Professional Engineering Magazine : Worst of the downturn is over but more job cuts to come

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Worst of the downturn is over but more job cuts to come

The worst of the economic downturn is behind the engineering industry but prospects for a sustained recovery next year are fragile, the EEF has warned.

According to the manufacturers’ organisation’s latest survey, output and new orders continued to stabilise in the fourth quarter. Firms in most sectors reported improvements in output, with companies in the electronics, electrical and mechanical sectors performing particularly well.

Output and orders figures were the best since the third quarter of 2008. But the survey forecast very modest growth for next year, with engineering stagnating and manufacturing posting a rise of 0.8%. Lee Hopley, EEF chief economist, said: “We’re clearly through the worst effects of the global economic downturn but growth next year will not be quick or easy.”

A separate survey by KPMG indicated that British manufacturers are through the worst of the downturn.

And PE’s own quarterly survey this issue shows that our readers believe the worst of the recession is now past.

Hopley said headcount reductions carried on in quarter four, but the level of jobs lost was not expected to reach that of the recessions of the 1990s or 1980s.

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Worst of the downturn is over but more job cuts to come

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Worst of the downturn is over but more job cuts to come