Car production in the UK is suffering due to supply chain disruption, with 100,000 fewer cars being produced in the first three months of 2022 than in 2021. As a result, inflation across the automobile industry is rising, contributing to the UK's cost of living crisis.
What Is Causing Supply Chain Disruption?
Car manufacturers have been struggling to access the parts they need, bringing the production of new vehicles in the UK to a halt. There are a number of factors contributing to this supply chain disruption, least of all the effects of Brexit, the COVID-19 pandemic and the war in Ukraine. These include:
Hold-Ups At Customs
Delays at customs are preventing car manufacturers from receiving the parts they need when they need them. This is partly due to changes in legislation following Brexit, with increased costs, paperwork and a backlog of deliveries resulting in long delays at customs.
Further disruption to customs processes is coming from Coronavirus restrictions, particularly in China where lockdown has just ended. This has resulted in both suppliers being forced to pause production and a backlog of deliveries being processed through customs.
Shortage Of Workers
Across the world, production has slowed as workers are forced to isolate following a positive COVID-19 test. From computer chips to tyres, car manufacturers are falling short of the materials they need to complete construction.
The shortage of workers is also impacting the shipping and distribution industries, with less staff resulting in long supply chain queues as shipping containers are stuck in warehouses. Once they reach the UK, a shortage of drivers following Brexit and the rising cost of fuel is then slowing delivery.
Airport Delays
The war in Ukraine, alongside the lasting effects of the Coronavirus pandemic, has resulted in the closure of major airports. This prevents raw materials from being shipped to the UK, as well as the rise in energy and fuel prices. The resultant impact on the automotive industry is drastic, with a delay in production contributing to inflation across the industry.
Order Ahead To Avoid Delays
Minimise the impact of supply chain production on your automotive business by ordering ahead. This helps you to prepare for delays and meet manufacturing deadlines on time.
BTL-UK is a precision manufacturing company serving the UK, Europe and Asia. Browse our catalogues or get in touch today to find out more.
Image Source: Pexels