SCOTTISH Engineering’s new chief executive has lambasted the UK’s Brexit “folly”, warning the cost appears only to be rising and clarity for exporters “seems no closer”.
Paul Sheerin’s comments come as the industry body’s latest survey signals continuing overall growth for engineering companies in Scotland, in spite of the challenges faced.
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As the UK continues its protracted negotiations with the European Union over its planned exit, Mr Sheerin said of Brexit: “It’s a rare thing to attend any meeting where the ‘B’ word doesn’t appear before five minutes in, and yet for all the discussion, the fundamental detail needed to give the clarity that export businesses need from Brexit seems no closer.
“And to add insult to injury, the cost to be paid for this folly would appear only to climb. Shambles isn’t quite strong enough to describe this, as the connotation for me of that word could at least include well intentioned, and I struggle to see good intentions in Brexit. For the sake of our export businesses, an outbreak of honest and rapid progress is needed, and it is needed now.”
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While noting the weakness of economic growth in Scotland and the UK as a whole, Mr Sheerin noted the boost to the engineering sector north of the Border from the strength of the global economy.
He said: “No matter what self-inflicted wounds we bring upon ourselves, the world economy appears to currently be on an upward trend, and, while that impact is diluted more than we would like, that effect is still there.”
Scottish Engineering’s survey shows companies in the sector recorded overall growth in order intake, output volume, exports and staffing in the latest three months.
Mr Sheerin was encouraged by signs of better times for engineering companies serving the oil and gas sector, which has been hit hard in recent years in the wake of the global crude-price downturn.
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Oil prices have shown significant recovery in recent months.
Mr Sheerin said: “I am heartened by the fact that we are seeing some positive signs from the oil and gas industry, with a cautious optimism apparent. We see companies traditionally serving that industry are successfully applying twin strategies of diversification and ongoing focus on a continuous improvement path.”
Subtracting the proportion recording a decline from that posting a rise, a net 15 per cent of Scottish engineering companies reported an increase in order intake during the latest three months. This was similar to the balance of 17% reporting such a rise in the previous quarterly survey.
In the latest survey, a net 15% of engineering companies north of the Border reported a rise in output volume, signalling an acceleration in the pace of increase from the preceding three months.
A net 22% of Scottish engineering companies reported a rise in export orders during the latest three months, while a balance of 14% increased their staffing. In the previous quarterly survey, only a net 2% of companies had reported a rise in employment.
Scottish engineering companies forecast overall growth in order intake, output volume and staffing in the coming three months.
Mr Sheerin highlighted continuing skills shortages faced by the Scottish engineering sector.
He said: “Skilled employees are hard to get, and it feels like it may be getting harder.”
Mr Sheerin highlighted efforts to steer young people towards further and higher education in science, technology, engineering and mathematics (STEM) subjects but also the fact that many of these individuals did not ultimately pursue careers in engineering.
He noted that a recent conference staged by EQUATE Scotland, which is focused on gender equality in STEM sectors, had stated that 73% of women graduates in these subjects left the sector.
Mr Sheerin noted this further impacted on “the shortfall in gender balance”.
He added: “This may be the extreme value, but the index for male graduates leaving our industry is 48%, hardly cause for celebration.”
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