Manufacturer looks to impress buyers in first outing after flotation
THE newly-floated Autins Group will be spearheading the West Midlands presence at one of the automotive industry’s most important trade exhibitions.
British companies will be out in force at Automechanika Frankfurt this year, with more than 150 exhibitors from the UK, the most in the show’s 45-year history.
However, the Warwickshire group, which floated on AIM last month, will be out to grab some of the glory for itself in what is its first outing as a plc.
The group exhibited at the British equivalent of the Frankfurt event a few months ago.
It is especially keen to find customers for its new lightweight acoustic insulation, dubbed Neptune.
The company has invested £50m into a new manufacturing facility in Birch Coppice, Dordon, importing specialist machinery from South Korea in order to produce the material, which is predominantly used in the insulation of vehicles.
Its lightweight properties are increasing important for manufacturers looking to shed weight from their vehicles in order to make them more efficient.
The company is also keen to attract business from the rail, marine and aerospace sectors, where the OEMs share many of the same priorities as their automotive counterparts.
The firm’s appearance at the show comes as the Society of Motor Manufacturers and Traders (SMMT) publishes a new report identifying a £195m opportunity for UK aftermarket firms to expand in three major emerging markets.
The UK automotive aftermarket is thriving, ranking fourth in Europe and ninth in the world in terms of size, and turning over an annual £21.1bn. The sector supports 345,600 jobs and contributes £12.2bn each year to the economy.
And it is growing – in line with the number of vehicles in the UK, the sector’s value is set to rise to £28bn by 2022.
The UK also enjoys robust trade with other European countries, with Germany its largest market, followed by France and Spain. In fact, Germany purchases more components and accessories from UK-based parts suppliers than it does from any other country.
However, a new Frost & Sullivan report published by the SMMT, shows that international markets and in particular emerging markets, offer the biggest potential for growth.
International Opportunities for UK Aftermarket Companies shows that suppliers exporting to these regions can grow their businesses at rates four to five times higher than the annual 3% they can expect in the UK. The total global opportunity stands at some £500bn for aftermarket business.
The report explores the potential for growth in three key emerging markets: China, India and the GCC region of the Middle East. Together, these three aftermarkets are worth some £54bn – so the potential for growth is significant.
The SMMT said just by keeping pace with these markets’ natural growth, UK aftermarket companies could double their income to £195m over the next seven years.
The UK automotive aftermarket sector is part of a globally integrated industry which relies heavily on the tariff-free flow of goods across borders, with component sub-assemblies often sourced from a diverse range of countries. Further growth into new markets would benefit from new trade agreements, but that should not give reason for delay, says the SMMT.
Mike Hawes, chief executive, SMMT, said: “The UK’s aftermarket sector is one of the world’s most dynamic and the record attendance at Automechanika Frankfurt demonstrates the sector’s success and global ambition.
“To help companies exploit these opportunities, government must secure the competitive conditions that have allowed this export-led industry to thrive. This means tariff-free trade with our partners across Europe and further trade deals with emerging markets.”
