Motorcycle Industry Manufacturing Public Policy

TheUKMotorcycleIndustry
Manufacturing,PublicPolicy,TheEconomyandGrowth
TheMotorCycleIndustryAssociationLimited,
1RyeHillOfficePark,
BirminghamRoad,
Allesley,
Coventry,CV59AB
Tel:(024)76408000
Fax:(024)76408001
Dateofissue:November2012
www.mcia.co.uk

Manufacturing,PublicPolicy,TheEconomyandGrowth
Contents
1.
1.1
2
2.2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
16.1
16.2
16.3
17
17.1
17.2
17.3
17.4
18
18.1
18.2
18.3
18.4
18.5
18.6
18.7
18.8
Page
IndustrySummary
Manufacturing
IntroductionUKMotorcyclingasaWhole
WiderBenefits
UKMarketforMotorcycling
BusinessNumbers
Exports
EmploymentandWages
AddedValue
MotorcycleManufacturing
ApprenticesandTraining
ComponentManufacturing
SupplyChains
R&DandInvestment
ClothingManufacturing
MotorcycleDistributionandRetail
MotorcycleRepair,ServicingandMaintenance
IssuesandConstraints
EconomicFactors
TechnologyImprovements
CurrentandFutureOpportunities
PublicPolicyIssuesHelpingtheIndustrytoContributetoGovernmentGoals
TheAutomotiveCouncil
AutomotivePolicyandProgrammeInclusion
FullIndustryRecognition
BalancedWiderPolicies
BalancedandSustainableGrowthMCIView
ManufacturingandInnovation
TheEconomy
EducationandSkills
Employment
EnergyandClimateChange
FinancialServices
Infrastructure
Taxation
2
2
2
3
5
7
7
8
9
9
10
11
11
11
12
13
13
13
14
14
14
15
16
16
16
17
17
17
17
18
18
18
19
19
19
Motorcycle Industry Association

1 Rye Hill Office Park, Birmingham Road, Allesley, Coventry
CV5 9AB
Tel: 02476 408000
Email: info@mcia.co.uk
www.mcia.co.uk
Manufacturing,PublicPolicy,theEconomyandGrowth
1.
IndustrySummary
TheUKmotorcycleindustryasawholeoffersanotablecontributiontotheUKeconomywitha
turnovermorethan5billionandaround1billonpaidintaxes.Intotal,theindustrysupports
2.8billionofaddedvalueand81,500jobsintheUKeconomy,directlywithintheindustryand
indirectlythroughpurchasesfromotherUKindustries.TheUKmotorcycleindustryalso
generatessignificanttourismexpendituresofaround570million,whichhelpstosupport
morethan13,000tourismjobs.
TheUKmotorcycleindustryisdefinedascomprisingfivemainsectors,including
manufacturing;distributionandretail;repair,servicingandmaintenance;sportsandleisure;
andothersupportservices.
Thereareapproximately1.5millionactivemotorcyclistsintheUK,representingaround3%of
theUKadultpopulation.Ownershipratesindicatethereareapproximately22motorcyclesper
1,000people.Thereissignificantpotentialforfurthergrowth.Around3millionpeopleholda
fullmotorcyclelicence.Newpurchasesofmotorcyclesgrewstronglyafter1997,buthave
experienceddeclinesofaround30%since2008asaresultoftherecession.However
indigenousmanufacturershaveseenmarketsharegrowthoverthisperiod.
Thereisasignificantandincreasingcontributiontoexportsofover400millionperannum
andsupplychainimpactssupportanadditional750millionofGrossValueAdded(GVA)and
16,000FullTimeEmployment(FTE)jobsintheUKeconomy.
GovernmenthasaroletoplayinrecognisingmotorcyclingandthepotentialofUK
manufacturing,plusofferpoliticalsupportandtheinclusionofmotorcyclesaspartof
transportstrategiesthataimtorebalancetheeconomy,creategrowth,reducetraffic
congestion,reducecarbonemissionsandresolveparkingissues.
1.1
Manufacturing
Themanufacturingsectorincludesthemanufactureofmotorcycles,components,clothingand
accessories,andfuel/oils.Themanufactureofmotorcyclesisthemostsignificantactivity.UK
productionofmotorcycleshasincreasedsignificantlyandconsistentlyovertime.Levelsof
productionwereverylowinthemidtolate1980sandhavesinceincreasedtoapproximately
50,000motorcyclesin2011,mostofwhichareexportedtotheUSandEuropeancountries.
