The EU referendum result has taken the wind out of the sails of the UK’s precision engineers, according to Columbia Metals’ Q2 2016 survey of market conditions in the sector. Far fewer respondents now expect investment levels to rise and there is also reduced optimism about an increase in sales turnover in the next year.
“The decision to leave the EU has created uncertainty amongst precision engineers in the UK,” says David Stephenson, Managing Director of Columbia Metals. “It is apparent that investment plans are being reconsidered or put on hold as we go through a period of political restructuring and unknown economic risks. Those precision engineers with an export bias are experiencing a short-term boost due to the weakness of the pound, but Brexit is more broadly expected to slow down an already sluggish recovery in the manufacturing sector.”
Columbia Metals carried out its survey in June 2016 with precision engineering companies in the oil & gas, defence, aerospace and motorsport industries.