Automotive supply chain starved of investment

The growth of automotive supply chain companies is being constrained by restricted access to finance according to a report by the Smith Institute, commissioned by the Society of Motor Manufacturers and Traders (SMMT).

“With over £5.6bn pledged to the UK during the last 18 months, there is a ‘window of opportunity’ to strengthen the UK supply chain, creating jobs and prosperity for the long-term,” said Paul Everitt, SMMT chief executive.

“A lack of expertise within the finance sector is holding back growth in the UK automotive industry. Vital opportunities for companies to grow and develop their businesses are being hampered, because banks have not responded quickly enough to the need for local knowledge and sector expertise.

“There is a unique opportunity to re-build manufacturing capability and capacity in the UK, but it requires industry, finance and government to shift gear and ensure growth businesses get the financial support they need.”

The report and summary are available at www.smmt.co.uk/supply-chain-finance.

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