Engineering news
A £24 million government fund is set to give UK-based automotive suppliers a boost as they look to grow their businesses in line with the automotive manufacturing sector.
The Tooling Funding Programme, announced by business minister Michael Fallon at the Automotive Council’s Meet the Buyer event at ExCeL London, will help fund component manufacturers to design, develop and manufacture new tooling.
Fallon said: “Government and industry are working together to boost UK supply chain competitiveness and growth. Our automotive industrial strategy sets out how we will secure the long-term future of the sector – by growing the UK share of the value chain, and by getting ahead of the game in research and development for the vehicles of tomorrow.
“This fund is a practical example of how we are working in partnership with industry to break down barriers to growth. Manufacturing is driving the UK’s recovery and our vibrant automotive sector is leading the way.”
UK automotive manufacturing has seen steady growth this year, with car output predicted to reach record volumes by 2017. However, Fallon says the sector must develop a more competitive domestic supply chain to keep pace with this growth, pointing to the fact that UK-built cars currently only feature around 35% UK-sourced components.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “A competitive supply chain is a vital ingredient in a successful automotive industry. Yet many UK suppliers have found it difficult to access funding, restricting their ability to exploit the local opportunities created by the expanding vehicle manufacturing sector. The new Tooling Funding Programme is a welcome initiative which should help UK component manufacturers compete and win new business.”
Joe Greenwell, Automotive Investment Organisation chief executive, said: “Our car manufacturing abilities have global appeal with 80% of our total output exported last year. The challenge is to increase the size of the UK-based supply chain, which could bring in an extra £3 billion a year to British firms.”