Scottish engineering continues to grow

Scottish engineering firms reported a fourth consecutive quarter of growth - claiming they have put constitutional uncertainties behind them.

The low cost of borrowing and the fall in the value of sterling have helped raise orders and exports.

The quarterly survey by the Scottish Engineering industry group shows 44% of firms saw a rise in UK orders over the past three months, with 26% down.

Exports were up for 39% of companies, and down for 25%.

Output volumes were up for 41% and down for 24%.

Asked if their business outlook is optimistic, managers at 36% of firms said they were, with 11% being pessimistic.

'Good business justifications'

Bryan Buchan, chief executive of Scottish Engineering, said: "Companies appear to have put behind them fears of a further Scottish independence referendum and the uncertainty of Brexit as they take advantage of the relatively low cost of borrowing and the benefit of a weak sterling for exports.

"We are also recognising that banks are adopting a more sanguine approach to good business justifications in their dealings with manufacturing companies.

"As regards training, companies are addressing the shortage of specific skill sets and are either increasing their apprentice intake or upskilling members of their existing workforces.

"Either way, they are ensuring that they will be able to accommodate the orders which they are winning."