A new survey from accountancy and business advisory firm BDO LLP, reveals an overwhelming 77% of the South East automotive industry anticipates growth in 2015.
The national survey, carried out in conjunction with the Institute of Mechanical Engineers (IMechE), looked at the issues that mattered most to the institute’s automotive industry members.
The majority of those interviewed in the South East envisaged sales growth in 2015, while 6% of respondents are even confident of a 100% increase.
New opportunities are likely to come from export markets, with 90% identifying international sales as a key area for growth. More than a third of those seeking a bigger overseas presence also believed this would come from exploring new, as opposed to existing, markets.
Kevin Cook, partner and head of manufacturing at BDO LLP in the South East, said: “The optimism of the automotive industry signals strong momentum for what is a key component of the South East’s manufacturing sector.
“International sales are absolutely the guiding principle for growth. It’s fantastic that such a large proportion of regional firms recognises this and have a vision for global expansion.”
Key players for the South East’s automotive industry are McLaren and Vauxhall, who are supported by the thousands of businesses in their supply chain and are huge employers for the region.
The sector’s reputation for being world class innovators was further supported by respondents underlining their commitment to research and development. More than a third (39%) of automotive firms in the South East, continue to re-invest a percentage of their annual turnover on research and development, with investment into low carbon and/or electric vehicles continuing to be a real trend for the year ahead.
However, 42% felt let down by the government, who they believe isn’t doing enough to increase entrants into Science, Technology, Engineering and Maths (STEM) subjects.
Cook added: “It is essential that companies in the region continue to invest in R&D to maintain their position on an increasingly competitive world stage. The government also has its part to play and must do everything it can to support R&D and the sectors export drive.”
