Scottish engineers boost headcounts but ‘strong headwinds’ remain

Scotland’s engineering and manufacturing sector has seen an uplift in staffing levels and training investment, but “some strong headwinds” remain, a key report today reveals.

Scottish Engineering’s latest quarterly snapshot shows continued positive signs for the industry while also noting that companies face a number of on-going challenges.

Staffing levels within the sector have increased by 14 per cent - an improvement from the previous quarter’s 9 per cent rise and the strongest employment recording of the year so far. The representative body for the sector in Scotland said 48 per cent of its members reported that they had maintained headcount.

The latest research also showed that investment in training within the sector had increased by 17 per cent this quarter, though that is slightly reduced from 21 per cent previously. Medium-sized companies led the training investment with a 45 per cent increase, with large companies recording a 25 per cent rise and small companies returning an 8 per cent uplift.

However, the data - which is gathered from member responses to the organisation’s quarterly survey - also noted that order intake across the industry, while still positive with an 8 per cent increase, represented a slide from the 17 per cent gain shown in the previous quarter. Meanwhile, export orders slipped back into negative territory with a 2 per cent decrease, reversing recent gains.

Scottish Engineering chief executive Paul Sheerin said: “This third quarterly survey of the year maintains an overall upbeat review and outlook for our sector. However, there remain some strong headwinds within the industry.

“The positive trends in both staffing levels and training investment are encouraging and tie in well with the launch of our Skills Academy which will use exactly the type of data within the quarterly results report to identify, shape and deliver new and enhanced training that fits the needs of our member companies.”

Scottish Engineering this month launched its new Skills Academy, providing training and practical skills development for individuals and businesses working in engineering and manufacturing, covering areas such as technical skills, employment rights, AI and health and safety. The academy is open to Scottish Engineering members and non-members.