Sector Overview
The automotive sector covers the manufacture of motor vehicle
bodies, engines, components and accessories. It also includes
the manufacture of trailers and semi-trailers.
Key facts
- Six global groups account for over 80% of world car
production.
- Five groups dominate the world market for
trucks and buses.
- Large multinational firms dominate the components sector.
- The global market for automotive products in 2002 was worth
$620bn and UK automotive exports accounted for around 5% of
this.
- The automotive manufacturing sector accounts for over half the
transport equipment sector. Aerospace represents the majority
of the remainder.
- The majority of automotive employers are small, with 82% of all
sites in the UK employing fewer than 50 people.
- Only 6% of total UK automotive sites employ 200 people or
more.
- Most people who work in the UK’s automotive sector work for
companies that supply vehicle manufacturers rather than manufacture
vehicles. This makes the UK unique in the European automotive
industry.
- The UK has a 30% share of European internal combustion engine
production.
- The UK ranks second in the world for premium car
production.
- Other UK strengths in the global sector are motorsport and
automotive design engineering.
Future outlook
Key growth markets include:
- engine and powertrain
- hybrid, electric and alternatively fuelled vehicles
- advanced software, sensors, electronics and telematics
- advanced structures and materials
- design and manufacturing processes
Vehicle technology is becoming increasingly sophisticated and
suppliers are under pressure to take more responsibility for
research and development.
Innovative production technology and control techniques are
becoming increasingly important as a source of competitive
advantage.
People and skills
Skills gaps at operator, craft and technician level are having a
significant impact on businesses. Employers with technical
engineering skills gaps are suffering most from gaps in CNC
machining, assembly line/production robotics and CAD.
Leading first-tier vehicle manufacturers and original equipment
manufacturers (OEMs) are reducing the proportion of operators and
this will happen throughout the supply chain. The reasons for
this include changes in technology and working practices, with
moves towards high performance and ‘lean’ working.
Greater focus on high-value activities in the UK automotive
industry means less need for low-skilled people.
Automotive employers need to make a major effort to upgrade team
leaders and craftspeople to technician capability to progress in
the next decade.
Upskilling team leaders lies at the heart of competitive
success. Strong leadership is vital to make product market
strategies based on lean operation, advanced supply chain
management and faster NPPDI (new product and process development
and implementation) work.