TheUKiscurrentlydevelopingconsiderablestrengthsinthemanufactureofmotorcyclesand
relatedproducts.Themostsignificantmanufacturer,currentlyaccountingforthemajorityof
UKproductionanddrivingthegrowthofthesector,isTriumphMotorcycles.Triumphisa
significantmajorUKautomotivemanufacturer(whollyBritishowned),withadditional
manufacturingbasesoutsidetheUK.OthersmallervolumemanufacturersincludeNortonand
CCM.
Date of Issue:
November 2012
Page: 2
UKmotorcyclerelatedmanufacturingcurrentlyhasatotalturnoverofalmost500million
(includingtheUKmanufacturerofmotorcyclerelatedproductssuchasfuels/lubricantsetc),
morethan150millionofwhichisaddedvaluefortheUKeconomy.Thesectoralsoprovides
employmentforalmost3,000people.In201011,theUKexportedmotorcyclesand
componentstothetuneof328.5million(GHKreport2010).However,accordingtothe2011
12IBISWorldeconomicreport,UKmotorcyclemanufacturingachievedarevenueof
406.7million,withannualgrowthof8.6%between200711.
Between2008and2011,importsofmotorcycleswhichweresoldontheUKmarketfellby
32.8%,whiledomesticsalesandexportsofUKmademotorcycles(Triumph,andCCMin
particular)roseby24.4%.Thevalueofimportsin201112isestimatedtobe707.9million
(IBISWorld),leavinga301.2milliontradedeficit.Thisdeficitisnarrowing.
R&Dactivitylinkscloselywithgovernmentobjectives(e.g.theNewIndustryNewJobs
agenda)todevelopcleantechnologiesandreducecarbonemissions(suchasthroughelectric
andhydrogenpoweredmotorcycles),improvethesafetyofmotorcyclistsandotherroad
users,andtofurtherdevelopadvancedengineeringcapabilitiesandexpertiseintheUK.
Followingthedemiseoftheoldmotorcycleindustryanditsassociatedsupplychains,many
componentsandaccessoriesareeitherproducedinhousebymanufacturers,orobtained
fromforeignsuppliers.ThisisbecausecertaincomponentsareunavailablefromUKsuppliers
withtherequireddeliverytimes,qualityorprice.However,supplychainimpactssupportan
additional750millionofGrossValueAddedand16,000FullTimeEmploymentjobsintheUK
economy.(GHK).
2.
IntroductionTheUKmotorcycleindustryasawhole
TheoverallUKmotorcycleindustryisofconsiderablesizewithnetannualsalesofalmost5.2
billionandhasasignificantimpactontheUKeconomy,generatingaddedvalueofmorethan
2billionperannum.GivingatotalUKmotorcycleindustryvalueofapproximately7.2billion
(GHK).
Theindustryintotaldirectlyemploys65,500peopleinmorethan6,350businesses,whichis
morethaneachofthefollowing:UKcallcentres;themarketresearchsector;taxidriving;and
libraries,museumsandotherculturalactivities.
Fig1:MotorcycleIndustryContributionstoUKEconomy
Turnover(m)
TotalUK
Motorcycle
Industry
5,933
Purchases(m)
3,865
Date of Issue:
November 2012
Page: 3
Manufacturing
Repair,Servicing&
Maintenance
495
292
341
190
ADDEDVALUE(m)
2,068
154
102
Wages(m)
1,232
82
66
Profits(m)
632
50
29
Exports(m)
368
359
n/a
Imports(m)
853
828
n/a
Taxes*(m)
1,004
60
41
Employment
65,530
2,870
4,000
Businesses
6,346
353
1,327
*IncludesVAT,incomeandcorporationtax,fuelandvehicleexciseduties
Otherkeyeconomicbenefitsinclude:
i.
ii.
iii.
iv.
Totaltaxcontributionsofmorethan1billionperyear,60millionfromthe
manufacturingsector.
Averagewagesof18,800acrossthewholeindustry,28,600inmanufacturing
sectors.
Asignificantandincreasingcontributiontoexportsof406millionperannum.
Supplychainimpactssupportanadditional750millionofaddedvalueand16,000full
timeequivalentjobsintheUKeconomy.
Intotal,theindustrysupports2.8billionof(GVA)GrossValueAddedand81,500jobsinthe
UKeconomy,directlywithintheindustryandindirectlythroughpurchasesfromotherUK
industries.
