The Voice of SME's in Engineering

BANK OF ENGLAND SURVEY RESULTS - SEPTEMBER 2017

ENGINEERING INDUSTRIES ASSOCIATION – the voice of SMEs in Engineering

I attended a Bank of England meeting on 28 September 2017 and presented the results of our recent survey among SMEs in Engineering. In comparison with the last survey of 23 March 2016 the following trends are apparent:

  • Business Confidence has not improved and is approximately the same as last time
  • Overall Growth showed no improvement
  • UK Demand is the same as last time
  • Export demand is still strong but no improvement on last time
  • The number of people employed is mostly static
  • The average increase in pay per employee is mainly in the 0-2% area
  • There are still skill shortages
  • 50% of survey will increase prices compared with 60% last time
  • Investment intentions are marginally down compared with last time

The factors influencing the results include the following:

  • The significant decline in £sterling is still helping exports. At our last meeting I mentioned problems with DIT on the delays on agreeing the programme for overseas shows under the TAP programme. The programme has now been agreed for this year but we are now awaiting information and agreement on next year’s programme.
  • The main concern amongst our members is the uncertainty of Brexit. This is affecting their future planning and investment. Many companies are fearful of the effect on their business and their ability to trade in Europe.

Kind regards
Sir Ronald Halstead
EIA President