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Extra £3bn business potential for UK automotive suppliers

The UK automotive supply chain could win £3bn of additional business in the country, research from the Automotive Council has suggested.

The 2012 survey reveals the purchasing spend of the vehicle makers who responded to the survey is £23.6bn; an increase of £3bn on 2011.

Currently, manufacturers spend a third of this figure with UK suppliers, but actively want to buy more in the UK.

Sourcing opportunities go across the range of vehicle components from high value forgings and castings to consumables like batteries or interior parts.

The UK produces 2.5m engines per year, and the opportunity for supply of engine parts has been valued at £540m.

Speaking at the British Business Embassy, Business Secretary, and co-chair of the Automotive Council, Vince Cable, 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.”

Professor Richard Parry-Jones who also co-chairs the Automotive Council said: “As well as looking at the here and now, the 2012 survey shows that, with more low carbon vehicles coming onto the roads, this is creating new supply chain opportunities as well.

“Capability assessments show that UK technology providers are well placed to benefit from this growing demand particularly in areas such as energy storage and intelligent mobility.”

This was posted in Bdaily's Members' News section by Tom Keighley .