UK toolmaking orders are steady - for now

A GTMA survey shows the level of new orders among its toolmaking members is holding steady but future work recorded in order books is dropping.

The results of the latest GTMA survey, for first quarter 2005, show the level of new orders holding steady with 38% of respondents reporting similar levels to the previous quarter and 31% reporting an increase despite significant rises in material and energy costs.

There was, however, a reduction in future work on order books down from 11.8 weeks to 8.7 weeks The survey shows 78% of toolmakers reporting an increase in energy costs, both quarter-on-quarter and compared to the same quarter in 2004, with an average price increase of 11.5%.

A similar picture emerged regarding material prices, where 83% of respondents reported an increase, with the average price increase being 17.5% GTMA CEO Julia Moore commented: "These figures show how successfully UK toolmakers are continuing to win orders despite enormous pressure on their own costs, however, the situation is increasingly fragile as is shown by the decreasing order books".

"Now the election is behind us, and we have a new face at the DTI, we very much hope that the Government will find the time and the inclination to give our manufacturing base the support it deserves.".

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