Up to 260,000 manufacturing jobs in the region are threatened by the country's deepening steel sector crisis, a top Midland economist has revealed.
After job losses in Teesside and Scunthorpe, the wave of destruction blew closer to home when steel giant Caparo Industries, which employs about 1,500 in the West Midlands, collapsed this week.
But Paul Forrest, director of the Midlands Economic Forum, said that was the tip of the iceberg, with the region's vital supply chain and precision engineering sector under threat.
The steel sector has been badly hit by Chinese imports, while costs related to climate change regulations and business rates are higher than many rival nations.
Elsewhere, two prominent Labour MPs called on the Government to step in after administrators from PwC were appointed to Caparo.
Mr Forrest said: "In the supply chain there are 260,000 jobs in the Midlands dependent on the steel industry in one way or another.
"I think the biggest problem is the basic metals and fabrications industry in the region.
"If they have to rely on imported steel, which is less pure than we make in the UK, it means first of all they won't be able to do as much precision manufacturing.
"The problem is in Westminster they have seen a figure of something like 2,000 jobs going but once you look at the supply chain you see there are 260,000 dependent on it."
Caparo comprises 13 firms in the West Midlands.
Its collapse followed 2,200 job losses at the Redcar steelworks on Teesside, while Tata Steel confirmed it would cut 900 jobs from its plant in Scunthorpe, and 270 in Scotland, effectively ending steel making north of the border.
Union leaders said there was "a wave of fear" in the industry and pointed the finger of blame at the Government.
In response, Prime Minister David Cameron pledged to raise the issue of cheap Chinese steel being dumped onto the European market during President Xi's visit.
MPs in the constituencies where Caparo plants stand have demanded action from the Government.
Deputy Labour leader Tom Watson, MP for West Bromwich East, said: "I am seeking urgent talks with Caparo and the trade unions to see how we can save the jobs in Sandwell and the rest of the country.
"The steel industry is a vital strategic asset for the UK. I urge the Government to not leave thousands of British workers at the peril of short-term market changes. They should act now before it's too late."
