Engineering news
The UK automotive industry is on track to break manufacturing records by the end of the decade, according to a new forecast report launched by The Society of Motor Manufacturers and Traders (SMMT).
The report, entitled The Future of UK Automotive Manufcturing in 2025 and Beyond, says that in five years' time, the UK will be producing more than two million cars per year, surpassing the current record set in 1972 of 1.92 million cars. Currently, annual output stands at around 1.5 million vehicles.
The company notes that key to the sector’s success is the ‘shift to premium’ – in other words, the increasing value of the vehicles made in – and exported by – British manufacturers. In 2010, 37% of UK car production was by premium manufacturers; this is projected to rise to 54% by 2020. This reflects increasing global demand for premium vehicles and benefits the whole economy, with more value generated for each vehicle exported. The UK is already Europe’s second-highest producer of premium cars, behind only Germany.
Alongside the rise in manufacturing is a predicted rise in employment in the automotive supply chain. The report states that up to 9,500 jobs will be created at source by vehicle manufacturers, which could generate a potential extra 28,000 at component supply companies as UK manufacturers’ demand for home-grown components increases.
Mike Hawes, SMMT chief executive, said, “This report is further proof of the growing stature of the UK as a global destination for high quality vehicle manufacture. The automotive industry has made tremendous strides in recent years, as significant investment, along with partnership with government, has driven huge growth in production and employment.
“The prospect of further jobs growth, particularly in the supply chain, is extremely encouraging, while the UK’s consolidation as a global hub for premium production is testament to our prowess in design and precision engineering. This success, built on improvements in productivity, workforce flexibility and skilled people, has been hard-fought for; we cannot be complacent. Future growth in a fiercely competitive global market will rely upon continued government support, as well as an attractive business environment which drives investment and stimulates innovation.”
While significant job creation opportunities exist over the next five to ten years, in the longer term, there is a clear danger that changes in global manufacturing systems, which the UK will not be able to avoid, will place many existing and imminent new jobs at long-term risk. The report notes that automotive factories of the future will be more highly automated and consequently employ fewer people. As a result, industry and government need to future-proof workforce training and skills development, and the apprenticeship system needs to prepare people for very different manufacturing environments than are in operation today.