UK automotive supply chain boosted by Nissan’s commitment

Thousands of jobs in the UK automotive supply chain received a significant boost last week with the announcement by Britain’s second largest car manufacturer that it will build two of its next generation models in Sunderland. (source: Automotive SupplyChain Oct 1st 2016)

Beaumont Select support a number of global automotive manaufacturers with their Procurement and Supply Chain HR Resourcing; and we are excited at the opportunities this should extend to UK supplyvchain and procurement professionals.

According to Automotive Supply Chain: "28,000 supply chain jobs in the UK are currently supported by Nissan, among a wider 78,000 dependent on all British-based vehicle manufacturers. The announcement that the next generation Qashqai as well as the new X-Trail, currently produced in Japan, will both be made in Sunderland provides certainty and confidence to invest for existing UK-based companies. It should also act as an incentive to companies not operating here already"

 

Automotive SupplyChain: "The news will also boost supply chain reshoring efforts to the UK, where there is an estimated £6 billion opportunity for component manufacturers as British-based vehicle makers increasingly look closer to home to pursue manufacturing efficiencies. Billions of pounds have already been invested in domestic supply chain networks to fulfil just-in-time production needs and cut the cost of logistics. This trend is having an impact, with the content of British-built cars rising from 36% to 41% over the past five years with the potential to reach 50% in the near future. However, the sheer rate of the industry’s recent growth has resulted in a skills shortage, and for success to continue this needs to be addressed. According to the Automotive Council up to 5,000 vacancies exist in UK automotive manufacturing, which have a significant impact on business operations. Two in five (41%) respondents to a recent SMMT supply chain member survey said that the availability of skilled workers, apprentices and graduates could impede their company’s growth over the next three years."

Reported in Automotive SupplyChain, Mike Hawes, SMMT Chief Executive, said: “Nissan’s announcement is good news for the UK Automotive and supply chain jobs, confirming Britain as a leader in automotive production, with the comments made last week by the Secretary of State and Prime Minister also greatly encouraging. It is important Government makes it a priority to safeguard the competitiveness of this important sector as we leave the EU. This means maintaining a competitive business environment, ensuring talent can be recruited from abroad and securing the benefits we currently enjoy in the single market – including tariff free trade unhindered by any customs bureaucracy.”

See the full article in Automotive SupplyChain Oct 1st 2016.