OPINION: Booming UK automotive industry must reshore to future-proof supply … – Supply Chain Digital

by admin on July 9, 2015

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The UK automotive industry is back on track after years of decline, with many pointing to the important role it plays in improving the economy. According to the Society of Motor Manufacturers and Traders (SMMT) UK car plants last year produced more than 1.5 million vehicles, the highest number since 2007. Major automotive manufacturing plants such as Nissan in Sunderland, Honda in Swindon and Jaguar Land Rover in Solihull are steadily increasing production levels.


By 2017 the number is expected to rise to more than two million vehicles per annum.


One of the factors underpinning the increase in UK automotive production has been the decision by car makers to re-shore many of the processes that have been systematically transferred overseas over the past couple of decades. The perceived economic benefits of offshoring have all but eroded due to an increase in material and labour costs across the emerging nations as they reach first-world maturity.


Central to the success in re-shoring the UK automotive industry will be the ability to source more technology and expertise from within. Yet, that in itself could be problematic, as the technology required by the automotive sector is undergoing a radical transformation and becoming increasingly complex.


The quality assurance and testing approach undertaken by an increasingly re-shored automotive industry is going to be critical. Whilst the trend for the UK automotive industry to re-shore a number of its processes is incredibly encouraging, it must remain mindful of the quality assurance and testing needed as the manufacturing process centred in the UK becomes more complex.


Dr. Martyn Jeffries, Head of Automotive Solutions at SQS.


Source Article from http://www.supplychaindigital.com/logistics/4046/OPINION:-Booming-UK-automotive-industry-must-reshore-to-future-proof-supply-chain

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