Electric vehicles set to spark new job opportunities in the Midlands auto sector
THE use of innovative new technologies in the automotive sector is likely to supply some of the thousands of new job opportunities in the industry in the West Midlands, experts have said.
Automotive manufacturers are keen to develop the emerging carbon and electric vehicle technology markets in order to supply future growth.
Lloyds Bank in its new automotive study, Fuelling Growth, said nearly two-thirds (63%) of businesses in the sector intended to upskill or change processes to develop products for these ‘green’ industries, and just over three-quarters of respondents to its new survey plan to invest in this area over the next two years.
The sector also appears ready to move from defensive corporate strategy with those surveyed planning to invest, on average, as much as 38% of their annual turnover into their businesses over two years. On average, firms will dedicate more than a fifth (21%) of their annual turnover to R&D spend by the end of 2016.
David Atkinson, Head of Manufacturing, SME, Lloyds Bank, said: “It is clear that automotive manufacturers are looking to the future with confidence, with many having earmarked funds to reinvest into their businesses. Replenishing R&D budgets to maintain Britain’s competitive edge in the global market, particularly in the development of electric and low emission technology, will be at the top of their agenda, while on-shoring is a trend that clearly has further to go.
“There is no denying that the industry faces some challenges. Most respondents feel the global economy is the greatest concern for the automotive sector. But the industry has emerged from tough economic times in remarkably good condition, putting many businesses in a strong position to overcome hurdles in the future.”
Mike Hawes, Chief Executive, The Society of Motor Manufacturers and Traders, said: “We welcome the findings from the report, which is further evidence of the renaissance in UK automotive manufacturing seen over recent years.
“The UK has some of the most productive vehicle manufacturing operations in the world and a supply chain with the potential to compete anywhere. We want to see this recent domestic success develop further, to help encourage the re-shoring of the supply chain and the growth of UK based companies’ international markets. To ensure this growth continues, we must maximise the UK’s structural advantages; flexible labour, design and engineering expertise and a globally competitive business environment.”
The study has predicted more than 18,600 new jobs could be created in the Midlands automotive sector over the next few years as the industry continues to evolve.
