West Midlands auto suppliers enjoy 2011 ‘growth and jobs’ boom

Published by Russ Cockburn for Danks Cockburn Public Relations Ltd in Local Government and also in Bill Payments, Central Government

The majority of component suppliers in the West Midlands have enjoyed a major year of growth it was announced last night at the annual Manufacturing Advisory Service–West Midlands (MAS-WM) Auto Director’s meeting.

£1bn of new investment by global car manufacturers and a 31% increase in export orders has sent a wave of optimism throughout the ‘chain’, with early estimates suggesting in excess of 1500 jobs have been created in 2011 alone.

Companies across powertrain, precision components, body and white and interior trim products have reported significant volume increases and are expecting continued growth after BMW, JLR, Nissan, Vauxhall and Toyota strengthened their commitment to bases in the Midlands, the North East and the South.

The tragic disasters seen in Japan and Thailand also raised concerns about security of supply and a number of vehicle manufacturers have made conscious decisions to UK source - worth many millions to local firms.

MAS-WM Auto’s Rachel Eade commented: “What started as a year of uncertainty has turned into one of the most promising 12 month periods in the recent history of the UK automotive sector.

“The major investments have captured a lot of the media attention, but we are starting to see the spin-offs cascade down the chain with new employment opportunities and continued investment in state-of-the-art machinery.”

She continued: “What is even more pleasing is that a lot of the optimism stems from the fact the investment will be in future UK manufactured models like JLR’s Defender and Discovery, Aston Martin’s new city car, Nissan’s Leaf and Qashqai and Toyota’s future ‘c’ segment hatchback that will replace the Auris.

“We’ve seen Malvern-based Morgan Motor Company launch its new 3 wheeler to global acclaim with orders taken for in excess of 700 vehicles. Most of the parts are sourced from within the West Midlands.

“And CPP Global Holdings also announced that the new Jensen Interceptor will be designed, developed and built in the heart of Coventry.”

More than 50 component suppliers attended the networking event in Birmingham to be given an update on latest industry developments and new funding opportunities through the Advanced Engineering Loan Fund and Bank administered Government grants for capital purchases.

They heard about the activity of MAS-Auto over the course of the last twelve months, with strategic support and mentoring given to 150 local firms.

This ranged from help with process improvements and factory expansions to skills and recruitment support. There were also 20 specialist workshops – including focuses on social media, energy efficiency and meet the buyer – held during 2011.

Rachel went on to add: “What we are hearing in the West Midlands is being mirrored across the UK.

“SMMT figures released in November illustrate the growing sense of optimism, with output up 27.8% (returning to pre-recession volumes) and turnover increasing by 20% to £49bn.”

She went on to add: “The UK’s commitment to being ‘green’ has seen energy usage per vehicle produced down 8% and manufacturing CO² emissions reduced to 10.5% per vehicle.”

Looking into 2012, Eade was quick to encourage component suppliers to continue the forward thinking, innovation and commitment to low carbon technologies that are changing the face of the automotive sector and future engine production.

There is an increasing need to invest in the next generation of workers both through apprentices and more advanced training opportunities across the workforce.

Finally, access to finance for growth – both capital investment and working capital -will continue to be an issue for suppliers and MAS is committed to working with companies to secure the best blended lending they can, including, where appropriate, access to grants.

Rachel concluded: “2011 has been a year when UK manufacturing got back on track after periods of economic uncertainty. Now, with productivity increasing and investment flowing into our domestic plants, the next few years look rich with potential for the West Midlands supply chain.

“But we can’t rest on our laurels. It’s all about keeping pace with industry demands and that will remain the biggest challenge for our companies.”

 For further information, please email reade@mas-wm.org, visit www.mas-wm.org or contact 0845 245 0845