Survey discovers new opportunity for auto supply chain
By Ella Copeland
The automotive supply chain could win up to £3 billion of additional new business in the UK according to a recent report by the Automotive Council.
The report, entitled ‘Growing the UK Automotive Supply Chain: The Road Forward’ included data provided by UK automobile manufacturers, who reportedly spent a collective amount of £23.6 billion last year, a third of which was spent on UK suppliers.
The Council, which aims to provide a ‘transformed business environment for the automotive industry in the UK’ looked at where UK companies can earn a bigger share of the business, highlighting sourcing opportunities across the range of vehicle components which could earn the most profit.
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High value forgings and castings to consumables like batteries and interior parts were considered, however the biggest opportunity was considered to be engine parts, which hold a potential value of £540 million.
Speaking at the Advanced Engineering, Automotive and Aerospace British Business Embassy, Business Secretary Vince Cable and co-chair of the Automotive Council said:
“The strength and depth of the supply chain has not been keeping pace with the level of investment we’ve recently seen by vehicle manufacturers in the UK. Growing capacity in the automotive supply chain or bringing it back from overseas is a priority.
“Through the Automotive Council, we are working together to make UK supply chain companies aware of how much more business they could win in the UK.”