The amount of information on the effects of down sizing on manufacturing was not plentiful, however one main point that flows through all of the articles is that even though down sizing may be done to help a company it can end up hurting them in the long run. In the paragraphs to follow we look at the effects that downsizing has on people and companies as well as look at whether or not downsizing is truly the answer.
Parker (2003)Reports that in 2003 the expected job losses among the manufacturing industries in Great Britain would create the effects of rising input costs and oil price increase on the job cuts; Downturn of the purchasing managers' index for manufacturing; Decrease in the rate of manufacturer's orders. So even though these cuts may be necessary he pointed out that it would have an overall negative effect.
The Midwest may be the focus of manufacturing layoffs and financial woes(Link, 2005), but according to this survey, people who live in the area of the country that includes Cleveland and Detroit in the low- to moderate-income lax bracket are using less of their income to pay for housing than other areas of the country. The study, dubbed the Housing Landscape for America's working Families 2005, revealed that from 1997 to 2003 the number of America's working class who spend more than half of their income on housing leaped from 2.4 million to 4.2 million. The study also revealed that immigrant families are 75% more likely to use more of their income to pay for housing than American-born citizens. Across the country there are 14 million people that spend too much of their income 10 pay for housing. About 35% of that group is low- to moderate-income families. .
In 2003, the critical housing need for the Midwest totaled 8.7% of residents while the West Coast had a need among I6.89 (of its residents. The South followed the Midwest for a lower critical housing need with 9.3% while the Northeast trailed California with a need among 14.
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