Auto supply firms outline what the Industrial Strategy must do for them

A greater emphasis on skills development and a recognition of the importance of the SME sector to sustain growth should be key areas of focus for the government’s new Industrial Strategy, automotive supply firms in the West Midlands have said.

The future of one of the Midlands’ most important industrial sectors is currently the subject of a major consultation ahead of the implementation of the new strategy.

Drive Midlands, in conjunction with the Department for Business, Energy, Industrial Strategy (BEIS) and TheBusinessDesk.com, is coordinating the response so the strategy can be fine-tuned to meet the needs of the businesses operating within the supply chain sector.

Firms taking part in a consultation event said the automotive industry was now very different from a decade ago just before Britain entered recession and it now had new needs.

The onset of Industry 4.0, battery technology and a move towards connected and autonomous vehicles (CAV), which involves the greater use of technology not just by original equipment manufacturers (OEMs) such as the major carmakers, but by supply firms as well, means the need for new skills is of paramount importance.

However, representatives of the firms taking part in the event, which included GKN, Salop Design, Sertec, Gestamp, Frank Dudley and Tenneco Automotive, were all in agreement that traditional metal-bashing skills also needed to be taught as there was still a need for these skills in the supply chain.

Greater recognition of the value of apprenticeships should be developed, often above the university degree – not simply because it can develop the skills the industry needs but those taking part in training will have a secure job at the end of it and will not be saddled with high levels of debt from student loans.

Unfortunately, the firms said there was a reluctance from the education sector to promote this because it would jeopardise its own position.

All said the new Industrial Strategy had to fund a way of overcoming this self-interest if the wider needs of industry were to be satisfied.

While the strategy is naturally geared towards the major OEMs and mid-size firms, the businesses taking part in the consultation event said by far the greatest capacity for growth lay within the SME sector but this was being overlooked, possibly due to a lack of understanding regarding the needs of firms within the sector.

This had to change, said the various delegates.

The Industrial Strategy Green Paper, which is the basis of the consultation, covers issues such as regulatory barriers, trade deals, innovation and skills.

The document aims to increase productivity and drive growth across the whole of the UK, and sets out 10 strategic ‘pillars’ to underpin this new government approach.

They are:

1. Investing in science, research and innovation
2. Developing skills
3. Upgrading infrastructure
4. Supporting businesses to start and grow
5. Improving procurement processes
6. Encouraging trade and inward investment
7. Delivering affordable energy and clean growth
8. Cultivating world-leading sectors
9. Driving growth across the whole country
10. Creating the right institutions to bring together sectors and places

The feedback and questions will then be relayed to Government, helping it to shape future automotive strategy.

Drive Midlands is a sector-specific support programme developed with input from industry and led by Business Birmingham and other partners such as the region’s LEPs.

Firms can submit their views on the matter at the Department for Business, Energy and Industrial Strategy here