Black Country firm in trouble

A Black Country manufacturing firm hit hard by the global economic crisis has revealed how it is battling to keep jobs after orders dropped by more than half.

Berck Limited, which has been in West Bromwich for the last 60 years, employs 69 people locally, manufacturers metal pressings and parts for the automotive, aerospace, electronic and medical industries.

At the end of last year, orders fell from £550,000 a month to £200,000 overnight. Talks are underway with the bank to safeguard the firm's future.

In autumn the firm, of Titan Works, Pleasant Street, made 12 staff redundant and a further 15 may go.

Commercial director Darren Yates, aged 41, added that although they were picking up orders there was still a long road ahead.

He and two other directors may have to take a complete pay cut for six months, if the bank is to help the firm through difficult times.

He said: "The change came virtually overnight around October and November last year. Companies that usually keep a surplus of our products, decided to use up their stock and orders started getting cancelled.

"Cash and credit was and still is the biggest problem.

"We were in a situation where we owed money for raw materials, but were not selling the products, as other companies across the globe cut back."

The firm is now riding out the storm and hopes to stay afloat as it negotiates with the bank.

Mr Yates said: "People say that the green shoots are showing, but I am remaining cautious.

"A total of 45 per cent of our business is in the automotive industry and although we have picked up new contracts - including one as a second tier supplier for Fiat - there are still other areas of the company where we can only pay staff for a four day week."

"There is still an issue with cash and credit and personally I don't think we have seen the worst yet.

"This is the worst recession I have seen in 20 years of working here."