Capacity

A fall of 6 per cent of those working at full capacity has been recorded since the previous quarter. Of those not working at full capacity, 72 per cent cited lack of orders as a restriction on increasing capacity, 26 per cent cited financial reasons and 21 per cent shortage of skilled labour, a further 13 per cent cited interest rates. Other main reasons given included bad/late payments by clients, seasonal variations, the change in status of self-employed/tax changes, the Black Economy/VAT, and cash flow restrictions, (Table 6).

Table 6 Percentage of firms operating at 100%, 75% and 50% or less, 1988-1997
	100%	75%	<=50%
1988	65	24	11
1989	51	29	20
1990	33	30	37
1991	17	29	54
1992	17	31	52
1993	27	27	46
1994
Q1	29	26	45
Q2	27	31	42
Q3	37	31	32
Q4	37	31	32
1995
Q1	38	30	32
Q2	35	32	33
Q3	43	28	29
Q4	39	27	34
1996
Q1	36	31	33
Q2	44	29	27
Q3	50	26	24
Q4	-	-	-
1997
Q1	42	28	30
Q2	44	29	27
Q3	62	22	16
Q4	56	28	16

Reports from Regions

In the Midland and Eastern Counties regions only, the percentage of members reported to be working at full capacity has risen. The latter of which has 79 per cent of member firms now working at full capacity, (Table 7).

Table 7 Percentage of firms operating at 100%, 75% and 50% or less by region
	3rd Quarter 1997			4th Quarter 1997
	100%	75%	<=50%	100%	75%	<=50%
Northern	52	33	14	52	27	19
North West	59	23	18	42	33	25
Yorkshire & Trent	75	13	13	60	26	14
Midlands	44	33	22	52	29	19
Eastern	65	9	26	79	15	6
London	59	12	29	45	38	17
Southern	66	19	16	52	39	10
South West	71	21	8	59	20	21

First posted: 11 January 1999. Last modified: 27 July 1999.