The Voice of SME's in Engineering

EIA MEETING AT THE BANK OF ENGLAND - 12TH MARCH 2020

ENGINEERING INDUSTRIES ASSOCIATION – the voice of SMEs in Engineering

The scheduled Bank of England meeting on 12 March 2020 was postponed due to the coronavirus pandemic. However the results of our recent survey among SMEs in Engineering is as follows and these were forwarded to the Bank of England. In comparison with the last survey (24 September 2019) the following trends are apparent:

  • Business Confidence is higher
  • Overall Growth is higher
  • UK Demand is stronger
  • Export demand is stronger
  • The number of people employed is approximately the same
  • The average increase in pay per employee is still mainly 0-2%
  • There are still skill shortages
  • 68% of survey expect to increase prices in the 2% range compared with 64% last time
  • Investment intentions are higher

Our members show continued concern over Brexit.

Since the survey we are seeing the problems emerging from the impact of the coronavirus. This is becoming a major issue for our economy and the health of our citizens. SMEs in engineering are important suppliers of goods and services for our manufacturing base and needs of our consumers. We welcome the financial support offered by the Chancellor which will significantly help the potential cash flow problems of our members. However we are concerned that the Banks will not pass on this help or insist on restrictions such as personal guarantees and high interest rates which will delay or negate the plan.

Kind regards
Sir Ronald Halstead
EIA President