Auto suppliers must grasp all opportunities for business – BIS
AUTOMOTIVE suppliers should actively pursue every possible business avenue and opportunity that arises in the current climate, a leading analyst has said.
Speaking at an open forum event into the current state of the automotive industry Phil Davies, Automotive Analyst for the Department for Business, Innovation and Skills, said suppliers had to ensure they were in constant dialogue with vehicle manufacturers or their immediate supplier and should make sure their voices were heard in government.
Mr Davies was speaking at an event at the National Motorcycle Museum in Solihull, organised by the Society of Motor Manufacturers and Traders.
He said the industry stood to gain considerably from the current investment motor manufacturers were making in the UK and for the estimated £3bn of opportunities currently awaiting UK-based component suppliers.
The forum came as new figures showed that car output fell 8.9% in August, which is traditionally one of the quietest months of the year for the industry. Overall production remains 12.7% ahead of this time last year.
Commercial vehicle output rose 18.3% in August, but fell 5.5% during the first eight months of 2012, while UK engine production increased 12.5% in the month and is 1.5% up on the first eight months of last year.
Paul Everitt, SMMT Chief Executive, said: “UK vehicle production is 11.2% up this year, but down 7% in August. Volumes are traditionally low and variable in August as manufacturers use the holiday period to undertake important maintenance and facility upgrades.
“Continued weak demand in Europe is a concern, although significant new investment and stronger demand from better performing global markets will ensure UK output continues on an upward trend.”
However, the forum was determined to be optimistic.
Ian Henry, Director of AutoAnalysis, told the event the recent, high-value investment in manufacturing facilities and R&D by a number of vehicle manufacturers showed the faith they had in the UK and set the foundations for a stronger UK automotive supply base.
Mr Everitt, who also spoke at the event, said there was a need for a formalised industrial strategy to guarantee the long-term success of the sector; a move that would ultimately help to strengthen the UK economy.
He outlined six clear priority areas that a compelling automotive sector strategy should focus on, emphasising that a formalised strategy should look beyond the boundaries of a single party, receiving government-wide backing.
