The UK’s supply chain is planning on investing £225million over the next three years, according to new research from Society of Motor Manufacturers and Traders (SMMT).
The survey, conducted by independent polling agency ComRes during May 2016, of more than 100 SMMT supply chain members revealed 94% plan to invest in their businesses a collective total of almost a quarter of a billion pounds over the next three years.
This investment is largely expected to contribute towards skills and recruitment, plant machinery or tooling and product development.
93% of the supply chain members surveyed said that increasing the volume of business they do with UK-based vehicle manufacturers and major suppliers is important to their company’s future, with 46% of those also planning to increase exportation. 41% of components in the average British-built car are now sourced locally – up from 36% back in 2011. 68% of all companies surveyed currently send 40% or less of their production overseas.
The SMMT has however said that any potential investment plans may be halted, depending on continued political and economic stability.
SMMT boss Mike Hawes said: “Britain’s car industry is booming and it’s encouraging to see this opening up huge opportunities for the UK supply sector. A strong domestic supply chain is critical to a successful automotive sector and we are confident that, with the right political and economic conditions, significant supply chain investment can be secured, delivering more jobs and growth.”
The British supply chain consists of more than 2000 companies, employing 78,000 people.