The new Prime Minister’s ambition for economic growth to be felt in every part of the UK presents a significant opportunity for the commercial vehicle and bus manufacturing sector. We are already deeply rooted in regions across the country – from buses built in Falkirk, Ballymena and Rochdale to commercial vehicles produced in Leyland, Ellesmere Port and Warwickshire, all supported by a diverse supply chain – and with the right support we can grow that footprint further.
SMMT’s latest data published this week shows output volumes are now stabilising, with 1.0% growth to 2,717 units in June, and exports surging by 54.3%, albeit compared with a weak base following the closure of a major plant in Luton. Turning stability into growth is now the challenge, however, and policy decisions made – or not made – this year will be decisive.
The Modern Industrial Strategy sets out the approach industry needs but rapid implementation is vital, particularly to lower industrial energy costs, even after the introduction of the British Industrial Competitiveness Scheme. Clear long-term regulation on the transition to zero emission vans and trucks is also essential to encourage private investment in production and the supply chain, ahead of demand growing.
Volumes, rather than notional market shares, are what really matters. The benefits of volume growth extend far beyond production lines, with every commercial vehicle assembled in the UK supporting a network of suppliers producing specialised componentry. Strengthening domestic capability in these areas will improve the UK’s industrial resilience while creating opportunities for innovative small and medium-sized businesses across the country to thrive.
If government is serious about ensuring all regions share economic success, the commercial vehicle and bus manufacturing segments – and their supply chains – should be recognised as a strategic national asset. With consistent industrial policy, targeted investment and support for innovation, the sector can become a cornerstone of regional regeneration – helping deliver the inclusive growth the Prime Minister is rightly focused on delivering for present and future generations.
