Some selected highlights from the 2013 Review of UK's Motorsport Valley Business Cluster

Transcription

1 Sme selected highlights frm the 2013 Review f UK's Mtrsprt Valley Business Cluster Mtrsprt Engineering and Services Full Review is available t dwnlad frm 3:15pm n Thursday 9 th January at a cst f fr MIA members and fr nn-members. Media: Cntact Faye Callaghan - fayec@prvapr.c.uk r Jayne Thmas Jayne.Thmas@the-mia.cm fr the cmplimentary Full Review.

2 Review f UK s Mtrsprt Valley Business Cluster in 2013 The UK mtrsprt industry in 2013, cmprising high perfrmance engineering, R&D and technlgy as well as mtrsprt-related services, is an exemplar f a thriving wrld-class business cluster. The UK s internatinally recgnised Mtrsprt Valley hsts an unequalled supply chain f ver 4000 specialist cmpanies, in clse prximity, capable f respnding t and delivering slutins exceptinally quickly, and always n time. The findings f this evidence update have identified a vibrant, high value-added industry, with grwing exprts, pening up new markets in adjacent sectrs, increasing investment in R&D and innvative technlgies, and cnfident f a bright future. It is the epitme f a knwledge-based industrial cmmunity, nw mre prductive than ever and attracting investment t meet future demand. In 2000, the first Natinal Survey f Mtrsprt Engineering and Services, cmmissined by the Mtrsprt Industry Assciatin (MIA), cnfirmed the existence, and success, f Mtrsprt Valley as the premier prductin site fr glbal mtrsprt, and the fcal pint fr internatinal partnerships between majr cmpanies, including OEMs, spnsrs and suppliers. This 2013 Review f the Evidence Base f Mtrsprt Valley, again cmmissined by the MIA, uses a research team with lng-standing knwledge f the sectr, and with welcme supprt frm industry and gvernment. It updates the knwledge base t better assess, explre and develp pprtunities fr business and emplyment grwth in this thriving business cmmunity. It demnstrates hw the sectr has survived, mved frward and becme even mre efficient fllwing the unprecedented difficulties encuntered between 2008 and In particular, the Review findings will be used, by the MIA, t supprt wrk n the prpsed delivery f a UK Mtrsprt Business Develpment Partnership invlving industry and gvernment. This new Partnership will create a slid platfrm fr the UK mtrsprt industry frm which t cntribute, and bring benefit, t the brader Industrial Strategy f UK gvernment. This unique, technlgically driven, business cmmunity clearly remains a jewel in the crwn f UK engineering. Additinally, the expertise f its service sectr, much f which is based arund Lndn, is simply unrivalled anywhere in the wrld. This evidence demnstrates that the UK s Mtrsprt Valley cntinues being the glbal centre fr excellence f mtrsprt engineering and services. I am sure yu will find many aspects f this Review fascinating, illuminating and f real value t yur plans and interest in this unique sectr. Chris Aylett Chief Executive f the Mtrsprt Industry Assciatin December 2013 chris.aylett@the-mia.cm

3 Executive Summary During 2012, we estimate that the UK mtrsprt industry had a turnver f 9 billin, in cntrast t 4.6 billin in and emplyed 41,000 peple, in cntrast t 38,500 in The sectr can be segmented between 45% f businesses engaged in high perfrmance mtrsprt engineering; 31% prviding nn-engineering services and 24% engaged in bth high perfrmance mtrsprt engineering and mtrsprt services. The sectr has enjyed cntinuus sales grwth frm 2009 t It cntinues t have a strng fcus n research and develpment (R&D) with 15% f all firms spending ver 25% f their annual sales turnver n R&D. There is als a strng internatinal fcus with 87% f all firms invlved in exprting. The sectr is ptimistic abut future grwth levels, with 66% identifying mtrsprt as a cre grwth area, 40% identifying mainstream autmtive as their surce f future grwth and 18% aerspace. Mre than half (55%) expect exprt sales t increase, with the highest ptential markets being USA, Germany and France. The tp three markets fr mtrsprt amngst emerging cuntries are China, Brazil and Russia The majrity (53%) believe lw carbn technlgies will drive future grwth. Mtrsprt engineering capability has an increasing pprtunity t act as a bridge between specialist prttyping capability and mainstream cmmercialisatin f technlgy prducts. The main cnstraints fr grwth are identified as demand levels, access t finance and quality and capacity f the supply chain. There is a significant pprtunity in engaging the small and medium enterprise (SME) base in mtrsprt fr the wider develpment f lw-carbn technlgies in ther sectrs. There is a further pprtunity fr increased engagement between the UK mtrsprt sectr and gvernment industrial and technlgy plicy. In the future, the industry will be impacted by regulatry regimes, the rle f the autmtive riginal equipment manufacturers (OEMs) and the glbal audience fr mtrsprt events. On a brader level, there will be increased crprate cnslidatin, a greater fcus n differentiating prducts and services, a shift f sales twards the emerging markets and further increase in the speed f change and diffusin f knwledge. In the future, successful firms will develp a deeper understanding f emerging mtrsprt markets and regulatry regimes, and develp the ability t integrate multiple technlgies t create and deliver lw carbn slutins. The develpment and applicatin f lw cst technlgies has the ptential t grw mtrsprt participatin. Innvatin, adaptatin and the ability t create effective alliances will be increasingly imprtant. Frm a plicy perspective, access t finance, facilitatin f technlgy develpment and market intelligence will be key areas t help facilitate grwth. The sectr remains healthy and is enjying the highest levels f sales turnver in its histry. Fllwing a recessinary dip arund 2008, it has bunced back t new high levels f perfrmance. Emplyment grwth has been restrained and has nt matched turnver grwth in recent years, suggesting an increase in prductivity. The sectr has bth bradened its cre mtrsprt activity (in particular thrugh the integratin f engineering and services) and expanded int ther technlgy intensive industries. R&D expenditure and high levels f exprt activity remain defining characteristics f the sectr. Lw-carbn technlgies are seen as the mst imprtant grwth technlgy, althugh uncertainty as t which will emerge as dminant technlgies remains a ptential barrier t grwth. 1 Figures nt inflatin adjusted

4 Highlights frm the 2013 Review f UK Mtrsprt Valley Business Cluster A jewel in the crwn f UK engineering Grwing, investing in R&D, exprting, and attracting investment In 2012, the UK mtrsprt engineering and services industry had a turnver f 9 billin, nearly dubling sales frm 4.6 billin in Sme 4300 businesses emplyed 41,000 peple, cmpared t 38,500 in The UK mtrsprt industry remains healthy. Fllwing a recessinary dip, mtrsprt cmpanies have enjyed cntinuus sales grwth between 2009 and 2012, reaching the highest level f sales in its histry. Whilst emplyment grwth has been mdest, grwing sales turnver has delivered an increase in prductivity. The industry has strng fcus n research and develpment (R&D) with 15% f all firms surveyed spending mre than 25% f their annual sales n R&D. The industry has a strng internatinal flavur: 87% f firms exprt their prducts r services, and 55% are cnfident exprts will increase during the next five years. Amngst cmpanies wh declared that mtrsprt accunted fr ver 50% f their sales, exprts grew frm 25% f sales in 2006 t 34% in Nearly 90% f the ttal 9 billin f sales is earned by cmpanies wh generate mre than 50% f their sales frm mtrsprt. High-spending internatinal Frmula One teams cntinue t lcate within the Mtrsprt Valley cmmunity (in 2013, 8 f the 11 teams - 73%). When linked t ther F1-related UK businesses, sales turnver f this imprtant sub-set f the industry was ver 2 billin in 2012, nearly 25% f the entire sectr sales value, and emplyed sme 5200 highly skilled, well-rewarded peple (12% f the ttal emplyed). At the frefrnt f UK industrial futures During the perid f this review, , this UK business cmmunity has: bradened its cre mtrsprt activity and expanded sales t ther adjacent technlgy and R&D intensive industries especially autmtive and defence (e.g. in 2012, 31% f businesses made sales int the autmtive sectr) seen grwing integratin f engineering with services - 45% being engaged in highperfrmance mtrsprt engineering, 31% in nn-engineering services and 24% in bth high-perfrmance mtrsprt engineering and nn-engineering services expanded activity in energy efficient, lw carbn technlgies increased its glbal gegraphy f exprts, including the BRIC ecnmies expanded apprenticeship emplyment 2 Figures nt inflatin adjusted

5 Optimistic abut the future These UK businesses are ptimistic abut future grwth. 66% said that glbal mtrsprt remains a key grwth area, whilst 40% identified mainstream autmtive as a surce f future grwth, and 18% included aerspace and defence. Mst mtrsprt engineering firms (53%) believe energy-efficient, lw-carbn technlgies will be at the heart f future grwth. Many indicate an increasing pprtunity, t explit their mtrsprt engineering capabilities, t efficiently bridge the gap between rapid respnse, specialist prttyping and mainstream cmmercialisatin f lw-carbn technlgies by the autmtive, defence and aerspace industries. SME develpment will gain further benefits frm recently increased engagement between the UK mtrsprt cmmunity and gvernment industrial and technlgy plicies, typified by links t Autmtive Cuncil UK and the Defence Grwth Partnership. Exprt markets with the mst ptential fr increased sales ver the next five years are the USA, Germany and France. Amngst emerging ecnmies, thse with the best ptential fr increased mtrsprt sales, ver a lnger perid, are China, Brazil and Russia. Barriers t grwth Main cnstraints n grwth cme frm a cntinued wariness abut demand levels, access t finance fr investment and the quality and capacity f the supply chain t meet demand. During the summer f 2013, 36% f mtrsprt engineering firms had an unfilled vacancy and the recruitment f engineers and technicians remains difficult. Future grwth in the industry will be impacted by a variety f significant influences sprting and gvernmental regulatry regimes, engagement with autmtive riginal equipment manufacturers (OEMs) and the changing glbal audience fr mtrsprt activities. On a brad level, there is likely t be increased crprate cnslidatin, a greater fcus n differentiating between prducts and services ffered, a shift in sales twards emerging ecnmies, and further increases in the speed f change and diffusin f knwledge. These highlights were prepared by the Mtrsprt Industry Assciatin (MIA) and were taken frm the Review f the Evidence Base f Britain s Mtrsprt Valley 2013 prduced by Mtrsprt Research Assciates, published January 2014, available frm Mtrsprt Valley is a registered trade mark f the Mtrsprt Industry Assciatin, held n behalf f members frm the UK mtrsprt industry