2015 motor industry Sustainability Report shows progress on all environment measures
Wed 01 July 2015
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SMMT's 16th Sustainability Report has confirmed the strength of the UK auto industry while last year it has improved on every environmental indicators identified including CO2 emissions, waste to landfill, water and energy use. The motor industry's trade body report also confirms rapid rises in productivity per worker due to investment in more efficient, high-tech manufacturing processes.
The Society of Motor Manufacturers and Trader’s 16th Sustainability Report looks at the economic, environmental and social impact of the automotive industry in the UK in 2014. The report finds that the industry continues to improve resource efficiency, increase output, invest in training and make progress on the decarbonisation of road transport.
The report also confirms the growing strength and vitality of the UK automotive industry with turnover hitting an all time high of £69.5 billion in 2014.
The latest figures confirm an upward trend for new vehicle demand and manufacturing output, with almost 1.6 million vehicles built in 2014. Last year, car production grew to 1.53 million units – the highest level since 2007 – with an increasing number of vehicles built for the domestic new car market, which itself grew 9.3% to reach 2.48 million registrations last year. On current trends, the SMMT says, UK car output is expected to reach an all-time record level of 1.95 million vehicles in the next two years.
Investment in manufacturing processes has led to huge gains in productivity. In each of the five years to 2014, an average of 11.5 vehicles were produced for every person employed in the industry, compared with 9.3 vehicles for the period from 2005 to 2009.
There was progress in 2014 against all key environmental measures. Total waste to landfill from all automotive production fell by more than a quarter (26.3%) in 2014, and has fallen dramatically (by 92.3%) since 2000. Water and energy use fell by 10.7% and 10.4% respectively, and CO2 emissions per vehicle produced fell by 5% compared with 2013.
Mike Hawes, SMMT Chief Executive, said, “The UK automotive industry can be proud of its achievements as it continues to set new standards. The sector is delivering growth in volumes, turnover and employment, while reducing its environmental impact. Continuing to expand in a fiercely competitive global market is a major challenge and will depend on a supportive economic and regulatory environment which promotes investment to foster innovation and continuing productivity improvements.”
The SMMT says that large investments are still being committed to new and expanded production facilities in the UK, and that an additional 27,000 jobs were created in 2014 – a 3.5% increase on the previous year.
The number of people employed in automotive (including manufacturing and retail) now stands at 799,000, with the average worker responsible for generating £440,000 in turnover for the sector.
The SMMT says that the figures are further evidence of UK automotive’s renaissance, as the sector continues to innovate and invest huge sums in research and development to meet tightening targets on CO2 emissions and air quality, and capitalise on global megatrends such as connectivity and intelligent mobility.
In 2014 the LowCVP published a report - 'Investing in the Low Carbon Journey' - which found that the sector's renaissance has been driven by a consistent and sustained low carbon policy focus.
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