Filling the hollow market

Julian Buckley speaks with OEM and tier suppliers operating in the UK about the current state of the UK market, which direction the market is heading and what various organisations and bodies can do to support the industry

The UK supply chain has been ‘hollowed out’ over the past 20 years as the number of tier 2 and 3 companies has steadily fallen, with the knock-on effect that the amount of locally-produced parts has been reduced to a critical level. This was the message from OEMs and tier companies attending the recent Meet the Buyer event, organised by the Society of Motor Manufacturers and Traders (SMMT). According to Mick Aiers, purchasing manager at Vauxhall, too many tier companies in the UK have looked to become tier 1 providers. He says that this has happened for a variety of reasons, but most are related to building in value in order to increase margins. But Aiers goes on to say that this push by companies to achieve tier 1 status has effectively put a ceiling on the volume of parts which can be delivered to the market as a whole. “There is no shame in being a tier 2 or 3 company,” he says, “and we need them to be filling out the supply chain.”