Innovacion

Business Growth Fund offers opportunities to grow automotive supply chain

Increased availability and access to finance will boost investment across the UK’s automotive supply chain, helping it to remain competitive – these were the findings presented by leading industry figures at a Business Growth Fund seminar, hosted yesterday by the SMMT.

Outlining the challenges facing the supply chain and finance sectors, leading industry figures, including Andrew Rumfitt, Director, Innovacion, Stephen Pegge, SME Markets Director, Lloyds TSB and Mark Byrant, Director of the recently launched Business Growth Fund, presented an overview of the UK’s financial landscape and the opportunities for growth through improved financial availability for UK businesses.

Copies of the presentations available here

Fast Forward for the British Library

Innovacion recently prepared the British Library’s application to the Intellectual Property Office (IPO) Fast Forward programme for funds to support the initial development of six Business & IP Centres in Birmingham, Leeds, Liverpool, Manchester, Newcastle and Sheffield. The project will develop a Blueprint and operational guidelines for the national roll-out of a branded network of Business & IP Centres to Birmingham, Leeds, Liverpool, Manchester, Newcastle and Sheffield.  The project will unlock the potential of the Patlib network, increase the knowledge exchange between business and universities and develop shared services to achieve economies of scale.  

Andy Rumfitt's Gearing Up Report launched by SMMT

Our report, published today by the SMMT, has highlighted the need to get capital into the UK’s automotive supply chain to stimulate growth and take advantage of the opportunities created by recent OEM investment announcements. It also explores the mismatch between the banking sector’s current approach and the lending needs of suppliers.

Focusing on the relationship between financial institutions and the domestic automotive supply sector, the report looks for solutions to the lack of consistency and strategic vision in lending today. The study identifies how a more effective working relationship could help to rebuild and rebalance the economy if the industry and finance providers had a better understanding of the workings of both sectors and work together to address the type of finance offered to businesses.

“Improving access to finance and credit has the potential to stimulate growth in UK automotive’s small and medium-sized companies, enabling them to develop facilities, tooling and machinery to take advantage of broader automotive growth,” said Paul Everitt, SMMT Chief Executive. “The UK is recognised globally for its strength in automotive engineering and innovation and we believe that by achieving competitive funding for UK businesses, the UK can take a larger share of the components market.”

The UK has seen a wealth of positive investment announcements throughout 2011 with international companies committing millions of pounds to the country, introducing new models, building new facilities and employing more people. These announcements have included commitments to source more components locally, capitalising on lower transportation costs and high quality output of domestic suppliers.

Despite this wave of positivity, there is still expansion potential in the UK. Earlier this year, the Automotive Council reported that the UK has the capability to supply 80% of the country’s component types, but the Smith Institute found that just 36% of an annual £7.4bn automotive component spend was purchased in the UK.

The potential for the sector is clear, but many suppliers report that financial institutions were wary of the automotive industry despite the UK manufacturing sector performing strongly, exports achieving record levels and recent investment announcements demonstrating the long-term plans to base operations in the country.

The Smith Institute Report was launched at an event attended by the banking and automotive sectors and government representatives.

Download Gearing Up Report Launch Version 081211

Andy Rumfitt appointed to advise the Southwark Housing Commission

Andy Rumfitt has been appointed as part of the Smith Institute team to provide secretariat services to the Independent Commission on the Future of Council Housing in Southwark which will look at housing issues beyond 2015/16. Chaired by the nationally acclaimed housing lawyer Jan Luba QC, the Commission will find innovative and deliverable long-term solutions to the issues created by the unprecedented demand for council housing in the heart of London. While Southwark Council is the largest local authority social landlord in London managing 54,000 homes, the current waiting list now exceeds 19,000. The Commission will invite and hear evidence from key stakeholders, tenants, leaseholders, residents, housing associations and all those who are involved and interested in providing housing across the borough. The Commission will report in October 2012.