Optimism has “unexpectedly” returned to Scotland’s engineering sector though “significant challenges” remain, a report today reveals.

Releasing its final quarterly review of 2022, industry organisation Scottish Engineering said its optimism measure had turned positive for the year end after a neutral position in the previous quarter. It said this was underlined by a seventh consecutive quarter of positive order intake and output volume.

While the results were welcomed by Scottish Engineering’s chief executive, Paul Sheerin, he pointed to significant challenges remaining for the sector with a “ticking clock” counting down to the end of the current support package for energy costs, and difficulties in finding, recruiting and retaining skilled staff.

Scottish engineers warn of 'significant challenges' despite rebound in optimism