Engineering sector in good working order

Scotland’s engineering sector has shown resilience over the last year, with orders holding up, staff being retained and optimism at its highest level since 2014, according to the latest industry snapshot.

Industry body Scottish Engineering said in its latest quarterly review that 44 per cent of respondents reported that UK orders were up, about 40 per cent cited export growth, and 41 per cent flagged an increase in output volumes.

Bryan Buchan, chief executive of Scottish Engineering, said: “Companies appear to have put behind them fears of a further Scottish independence referendum and the uncertainty of Brexit as they take advantage of the relatively low cost of borrowing and the benefit of a weak sterling for exports.

“We are also recognising that banks are adopting a more sanguine approach to good business justifications in their dealings with manufacturing companies.”

The organisation also noted increasing levels of capital investment and training.

Buchan added: “As regards training, companies are addressing the shortage of specific skill sets and are either increasing their apprentice intake or upskilling members of their existing workforces. Either way, they are ensuring that they will be able to accommodate the orders which they are winning.”

The review found that 40 per cent of firms saw a jump in capacity utilisation, about a third reported higher staffing levels, and the level of optimism across the industry remained “very positive” with 36 per cent reporting a jump. 0 Scottish Engineering’s Bryan Buchan hails growth