Survey finds engineering in Scotland affected as oil price weighs

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19th July 2016 11:51 - Engineering

Survey finds engineering in Scotland affected as oil price weighs: Recent figures have revealed that the engineering sector in Scotland has been affected by decreases in order intake, export business and output volumes in the last quarter of 2016, following weak oil prices continuing to weigh on engineering activity.Survey finds engineering in Scotland affected as oil price weighs

In the latest Scottish Engineering survey, it has been indicated that the industry’s order intake and output volumes in Scotland plummeted for the fifth consecutive quarter. However, it was noted that the rate of the decline was lessened in severity but they did remain significant.

The survey also revealed that there was a fall in exports within the Scottish engineering sector for ten consecutive quarters.

Scottish Engineering, which aims to be the voice of manufacturing engineering in Scotland, stressed that the continuing weakness of oil prices was not just affecting businesses directly involves in oil and gas production, but companies in the wider supply chain.

The research also indicated that engineering firms in Scotland generally planned to reduce capital investment. Overall recruitment in the sector was stationary in the last quarter, which is an improvement following four consecutive quarters of declines in staffing.

Of the companies in the survey, 29 per cent said that they had seen an increase in their order intake in the last quarter, whereas on the other hand 40 per cent of the companies said that they had seen a decrease in the last quarter.

When looking at export orders, it was found that 37 per cent of the engineering companies in Scotland saw a fall. On the other hand, 31 per cent saw an increase. The remaining figure said that their total export orders remained the same.

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