More than 10,000 jobs are poised to be created within the North East’s automotive industry over the next two years as manufacturers ramp up production, a report claims.
The Lloyds Bank report – Fuelling Growth, surveyed English and Welsh manufacturers from across the automotive supply chain and found that 70% are looking to ‘on-shore’ some of their operations by the end of 2016, and almost half (45%) said they had already repatriated, on average, a fifth of their production, citing cost and time reduction, improving UK economic conditions and the desire to support local communities as reasons behind their decision.
Nationally, the report estimates that the sector will create 49,635 new jobs across England and Wales in the next 24 months.
Just over three-quarters (76%) of manufacturers in the sector expect to grow by up to 25% over the next two years, with an average of 18% expansion predicted. On average, each business plans to create 27 jobs over this time period, which equates to nearly 50,000 jobs.
Within the North East, Lloyds estimate that 10,431 jobs will be made within 48 months – a figure calculated by multiplying the estimated number of automotive companies in the North East, 439, by the market-average % of companies forecasting job creation in the next two years – 88% – multiplied by the average number of jobs to be created by each company surveyed.
David Atkinson, head of manufacturing, SME, Lloyds Bank, said: “Britain remains one of the leading players in automotive manufacturing, with a complex supply chain of high value engineering that is attracting significant inward investment.
“The sector’s growth in recent years, particularly in the North East, has made the automotive industry the ‘jewel in the crown’ of the nation’s economy, and this looks set to continue with thousands of new jobs predicted to be created.
“It is particularly encouraging to see the commitment of many firms to bring their manufacturing processes back onshore as a way of helping to support both local communities and the wider economic recovery of the UK.”