The UK automotive supply chain could win GBP3bn of additional new business in the UK, according to country’s Automotive Council.
The 2012 survey showed the purchasing spend of the vehicle makers who responded to the survey is GBP23.6bn, an increase of GBP3bn over 2011.
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With auto manufacturers spending a third of this figure, GBP8.4bn, on UK suppliers and actively wanting to buy more in the UK, the 2012 survey looks at where UK companies can win a bigger share of the business.
Sourcing opportunities go across the range of vehicle components from high value forgings and castings to consumables like batteries or interior parts. With the UK producing 2.5m engines a year, one of the biggest opportunities identified by value, was engine parts at GBP540 million.
Fourteen companies from across the UK vehicle, engine and construction equipment sectors participated in the survey and follow-up actions.
The 2011 Office of National Statistics (ONS) trade figures showed that, while the UK exported GBP4.7bn of auto parts, it imported GBP10.8bn of auto parts.
UK government business secretary [minister] Vince Cable, who is also co-chair of the Automotive Council, said: “The strength and depth of the supply chain has not been keeping pace with the level of investment we’ve recently seen by vehicle manufacturers in the UK. Growing capacity in the automotive supply chain or bringing it back from overseas is a priority.
“Through the Automotive Council, we are working together to make UK supply chain companies aware of how much more business they could win in the UK.”
Fellow council co-chair Richard Parry-Jones added: “As well as looking at the here and now, the 2012 survey shows that, with more low carbon vehicles coming onto the roads, this is creating new supply chain opportunities as well. Capability assessments show that UK technology providers are well placed to benefit from this growing demand particularly in areas such as energy storage and intelligent mobility.”
Editor’s notes: Cable and Parry-Jones were speaking during the British Business Embassy – a series of 18 global business summits organised by UK Trade & Investment during the Olympic and Paralympic Games to showcase British industry and promote international business opportunities.
Growing the UK automotive supply chain – the road forward 2012 update can be found at http://www.bis.gov.uk.
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