TheUKmotorcycleindustrycomprisesthefivekeysectorsof:manufacturing;distributionand
retail;repair,servicingandmaintenance;sportsandleisure;andothersupportservices
(trainingandtesting,financialservices,motorcyclecouriers,motorcyclehire,marketingand
publishing).
2.1
WiderBenefits
TheUKmotorcycleindustryincludesmanyhighvalue,innovativebusinessesthattogether
makeanimportantcontributiontoeconomicdevelopmentintheUKandwhoseproductsare
exportedaroundtheworld.UKmotorcyclemanufacturersarealsoinvestingheavilyinR&D
andinnovatingtodrivethefutureoftheindustry.Thisincludesactivityto:
i.
ii.
Date of Issue:
Developcleantechnologiesandreducecarbonemissions.Forexample,Intelligent
EnergyofLoughboroughUniversityisworkingwithSuzukitodevelophydrogen
poweredmotorcycles,whiletheUKisalsodrivingthedevelopmentofelectricrace
bikesandhasestablishedtheeGrandPrixchampionship.
Improvethesafetyofmotorcyclistsandotherroadusers,throughsafety
developmentsrelatingtohelmets(e.g.Davida)andmotorcycleclothing(e.g.
ForcefieldBodyArmour,Wolf&Knox)
November 2012
Page: 4
iii.
FurtherdevelopadvancedengineeringcapabilitiesandexpertiseintheUK(E.g.fuel
injection,electronicsandenginemanagementtechnologiestoimproveperformance
anddelivereconomicandenvironmentalbenefits).
With the Government focusing on supporting efforts to rebalance the economy towards
manufacturing,retailandexports,themotorcycleindustryiswellplacedtodeliverfurtherjobs
andgrowth. Thereforesupportforthemotorcycleindustrycan helptheGovernmentrealise
theirobjectivesfortheeconomy.
Fig2:MotorcycleManufacturingSectorMapandChain
3.
TheUKMarketforMotorcycling
Officialdatasourcessuggestthatthenumberoflicensedmotorcycleshasbeenincreasingover
timeandtherearecurrentlymorethan1.3millionlicensedmotorcyclesintheUK(including
NorthernIreland).
In terms of individual motorcyclists, the MCIA suggests that there are approximately 1.5
million active motorcyclists in the UK, representing around 3% of the UK adult population.
Thereareapproximately3millionfullmotorcyclelicenceholdersintheUK,whichrepresents
significantlatentdemand.MotorcyclemilestravelledintheUKhaverisenbyover20%since
theyear2000.Thenumberofmotorcyclistskilledinroadaccidentscontinuestofall(10%in
2011),withthenumberkillednowatthelowestlevelsincerecordsbeganin1927.
New purchases of motorcycles had been growing until 2001, but after this there was a slow
declineforsomeyears,withacertainlevelofmarketstabilisationmiddecade.Registrationsof
new motorcycles have fallen by around 32% since 2008, due to the recession. However, UK
manufacturershaveperformedbetterthanmostandUKmotorcycleproductionhascontinued
toincreaseduringthesedifficulttimes.
Date of Issue:
November 2012
Page: 5
Fig3:MopedandMotorcycleRegistrations(19952011)
Source:MotorcycleIndustryAssociation
The overall market has started to focus on smaller commuter bikes, bikes with practical
applicationsandmultipurposeadventuresportbikes,withincreasesinsalesinthesesectors.
Decreasedsalesinotherleisuresectorshaveameantlargeoverallreductioninprofitabilityfor
many manufacturers. However, despite this, over the last ten years, Powered Two Wheeler
(PTW)mileagehasdoubledsincethemid1990s(DfT).
UKmanufacturershavesignificantlyincreasedtheirmarketsharewithinoverallnewmachine
registrations.
Fig4:MarketShareofBritishManufacturers
Date of Issue:
November 2012
Page: 6
TheUKhasoneofthelowestratesofmotorcycleownershipperheadofpopulationinEurope,
withabout22bikesper1000people,comparedtoItalywhichhasabout159bikesper1000
people.ThissuggeststhereissignificantpotentialforfurthergrowthintheUKmarket.
4.
BusinessNumbers
The industry is estimated to consist of approximately 6,350 businesses, primarily based on

officialgovernmentstatisticsandspecificindustrydata.
