Automotive supply chain companies are planning investment worth £225 million into their businesses over the next three years, according to new research.
A study of its members by the Society of Motor Manufacturers and Traders (SMMT) says 94 per cent of those surveyed confirmed they would invest over the next three years.
Of those, four in five (79 per cent) intend to invest in plant, machinery or tooling, three quarters (73 per cent) in skills and apprentices and two thirds (66 per cent) in new product development.
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A total of 78,000 people are currently employed in the 海角视频 automotive supply sector and seven in ten companies (68 per cent) said they planned to expand their workforce over the next three years.
Potential investment does depend, however, on continued political and economic stability and the long-term growth of the 海角视频 automotive sector, the SMMT says.
The British automotive supply chain contributes an estimated annual £4.3 billion in value added directly to the 海角视频 economy.
It is estimated 41 per cent of the components in the average British-built car are now sourced locally, up from 36 per cent in 2011.
Efforts to maintain this growth are continuing, supported by both government and industry, and new business opportunities in the 海角视频 automotive supply chain are worth up to £6 billion.
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The skills shortage is a key issue of concern, with two in five (41 per cent) companies saying the availability of skilled workers, apprentices and graduates could impede their company's growth in the next three years.
SMMT's chief executive Mike Hawes said: "Britain's car industry is booming, exporting more than ever, and it's encouraging to see this opening up huge opportunities for the 海角视频 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.
"Many of the 海角视频's competitors have far larger and stronger supply sectors, however, so continued government collaboration through organisations such as the Automotive Council will be critical as we strive to re-shore more supply chain work."