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News Release from: Institution of Mechanical Engineers
Edited by the Manufacturingtalk Editorial
Team on 12 August 2003
Euro-enthusiasm amounts to 70%, reports
IMechE
Though manufacturing experts remain pessimistic, enthusiasm for joining the Euro takes an unexpected upturn with over 70% believing it could help recovery reports the UK's IMechE.
As manufacturing experts remain pessimistic that there will be significant improvement in output over the next year, enthusiasm for joining the Euro takes an unexpected upturn with over 70% believing it could help in the recovery of the sector In the second Institution of Mechanical Engineers (IMechE) Quarterly Manufacturing Survey, 71% of manufacturing and engineering companies indicated either no rise or a reduction in sales performance in the last quarter with only 35% believing that they will increase their sales in the next 3 months
This article was originally published on Manufacturingtalk on 16 Nov 2005 at 8.00am (UK)
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Regionally, the South East suffered a significant drop in confidence with 81% believing sales will remain the same or decrease in the next quarter.
In contrast, the South West revealed a 29% to 40% rise in confidence from the previous survey.
There is continuing long term pessimism from 71% of respondents who believe the sector will stagnate or shrink over the next 12 months, with 87% predicting further possible staffing reductions in the near future.
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The survey also asked whether introducing the Euro would have a positive or negative effect on UK manufacturing.
Of the respondents that expressed an opinion, 73% stated that their company felt the Euro would be of benefit to UK Manufacturing.
Professor Chris Taylor, President of the IMechE, commented "Although sales performance figures have improved slightly in the last quarter (Q1 - 26%, Q2 - 29%), this provides little comfort as the forecast for both the next quarter and year is again unenthusiastic.
"This pessimistic outlook appears to be fuelling the opinion that moving into the eurozone could be a possible solution to the current issues in UK manufacturing.
A large percentage of survey respondents believe the Euro would be a positive measure, bringing the UK in line with the rest of Europe and providing a more level playing field for UK manufacturing to compete in Europe.
However, we still need more indication from government on our short term prospects of joining the zone as continuing indecision is not helpful to manufacturing or the UK economy as a whole.
What is needed from government is strong direction and economic reasoning and less worry on spin and public opinion." - more - The acceptance of the Euro is in contrast to the results of the EEF and CBI surveys released last month, which found a growing cynicism towards the single currency.
Professor Taylor continued, "The fear of declining inward investment, sales orders and productivity is at the heart of the Euro debate for manufacturing.
Government should work with manufacturing to encourage greater investment in research and development so the UK can continue to be a leader in manufacturing, inside or outside the eurozone." The results of the Quarterly Survey were gathered from 977 senior IMechE members working within the Manufacturing industry in July 2003.
The next survey will be carried out in October.
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