Supporting growth in the UK Automotive Industry
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The UK automotive industry has undergone significant changes in recent years. From electric vehicles to cutting-edge innovations and manufacturing facilities, the sector is demonstrating resilience against its challenges. However, managing periods of growth can be difficult for these businesses. Customer demand needs to be met, processes might have to change, and recruitment is often a necessity to enable automotive manufacturers to scale accordingly. Here you’ll find an analysis of the UK automotive and manufacturing sector, including the key developments and what support is needed in terms of business support.
Data on the UK automotive industry in 2024
Despite the supply chain turmoil brought about by Covid-19 lockdowns across the world in 2020 and beyond, the automotive industry has only experienced a minor downturn. Recent data from the Society of Motor Manufacturers and Traders(SMMT) estimates that manufacturing related to automotive products accounts for $93 billion in turnover. On top of this, Statista research shows that the output from the automotive products market is projected to amount to $124.6 billion in 2024, with an expected compound growth rate of 2.31% between 2024-9. Specific examples from the UK include:
- Supported by a £600 million investment programme, the BMW factory in Oxford is preparing to build two new all-electric MINI models from 2026.
- Rolls-Royce secures planning permission for a major expansion of its Goodwood manufacturing plant in West Sussex.
- Gordon Murray Automotive opened a new £50 million factory and global headquarters in Surrey.
- Jaguar Land Rover (JLR) is creating 250 new jobs in the West Midlands to support its £15 billion electrification programme.
- Tata Group to build a new £4 billion battery manufacturing plant, which is expected to create 4,000 direct jobs and more across the supply chain.
- Stellantis announced plans to build electric vans at its Luton plant from 2025.
However, when comparing the total number of cars manufactured in the UK between July 2023 and 2024, there has been an 8.6% drop in production. As such, it’s reasonable to assume that future growth in the automotive industry is largely attributed to innovation and the demand for new makes/models. One of the key influences in the UK automotive industry has been the government’s commitment to Carbon Net Zero. This has incentivised companies to develop new offerings that help meet consumer demand and drive growth. We have seen a large shift towards the manufacturing of electric and hybrid cars as a result.
Challenges facing automotive businesses
Amidst this exciting period of expansion, automotive industry businesses across the supply chain are facing unprecedented challenges. This can be traced to a range of factors, so it’s important to understand the causes of these challenges in order to overcome them.
There has long been a shortage of skilled labour available to STEM industries. A supplier survey of the Automotive industry in 2023 found that 75% of companies surveyed were facing labour shortages.
Consumer demand continues to change drastically in the automotive industry, with a particular focus on technology. Self driving capabilities, hybrid technology, additional features, and keyless entry, are just a few innovations of recent years. If your company fails to meet demand for these features, it could fall behind competitors and lose market share.
With more than 7 of every 10 cars manufactured in the UK being exported, managing supply chain effectively is essential for success. The last 5 years have seen a global pandemic and international conflicts cause disruption to supply chains. Many automotive manufacturers also have international supply chains that move raw materials and parts between facilities.
While the push towards sustainability targets has encouraged and rewarded R&D, these efforts can be a significant drain on resources. Overhauling existing product lines to develop sustainable options is not a small feat. It may require working with new materials, building new facilities, hiring new teams, and more.
Meeting the demands of a rapidly evolving industry requires agility, efficiency, and a deep understanding of the market. This is where Jigsaw Business Group comes in to provide expert business support. The UK is home to many of the world’s most well-known car brands covering a variety of vehicle types and styles. The notable examples include Mini, Vauxhall, Land Rover, Nissan, Honda, Toyota, and Mclaren. The latter is a current partner of the Jigsaw Group at the time of writing, so keep your eyes peeled on our case studies page for a report of our work.
Jigsaw Business Group: Your Partner in Automotive Success
As a leading provider of recruitment, supply chain, project management, and business improvement services, Jigsaw is uniquely positioned to help automotive businesses of various sizes and compositions. Our expertise in business support can help . Jigsaw can help:
- Attract and retain top talent: In a highly competitive industry such as transportation, securing the best people is crucial. Our specialist recruitment teams can help you find the skilled professionals you need to drive your business forward and reduce risk.
- Enhance employee performance: Our training and development programs can help your employees reach their full potential and contribute to your company’s success.
- Optimise your workforce: Our HR consultancy services can help you streamline your HR processes, improve efficiency, and create a high-performance culture. This might include new strategies, automation, and much more.
- Navigate industry challenges: With our deep understanding of the automotive sector, we can help you overcome challenges and make the most of opportunities.
The UK automotive industry is on a remarkable journey, and Jigsaw Business Group is proud to be part of it. We are committed to supporting our clients in achieving their goals and contributing to the continued success of this vital sector.
Let’s work together to shape the future of the automotive industry
The Jigsaw Business Group has spent more than a decade helping automotive businesses throughout Europe, with the best example being our work with Jaguar Land Rover. We’ve worked with many automotive businesses in our time and you can read about our success stories in our long list of case studies. Working as automotive recruitment consultants is extremely fulfilling, as our team is directly contributing to the advancement of this industry in the UK and beyond. Get in touch to take your business to the next level.
