Micro and cottage industries in Coimbatore, particularly in the engineering sector, are facing significant challenges threatening their survival. Approximately ten units have closed in the past year due to reduced job orders from larger industries investing in automation. Factors contributing to this crisis include labor shortages, high raw material costs (5% higher than Gujarat), and rising power costs and wages in Tamil Nadu, making competition with northern states difficult. While some units supplying new sectors are performing well, those serving the pumpset sector are most affected.