Domestic demand continues to drive UK automotive growth
WITH the General Election now just a fortnight away, the direction of future industrial policy is becoming of major interest to Britain’s manufacturing sector.
One industry in particular is monitoring events with interest as it has spearheaded the renaissance of the sector in the UK in the past couple of years.
That sector is Automotive and all next week TheBusinessDesk.com will be focusing on the future direction of the industry in a special online supplement compiled in collaboration with Lloyds Bank, MHA Bloomer Heaven and Irwin Mitchell.
The supplement will focus on what the industry wants to see from the next Government, what opportunities might lie ahead for the hundreds of SMEs working in the supply chain and what steps are being taken to bridge the skills gap that threatens to stall the long term growth of the sector.
With so much of the West Midlands economy depending on the growth of the industry, it is vital that all possible efforts are made to ensure it remains healthy.
Latest figures from The Society of Motor Manufacturers and Traders show that the industry continued to grow in March, with output rising by almost 2% on the same month last year.
Production levels saw 144,893 cars built in the UK last month – the best March since 2006. Manufacturing output for the domestic market, meanwhile, rose almost a quarter, reflecting continuing strong demand for new cars in the UK.
The figures come as new analysis by the SMMT reveals that productivity in UK automotive manufacturing is at an all-time high. Looking at the past five-year period, 11.5 vehicles were produced a year for each person employed in the industry. For the period from 2005 to 2009, the figure was 9.3 vehicles produced per employee per year.
Mike Hawes, SMMT Chief Executive, said: “‘Built in Britain’ is more than just a brand: our automotive industry is increasingly competitive on a global scale. The latest production figures are yet more evidence of that, and with £1 billion worth of fresh manufacturing investments announced by three UK manufacturers in March alone, the future is optimistic.
“Productivity figures prove that the UK is not only making a diverse range of vehicles which are in high demand around the world, but that manufacturers, supported by a flexible workforce, are producing them more efficiently than ever.”
In the domestic market, 44,339 vehicles were produced (March 2014: 33, 211), an increase of 24.5%. For export, there were 103,554 vehicles produced (March 2014: 108,947), a drop of 5% but better than the average decline for the first quarter.
For the year-to-date there have been 402,193 vehicles produced, a fall of 0.6% on the same period last year. Export demand dropped by almost 7% over the quarter, nevertheless, more than 73% of all cars manufactured in the UK are destined for overseas markets.