Fig5:NumberofBusinessesintheUKMotorcycleIndustry(2008)
Businesses
Number
Businesses
%ofIndustryTotal
353
5.6%
Distribution&Retail
1,775
28.0%
Repair,Servicing&Maintenance
1,327
20.9%
Other
2,891
45.5%
TotalUKMotorcycleIndustry
6,346
100%
Manufacturing
Source:GHKestimates(notethatDistributionandRetailalsocoversbusinesseslinkedtomotorcycleimports)
5.
Exports
UKmanufacturersandsomeserviceprovidersgeneratesignificantrevenuefromexports.
Fig6:MotorcycleIndustry
ExportsWorldwide
In201011,theUKexportedmotorcyclesandcomponentstothetuneof328.5million(GHK
report2010).However,accordingtothe201112IBISWorld*economicreport,UKmotorcycle
manufacturing achieved a revenue of 406.7million, with annual growth of 8.6% between
200711.
Date of Issue:
November 2012
Page: 7
Between 2008 and 2011, imports of motorcycles which were sold on the UK market fell by
32.8%,whiledomesticsalesofUKmademotorcycles(Triumph,andCCMinparticular)roseby
24.4%.
The value of imports in 201112 is estimated to be 707.9million (IBISWorld), leaving a

301.2million trade deficit. This deficit is narrowing. (* www.ibisworld.co.uk/marketresearch/motorcycle
manufacturing.html)
Fig7:MotorcycleIndustry
ExportsEconomicWorth
6.
EmploymentandWages
GHKestimatessuggestthattheUKmotorcycleindustryemployedatotalof65,530peoplein
2008andpaidmorethan1.2billioninwagesatanaverageof19,813peremployee.The
panindustryaveragewageisnotfarshortofthe2008UKaverageof20,200.Thereisahigh
proportion of retail jobs, which are low value jobs earning an average wage of 12,650 per
annum across the total UK retail sector. Motorcycle manufacturing employees earn a much
higheraveragewagethantheUKmean.
Fig8:EmploymentandWagesbySector(2008)
Employment
Number
Wages
million
AverageWage
Manufacturing
2,870
82
28,570
Distribution&Retail
20,380
289
14,180
Repair,Servicing&Maintenance
4,000
66
16,500
Other
38,280
795
20,005
TotalUKMotorcycleIndustry
65,530
1,232
19,813
Date of Issue:
November 2012
Page: 8
7.
ValueAdded
TheUKmotorcycleindustryhasbeenestimatedtodirectlyaddvalueofmorethan2billionto
the UK economy each year and support additional added value of 750 million in other UK
sectorsthroughthepurchaseofgoodsandservices.Theotherkeyeconomiccontributionsof
theindustryinclude:
i.
ii.
iii.
The provision of around 65,500 jobs in some 6,350 businesses in the UK motorcycle
industry,aswellassupportingafurther16,000jobsinotherUKsectors,
Ayieldofmorethan1billionoftaxcontributionperyear,
Exportsof406.7millionperannum.
8.
MotorcycleManufacturing
Themanufacturingsectorincludesthemanufactureofmotorcycles,components,clothingand
accessories,andfuel.Themanufactureofmotorcyclesisthemostsignificantactivity.UK
productionofmotorcycleshasincreasedsignificantlyandconsistentlyovertime.Levelsof
productionwereverylowinthemidtolate1980sandhavesinceincreasedtoapproximately
50,000motorcyclesin2011,mostofwhichareexportedtotheUSandEuropeancountries.
TheUKiscurrentlydevelopingconsiderablestrengthsinthemanufactureofmotorcyclesand
relatedproducts.Themostsignificantmanufacturer,currentlyaccountingforthemajorityof
UKproductionanddrivingthegrowthofthesector,isTriumphMotorcycles.Triumphisa
significantmajorUKautomotivemanufacturer(whollyBritishowned),withadditional
manufacturingbasesoutsidetheUK.OthersmallervolumemanufacturersincludeCCM,
NortonandMetisse,withsomecottageindustrymanufacturingtakingplacetospecialorder.
AnumberofUKbusinessesarealsobeginningtoproduceelectricalandotherlowcarbon
motorcycles.Thisisanexampleofhighvalueengineering,withsignificantR&Dinvestment
andlinkscloselytothegovernmentsenvironmentaltechnologiesandinnovationagendas.
