UK Car Manufacturing UP in March – productivity at all time high

UK Car manufacturing rose by 1.9 per cent in March 2015, and the SMMT report that productivity in the UK car industry is now at an all time high.

We’ve become used to new car sales rising inexorably in the last few years, but it’s good to see that new car sale aren’t just imports, but that UK PLC is doing its bit and churning out an increasing percentage of the cars we can’t stop buying.

Car manufacturing figures for March 2015 are more of a steady increase rather than a big shouty headline at 1.9 per cent up on the same period last year, but the Society of Motor Manufacturers and Traders (SMMT) expects growth to increase further as new models start in to production.

What’s interesting is that the numbers may have increased, but the exports are actually going down as more cars are supplied to the still growing home market. In March, exports of cars made in the UK dropped by 5 per cent, and so far this year exports are down by 6.9 per cent. In the same period manufacturing for the home market rose 22 per cent.

Mike Hawes, SMMT Chief Executive, said

Built in Britain’ is more than just a brand: our automotive industry is increasingly competitive on a global scale. The latest production figures are yet more evidence of that, and with £1 billion worth of fresh manufacturing investments announced by three UK manufacturers in March alone, the future is optimistic.

Not only is car manufacture still growing, productivity has reached an all time high too.

From miserable figures in the 1970s when Red Robbo made sure BL struggled to churn out 4 cars each a year, that figure is just about three times greater with a UK average of 11.5 cars per employee per year.

It’s an impressive figure – and doubtless good for the bottom line for car makers – although it could be argued that it also means a massive drop in car industry jobs.