Car manufacturers will create c. 50,000 new jobs
The automotive industry is poised to create 50,000 jobs over the next two years as manufacturers bring production back to the UK, according to research by Lloyds Bank.
The bank’s report Fuelling Growth, which surveyed English and Welsh manufacturers in the automotive supply chain, found that nearly three-quarters (70%) of respondents are looking to ‘on-shore’ some of their operations by the end of 2016.
Almost half (45%) of the manufacturers surveyed said they had already repatriated, on average, one-fifth (20%) of their production. Businesses cited cost and time savings, improving UK economic conditions and the desire to support local communities as reasons for their decision.
Just over three-quarters (76%) of manufacturers in the sector expect to grow by up to 25% over the next two years, with an average of 18% expansion predicted.
On average, each business plans to create 27 jobs over this period, which equates to nearly 50,000 jobs.
David Atkinson, head of manufacturing, SME at Lloyds Banking Group, said: “Britain remains one of the leading players in automotive manufacturing, with a complex supply chain of high-value engineering that is attracting significant inward investment.
“The sector’s growth in recent years has made the automotive industry the ‘jewel in the crown’ of the nation’s economy, and this looks set to continue with thousands of new jobs predicted to be created.”