More than 400 Jobs at Risk as Mitsubishi Electric Faces Decline in Demand

Mitsubishi Electric’s Livingston factory in West Lothian is facing potential job cuts affecting more than 440 employees. The facility, a cornerstone of heat pump production for 30 years and currently employing about 1,600 staff, is experiencing a severe downturn in demand for its products. 

The company has confirmed that 443 positions are at risk due to this widespread decline in market interest. Local MP Gregor Poynton has expressed deep concern, attributing the situation to short-term economic pressures that have led to a significant drop in the factory’s order book.

MP Urges Government Action as Mitsubishi Factory Faces Decline in Orders

In a recent address to the House of Commons, Gregor Poynton emphasised the significance of the workforce at Mitsubishi Electric’s Livingston factory, noting their role in producing essential air source heat pumps and air conditioning units. He highlighted that these products are crucial for future efforts to decarbonize the economy. Poynton pointed out that the decline in orders is due to short-term economic challenges and is not reflective of the workers’ efforts or skills.

Poynton has urged Scotland Secretary Ian Murray to engage in discussions with him, factory management, and employees to explore potential support from the UK government. Murray has pledged to prioritise these meetings in response to the situation.

Mitsubishi Electric Remains Committed to Livingston Facility Amidst European Market Decline

A spokesperson for Mitsubishi Electric expressed regret over the decision to initiate the consultation process, emphasising that it was made with careful consideration. The spokesperson noted that while there has been some growth in the UK market, the majority of production at the Livingston site is destined for mainland Europe, where there has been a significant reduction in demand. 

Despite these challenges, the company remains committed to the Livingston facility and the production of heat pumps, and does not foresee any disruptions to deliveries or supply.

Manufacturing Sector Faces Global Challenges Amid Declining Demand and Economic Uncertainty

In recent years, several manufacturing companies have faced similar challenges to Mitsubishi Electric’s Livingston factory. For instance, in 2021, Rolls-Royce announced significant job cuts due to a slump in demand for its aircraft engines caused by the COVID-19 pandemic’s impact on the aviation industry. Similarly, General Electric scaled back its operations in Europe in response to reduced orders and market uncertainties.

These cases reflect a broader trend in the manufacturing sector where economic downturns, shifts in market demand, and global disruptions have led to significant workforce reductions and operational adjustments. Such trends highlight the vulnerability of manufacturing firms to fluctuations in demand and the complex economic factors influencing their business decisions.