Manufacturing & Supply Chain

As we mark the end of the first quarter of both 2025 and, indeed, the 21st century, it is disappointing to note that there is little good news to report for our Engineering and Manufacturing sector. For three continuous quarters now, the trend of negative indices across the board persists, and of particular concern overall order intake, along with output volume, has more than doubled its rate of decline in the last three months. Staffing intentions which once remained resilient have again held a marginal reduction compared to previous reports, and it will come as no surprise that following this widespread decline, optimism has followed suit. Despite the challenges companies are facing, the industry remains committed to its long-term health, evidenced by the only long-term positive index now remaining being their intention to invest in apprentice training and capital projects.

Scottish Engineering Chief Executive, Paul Sheerin, added: “Our survey quantifies that the majority of companies in our sector are fighting difficult market conditions through lowered demand and increasing costs, with real focus on how to offset the coming impact of national insurance and national living wage increases that really are piling on the pressure at the worst possible time.”

Their comments reflect a common conversation that these actions feel a very long way away from the stated ambition to make economic growth the top priority for the country: ”… action from our UK government that demonstrates that this stated aim still holds would not only be welcomed, but for many in our sector such actions are now essential.”