Automotive sector: Going full throttle

By Ged Henderson

30 Jan 2023

Speedometer

You won’t find January 14, 1969, in any history books but the importance of the date to the development of the automotive industry cannot be underestimated.

This was the day that Carr Reinforcements (CR), a little-known textile company that is today based in east Lancashire, successfully wove the first ever carbon fibre fabric in the world – a fact proudly proclaimed on its website today.

That technological breakthrough helped launch a new composite industry which has proved game-changing for motor manufacturing across the globe, as well as the aerospace sector. Most of the structural weight of an F1 is carbon fibre.

Today the business, which operates from a mill in Worsthorne near Burnley, remains a key player in its specialist field. Part of a worldwide supply chain, director Eric Taylor says around 80 per cent of its production is for export.

China is a major destination, with many of the automotive components created using its high-performance products ending up back in Europe.

The operation, which has a 10-strong workforce and a turnover of around £1.5m, can make around 200 different patterns of weave and supply a wide range of colours to its customers. Eric says: “Around 30 per cent of our output goes into the automotive industry.”

CR is just one example of the innovation and expertise that has driven Lancashire’s automotive sector and which continues today as businesses based in the county look to move into an even higher gear.

The West Midlands may be known as the centre of Britain’s motor industry but the North West is a major player and Lancashire companies are set to play a big role in its future.

In fact, figures show that the North West is now the UK’s second biggest car-making region, employing 21,500 workers and generating £1.9bn for the economy.

More statistics from the Society of Motor Manufacturers and Traders (SMMT) highlight that since 2011, the North West has received more investment in electric vehicle (EV) technology than the West Midlands - £2.8bn compared to £2.1bn.

There was more good news for the North West at the end of last year. Building on its commitment to grow an all-electric vehicle range, automotive giant Ford announced it had invested a further £125m in its Halewood facility on Merseyside – increasing capacity by 70 per cent. It takes the total investment in enabling Halewood’s transformation to an EV component plant to almost £380m.

Kieran Cahill, Ford’s European industrial operations vice-president, says: “Halewood is playing a critical part as our first in-house investment in EV component manufacturing in Europe.”

A third of the membership of the Northern Automotive Alliance (NAA), which is headquartered in South Ribble, is made up of businesses based in Lancashire, with many of them looking to plug into the electric revolution.

These 33 companies are involved in all aspects of motor manufacturing, from specialist  providers like CR to commercial vehicle powerhouse Leyland Trucks. NAA chief executive Paul Jones is bullish for the future of the sector in Lancashire and the North West and sees the acceleration towards EV and the turmoil in supply chains caused by the pandemic as strong areas of opportunity.

Describing the case for more local sourcing as “compelling” he says: “We’ve seen a growing focus on supply chain security and a lot of impressive work in the development of the future ‘green’ supply chains we will need in areas such as battery technology and hydrogen power. Lancashire has some great opportunities ahead of it.”

One company looking to benefit from the transition to battery-electric is Emerson and Renwick (E+R), based in Accrington.

The manufacturing equipment specialist is part of a consortium of seven UK-based organisations that have come together to develop world-leading prototype solid-state battery technology, targeting the automotive sector.

With its engineering experience gained over more than a century E+R has also made a significant investment in a technology centre in Burnley, creating a demonstration and development facility.

The £20m Advanced Manufacturing Research Centre North West on the Salmesbury Aerospace Enterprise Zone is also working to support and strengthen the region’s automotive supply chain. Paul Jones points to it as another winning card for the sector in Lancashire.

Its R&D is carried out with a focus on digital and additive manufacturing, vehicle electrification and lightweighting, batteries and automation, and low carbon technologies.

The centre is also the primary site for the 5G ‘Factory of the Future’ project, a Department for Digital, Culture, Media and Sport (DCMS) funded programme, which is driving the adoption of 5G technologies in manufacturing.

Nationally, after the rocky ride of Brexit and the pandemic, industry watchers believe there could be some positive news ahead for the sector.

The SMMT is anticipating that easing semiconductor shortages are expected to help factory output rise by 15 per cent in the next 12 months to 984,000 units, an uplift worth some £3.9bn. By 2025, production volumes are projected surpass a million vehicles.

To harness this growth, it is calling for a targeted government action plan to safeguard the future of advanced automotive manufacturing and the thousands of jobs it sustains.

The SMMT says such a strategy should help attract investment in vehicle, battery and fuel cell production; support electrified supply chains, skills and innovation; and deliver the incentives and infrastructure critically needed to drive a healthy zero emission vehicle market.

Mike Hawes, SMMT chief executive, says: “In the most testing of times, growth finally beckons for the UK automotive industry, and as recession looms, that’s growth that should be nurtured.

“We need a framework that enhances competitiveness, enables investment and promotes UK automotive’s strengths: innovation, productivity and a highly skilled workforce.

“We therefore need swift and decisive, action that addresses the immediate challenges and gives us a fighting chance of winning the global competition. That window of opportunity is open but is closing fast.”

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