Automotive engineering in this section uses SEMTA’s definition which includes the ‘Manufacture of motor vehicles, trailers and semi-trailers’ and the following Standard Industrial Classification (SIC92) codes:

• 34.1 Manufacture of motor vehicles
• 34.2 Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers
• 34.3 Manufacture of parts and accessories for motor vehicles and their engines

Employment is this industry is estimated to be around 197,000, but it is expected to fall to 164,000 by 2010. The automotive sector accounts for 13% of total employment in the engineering industry. There were nearly 3,000 automotive workplaces in 2004, with 91% located in England, 5% in Wales, 2% in Scotland and 2% in Northern Ireland. In 2010 the number of workplaces is expected to fall to 2,500.

Establishments in this industry are small, with 82% of all sites in the UK employing fewer than 50 people. Only 6% of total UK automotive sites employ 200 people or more. Over 31% of automotive sites have difficulty filling current vacancies.

In the longer term the industry is restructuring with the growth of out-sourcing and the development of a sophisticated tiered supply chain.

Specific occupational areas and skills crucial to the future development of the automotive sector include:

• design engineers
• electronic engineers
• production engineers
• technicians – equipment, process and product
• maintenance
• toolmaking
• prototyping

The level of skills gaps experienced varies by country, from 28% in Northern Ireland to 10% in Wales.  Automotive employers experience skills gaps among operators, crafts persons and technicians and these occupations have the most significant impact on their business.  Skills gaps are reported for technical engineering, communication, team working and problem solving skills

Geographically, just over 90% of automotive employment is in England, with 5% in Wales, 2% in Scotland, and 2% in Northern Ireland. It accounts for 0.7% of overall UK employment.

Over 90% of automotive employment is in England, with 5% in Wales, 2% in Scotland, and 2% in Northern Ireland.  The automotive sector accounts for 0.7% of overall UK employment.  Within England, the West Midlands (31%), North West (11%) and East of England (11%) have the greatest concentration of automotive employment. The West Midlands accounts for 18% of all companies and 30% of the total workforce. Although this region remains strong, new foreign investment has been channelled into South Wales, the North East and the South. Significant job losses at Rover and Peugeot will impact on overall employment in the West Midlands.

Over the last 20 years, growth has averaged 4% per annum, but since 2003 productivity has increased and is expected to increase further over the next ten years. Growth is expected in: motorsport; automotive design; engine production; premium car production; and automotive components. 

Automotive manufacturing includes: manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers; manufacture of parts and accessories for motor vehicles and their engines. It is dominated by 6 global groups in Europe, the Americas and the Far East accounting for 80% of the world car production. Five groups dominate the world market for trucks and buses and large multinational firms dominate the components sector. Future growth is predicted in: engine and powertrain; hybrid, electric and alternatively fuelled vehicle; advanced software, sensors, electronics and telematics; advanced structures and materials; design and manufacturing processes.

Future trends are focused on:

• an increased requirement for investment in joint venture work on design and standardisation of common platforms as well as investment in IT-intensive real-time supply chain management.
• the need for innovation and increase R&D budgets
• meeting global quality standards (TS16949) and skills requirements, particularly in supply chain management (SCM) firms
• increased automation of technology and lean manufacturing,
• the pursuit of national automotive strategies that imply a need for  up-skilling, flexibility, agility and adaptability of national and European workforces
• the need for higher-level skills, particularly for associate professionals (technicians)
• continuous professional development and lifelong learning

Future skills that will be required by automotive employers at high and advanced levels include: technical and practical skills; problem solving; team working; communication; customer handling; and numeracy.  All of these skills will be required increasingly over the next three years.

Future drivers of change:

• global competitive pressures
• rapid technological change
• new product/process development
• cost reduction throughout whole supply chain
• global quality standards
• regulation and environmental legislation

Source: SEMTA 2006

For further information on employment levels and predicted levels in automotive together with occupations distribution in the industry see: