UK AUTOMOTIVE INDUSTRY—KEY STATISTICS

  The table below brings together various key statistics for the UK automotive industry. These are sourced from official statistics, including the ONS "Annual Business Inquiry", for which 2004 data is the latest available.

  Total output has remained fairly stable over the last 10 years, with an all-time high in 1999. However, major car plants at Dagenham and Luton closed, taking out some 350,000 units per annum. Despite this, output growth elsewhere has all-but compensated for the loss of these two plants, and this despite the loss of Longbridge in early 2005.

  Value added has shown some instability over the last 10 years. This is directly impacted by volumes, and also price. For this reason, GVA does not directly correlate with output. Intense competition has driven down forecourt prices, which has in turn lowered prices throughout the value chain. However, a determined effort in the last five years to minimise costs and maximise efficiency has seen gross value added increase despite stable output.

  Export sales are at an all time high both in value terms and as a proportion of output. The very latest rolling 12-month data (12 months to March 2006) shows that UK is now exporting over 75% of the cars, and 64% of the commercial vehicles made here.

  Company numbers have remained fairly static over the last 10 years, with no significant change in the overall number. VAT registration data shows that the number of new companies starting up broadly balances the number of auto sector companies closing each year.

  Employment is declining, largely as a result of improving productivity: output of the industry in terms of vehicles made has been fairly steady over the last 10 years.

  Profitability: Analysis of GVA as a proportion of labour cost gives a measure of potential profitability: a result of 100% implies that GVA is only paying the wages, with no money left to pay other operating costs, let alone providing funds for investment. This data demonstrates that profitability is very difficult, with 2000 a turning point, since when profitability should have been on an upward trend. To set the figures in context, the auto sector is still behind the overall manufacturing position of over 170%, but by comparison, the motor trades are averaging over 230% by this measure, indicating significantly higher profitability in sales and servicing than manufacturing.

  Stock Turn is another efficiency measure, indicating the average time that stock is turned over. Huge strides have been achieved here, with the introduction of lean manufacturing techniques cutting the amounts of stock held, and in consequence cutting the capital tied up in stock.