Tool making industry key to manufacturing recovery


News: 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 risks involved.

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 are achieved.

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.

Tool Makers




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