A new survey from accountancy and business advisory firm BDO LLP reveals an overwhelming 82% of the West Midlands automotive industry anticipates growth in 2015.
The national survey, carried out in conjunction with the Institute of Mechanical Engineers (IMechE), looked at the issues that mattered most to the institute’s automotive members.
The majority of those interviewed in the West Midlands envisaged up to 10% sales growth in 2015, while 13% of respondents are even confident of a 30% increase.
According to the BDO research, new opportunities are most likely to come from export markets, with two thirds (76%) identifying international sales as a key area for growth. Over half of those seeking a bigger overseas presence also believed this would come from new, as opposed to existing, markets.
Tom Lawton, Birmingham-based partner and head of manufacturing at BDO LLP, said: “The overwhelming optimism is an encouraging sign for what is a key component of the West Midlands’ manufacturing sector.
“International sales are absolutely the guiding principle for growth. It’s fantastic that such a vast proportion of the automotive industry recognises this and has a vision for global expansion.”
As stated in BDO’s West Midlands Report, published last month, 29% of all cars produced in the UK are made in the Midlands. With ten vehicle assembly plants and two engine plants, supported by the thousands of businesses in their supply chain, the automotive manufacturing sector is a huge employer for the region.
The sector’s reputation for being world class innovators was further supported by respondents underlining their commitment to research and development. Two thirds (71%) of automotive firms in the West Midlands continue to re-invest a percentage of their annual turnover on research and development, with investment into low carbon and/or electric vehicles continuing to be a real trend for the year ahead. However, more than half felt let down by the government, who they believe isn’t doing enough to increase entrants into Science, Technology, Engineering and Maths (STEM) subjects.
Tom added: “It is essential that companies in the region continue to invest in R&D to maintain their position on an increasingly competitive world stage. The government also has its part to play and must do everything it can to support this export drive and ensure that its support for the industry is well promoted and understood.”