The Society of Motor Manufacturers and Traders (SMMT) latest member survey explored the impact of both the pandemic and the new trading relationships arising following EU Exit.
The SMMT survey findings report that whilst the Covid situation is improving in the UK and in some major export markets, manufacturers are still struggling to manage residual issues, most notably the global semiconductor shortage.
Automotive businesses are working hard to maintain output, with some nine-in-ten (91%) firms spending more time and resource managing UK/EU trade than in 2020 and more than a third (36%) already devoting more resource to rest of the world trade.
Regarding the shift to electric vehicle production, companies are already having to absorb additional costs arising from new trading arrangements with the EU, but must also invest in modern technologies, new processes and upskilling the workforce. A competitive business environment that helps reduce operating costs and policies that support manufacturing will be essential for the transition to zero.