Component firms told to be forward thinking

AUTOMOTIVE component suppliers have been told to embrace new opportunities if they want to thrive in the recovering economy.

While global demand in the automotive sector is showing signs of emerging from recession, there is still a long way to go before things return to normal.

With the Government’s scrappage scheme due to end this month demand may see a decline forcing any recovery to stagnate.

In an effort to avoid this, manufacturers in the West Midlands have been urged to see opportunities available in the emerging low carbon technology sector.

The low carbon vehicle marketplace is estimated to be worth around £3 trillion and yet the supply chain is almost non-existent.

Delegates attending an automotive forum in Birmingham yesterday were told that suppliers who adapted their products now or were innovative enough to create new ones stood a far greater chance of staying ahead of the competition.

The event, organised by supply chain support network Accelerate in partnership with Manufacturing Advisory Service-West Midlands (MAS-WM) and Business Link West Midlands, also discussed opportunities which were available in advanced manufacturing, with particular focus on opportunities in rail, nuclear and renewable energies.

On a more practical level, companies attending urged to apply for the R&D Tax Credits, which can be backdated for over two years and offer manufacturers the chance to receive payments for work around new technical products and processes.

The supplier forum was the first event of its kind to be held this year. Previous forums last year helped to divert much needed loans to component firms struggling to survive due to declining order books.

The 50 delegates who attended the event, held at Birmingham Chamber of Commerce, also heard presentations from MAS-WM Chief Executive Simon Griffiths and an introduction into research and development tax credits

The next supplier forum will be held in March at the Birmingham Chamber of Commerce.

Rachel Eade, Accelerate Programme Manager, commented: “It was another excellent turnout from suppliers and the emphasis was very much on embracing new opportunities as the automotive sector continues to emerge from the downturn.”