Theindustryalsoincludesanumberofsmallermanufacturersprovidinglowerquantitiesand
bespokeordersofhighvalue,highperformancemotorcycles,includingroadandracing
motorcycles.(e.g.Suzuki,inconjunctionwithLoughboroughUniversity,hasrecentlyunveiled
theworldsfirsthydrogenfuelcellvehicletoachieveWholeVehicleTypeApproval)
TheUKhasconsiderablestrengthsandexperienceintermsofproducinghighquality,high
performanceandhighvaluemotorcyclesfortheroad,trackandoffroad.Thisincludesalarge
numberofUKmanufacturerssupplyingmotorcyclesandcomponentsformotorsportteamsin
theUKandinternationally.Forexample,manyUKmanufacturers,suchasHarrisand
TranslogicSystems,areinvolvedwiththeJapanesemanufacturersandraceteamstodesign,
developandmanufacturenewproductsthatwilldeliverresultsonthetrackorinoffroad
disciplines.
UKmotorcyclerelatedmanufacturingcurrentlyhasatotalturnoverofalmost500million
(includingtheUKmanufacturerofmotorcyclerelatedproductssuchasfuels/lubricantsetc),
Date of Issue:
November 2012
Page: 9
morethan150millionofwhichisaddedvaluefortheUKeconomy.Thesectoralsoprovides
employmentforalmost3,000people.
Fig9:UKMotorcycleProduction,Imports
andExports
9.
ApprenticeshipsandTraining
Thecommitmenttotrain&developstaffisingrainedwithinthemotorcyclesectorandthe
incidenceofformaltrainingishighat64%acrossallbusinesses,however,thereisaclear
differencebetweenthelargefranchiseoperatorandthesmallerindependentswiththelarger
businessesmorelikelytoofferstructuredtrainingthanthesmallerorganisations.
Themajorityofbusinessesinthesectoremploybetween2and10peoplewithinformal
trainingcharacteristicofthesesmallindependentorganisations,someofwhichismore
reactiveandinformal,providingdevelopmentopportunitieswhentheneedarises.However,
allbusinesseswith11ormorestaffofferformaltraining.(InstituteofMotorIndustry)
MotorcycleapprenticeshipschemesprovidestructuredtrainingacrosstheUK,predominantly
fundedbytheGovernmentthroughtheSkillsFundingAgency,SkillsDevelopmentScotland
andtheWelshAssemblyGovernment.TheRetailMotorIndustryTraining(Remit)Limitedand
InstituteofMotorIndustry(IMI)arepreeminentorganisationsofferingsuchvocational
courses.
Apprenticesstudyingmotorcycleservice,repair&maintenanceusuallytakethreeyearsto
gainanNVQ/VCQLevel3qualificationandtrainingisperformedintheworkplacewithregular
visitsbyassessors.CompaniesinvolvedintheseschemesincludeTriumph,Honda,BMW,
SuzukiandKawasaki.
Themotorcycleindustryalsooffersapprenticeshipsinretailandotherareasofbusinesswith
City&Guilds&IMIAwardsLtdthemainawardingbodies.
Motorcycleservice,repair&maintenancetrainingisofferedby17collegesand2homestudy
courses.SpecialistcoursesarealsorunbymanufacturerssuchasHonda,BMWandSuzuki.
Date of Issue:
November 2012
Page: 10
Graduatelevelengineeringapprenticeshipsareofferedatover30UKuniversitieswithsome
supported,developedandemployedbymotorcyclemanufacturersNortonandTriumph.
10.
ComponentManufacturing
Withahistoryofmotorcycleandcomponentmanufacturingdatingbackmorethanacentury,
theUKhasawealthofknowledgeandahighlevelofexperienceandskillsacrossthesector.
Anumberofcompaniesdevelop&designinhousewhistsomenotablecomponent
manufacturers,suchasHarrisPerformanceProducts,Translogic,CentralWheelComponents
andNormanHyde,remainintheUK.
Aconsiderablenumberofcompaniesofferengineeringservicesandspecialistcomponent
manufactureforbothmodernandclassicmotorcycles.Companiesrangefromsmallercottage
businesses,tolargerconcernssuchasSRMEngineering,BerlenFuelSystemsandAndover
Nortonwhoaregoodexamplesofsustainablebusinessesbasedonremanufacturingand
supplyofcomponentsforthegrowingclassicsector.
11.
