Sorry to hear that.
It happens at this time of year because 6 months of accounts from April convince the bean counters to pull the plug. It's nothing personal or even a reflection on the people doing the work, just an arbitrary number that makes things look neat and tidy.
There is a huge skills shortage in engineering, so I would hope you'll find something. Don't get too caught up in your exact skills. You may be a left hand widget designer, but given the shortages you've a good chance at anything where there is a thingy involved and once you've got 6 months work on right hand whatsits the CV is getting better and better. The only ones I'd avoid are the dross jobs on fittings, seals and consumables that they advertise as engineering but are really for double glazing salesmen. Recruitment agencies are unfortunately hopeless with engineering jobs, so if you know competitors of your former employer go direct, they'll be happy to avoid the fees and the useless filtering the agencies apply.
Good luck
Andy