Tool making industry key to manufacturing recovery
The machine tool industry remains key to the
revival of all form of industrial production in the UK and is
vital in securing the chain linking users and equipment providers
in the machine tool industry.
Many tooling suppliers in the UK and Europe are running out of
cash because of the major downturn in the automobile business,
which is further exaggerated because of slow payments from car
makers. The average time lag between payments is between 30 days
up to 180 days which under normal conditions is ok, but in the
current climate suppliers are finding it increasingly difficult
to raise short term funding as the Commercial banks have more
or less frozen lending to suppliers because of the perceived
However figures from Tokyo show that output
in May rose by 5.7 percent which is the third consecutive month production
has increased for the auto industry. This give glimmers of hope to suppliers,
but there is a long way to go until anything like normal production figures
The Ford motor company which has not been supported by U.S government funding
reported a 10.9% drop in sales in June, which is better than General Motors
(GM) which posted a 33.6% decline in U.S. sale in June.
Manufacturing output in the UK continued to decline in March this year but
this was not as severe as expected with output only down 0.1% month on month
which is the smallest fall for 13 months.
The trade deficit also narrowed to £2.5bn in March,
compared to £2.8bn in February.
If you need a world class tool
makers Sevic engineering will be able to help. They are based near Cardiff
in the UK and offer a full range of tool making services.