SupplyChains
FollowingthedemiseoftheoldBritishmotorcycleindustryanditsassociatedsupplychains,
manycomponentsandaccessoriesareproducedinhousebymanufacturers,ascertain
componentsareunavailablefromUKsupplierswiththerequireddeliverytimes,qualityor
price.However,supplychainimpactsstillsupportanadditional750millionofGrossValue
Addedand16,000FullTimeEmploymentjobsintheUKeconomy.(GHK).
ManyformerUKmotorcycleindustrysuppliersexisttothisdayoutsidethemotorcyclesector,
butstillretainingtheskillsandknowledgetoreentertheindustryshouldconditionsemerge
forthistohappen.
Triumph,withproductionfacilitiesintheUKandThailand,sourcesover50,000purchase
ordersperyearfrommorethan380suppliersinover30countries,whichwouldsuggestthat
thereisscopetosupportandimproveUKsupplychaincompetitiveness.
ThereareclearissuesinrelationtoUKsupplychaincompetitivenessifasecuresupplychain
baseistobereestablished.
12.
R&DandInvestment
TheUKhassomeofthemosttechnologicallyadvanceddesign,manufactureandtest
equipmentthattheengineeringworldhastoofferwithbusinesses,suchasBroome
DevelopmentEngineeringandCosworth,offeringinhouseresearch,designand
Date of Issue:
November 2012
Page: 11
manufacturingfacilitiestotheglobalmarket.Automotivepower,electronicsystemsandlow
carbontechnologiesarebeingdevelopedandproduced,withsignificantR&Dinvestmentand
linkscloselytotheGovernmentsenvironmentaltechnologiesandinnovationagendas.Suzuki,
workinginconjunctionwithIntelligentTransportofLoughborough,hasrecentlyachieved
EuropeanSingleVehicleTypeApprovalwithafuelcellpoweredscooter.
TherearealsosignificantopportunitiesforindustrygrowththroughfurtherR&Dand
innovation.ThereisalreadyconsiderablemotorcycleR&DactivitytakingplaceintheUK,
includingprojectsundertakenbytheMotorIndustryResearchAssociation(MIRA).MIRAhas
sitesinWarwickshireandEssexandhashelpedtodesign,testanddevelopmotorcyclesand
componentsforsomeoftheworld'sleadingmanufacturers.RecentmotorcyclingR&D
projectshavefocusedon:aerodynamicsanditsimpactonperformance,handlingandsafety;
materialsandcomponentengineering;optimisedenginecooling;anddesigningnewelectrical
andelectronicsystemsformotorcycles.
Triumphisalsoinvestinginnewmarkets,BrazilandIndia,bybuildingnewassemblyfacilities
thereandalreadyhasasubcontractengineeringanddistributionfacilityinThailand.In2011
Triumphtookonanextra50peopleintoitsR&DdepartmentatHinckley,bringingthetotalto
240peopleahighproportionforacompanywith2,000staff.Thedepartmentgenerally
designsfournewmodelseachyear,alongwithmakingnumerousupdatestoexistingmodels.
Acrosstheindustry,therearemanycurrentandfutureopportunitiesforfurtherR&Drelating
to:
i.
SafetyThereissignificantongoingR&Dtoincreasethesafetyofmotorcycles,
helmetsandclothing.Examplesincludedevelopingscooterswithtwofrontwheelsto
improvestabilityandroadholding,advancesinhelmetandclothingtechnologies,and
othersafetyequipment.SomeexamplesofsafetyrelatedR&Dandinnovationinthe
UKmotorcycleindustryareprovidedintheboxbelow.
ii.
ConvenienceMotorcycleandcomponentmanufacturersarealsodeveloping
innovativesolutionstoincreaseconvenienceforriders,suchasthedevelopmentof
motorcycleswithautomaticandsemiautomaticgearshifting.
iii.
TechnologicaladvancesTheUKmotorcyclesportsectorisattheforefrontof
innovativeandtechnologicaladvances.Manyoftheseinnovationsarethenfurther
developedformainstreamuseonstandardroadmotorcycles.Examplesof
innovationsthatoriginatedinmotorcycleracingincludeABSbrakesandengine
managementsystems.
iv.
LowcarbonTherearesignificantopportunitiesforlowcarboninnovationsinthe
motorcyclesector,asthereareforallformsoftransport.
13.
ClothingManufacturing
Thereareanumberofhighqualitymotorcycleclothingproducers,suchasHood,Hideout,
ScottLeathersandLewisLeatherscontinuingtomanufactureintheUKandthesetendtobe
highend,highqualityandhighprice.
