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Order levels for the engineering industry in Scotland remain positive for yet another quarter, though the sectors do not all tell the same story, according to the latest Quarterly Review of the industry.
Published by Scottish Engineering, the support group for the industry, the Review shows that the electronics sector is driving the industry forward while fabricators, mechanical equipment and metal manufacturers are showing more companies who have reported that their order level has dropped than those reporting an increase.
On the back of previous positive order levels, output volume for the industry maintains a strong presence - apart from two sectors, fabricators and metal manufacturing. Dr Peter Hughes, chief executive of Scottish Engineering commented: "One area which is concerning our industry, as well as most other businesses, is the cost of energy and fuel. While we have seen factory gate prices increase in the last quarter, this has not led to an increase in profit margins. As in the past, the Scottish electronics sector continues to provide much needed work throughout the engineering manufacturing industry." Order forecasts for the next three months are strong in general terms (33%up,54%same,13%down) and this is reflected in small (28%up,58%Same,14%down) medium (39%up,50%same,11%down) and large companies (56%up,33%same,11%down). Similarly the electronic sector (69%up,23%same,8%down) is predicting that order levels will continue to grow for the next quarter. The two sectors which have been least productive in the last quarter fabricators (27%up,64%same,9%down) and metal manufacturing (25%up,75%same,0%down) are also looking ahead with positive figures. Dr Hughes claims that, despite the difficulties being predicted by economic commentators for the next 12 months, the engineering manufacturing sector in Scotland will be sustained by the improvements achieved with the introduction of lean initiatives in recent years.
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