THE year 2000 has ended on a sour note for north west manufacturers with just under half those surveyed saying they laid people off in the final quarter.

The latest survey from the Engineering Employers' Federation shows some recovery in profit margins on the back of measures taken to raise competitiveness.

However, the pressure to keep costs down remains intense with reported prices in export and domestic markets down significantly on balance.

Jobs continue to bear the brunt with a massive 48 per cent of the 184 EEF member companies quizzed saying losses have been made. This compares with 24 per cent in the third quarter. Headline figures on total output volume were down on balance by 12 per cent with total new orders also down on balance by 18 per cent.

Regional spokesman Andrew Semple said: ''The engineering sector in the region is clearly continuing to adjust to increasing competitive pressures and our survey indicates the inevitable pain of this process.

''Capacity remains under utilised and we have seen a number if companies continuing to shift production overseas.''

''Engineering firms with a view to the future are looking to invest and to raise the value of their production and there is confidence in the higher value added areas.''

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