Skills shortage threatens UK automotive lead

Automotive Council says sector must address its shortage of engineers

The UK automotive sector’s workforce is one of the world’s most productive – but action is needed to address a shortage of skilled engineers and operators, according to new research by the Automotive Council.

The report from the industry / government think tank places the UK's automotive ‎productivity in the top position in Europe, praising a culture of constant improvement, a trend towards more efficient processes and premium vehicles.

However, the report notes that the UK's automotive sector has less engineers 'available' than other countries and suffers from a skills "deficit" that could reduce the UK automotive supply chain’s capability to competitively deliver high-quality parts.

The UK also scores below competitor countries for hourly labour rates, and R&D tax relief for larger companies. 

Tony Walker, chair of the Automotive Council’s Business Environment and Skills Group, and deputy managing director for Toyota Motor Manufacturing UK, said: “It is great to see further evidence of Britain’s strengths in its world-class automotive manufacturing workforce – and while there are clear areas for improvement, this report provides the basis for these to be addressed in the coming months and years."

The report suggests that UK’s excellence in research, and its high reputation for collaboration, are both key to unlocking the automotive industry’s potential to drive innovation in the UK economy. A survey recently carried out by the World Economic Forum found that the UK comes only below the US in university-industry collaboration at 70%, with the US scoring 81%.

The UK also ranks highly for collaboration between industry and academic bodies. Labour flexibility is identified as another area where the UK excels – providing flexibility with working patterns and managing labour demands, vital in a precision, just-in-time industry such as automotive.

The UK automotive sector produces more than 1.5 million vehicles a year and employs 160,000 workers. In 2015, £2 billion was committed to manufacturing and R&D.