Putting Our Steel to Work in the Automotive Industry
In the UK car sales continue to rise, which like the construction sector is another positive sign that the economy is slowly but surely recovering. In 2012 there was a 5.3% increase in new car registrations with 2 million new cars sold. That’s the highest since 2008. In 2013 this got even better, with 2.26 million new cars registered, a 10.8% increase on 2012 figures.
With over two years of solid growth the UK is the second largest car market in Europe, after Germany. Many European countries have only experienced slower growth, or a stagnant market, still shaking off the effects of the recession.
Consumers are opting for smaller, more fuel efficient models than in the past. Car manufacturers are feeling the benefits of this increased demand, with more cars being produced in the UK than were made before the recession.
So far manufacturing is up to 1.5 million, as of the latest figures, from 2013. This represents a six year high. Half a million of those were made at the Nissan plant, in Sunderland, Tyne & Wear. According to the Society of Motor Manufacturers and Traders (SMMT) this growth is largely export led, with 80 percent of cars made in the UK shipped overseas. Primarily our cars are bought by Chinese, Russian, American and European consumers.
Jaguar Land Rover is leading the group of domestic manufacturers contributing to positive export figures. They had a record year in 2013, with Jaguar up 40% and Land Rover up 11%, according to SMMT figures.
We at HTSS have personally felt the effects of this continued warmth in the UK car manufacturing sector. Demand has increased dramatically. We have had orders and repeat business indirectly from Jaguar Land Rover, Bentley, Renault, and others. Our consignment software is being introduced to customers in this sector, to see if they can gain as much from its deployment as other manufacturers.
The SMMT, basing their excitement on AutoAnalysis research, suggests the country is on track to beat the record set in 1972, when 1.92 million cars were produced. It is predicted this will happen in 2017, when an estimated 2 million will be manufactured in this country, depending of course on global demand.
Could you benefit from steel supply levels being easier to manage? If this sounds like something you could would like to discuss further, just give us a call on 44 (0)1744 818 767 or email at email@example.com
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