Quarterly Review Q2 2023

Key attention points from this quarter:
  • Almost 28% of companies have already implemented a compressed working week such as short Friday, 4-day week or 9 day fortnight, with a further 18% considering such a change
  • 28% of responding companies allow shop floor employees to work flexibly accessing flexible start and finish times, banked and taken back hours
  • Order intake was positive for a net 26% of members, with further recovery of exports at net 18% positive
  • Output Volume was increased for 54% of companies, a net balance of 35% overall increased in the last quarter, with a forecast increase for 37% of businesses for a net 30% increase in the coming quarter
The data in this Review were acquired by a survey of Scottish Engineering’s members and certain other manufacturing companies. 29% of members responded Companies are described as: Small (<100 employees), Medium (100–500) and Large (>500)

Key attention points from this quarter:
  • Almost 28% of companies have already implemented a compressed working week such as short Friday, 4-day week or 9 day fortnight, with a further 18% considering such a change
  • 28% of responding companies allow shop floor employees to work flexibly accessing flexible start and finish times, banked and taken back hours
  • Order intake was positive for a net 26% of members, with further recovery of exports at net 18% positive
  • Output Volume was increased for 54% of companies, a net balance of 35% overall increased in the last quarter, with a forecast increase for 37% of businesses for a net 30% increase in the coming quarter
The data in this Review were acquired by a survey of Scottish Engineering’s members and certain other manufacturing companies. 29% of members responded Companies are described as: Small (<100 employees), Medium (100–500) and Large (>500)

Annual trends

Order intake remains positive with a net 26% of companies increased against the previous quarter, and this joins output volume, exports and staffing as overall increased yet again.  Exports show a welcome increase for the second quarter running, at 18% higher than the UK order net increase of 15%.  2023 continues its overall optimistic outlook, with wider second quarter data reflected in a net 21% increase in optimism, and whilst staffing intentions  increased again (+12%) this emphasises the difficulties companies are still facing to recruit staff with the skills they seek.  Output volume shows significant further positivity on last quarter (+35%) suggesting that the restrictions on materials are easing for companies, and  capacity utilisation stays strong at a net 28%, a very slight decline from last quarter’s 31%.

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Annual trends

Order intake remains positive with a net 26% of companies increased against the previous quarter, and this joins output volume, exports and staffing as overall increased yet again.  Exports show a welcome increase for the second quarter running, at 18% higher than the UK order net increase of 15%.  2023 continues its overall optimistic outlook, with wider second quarter data reflected in a net 21% increase in optimism, and whilst staffing intentions  increased again (+12%) this emphasises the difficulties companies are still facing to recruit staff with the skills they seek.  Output volume shows significant further positivity on last quarter (+35%) suggesting that the restrictions on materials are easing for companies, and  capacity utilisation stays strong at a net 28%, a very slight decline from last quarter’s 31%.

Capacity utilisation remains strong with 28% of companies reporting that they are at full capacity, a decrease of 3% compared to last quarter.

Looking at the next 3 months, forecasts remain broadly positive for most company sizes and sectors.  Fabricators is the most positive overall except for export orders which is overall flat where they report significant increase in export prices ( net+50%).  For the second quarter running, Precision Engineering shows the largest planned increase in employees (+70%) despite flat and decreasing UK and export orders, which may indicate a lack of skills limiting order fulfilment.  Medium size companies are showing the highest forecast for output volume (+41%), whilst order intake remains a concern for Metal Products and Electrical & Electronics with a forecast decline of -50% and -33% respectively.  Metal Products are also expecting a decline of -75% on order intake and staffing reflects that in a -40% outlook.  Overall, the forecast remains positive but there are some indices here that deserve caution and close attention for the upcoming quarter.  With Bank of England interest rates increasing for the fourth time in less than six months the impact on business positivity and may have been impacted for all sizes of businesses and sectors.
   Net       Up       Same       Down   

Orders

18%

 37%

44%

19%

UK Orders

 14%

 32%

 50%

 18%

Export Orders

 -1%

 22%

 55%

23%

Output Volume

 30%

 44%

 42%

 14%

Annual trends

Order intake remains positive with a net 26% of companies increased against the previous quarter, and this joins output volume, exports and staffing as overall increased yet again.  Exports show a welcome increase for the second quarter running, at 18% higher than the UK order net increase of 15%.  2023 continues its overall optimistic outlook, with wider second quarter data reflected in a net 21% increase in optimism, and whilst staffing intentions  increased again (+12%) this emphasises the difficulties companies are still facing to recruit staff with the skills they seek.  Output volume shows significant further positivity on last quarter (+35%) suggesting that the restrictions on materials are easing for companies, and  capacity utilisation stays strong at a net 28%, a very slight decline from last quarter’s 31%.

Key attention points from this quarter:
  • Almost 28% of companies have already implemented a compressed working week such as short Friday, 4-day week or 9 day fortnight, with a further 18% considering such a change
  • 28% of responding companies allow shop floor employees to work flexibly accessing flexible start and finish times, banked and taken back hours
  • Order intake was positive for a net 26% of members, with further recovery of exports at net 18% positive
  • Output Volume was increased for 54% of companies, a net balance of 35% overall increased in the last quarter, with a forecast increase for 37% of businesses for a net 30% increase in the coming quarter
The data in this Review were acquired by a survey of Scottish Engineering’s members and certain other manufacturing companies. 29% of members responded Companies are described as: Small (<100 employees), Medium (100–500) and Large (>500)

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