Covid-19 likenedto ‘tornado’ for sector

The boss of Scottish Engineering (SE) described Covid-19 as an “economic tornado” for the industry as the trade body released its second quarter report.

Plunging orders and confidence, as well as a large decline in employment in the sector, made for woeful reading.

More than a quarter of firms canvassed by SE (27%) said they had shed jobs, while four out of five (80%) expected to do so within the next six months.

SE chief executive Paul Sheerin said: “Covid-19 has been an economic tornado, both in the pace and impact that it is causing, and these results make crystal clear the need for rapid recovery actions as soon as public health considerations allow.

“Part of that recovery will look and feel different to the way we have worked before, as

“SE’s optimism barometer saw a negative swing of 80%”

amongst these massively difficult business conditions, there is recognition that our adaptation to digitally connected working shows advantages previously unseen.”

None of SE’s key indicators for the health of the sector were positive during the quarter, with orders and output falling in at least 60% of companies.

SE’s optimism barometer registered a negative swing of 80%, compared with the previous quarter.

More than threequarters of firms (77%) said they were likely to still be feeling the impact of Covid-19 in a year’s time.

Perhaps even more worryingly, more than seven in 10 (72%) said they expected to be forced into scaling down their training and apprenticeship plans in order to survive.