The UK is home to one of the world’s most diverse automotive industries and is a leading location for the design, prototyping, engineering and manufacturing of luxury, high performance and niche vehicles. Over the past century, these small volume manufacturers (SVMs) have become a staple of the UK’s economy and a quintessential British success story. They perform a key role in the development of advanced technologies such as aerodynamic designs, light-weighting and safety concepts, which are often rolled out across the wider automotive industry. They make significant contributions to British jobs and growth, locally and nationwide.
The UK’s SVMs are well suited to deliver key long-term objectives identified by government as part of its mission-driven approach with employment, exports and investments interconnected aspects of economic growth. The heritage of the UK’s SVMs adds immense value as these manufacturers are iconic businesses invested, and investing in, the UK and a major strength of British manufacturing.
These companies also have a significant level of integration and recognition within local communities and regional supply chains. The sector employs more than 15,000 people and supports more than 60,000 jobs in adjacent sectors and even more across the globe, with skills, technologies and innovation that stretch beyond the confines of automotive into aerospace, defence and other sectors.
As much as 90% of UK SVM vehicle output is for export, compared with the industry average of 77%. While automotive is the UK’s largest exporter of goods, SVMs contribute significantly to the proportion of high-value exports with nearly £5 billion of goods shipped overseas annually.
As government looks to grow the economy, policy mechanisms and incentives should reflect the needs of this unique and highly valuable sector. We must continue to work together to protect and grow a vibrant SVM sector in the UK.