Date of Issue:
November 2012
Page: 12
MorecompetitivelypricedclothingisofferedbyotherUKmotorcycleclothingbrands,suchas
ArcOn,Belstaff,WolfandHideout,whodesignanddevelopproductsintheUKbut
manufacturethemajorityoftheseitemsabroad.
However,companieslikeForcefieldBodyArmour,PlanetKnoxandHooddoofferexamplesof
hightech,worldleadingdevelopmentsincomfort,safety,protection,flexibility,breathability
andweatherproofing.Theirtechnicalfabricsandbodyprotectionsystemsareoften
incorporated,byothermanufacturers,intogarmentsandprotectiveequipmentfor
motorcyclingandsportingactivities.
ThesoleUKhelmetmanufacturerisDavida,producinghighend,highqualityhelmets.Manyof
thesearehistorictypereplicasandothersareimaginativelyandstylishlydecoratedand
regularlywornbycelebrities.
14.
MotorcycleDistributionandRetail
Thedistributionandretailsectorincludesspecificmanufacturerfranchisesofwholesaleand
retailactivitiesrelatingtothesaleofmotorcycles,components,clothing,accessoriesandfuel.
AsignificantnumberofproductsareimportedintotheUK,andthesectorhasbeenunder
considerablepressureasaresultofthelowvalueofthePound,aswellasthedeclining
consumerdemand,asaresultoftherecession.
However,themotorcycledistributionandretailsectorremainsthemostsignificantsectorof
thewiderUKmotorcycleindustryintermsofitseconomiccontributionthroughaddedvalue
andemployment.ThesectorhascloselinkstoUKmanufacturers,althoughthemarketfor
motorcyclesandmotorcyclingproductsisdominatedbythelargeJapanesemotorcycle
manufacturersofHonda,Suzuki,YamahaandKawasaki.
Themotorcycledistributionandretailsectoristhemostsignificantintermsofitseconomic
contribution.Thesectorhasaturnoverinexcessof3billionandwhiletheproportionof
addedvalueisrelativelylowataround21%ofturnover,itstillrepresentssignificantvalue
addedof634million.Thesectoralsoemploysmorethan20,000peopleandprovides391
millionintaxcontributions.
15.
MotorcycleRepair,ServicingandMaintenance
Themotorcyclerepair,servicingandmaintenancesubsectorincludesactivitiesassociated
withmotorcyclemechanicsandgarages.Thisincludesawiderangeofdifferentactivitiessuch
as:mechanical,electricalorelectronicrepairs;standardservicing;MOTs;repairstobodywork
andscreens;paintingandartwork;tyre,brakeandexhaustrepair,fittingandreplacement;
andthegeneralinstallationofpartsandaccessories.
Thetotalturnoverassociatedwiththerepair,maintenanceandservicingofmotorcyclesis
estimatedtobealmost300million,whichequatestoexpenditureofjustunder200perUK
motorcyclistperannum.Addedvalueisestimatedtobearound35%ofturnoverat
Date of Issue:
November 2012
Page: 13
approximately100million,whilethesectorprovidesdirectemploymentforsome4,000
people.Thesectoralsocontributes41millionintaxcontributionsperannum.
16.
IssuesandConstraints
The UK motorcycle industry faces a number of issues and barriers to growth including the
current economic climate, negative perceptions of motorcycling as well as government and
policyissues.
16.1 EconomicFactors
The current recession is having a significant impact on the whole UK economy including the
motorcycleindustry,wheremanufacturers,importers,distributors,retailers,andotherservice
providershaveallbeenaffected.Demandfornewmotorcyclesandassociatedproductshas
declinedsince2008.Demandhasalsobeenaffectedbyincreasedcostsofborrowing,leading
theindustrytotryandmaintaindemandbyofferingmore0%financedeals.
Overallindustryprofitabilityhasfallensince2008duetotheglobalfinancialcrisis,whichled
toadropindemand.Industryoperatingprofitmarginsfellfromanestimated12.5%in2007
08 to approximately 6.0% in 201213. Margins fell due to lower capacity utilisation. High
purchase costs due to recordhigh commodity prices also hurt profitability. The exit of loss
makingsmallmanufacturersandthecapacityreductionshelpedkeepprofitmarginspositive.
Industry profitability is forecast to rise slightly in 201213 due to tighter cost controls and
bettercapacityutilisation.
