Manufacturing firms in the UK are seeing falling demand towards the end of the year as a result of slowing growth in the global economy, according to industry body the EEF.
It now expects the sector to have contracted by 0.1% this year, and has forecast growth of 0.8% in 2016.
The EEF said that weaker demand from developed and emerging economies has become a bigger problem, which is having a knock-on effect on exports.
It also pointed to the effect slowing demand has had on jobs. With oil prices falling due to oversupply, there is spare capacity in the industry leading to job cuts. There have also been job cuts in the steel industry.
Separately, research from Lloyds Bank found that car manufacturers have also lowered growth forecasts for next year.
EEF's chief economist Lee Hopley described the end of 2015 as "disappointing". She said that some aspects of the Spending Review were "positive" for the sector, but stressed that it is still important for the government to maintain the UK as a competitive market for manufacturing.