Engineering recovery has gained momentum

Share this article
Have your say

Economic recovery at home and new trading partners in emerging markets helped Scotland’s engineering sector enjoy its best quarter in more than two years.

The latest quarterly figures produced by trade body Scottish Engineering show that orders within the industry are at their highest level since the beginning of 2011.

The September review, published today, also highlights the fact that output volume and capacity utilisation are both improving.

Scottish Engineering chief
executive Bryan Buchan highlighted two factors helping firms.

“There is some evidence of recovery within the UK and we are benefiting from that,” he said.

“We are also seeing a significant number of companies successfully trading outwith the eurozone.”

He said the positive figures were supported by the views expressed by the majority of Scottish Engineering’s member companies at recent meetings.

Buchan added that the foundations of recovery had been carefully laid during the recent recession.

He said: “We have witnessed over a number of years that our small and medium-sized enterprises have been applying good stewardship throughout the recession, thus allowing them to react quickly and favourably to the positive upturn in demand. Over that same period, capital investment has been wisely directed.”

The previous review, published at the end of May, showed the engineering sector emerging from 18 months of troubled trading conditions.

The latest figures show that recovery strengthened in the
intervening months, with firms on average increasing their workforce and optimism levels rising.

Forecasts for the next three months are equally positive, with orders holding their position, employee numbers expected to rise and output volume maintaining its momentum.