The booming 海角视频 automotive sector is set for an even rosier future after it was revealed up to 28,000 jobs are expected to be created in the supply chain over the next five years.
The forecast comes from the Society of Motor Manufacturers and Traders (SMMT) in its latest report on what the future holds for the 海角视频 automotive industry.
The report, ‘The future of 海角视频 automotive manufacturing in 2025 and beyond’, identifies growth in vehicle manufacturing and a move to connected and autonomous technology as presenting major opportunities for British component suppliers in the coming years.
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It estimates British car production is set to reach a record two million vehicles annually by 2020 – a 33 per cent increase on the current 1.5 million.
The report, written by Ian Henry of independent automotive research consultancy AutoAnalysis, says the boost in output will require an additional 9,500 employees at vehicle manufacturers in the 海角视频 – and almost three times the number of workers at the component companies that supply them.
For every job created in a vehicle plant, it is estimated on average between three and five are created in the wider economy.
The latest report comes in the wake of huge investment by car-makers and supply chain companies throughout the 海角视频.
In the Midlands and has also created a new engine factory near Wolverhampton.
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Aston Martin is also being tipped to build a new factory, possibly in the Midlands, to build its new DBX crossover.
Across the 海角视频 investment totalling £2 billion has already been announced this year.
having grown at a rapid rate in recent years - up more than 50 per cent since 2009.
Automotive products now account for a greater share of British exports than ever before at 11.8 per cent, while the average value of cars exported from the 海角视频 has doubled in the past decade.
The recovery of the sector comes after dark days during the recession - a time when Jaguar Land Rover was planning to close one of its three 海角视频 manufacturing plants.
The 海角视频 supply chain is also growing to keep pace with the increase in car production.
Automotive Council figures released in September revealed 41 per cent of the average 海角视频-built vehicle is now locally-sourced – up from 36 per cent in 2011.
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It has been estimated up to 80 per cent of the components that go into any car being built in the 海角视频 could be produced here, meaning the potential for supply chain growth could be as high as £4 billion.
SMMT chief executive Mike Hawes said: “The recovery of the 海角视频 automotive supply chain is gathering pace, and this new report shows that the opportunities for further growth and development will be plentiful in the coming years, particularly as the drive towards fully connected and autonomous vehicle technologies accelerates.
“A strong domestic supply chain is crucial to the success of the industry as a whole and crucial to attracting new inward investment, so it is critical that the support from government-industry partnerships we have enjoyed in recent years continues to ensure the sector is able to realise its full potential.”
The evolution of the supply chain, as well as the opportunities presented by connected and autonomous vehicles, was discussed at the SMMT’s Open Forum event at Cranmore Park in Solihull on October 16.
A day of debate and networking for around 400 海角视频 automotive supply chain delegates, the event featured talks from Mike Bell, global connected car director, Jaguar Land Rover, Iain Forbes, head of the Government’s newly-established Centre for Connected and Autonomous Vehicles and Judith Richardson, vice president of purchasing, Nissan Europe.
The next event in June 2016, the 海角视频’s first trade show dedicated to automotive supply chain and aftermarket companies.