The loss of 167 well-paid and highly-skilled jobs at K Shoes is yet another blow to the town's economy, say experts, writes Rachel Kitchen.

The cuts follow hundreds of job losses announced by major employers such as Kendal's Scottish Provident and Axa Insurance, Kendal pump and turbine-maker Gilbert Gilkes and Gordon, Frank Peters Colour Printers of Gatebeck, and Milnthorpe haulage business WRM Logistics Paperlink in recent times.

Kendal's traditional employment base of shoe-making and insurance has been eroded, and shops, catering, leisure and tourism have become increasingly important.

Richard Greenwood, economy and development manager at South Lakeland District Council, pointed to "big new stars" such as Lakeland Limited and Westmorland Signs International, but explained: "It's really quite depressing that manufacturing has taken yet another hit, and Kendal is increasingly becoming a service sector-dominated economy, almost in spite of whatever we do as a council or with other agencies. I'm not sure we can do a great deal to reverse those trends, because it's a global trend rather than a local one."

Coun Noel Spendlove, South Lakeland's economic development portfolio holder, is concerned at the trend of well-paid jobs being lost. "What also worries us is the regular announcements of job losses in the Kendal area which have occurred over the last couple of years. It's gone from a position of being regarded as a pretty well-to-do town with a good bed of industry and commerce, to one which is showing distinct signs of problem, and that's what we have to react to," he told the Gazette.

George Read, chairman of Cumbria Chamber of Commerce's Kendal Business Affinity Group, called for SLDC and business leaders to draw up a fast-track regeneration plan. "If it (the council) thinks it has got problems now, let them wait another year and see how many boarded-up shops there will be in the high street," he said.

Mr Read believes business leaders and bodies like SLDC, Cumbria Inward Investment Agency and the North West Regional Development Agency must get together and find regeneration money to "help the town point itself in a new direction". He says "incubation units" are needed for new businesses, and employment land must be set aside so firms can expand.

John Keery, for Clarks, told the Gazette it was too early to predict the future of the vacated factory site.

SLDC economic development staff are to tour the factory so they know exactly what can be put on their land and premises register, and how to advise potential occupants. Mr Greenwood said they would be looking through their inquiries list "with a fine-tooth comb" so they could hopefully pick out suitable firms assuming Clarks made the space available fairly quickly.

He stressed the council wanted the site to stay as employment land, and not be turned into housing. SLDC rejected plans for housing on the former K Shoes factory at Low Mills, but the plans were won on appeal in 1998.

January 17, 2003 10:00