The Voice of SME's in Engineering

BANK OF ENGLAND SURVEY RESULTS - SEPTEMBER 2019

ENGINEERING INDUSTRIES ASSOCIATION – the voice of SMEs in Engineering

I attended a Bank of England meeting on 24 September 2019 and presented the results of our recent survey among SMEs in Engineering. In comparison with the survey last year (21 September 2018) the following trends are apparent:

  • Business Confidence is approximately the same
  • Overall Growth is approximately the same
  • UK Demand is weaker
  • Export demand is weaker
  • The number of people employed is approximately the same
  • The average increase in pay per employee is still mainly 0-2% but there is some increase in the 2-4% range
  • There are still skill shortages
  • 64% of survey expect to increase prices in the 2% range compared with 46% last time
  • Investment intentions are approximately the same

Member comments are attached, but the main concern is the uncertainty of Brexit and this is affecting their future planning and investment. The sooner the matter is resolved the better.

  1. A No Deal Brexit would increase cash requirements for stocks in house and in transit. Banks and alternative lenders should be prepared to assist.
  2. The Department for International Trade should increase the budgets for SMEs under the Tradeshow Access Programme (TAP), this would be an excellent investment and increase the exports of SMEs to countries outside the EU.
  3. A No Deal Brexit would require an increase in paperwork and regulation. Through your membership of the EIA, you can access the Institute of Export & International Trade’s Technical Helpline for any queries relating to how Brexit could impact your business. All you need to do is contact us at head.office@eia.co.uk with your enquiry and we will then forward the Institute’s advice back to you.

Kind regards
Sir Ronald Halstead
EIA
President