EAMA - Engineering & Machinery Alliance      

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

EAMA - Engineering & Machinery Alliance
home Mechanical Engineering Media Library Policy Documents
Publications
EAMA Membership Member's links Contact EAMA

 

EAMA - Engineering & Machinery Alliance Press release

Thursday 23 June 2011

 

Order and inquiry levels still positive, but access to
finance falls back down again

Mechanical Engineering Business Monitor for May 2011

 

In May, mechanical engineering firms’ prospecting rates returned to normal rather than exciting levels, while UK order intake improved significantly on last month and exports remained at the softer levels seen over the last three months, according to the Engineering and Machinery Alliance’s Monthly Business Monitor.

Martin Walder, EAMA chairman: “Although returns on inquiries and orders have stepped down in intensity now compared to the first quarter, the Monitor seems to be indicating that underlying business is good in that the majority of firms are still bullish on jobs, with over a quarter (28%) signalling increased numbers compared to last month, when the balance was particularly high.

“This positive trend on jobs has been with us since February. But the positive developments we had also been seeing since then with regard to access to finance have melted away this month. It is worrying to see what looked like a positive trend emerging disappear as this move back into negative territory coincides with anecdotal reports of banks renegotiating stiffer overdraft terms.

“Hopefully next month we will have more positive figures to report, so that firms with investment plans and expansion projects can take advantage of them and build up their export sales. Two-thirds (63%) of companies say they are investing in one way or another this month, with a third (36%) saying they are investing in all areas. But that’s down on last month’s 46%.

“Our sense is that companies are still trying to limit their exposure to banks, preferring to use their own resources for investment because confidence remains fragile. Not only is the memory of the banks’ ability to change terms at extremely short notice raw, there are also many other factors affecting business prospects, from the reduction in public expenditure to the impact of the Japanese tsunami on supply chains, the speed of recovery in Europe and when manufacturers are going to start producing for the UK’s nuclear power programme.”

(Monitor data below)

Notes to editors:

EAMA’s 12 trade associations represent 1,700 firms: Agricultural Engineers Association, -- British Automation and Robot Association -- British Paper Machinery Suppliers Association -- British Plastics Federation -- British Turned Part Manufacturers Association -- Confederation of British Metalforming -- Gauge and Toolmakers Association -- Manufacturing Technologies Association -- Polymer Machinery Manufacturers and Distributors Association -- Printing Industry Confederation -- Processing and Packaging Machinery Association -- UK Industrial Vision Association

The Monitor (May sample 109 71% export)

1 Prospects/Inquiries

Month

UP

SAME

DOWN

UP/DOWN Difference

 

UK

Export

UK

Export

UK

Export

UK

Export

January 2009

15

13

24

47

61

40

-46

-27

February

22

23

38

54

40

23

-- 18

0

March

28

22

33

50

39

28

-- 11

-- 6

April

31

28

26

28

43

44

-- 12

-- 16

May

24

12

47

50

29

38

-- 1

-- 26

June

33

19

44

54

23

27

+10

-8

July

33

14

48

55

19

31

+14

-- 17

August

28

13

36

51

36

36

-- 8

-- 23

September

46

33

38

55

16

12

+30

+21

October

41

37

42

42

17

21

+24

+16

November

52

33

37

50

11

17

+41

+16

January 2010

58

42

33

49

9

9

+49

+33

February

50

52

41

37

9

11

+41

+41

March

58

38

38

55

4

7

+54

+31

April

44

36

46

52

10

12

+34

+24

May

43

26

44

66

13

8

+30

+18

June

49

33

37

55

14

12

+35

+21

July

36

30

47

57

17

13

+15

+13

August

31

31

42

53

27

16

+4

+15

September

43

41

40

40

17

19

+26

+22

October

40

31

47

60

13

9

+27

+22

November

44

41

46

52

10

7

+34

+34

January 2011

49

43

38

50

13

7

+36

+36

February

50

42

39

49

11

9

+39

+33

March

38

40

47

48

15

12

+23

+28

April

44

35

43

52

13

13

+31

+22

May

31

36

56

46

14

18

+17

+18


2 Order intake

Month

UP

SAME

DOWN

UP/DOWN Difference

 

