SMMT welcomes UK automotive sourcing roadmap

"This UK Sourcing Roadmap is a key step towards strengthening the UK supply chain and increasing the competitiveness of the UK, highlighting genuine potential for UK vehicle manufacturers to source more parts and components from home grown suppliers," said SMMT chief executive, Paul Everitt. "The transition to a low carbon future presents significant opportunities for the UK automotive sector and the roadmap will be a key tool in helping to identify where demand lies for local suppliers developing these new technologies." Key facts identified in the report, 'Growing the Automotive Supply Chain: The Road Forward' (downloadable at the link below), are: Manufacturing • On average, 74% of UK-based suppliers manufacture in the UK. • At present, about 80% of all component types required for vehicle assembly operations can be procured from UK suppliers. • 42% of UK suppliers classify themselves as first tier suppliers, 19% classify as second tier suppliers while 34% categorise themselves as both first and second tier suppliers. Economy • The supply chain represents about 40% of the retail price of a passenger car. • The combined UK purchasing spend of UK-based automotive, commercial vehicle and yellow goods manufacturers is £7.4 billion per annum. The amount purchased in the UK equates to approximately 36% of their global purchasing spend. • The UK automotive supply chain typically generates £4.5 to £5 billion of added value annually. • The UK supplier spends on average £36 million, of which 46% is spent in the UK. Employment • Around 2,350 UK companies regard themselves as automotive suppliers, employing around 82,000 people (data as of the end of 2009). • It is estimated that every job in the vehicle assembly supports 7.5 elsewhere in the economy.