Broker lauds engineering prospects

THE BRITISH engineering industry has undergone a 'quiet revolution' that leaves it strong and internationally competitive, according to analysts at the stockbroker Albert E Sharp.

Tim Bennett and John Dean believe that UK engineers are better placed than at any time over the past 20 years.

British engineers have been particularly successful at gearing themselves to service Japanese car plants with components, sometimes ahead of Japanese rivals.

The two wrote a research document covering companies like British Steel, GKN, British Aerospace and Vickers.

Despite well-known difficulties among some of the UK engineering companies examined, the analysts wrote: 'The engineering sector will emerge stronger from this recession with international opportunities not available in previous upturns.

'Instead of just fighting their own corner in the UK, and looking nervously over their shoulder at the inroads foreign competition might make, they are out pitching for new business in international markets, realising they have a competitive edge.'

Sharp said that engineers are happy with the exchange rate mechanism because they can compete successfully at present currency levels.

However, expansion is being held back by the associated problems of high interest rates.