UK engine manufacturing turnover is expected to increase by £2.5bn to £10.5bn by 2016. This surge is hoped to help annual engine output set to surpass three million units, and is aided by £1bn invested in UK engine production.
Revenue generated for the UK economy by engine manufacturing is expected to increase by up to £2.5bn over the next two years; increasing turnover by nearly a third (31%). Over £1bn has been invested in UK engine production since 2011 and forecasts suggest the value of engine manufacturing will increase to £10.5bn by 2016.
Engine production has seen a spate of new investments come to fruition this year alone. Jaguar Land Rover’s £500m Engine Manufacturing Centre in Wolverhampton, which officially opens in October, as well as Ford’s £490m low carbon engine development in Dagenham are helping ensure the UK is engaged in development and production.
According to the SMMT, these development programmes are aiding British engine output to surpass three million units per year and increasing volumes by more than a fifth over current levels.
Mike Hawes, SMMT chief executive said, “Recent events, such as the opening of Jaguar Land Rover’s new engine facility and Ford’s new engine range are clear evidence of the UK automotive industry’s intention to become a leading force in the design, development and manufacture of engines.
“The recent success is testament to the expertise of UK engineers, a flexible workforce and the competitive and supportive business environment. It will create more jobs, bolster the supply chain and help attract overseas suppliers back to UK shores.”
In 2013, the UK produced 2,553,316 engines, of which 60% were exported to overseas markets. Overall, UK automotive manufacturing generated £64bn in turnover last year, adding £12.4bn to the economy.
Nearly 800,000 British jobs are dependent on the sector, which has seen nearly £13bn investment announced since 2011. In the coming years, UK car manufacturing is expected to surpass the current record production level of 1.9 million units in a year, which was set in 1972.