Driving Innovation, the second report on the English and Welsh automotive manufacturing sector by Lloyds Bank, analyses the state of the industry and the opportunities and challenges it faces in the future.
Despite the challenge of the global economic slowdown, 86% of the survey’s respondents plan to create new jobs over the next two years.
If their plans are replicated across the UK’s 2,994 automotive manufacturing firms, it would generate almost 85,000 new jobs.
The report also found that firms believe the global economy is the prevailing challenge to the industry, with 43% of respondents citing it as their top worry for the second year running.
James Walton, manufacturing director, mid-markets, Lloyds Bank, said: “While the automotive industry is forecasting healthy growth, it’s clear that global instability and uncertainty threatens manufacturers’ confidence.
“In particular, the slowdown in China is a concern given that it is the biggest market for British-made cars outside the EU.
“However the sector is resilient and one of the most dynamic, innovative and exciting industries in the world, with British firms at its forefront.
“The increase in reshoring activity to the UK is creating more jobs and Lloyds Bank is committed to supporting its growth and success.”
These job creation plans are underpinned by manufacturers’ reshoring activity. While 58% plan to bring some part of their manufacturing operations back to the UK in the next two years, 50% have already done so, up from 45% last year.
Anecdotal evidence of their motivation for this shift included wanting to support the UK economy and create jobs, seeking better control over production, and rising labour costs overseas.