Carmakers supply chain could put an extra £2 billion into local economy
A report from the Automotive Council has indicated that Vauxhall and Jaguar Land Rover should source their components locally from specialist manufacturers.
By sourcing parts from the local region, manufacturers could be part of a £2 billion growth opportunity in the supply market, supported by the “unprecedented” success for UK car makers.
Vauxhall, with facilities located in Ellesmere Port, and Jaguar Land Rover, located at Halewood, currently offer a boost to the Merseyside region through direct employment of 6,000 people. This could be added to further through local suppliers and industries winning supply contracts with the two carmakers.
The Automotive Council has revealed that only approximately 33% of car components in a UK-built vehicle are sourced from within the country. This compares poorly with other European countries, such as France, Germany, Spain, and Italy, where the figure is closer to 60%.
Experts in the automobile industry have shown that locally sourced materials and components would accelerate growth potential in the sector by lowering logistics costs, offering greater flexibility and quicker response times.
Dave Allen, purchasing director at JLR and chair of the Automotive Council supply chain group, said:
“The current success of the UK automotive sector presents a renewed opportunity for automotive suppliers to invest in the UK and to increase local sourcing of the high value components that the UK’s world-class vehicle makers require.
“With this report we now have good visibility of the depth and value of the opportunity throughout the supply chain, together with deliverable actions to turn this opportunity into reality.”
One of the core aims of the Automotive Council’s industrial strategy is to develop a globally competitive UK automotive supply chain, coinciding with the key aims of the Liverpool City Region Local Enterprise Partnership to locally grow advanced manufacturing.
Business Minister Matthew Hancock said:
“The automotive sector is thriving and our supply chain firms are helping to create jobs and generate growth, but there is more to be done.”
Words: Peter Cribley