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Fat fuel bills hit engineers
Four-fifths of manufacturers have suffered fuel bill surges of at least 30 per cent over the past year, according to a survey from The Engineering Employers’ Federation (EEF). And a staggering 92 per cent of 232 companies polled in its annual energy survey stated that, unsurprisingly, energy costs headed north in the last year. The subsequent margin squeeze means many will be forced to shed jobs this winter. Of the companies asked, 80 per cent said gas bills had spiked at least 30 per cent higher, whilst 76 per cent complained of a similar ramp up in electricity bills – those figures compared with 54 per cent and 53 per cent respectively in 2005. A third of the companies quizzed had attempted to stem the tide by changing supplier, although a number signed up for longer contracts with utilities to insulate themselves from further input hikes. According to EEF director Martin Temple, ‘the price of energy remains higher than it was this time last year, despite recent falls, and there’s little prospect of industry seeing any benefit for the foreseeable future.’ Despite the prevailing gloom, the energy boom signals good times ahead for some. Next month, watch out for figures from £302 million engineer Fenner, known for conveyor belting products that are used in mining and power generation. The company, which drove profits 183 per cent higher at the half year, recently delighted with news that annual figures to the end of August would hit management forecasts.
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