Skills shortages are the major concern of the engineering sector and the problem is only set to get worse as 74% of firms reported growth in workload during 2007.

The figures, from the 2007 Association of Consultants and Engineering's State of Business Report, reveal that a lack of skilled entrants to the industry is top of the list of concerns for the second year running, with the largest firms feeling the pinch most acutely. Delays in payment by private clients and low fee levels were also highlighted.

The report into the health of the consultancy and engineering sector shows that almost three quarters (74%) of firms responding reported a good year in 2007, with workloads increasing by over 5% for more than half of them (56%). The largest and most profitable sector continues to be private housing, with 70% of firms operating in it: private offices came a close second with some 69% of consultants working in the area. The least profitable sectors are power, telecoms and aviation.