived to be attractive, cover up soiling and be more robust.
"About five or six years ago, the makeover programmes started on television.
"Of course, most of those programmes worked with a budget and were going to make over the room for £500.
"Carpets being an item that people don't buy every year was an obvious area where the makeover programmes could save money so they decided to rip up the carpet and polish the floorboards. That started an interest in minimalist design.
"Of course, that was seen to be chic and fashionable and, therefore, the consumer started to move away from putting woven patterned Axminster carpet on to the floor."
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