Published Date : Nov 25, 2015
Gareth Jones, president of the Society of Motor Manufacturers and Traders (SMMT) stated that the automotive sector in UK needs support from the government to help the successful industry maintain its strong foothold in Britain. Currently, the automotive sector is supporting Britain’s resurgence as an industrial powerhouse in the post-recession phase.
While addressing the audience that had politicians, leaders, and the media, Jones requested the Chancellor to keep the investment going. He stated that the support from the government will only keep the business environment competitive. In the past few years, the automotive industry in UK has gained pace due to the ongoing investments.
Some of the highlights of the impressive resurgence of the automotive sector in UK are increase in the manufacturing output and the domestic new car market being the second largest in Europe. Furthermore, the growth of this automotive sector is mainly led by exports, which has also generated the highest employment since 2008. Additionally, this sector made an annual economic contribution of £15.5 billion, which is a new record high.
Jones said the nation has a lot to be proud about. Though the overall productivity in UK is dropping, the automotive sector is surely excelling. So far UK has the best productivity level in Europe and it surely has improved about four times more than the average of UK. Jones attributed this improvement to growing investments and a demographic that is in perpetual need of improvements and innovations.
He further added that the sector does face a few challenges such as impending question regarding UK exiting the European Union, shortage of skilled labor, and the Spending Review, that will discuss the cuts in all the government departments, some of which support the smaller businesses to enter new markets across the globe.