| Engineering Companies have Confidence Jolted |
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The global financial crisis has finally caught up with the Scottish manufacturing engineering sector. For the first time in five years output volume and recruitment figures are negative, according to the latest Quarterly Review of the engineering industry in Scotland.
Order intake for both UK (23%up,36%same,41%down) and export markets (24%up,41%same,35%down) are negative for the last three months and this situation is maintained in forecasts for the next quarter as UK (13%up,41%same,46%down) and export orders (19%up,44%same,37%down) continue downwards.
He added that there was growing anger from these companies who were being hit by ever increasing bank charges, despite the fact that most banks had received financial aid from the government to facilitate an economic revival. Prices are holding up well in UK markets (20%up,72%same,8%down) but export prices (10%up,79%same,11%down) are slightly down. Margins, however, remain negative in both UK (6%up,65%same,29%down) and export markets (7%up,65%same,28%down). Staffing levels in general (21%up,57%same,22%down) are negative which is reflected in small companies (14%up,66%same,20%down) but not large companies (43%up,57%same,0%down). The credit crunch is also being felt in investment levels with training investment falling into a negative situation following 18 consecutive positive quarters. Dr Hughes commented: "It is disappointing to note the drop in training and capital investment plans bearing in mind the potential knock-on effects of such reductions." |

