UK car manufacturing rose almost 6% in 2011 driven by strong exports. December was an especially strong month, seeing a 1.6% year-on-year rise.

This news will increase the demand for warehouses and manufacturing facilitates throughout the country, driving up the desirability of already sought after automotive warehousing premises.

One of the most successful manufacturers was Land Rover; the Solihull firm seeing a 33% increase in its production levels, fuelled by demand for its vehicles in the growth markets of India and China. Figures released by the Society of Motor Manufacturers and Traders show the firm produced 238,237 vehicle (2010: 179,165).

Demand for the new Evoque model is thought to have been a factor in the increase. The company has received strong orders for the new model since it went on sale in August and that demand shows little sign of tailing off.

A more encouraging sign for the industry was the increase in engine production, which rose 4.9% to 2.5m units.

With demand for new vehicles continuing and Jaguar Land Rover committed to a new plant in Staffordshire, the engine production sector appears to be strong.

West Midlands component suppliers will be hoping the trend continues as it will provide the region’s economy with a significant boost.

Rachel Eade, supply chain specialist at the Manufacturing Advisory Service, said: “These figures are great news for the industry, especially here in the West Midlands which is traditionally dependent on the car industry for its success. There is every sign that the trend will continue this year as most of the suppliers I speak to are very busy.”

Philippa Oldham, head of transport and manufacturing at the Institution of Mechanical Engineers, said it was heartening to see that international car manufacturers such as Nissan, Vauxhall and Honda saw the UK as the place to invest.

She said this was because of the quality of engineering design and manufacture UK companies were able to provide.

“In recent years we have seen the dangers of having an economy that relies too heavily on financial and service industries. Boosting the UK’s manufacturing sector, which currently represents just 11% of the UK economy, would help create economic stability,” she said.

Will the automotive industry feeling so positive and figures suggesting prosperity in 2012 warehouses and manufacturing premises in this field will feel the pressure lift in a time of economic instability.

Source: The Business Desk