By Daniel Hunter
The UK automotive supply chain could win £3 billion of additional new business in the UK according to the latest data published by the Automotive Council.
The 2012 survey shows that the purchasing spend of the vehicle makers who responded to the survey is £23.6 billion. This is an increase of £3 billion on 2011.
With auto manufacturers spending a third of this figure, £8.4 billion, 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 2.5 million engines a year, one of the biggest opportunities identified by value, was engine parts at £540 million.
Speaking at the Advanced Engineering, Automotive and Aerospace British Business Embassy, Business Secretary Vince Cable and 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."
Professor Richard Parry-Jones who also co-chairs the Automotive Council said:
“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.”
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