Scottish Engineering's quarterly membership survey has revealed improved sentiment for the sector’s outlook for the second quarter in a row.
Cautiously-optimistic forecasts from three months ago have held up well, with the outlook for the next quarter set to hold those gains, at a net 21% positive among the 37% of members that responded.
Order intake, output volume, exports and staffing remain strongly positive for the second consecutive quarter since the pandemic started.
Specifically, order intake for the last three months was up by a third, with a forecast of this rising to 36% for the next three months.
UK and export prices continue to reflect raw material price increases, with net 47% and 46% increased respectively.
Challenges remain in the form of material pricing, availability and the logistics capacity to get components and raw materials in, and especially billable finished goods out.
Skills availability has quickly returned to be in short supply, and a lack of easily available skills from EU countries is indicated as a contributor to that deficit.
In considering the long-term outlook for skills, the intentions for apprentice intakes for 2021 underlines that the financial impact of Covid-19 is limiting intake, with candidate availability, retention and a lack of financial support initiatives also cited for holding back increasing numbers.
Scottish Engineering chief executive Paul Sheerin stated: “We can allow ourselves to be upbeat with this improving forecast, even though the ongoing challenges will make this anything but plain sailing.
“The resilience and adaptation companies have shown to manage their way through the last 18 months has been inspiring, and as ever, despite the adversity, there have been shining examples of success throughout.
“Thanks to reduced Covid restrictions, next week will see a welcome return to a physical event with actual people to recognise our award-winning engineering companies and individuals, celebrating the significance of their achievements and success against the backdrop of a global pandemic.”
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