Almost 30 jobs lost as Dumfries engineering firm succumbs to pandemic and skills shortage

“This is terribly sad to see the demise of another manufacturing business in Scotland.”

Scotland’s engineering sector has suffered a blow after a Dumfries-based company trading for four decades closed its doors with the loss of almost 30 jobs.

Kellwood Engineering had been trading from the town’s Catherinefield Industrial Estate for many years in machining and metal fabrication, and more recently as a lighting consultancy. The director of the company, James Maitland, has appointed Donald McKinnon of Wylie & Bisset, the accountancy and business advisory group, as provisional liquidator.

Maitland, noting that the move has resulted in the loss of 27 employees, said: “The reduction of work available during Covid required us to cut our workforce and, since then, a shortage of skilled time-served engineers in the area has rendered it difficult to restore employee numbers to a sustainable level.”

Donald McKinnon of Wylie & Bisset: 'We are currently in discussions with a third party to take on part of the business and save some jobs.'

McKinnon added: “This is terribly sad to see the demise of another manufacturing business in Scotland with cheaper alternatives being found overseas. We are currently in discussions with a third party to take on part of the business and save some jobs.”

Scotland’s engineering sector has had a rollercoaster few years. Releasing its final review of 2023 in December, industry organisation Scottish Engineering said its scorecard showed an overall flat position compared to its early autumn review. Export orders turned positive in the fourth quarter. UK orders showed a very mild improvement but remained in negative territory, and output volume held steady give or take a single percentage point.

The industry body also noted that firms were becoming increasingly frustrated with the UK government’s “flip-flopping approach” to climate change. Scottish Engineering chief executive Paul Sheerin said: “Changes to planned timing for phase outs for gas boilers and internal combustion engine vehicles add to the lack of conviction that today’s commitments will be tomorrow’s plan.”

On a brighter jobs note, ABP Food Group said it had completed a £24.5 million investment in its beef processing facility in Perth. The investment includes a 2,800 square metre extension, along with significant refurbishment and upgrades. The development has created 80 jobs with an additional 42 jobs supported during the construction phase.

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