Scottish engineers warn of 'significant challenges' despite rebound in optimism

Optimism has “unexpectedly” returned to Scotland’s engineering sector though “significant challenges” remain, a report today reveals.

Releasing its final quarterly review of 2022, industry organisation Scottish Engineering said its optimism measure had turned positive for the year end after a neutral position in the previous quarter. It said this was underlined by a seventh consecutive quarter of positive order intake and output volume.

While the results were welcomed by Scottish Engineering’s chief executive, Paul Sheerin, he pointed to significant challenges remaining for the sector with a “ticking clock” counting down to the end of the current support package for energy costs, and difficulties in finding, recruiting and retaining skilled staff.

He said: “We have been puzzled as to why optimism, orders and output have continued to be positive at such a difficult time for the whole economy, but it’s also reassuring to see that the survey responses match the conversations we are having every day with members. Scotland’s broad mix of high value engineering and manufacturing is - so far - holding our industry up, with leading examples such as critical component supply for energy production and stability; resurgent aerospace and growing space sectors; a strong share of never more vital UK and international defence projects; and investment in our globally renowned drinks industry.

Scottish Engineering chief executive Paul Sheerin. Picture: Guy Hinks

“Times may be tough, and we may not yet be at the bottom of that curve, but there is a lot to be proud of - and optimistic for – in that mix of excellence,” he added.

The membership body has been supporting businesses for more then 150 years.