Wednesday 6th Apr 2022
Recent
reports show that UK car production has fallen to its lowest output since 2009,
with production down by 41%. The automotive sector ended 2021 on a high with
general UK manufacturing on the rise but issues have surfaced that indicate
that businesses are still working towards recovery.
Addressing
Chip Shortages
The
predominant obstacle car manufacturers have stumbled across is the global
shortage of computer chips. This issue has been addressed across the world
since 2020 and is a result of the need for semiconductors outweighing the supply.
A snowball effect has been attributed to this shortage with factors such as
Covid-19, trade issues and weather being highlighted.
There are
signs however that the chip shortage will ease towards the end of 2022 with
major producers such as South Korea receiving government assistance and the U.S
seeking to build their own manufacturing plants. Although these solutions will
take time, Sector leaders remain hopeful that with these efforts lead times
will be reduced. However another recent issue is that the Ukrainian conflict has significantly reduced the supply of Neon gas used to etch chip boards. This will further exacerbate recovery for the automotive industry.
Going
Electric
More than a
quarter of vehicles produced in February were electric vehicles, with the
consumer need for EVs ever-increasing. The electric vehicle revolution has been
supercharged by the Prime Minister as new homes, supermarkets, workplaces and
more will be required to install electric vehicle charge points.
The
government also announced the ban on petrol and diesel cars from 2030 as part
of their green initiatives. With the increase in incentives and investment for
electric vehicle use, it is predicted that this will attribute to growth in car
production over the coming years.
Preparing
For Supply Chain Risks
Supply
chains continue to be shrouded in a level of uncertainty, and this has remained
a factor in declining car production. A multitude of parts within the
production process is affected by this, including fasteners. Many UK businesses
have begun to adapt their supply chain, moving to UK based suppliers or EU
suppliers with UK operations.
As
manufacturers begin to streamline their supply chain this could help towards
improving overall production, and at the least help companies prepare for
future crises. Here at Clevtec, we are equipped to provide substantial supply
chain service, find out more here.
Get
Advice From The Experts
We’re committed to driving the growth of UK manufacturing,
which is why we’re proud to be recognised suppliers of cold-forged components
and fasteners. Our services are delivered with exceptional customer service and
technical competence is at the forefront of our operations. To find out how we
can help your business contact our expert team today.
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