Honda Closure: the knock on effect

So having been a mainstay of the local economy around Swindon since 1985, the Honda plant is due to close. Devastating for workers and their families. The direct impacts are easy to see.

It would be reassuring to hear the plans for outplacement and regeneration that the government and Honda have, in terms of getting those people into other jobs. Some are highly skilled and sought after. Some, less so. Some would need to re-locate to make the most of those skills, to other parts of the country, or even world.

The knock on effect to the rest of the economy in Wiltshire and beyond will be felt in the months to come. There are thousands of small businesses who rely on the Honda supply chain. Having worked in Wiltshire in the last 10 years and recruited for engineering and manufacturing positions during that time, the amount of times when interviewing I heard the words "we supply Honda" was countless.

Words I remembered on Monday when news of the closure broke.

And it isn't just supply chain. The cafes, hotels, restaurants, service business which supply the huge South Marston plant or near surrounds. Attention is always drawn to the direct employees affected but very infrequently do the other companies and individuals get mentioned. As well as the 3,500 employees there will be contractors who to all intents and purposes work for Honda.

So it isn't just a blow for the 3,500, their children and their friends. It has a knock on effect for 10s of thousands of people in the local area and some further afield.

Longer term, with no Honda, and with Dyson deciding to locate much of its business elsewhere, the draw for engineers into the M4 corridor will diminish. Many businesses relied on recruiting ex Dyson and ex Honda staff when they left. What brings them to the sparsely populated Wiltshire countryside now?

So any plans on regeneration, on handling the closure and the effect on the local economy need to address these issues... Hopefully, a crack team are on it as we speak.