Strong start to 2007 by the manufacturing technology sector forecast to continue
June 28th 2007

The results of the Manufacturing Technologies Association Quarterly Trends Survey for the 1st quarter of 2007 shows continued improvement in order intake growth and strong business confidence reaching its highest level since the last period of 2004.

The key points of the survey, which had 103 respondents from across the Association, were:

• The percentage balance for business confidence (see note 2) in the 1st quarter of 2007 rose to +29%, from +8% in the 4th quarter of 2006. All of the sections reported a positive balance.

• Order intake was +3.2% higher than in the 4th quarter of 2006, although the Machinery Manufacturers’ Section reported a significant quarter-on-quarter reduction in business.

• Led by expectations of a bounce back in the Machinery Manufacturers section, the respondents predict that orders in the 2nd quarter of 2007 will be +3.2% higher than in the 1st period of the year.

“Our members were confident about the business situation in the early part of this year and this confidence suggests that the fall in orders reported in one of the sections is only expected to be a temporary effect," commewnts Geoff Noon, Statistical Manager at the MTA. "It is clear from other parts of the survey that issues such as capacity (for manufacturers) or supply (for importers) are the main constraints on activity at the moment. A shortage of skilled labour is also an important problem”.

MTA has also released, for its members, an update of its forecasts for the UK market for machine tools. This points to continued growth in demand for machine tools through 2007, with the UK market expected to be +12% higher than in 2006. While this is slower than the growth rate in 2006 (+29%), the combined effect of these two years will take the market back to around the level last seen in 2000.

For further information, just  click here.

More articles from The Manufacturing Technologies Association: