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Sumitomo Demag managing director Nigel Flowers: "keep suppliers close".
Injection moulding machine manufacturer Sumitomo Demag has said the future for UK suppliers of plastic moulded components looks set to remain “buoyant”.
In a recent report prepared by the Automotive Council UK, annual output by UK vehicle makers is forecast to exceed two million units by 2020. Of all the components required for vehicle assembly, close to 80% could, in theory, be produced by UK suppliers, the organisation has suggested.
In addition, the Society of Motor Manufacturers and Traders has revealed that 1,420,636 new cars have been registered so far in 2016 – the best half-year performance ever recorded.
In all, demand for new cars was up 3.2% in the first half of 2016.
“There has been a definite trend among OEMs and vehicle makers to switch their procurement to domestic suppliers as it reduces supply chain risk and lead times,” said Sumitomo Demag managing director Nigel Flowers.
“From a quality and risk management perspective, it is safer to have your supplier close by. In recent years there’s been a significant amount of UK re-shoring in the injection moulded component sector.”