UK automotive supply chain in rude health, claims report
UK automotive supply chain in rude health, claims report
British auto component manufacturers sold 19% more products to UK vehicle makers in 2014 than in the previous year, according to a new report from the Automotive Council. Entitled Growing the Automotive Supply Chain ‒ The Opportunity Ahead, the report also identifies further opportunities for business expansion that could be worth £4bn annually.
With auto production in the UK having increased by over 50% since 2009, domestic suppliers are finding a new lease of life by slotting into a locally-sourced supply chain. Nifco, a plastics supplier based in Stockton, was facing closure in 2004; however, it rallied and built two new factories in 2012 and 2014. Last year saw the British-made Vauxhall Vivaro van go into production in Luton, which uses 40% UK-made auto parts compared to its predecessor's 16%.
Credit has been given to the Automotive Investment Organisation, which was set up in 2013 to attract increased foreign investment. Since its inception it has brought over £768m in investment to UK suppliers and manufacturers.
"Our automotive industry has seen a resurgence in recent years and that success means work of some £1bn has returned to the UK," said business secretary Vince Cable. "This is testament to the strength and capability of our supply chain manufacturers and will no doubt lead to new jobs and further growth. This has not happened by accident but is the result of government and industry working together through the Automotive Council to strengthen our supply chain, meaning an increasing number of parts made in this country are contained in vehicles rolling off UK production lines."
