UK car production falls

News Article - 26 August 2010
Category: Industry

According to the Society of Motor Manufacturers and Traders, UK firms produced 98,000 cars in June, equal to an 8.9% decrease on the same period last year.

This drop has been blamed primarily on the end of scrappage scenes, introduced into European markets to stimulate demand following the recession. The UK's own scrappage scheme, which gave buyers £2000 for scrapping a vehicle older than 10 years, ended in March.

Industry experts say the easing of demand was anticipated when the scrappage scheme ended, and should not worry manufacturers. The sector has experienced considerable economic recovery this year, with production up 42% from January-June compared to the same period in 2009.

Overall, 808,000 vehicles have been produced so far in 2010, equal to a year-on-year increase of 41.9%. Over the same period last year, total vehicle production fell by 7.5%, whilst commercial vehicle production rose by 10.7%.

Despite the fall in UK car production this month, recent CBI figures suggest the recovery experienced this year will continue to progress. In its Quarterly Industrial Trends Survey, 38% of CBI members said output rose between April and June, whilst 15% said it fell. This is the best balance since April 1995, and a progressive sign for manufacturers.

Yet whilst long-term prospects for the manufacturing sector remain positive, the drop in car production in June shows demand continues to fluctuate. Demand for UK-made goods is steadily increasing abroad, with home-based orders starting to close the gap, but this progress will remain unstable over the coming months as economic recovery continues. To make the most of opportunities in these market conditions, manufacturers must address internal inefficiencies in order to get maximum return on investments.

Profit margins are one area that typically suffer when internal resources get stretched by falling demand. Access accounting software can help by streamling the way in which organisations operate. Estimates and quotation management software, for example, allows companies to accurately calculate costs and selling prices, ensuring clients receive cost-effective services whilst protecting profit margins from being squeezed.

For more information on Access accounting software, please call us on 0845 345 3300.

Article keywords: industry news, uk business, car industry, UK manufacturing, business solutions, enterprise software, accounting, access group

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