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.
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 Clevedon Fasteners, we are equipped to provide substantial supply chain service, find out more by getting in touch 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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