Sustained, high-value investment in UK automotive manufacturing plants is creating major opportunities for domestic component suppliers as vehicle manufacturers look to source locally-produced parts to support new model programmes. The UK supply chain has the capability to provide more than 80% of all component types required for local vehicle assembly and vehicle manufacturers currently spend £8.4bn sourcing in the UK. According to recent industry reports, vehicle manufacturers are actively seeking to strengthen business relationships with domestic suppliers and source locally produced components in order to capitalise on lower transportation costs and better flexibility.
In addition to this, the opportunities created by new investment are filtering down throughout the supply chain and there is strong appetite for growth within the UK automotive supply base, particularly among Tier 1 suppliers looking to close sourcing gaps in the UK. “We need more automotive component sourcing within the UK and a much stronger domestic supply chain, as it ensures that the £6bn we’ve seen committed to industry in the last two years is leveraged through the chain,” said Mike Baunton, SMMT Interim Chief Executive. “Worldwide, all automotive vehicle manufacturers know the benefits that come from strong, local supply chains, and suppliers at every tier are well-placed to meet their local demands and are able to respond to new export market opportunities.” Increased demand for locally-manufactured automotive commodities continues to optimise opportunities for supplier growth and SMMT is working hard to help companies maximise the current prospects, facilitating one-to-one buyer and supplier meetings, based on automotive commodity demand at its ‘Meet the Buyer’ events. The annual publication of UK automotive commodity demand helps to match vehicle manufacturers with relevant UK suppliers and this year, plastic injection moulded components, rubber moulded parts, spring formings and stampings are among the most highly sought-after components by UK-based vehicle manufacturers and Tier 1 suppliers.
This year’s ‘Meet the Buyer’ event will take place on 23 May in the West Midlands and interested buyers and potential suppliers are encouraged to register their interest early and ensure company profile details on the SMMT Automotive Supplier Finder database are up-to-date. For more information about SMMT ‘Meet the Buyer’ events, contact Nikki Huggett, nhuggett@smmt.co.uk or click here.