UK

Export

UK

Export

UK

Export

UK

Export

January 2009

18

20

20

32

62

48

-44

-28

February

18

21

31

29

51

50

-- 33

-- 29

March

11

18

28

42

61

40

-- 50

-- 22

April

21

30

23

33

56

37

-- 37

-- 7

May

20

5

35

46

45

49

-- 25

-- 44

June

39

19

28

49

33

32

+6

-13

July

37

22

26

42

37

36

0

-- 14

August

33

22

23

41

44

37

-- 11

-- 15

September

51

34

26

43

23

23

+28

+11

October

40

23

43

56

17

21

+23

+2

November

34

22

39

44

27

34

+7

-12

January 2010

47

47

30

39

23

14

+24

+33

February

45

42

35

44

20

14

+25

+28

March

54

41

29

41

17

18

+37

+23

April

49

31

30

49

21

20

+28

+11

May

39

23

32

55

29

22

+10

+1

June

46

29

33

48

21

23

+25

+6

July

34

40

39

40

27

20

+7

+20

August

22

25

44

48

34

27

-12

-2

September

38

35

38

39

24

26

+14

+9

October

38

28

34

54

28

18

+10

+10

November

43

34

31

46

26

20

+17

+14

January 2011

57

45

22

42

21

13

+36

+32

February

46

47

29

32

25

21

+21

+26

March

41

38

43

43

16

19

+25

+19

April

39

36

35

45

26

19

+13

+17

May

40

35

46

46

14

19

+26

+16

 3 Jobs in the UK

Month

UP

SAME

DOWN

UP Ė DOWN

January 2009

9

59

32

-23

February

0

67

33

-- 33

March

0

74

26

-- 26

April

2

65

33

--31

May

8

66

26

--18

June

8

71

21

-- 13

July

12

61

27

-- 15

August

8

70

22

-- 14

September

11

75

14

-3

October

19

56

25

-6

November

9

80

11

-2

January 2010

15

75

10

+5

February

18

65

17

+1

March

18

75

7

+11

April

19

73

8

+11

May

20

73

6

+14

June

20

72

8

+12

July

25

67

8

+17

August

28

65

7

+21

September

21

68

11

+10

October

21

71

8

+13

November

21

69

10

+11

January 2011

27

64

8

+19

February

32

64

4

+28

March

31

61

8

+23

April

50

48

2

+48

May

28

69

3

+25

4 Investment Activity

 

 

Month

 

Investment stopped

Plans deferred

Developing projects

Investing in all areas

Investing in staff

Other

January 2009

10

28

40

6

8

8

February

27

31

17

4

17

4

March

31

22

25

10

6

6

April

28

28

32

5

2

5

May

22

28

35

6

4

6

June

25

34

22

9

9

1

July

22

30

35

6

4

3

August

30

19

26

11

5

9

September

12

22

30

20

12

4

October

25

17

29

8

17

4

November

10

27

30

3

25

5

January 2010

11

13

32

17

22

5

February

13

19

26

13

19

10

March

3

18

32

13

22

12

April

9

14

31

7

25

14

May

12

12

31

17

14

14

June

11

6

35

22

20

6

July

2

14

21

51

4

8

August

8

6

36

34

10

6

September

7

9

39

26

15

4

October

9

2

37

27

17

8

November

4

11

31

34

13

7

January 2011

8

6

29

43

12

2

February

2

5

41

32

9

11

March

7

8

26

33

15

11

April

2

8

26

46

12

6

May

6

8

23

36

19

8

 Notes:

  • choice of statements in full:
    1. All investment activity stopped
    2. Investment plans deferred
    3. Developing projects but not committing to them
    4. Investing in all areas of the business
    5. Investing in staff development and training but not capital investment
    6. Other

5 Capital Availability 2009-2011

Month

More Difficult

About the same

Easier

Difficult / easier Balance

 

Working

Investment

Working

Investment

Working

Investment

Working

Investment

January 2009

48

58

52

42

0

0

-48

-58

February

39

40

61

60

0

0

-39

-40

March

37

41

61

59

2

0

-35

-41

April

41

36

59

64

0

0

-41

-36

May

22

24

76

76

2

0

-20

-24

June

25

33

75

66

0

1

-25

-32

July

22

23

78

77

0

0

-22

-23

August

33

30

63

68

4

2

-29

-28

September

14

21

79

76

7

3

-7

-18

October

25

21

69

75

6

4

-19

-17

November

18

25

80

73

2

2

-16

-23

January 2010

14

23

80

74

6

3

-8

-20

February

9

8

88

89

3

3

-6

-5

March

12

10

82

90

6

0

obid windowtext .5pt;ms wiw1e;border-bo) .56right:solid wint .5pt; right:siftrpt'>

Agricultural Engineers Association joins Engineering and Machinery Alliance