Engineering Industry Has Little to Cheer

ENGINEERING INDUSTRY HAS LITTLE TO CHEER

 

Little has changed for the engineering industry in Scotland in the first quarter of 2016 following a year which saw orders and output slide.

In their latest Quarterly Review of the industry, Scottish Engineering the industry support group recognises that the continuing slump in oil prices is affecting not only companies directly involved in oil and gas production but also those in the extensive supply chain.

The organisation’s Chief Executive, Bryan Buchan has welcomed the Scottish Government’s £70 million boost for the manufacturing industry; appreciating that this help will be for the medium to long term while the problems affected by the oil price require an immediate fix.

Looking at orders in the first quarter of this year (29%up,31%same,40%down) the figures show them remaining negative but there is a definite improvement over the last quarter of 2015.

After a considerable drop in staffing levels in the final quarter of 2015 the first three months of this year (26%up,48%same,26%down) show a similar number of companies reporting that are losing staff as are recruiting. This has to be seen as an improvement.

Another cause for concern is that there are fewer companies pushing ahead with plans for capital investment (16%up,58%same,26%down). Again some of these decisions are directly attributable to the problems arising from the oil and gas situation.

 

CLICK HERE FOR LATEST FOR QUARTERLY REVIEW MARCH 2016

 

 

For further information contact Colin McGill on 0141 221 3181 or 07976 224412 or visit the Scottish Engineering website on www.scottishengineering.org.uk