Aerospace downturn hits SW England

A BEMA product story

Edited by the Engineeringtalk editorial team Mar 18, 2002

BEMA, the Bristol and Western Engineering Manufacturers' Association, has released the results of its State of Trade Survey for 2002.

BEMA, the Bristol and Western Engineering Manufacturers' Association, has released the results of its State of Trade Survey for 2002.

The annual survey targets the organisation's 300 strong membership of engineering and manufacturing companies in the South West of England and South Wales, and provides a useful barometer to help with economic and policy planning for the industrial sector throughout the region and the UK.

This is the first BEMA survey since the terrorist attacks of 11th September impacted on the aerospace engineering sector - one of the region's main employers.

The blow felt is clearly illustrated with 60% of companies reporting an average drop in sales of 20%.

John Whitlow, Director of BEMA, stressed his concerns: "The initial impact of the reduction in aerospace spend was well reported at the time, but now, six months on, it's important that we stress again the legacy of the impact on engineering businesses and jobs.

The main concern revealed by the survey is that whilst 28% of respondents have already made redundancies, a further 56% are currently evaluating first-quarter performance for 2002 before making any staffing decisions".

The future is not however all doom and gloom.

One of the more positive findings is that 50% of companies that responded intend to diversify into other markets.

Whitlow added: "This is encouraging news, as dependence on a small number of large customers or disproportionate reliance on single market sectors have historically proved devastating when the impact of downturns in the global economy have filtered through to manufacturing.

The recent impact on the aerospace sector has clearly demonstrated the importance of expanding one's client-base to mitigate against such risks".

The news that such a significant percentage of companies intend to diversify coincides with the imminent launch of the Advanced Engineering Skills Project.

The project, a partnership between BEMA, EMTA, EEF Western and WEAF, is designed to help companies by identifying and addressing skills shortages that may be holding companies back from fulfilling their potential.

Whitlow continued: "With a third of companies stating that a lack of skills had adversely affected their order books, coupled with the need for training to help diversifying companies exploit new markets, the subsidies available through the project will prove extremely beneficial to many engineering and manufacturing companies".

BEMA has also been working closely with the South West Regional Development Agency (SWRDA) on its Rapid Response programme to help and support companies who have had to make redundancies.

In addition, to catch companies before they need to take drastic steps, John Whitlow's team has, over the past year, been highly proactive in visiting member companies to ensure that they take advantage of any support and funding that they may be eligible for.

On this issue Whitlow asserted: "It is important to stress to all engineering and manufacturing companies throughout the UK that if you are a member of a trade body, you should make use of the services they provide.

All too often companies join up and file away their membership forms until renewal time.

It's worth revisiting the paperwork or calling your organisation, as they should be able to provide valuable assistance and advice, and information on governmental and European aid that may be available - in both the good and bad times".