The UK automotive industry is in excellent economic, environmental and social shape, according to a new report published today by the Society of Motor Manufacturers and Traders (SMMT).
01 Jul 2014 | 2573 Views | By Autocar Pro News Desk
The UK automotive industry is in excellent economic, environmental and social shape, according to a new report published today by the Society of Motor Manufacturers and Traders (SMMT). Key indicators in the trade body's 15th annual Automotive Sustainability Report – which reveals figures from 2013 – show significant improvements that tally ...
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The UK automotive industry is in excellent economic, environmental and social shape, according to a new report published today by the Society of Motor Manufacturers and Traders (SMMT). Key indicators in the trade body's 15th annual Automotive Sustainability Report – which reveals figures from 2013 – show significant improvements that tally with recent growth, investment and efforts to improve environmental performance by the UK's major vehicle and component manufacturers.
In 2013 alone, an estimated 44,000 new jobs were created across the automotive sector, of which 14,000 were in manufacturing. This growth was matched in domestic automotive manufacturing turnover which grew 10.3 percent to top £64 billion (Rs 655,552 crore), fuelled by extensive investment in R&D – a key strength of the UK – which in itself grew 9.7 percent since 2012 to £1.9 billion (Rs 19,461 crore) a year.
"The UK automotive industry contributes hugely to the country's economic health by building millions of vehicles, engines and components here every year and employing hundreds of thousands of people," said Mike Hawes, SMMT chief executive. "The progress made by the industry over the past year alone is hugely important. Growing our skills base and encouraging more automotive suppliers to base their businesses in the UK is now essential for us to maintain this positive momentum."
Industry analysts suggest that by 2017 the UK could be building more than two million cars a year, breaking the all-time record that has stood for more than 40 years. With continued investment from the world's biggest automotive brands, the future looks bright for the sector – but the rate of growth and demand for specialist skills has put manufacturers under enormous pressure to recruit and up-skill staff.
Other challenges come with the forecast growth. Supplier capacity can be called into question, so re-shoring more component providers is a vital aspect highlighted in the latest report.
In terms of environmental performance, the Sustainability Report highlights major reductions in CO2output and waste sent to landfill by manufacturing sites. Carmakers in the UK have cut landfill volumes so dramatically in recent years that, per vehicle, just 3.5kg ends up as landfill waste – a massive 91.3 percent reduction on 15 years ago when reporting began.
The automotive industry in the UK sees 160,000 people employed directly in manufacturing and in excess of 770,000 across the wider automotive industry, it accounts for 10 percent of total UK export of goods and invests £1.9 billion each year in automotive R&D. More than 30 manufacturers build in excess of 70 models of vehicle in the UK supported by around 2,500 component providers and some of the world's most skilled engineers.
Photograph: Jaguar Land Rover’s Halewood plant.