Supply Chain Group Growing The Automotive Supply Chain. Mike Mychajluk Jaguar Land Rover Purchasing & Automotive Council Supply Chain Group
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1 Growing The Automotive Supply Chain Mike Mychajluk Jaguar Land Rover Purchasing & Automotive Council Supply Chain Group 1
2 Automotive Achievements to Date We don t claim the credit for these achievements but as a group of volunteers we have been proud to have provided strong support Cross Industry Forum GROWING THE UK AUTOMOTIVE SUPPLY CHAIN Identifying & confirming the 3Bn per annum opportunity AMSCI & RGF Bids Collaboration, Clusters, Support, Improvements Highlighting the Skills Gap Automotive Industrial Strategy Global automotive investments of 7.5 billion confirmed into the UK 2
3 Bringing it Back to Britain Flowing through to the Supply Chain AAM - 3.6m investment - Glasgow - 80 jobs Borg Warner Bradford - 15m investment - creating 80 jobs Stadco Telford - 15m investment Cab Automotive Tipton - 1.7m investment GKN Birmingham & Telford - 12m investment IAC Solihull & Scunthorpe - 3.6m investment Lear Corp. - Washington Sunderland new jobs Nifco UK Ltd - larger facility in Teeside - additional 170 jobs TRW - 15m investment Sunderland Rosti McKechnie Yorkshire 200 new jobs Brose - Coventry - 15 million
4 Automotive Industrial Strategy July 2013 Publication government and industry in partnership Driving success a strategy for growth and sustainability in the UK automotive sector Essential value comes from Industry members OEM/ Tier 1 / Tier n 4
5 Automotive Industrial Strategy Publication Align & Refocus Supply Chain Group Workstreams Existing Workstreams Quantifying and capitalising on the business opportunity for the UK In progress Improving long term competitiveness In progress Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting In progress + AIO Improving access to finance for the In progress Innovative processes for premium manufacturers 5
6 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO To ensure that the potential business opportunities are captured in the UK, the industry will design and implement an industry led (SMMT) framework for collating and communicating opportunities and identifying existing supplier capacity and capabilities across all tiers of the on an on-going basis. This will include promoting the benefits of UK sourcing to parent company purchasing departments of UK based vehicle and engine makers. 6
7 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO The Automotive Council working with the SMMT has developed a programme to preserve and develop current Tier-one to Tier-n automotive suppliers in the UK through increasing their long-term competitiveness, R&D and manufacturing capability. Seek programme funding and support. 7
8 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO To provide leadership to their work with the automotive sector, UKTI has established a new Automotive Investment Organisation (AIO) that will take its strategic direction from the Automotive Council. To provide additional focus for this effort, the vehicle/engine makers and the SMMT will jointly develop targeted priorities for UKTI s engagement with global automotive suppliers. The Government will work with LEPs, devolved partners and others to consider how to strengthen the existing UKTI one-stop-shop offer for inward investors. 8
9 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO The industry and UKTI will enhance their collaboration to promote UK suppliers overseas to grow volume, profile and competitiveness. 9
10 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO The Automotive Council and BBA, in conjunction with the leading banks, are committed to continuing to work together to improve mutual understanding. The Automotive Council will also work with the financial services industry to develop long-term investment finance products that meet the needs of the automotive industry, including non-bank solutions. In addition, the banks are targeting their professional mentoring services towards automotive SMEs in development of their business plans 10
11 Define the Vision and the Roadmap Quantifying and capitalising on the business opportunity for the UK Improving long term competitiveness Encouraging new and re-entrant suppliers to the UK and cross sector activity Growing UK business through increased exporting Improving access to finance for the Innovative processes for premium manufacturers AIO the Automotive Council will define the innovative business and manufacturing processes needed to support and develop the competitive position of the premium UK automotive manufacturers 11
12 Thank you Your Presenter: Mike Mychajluk JLR Purchasing & Automotive Council Supply Chain Group
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