Companies found it difficult to manage production levels due to volatile demand, which
causedmarginstoweaken.Whenutilisationratesfellbelowtheiroptimumlevels,production
costsperunitroseandsqueezedmargins.
Purchases, which account for the majority of costs incurred by manufacturers, rose as a
percentageofrevenueoverthepastfiveyears.Metalpricessoared,whichpusheduptheraw
materialprices.Manufacturerswereonlyabletopassonpartofthehigherinputpricestothe
supplychain.Thisputfurtherdownwardpressureonmargins.Therecessionalsoledtoarise
ininputcosts,mainlyduetodifficultiesinmanaginginputrequirements.
However, the UK motorcycle market may have troughed during 2012. Sales of new
motorcycleshaveremainedstablecomparedto2011,thoughfocussedonsmallerbikes,oron
theAdventurebikeclass.ThecurrentUKpicturebucksaEuropeantrendofcontinuedsharp
fallsinmotorcyclesalesduring2012.
16.2 TechnologyImprovements
Therehasbeenconsiderableresearchanddevelopment(R&D)andinnovationwithinthe
industrytoincreasethesafetyofmotorcycles,helmetsandclothing,whiletestingandtraining
developmentsareimprovingridingskillsandensuringmotorcyclistsarebetterpreparedto
Date of Issue:
November 2012
Page: 14
avoidaccidents,andcasualtyrateshavebeenfallingasaresult.Furthermore,whilecarbon
emissionsfrommotorcyclesvarysignificantlydependingonenginecapacity,themajorityof
motorcyclesproducelowerlevelsofCO2thanaveragepetrolanddieselcars,whilstdelivering
additionalcarbonsavingsintermsofreducedcongestion.
Fig10:Co2Averages
Source:ACEMCo2averages(G/km),basedonEUJRCdataandfurtheranalysis
16.3 CurrentandFutureOpportunities
TheUKmotorcycleindustryalsohassignificantopportunitiesforfurthergrowth.Theindustry
recognisestheneedtopromotethebenefitsandraiseawarenessofthesignificanceof
motorcyclingtoovercomenegativeperceptionsandattractnewmotorcyclists.However,
GovernmenthasaroletoplayinrecognisingmotorcyclingandthepotentialofUK
manufacturing,plusofferpoliticalsupportandtheinclusionofmotorcyclesaspartof
transportstrategiesthataimtorebalancetheeconomy,creategrowth,reducetraffic
congestion,reducecarbonemissionsandresolveparkingissues.
Thereareanumberofopportunitiestopromotethebenefitsofmotorcyclesand
motorcycling,including:
i.
ii.
iii.
Date of Issue:
Lowcost,efficienttransportMotorcyclesaretypicallycheapertopurchase,run,
maintainandrepairthancarsandthereforeofferarelativelylowcosttransport
solution,particularlyforcommutersandduringaperiodofrecession.
CarbonsavingsMotorcyclesproducelowercarbonemissionsinaggregatethancars,
presentingopportunitiestopromotemotorcyclingasawayofreducingcarbon
emissions.
ConvenienceRoadcongestionisincreasingandmotorcyclesofferaconvenientform
oftransportthatcanalleviatecongestionimpactsforriders(andespecially
commuters).Motorcyclesarealsoeasiertopark,savingtimeandmoneyforboth
individualsandbusiness.
November 2012
Page: 15
iv.
Social Inclusion the Wheels to Work scheme demonstrates the role that
motorcycling plays in offering affordable transport solution for people living in rural
areaswherepublictransportlinksarescarceorinadequate.
17.
PublicpolicyIssuesHelpingtheMotorcycleIndustrytoContributeto
GovernmentGoals
17.1 TheAutomotiveCouncil
MotorcycleandcomponentmanufacturingcanassisttheGovernmentsactivitiesasitmoves
towardsitsbusiness,economicandemploymentgoals.Inordertodothis,manufacturing
industryshouldbefullyrecognisedbyGovernmentandincludedinpolicydevelopment
structuresandprogrammes.Inparticular,amajormotorcyclemanufacturershouldbe
includedintheAutomotiveCouncil.
Theindustrytradebody,theMotorCycleIndustryAssociation(MCI)canofferGovernment
invaluableassistanceinotherareasofpolicydevelopment,particularlyinareasofR&Dand
supplychains.AssuchtheMCIcouldmakeanotablecontributiontoAutomotiveCouncilsub
groupsandshouldbeconsideredformembershipofthesegroups.
17.2 AutomotivePolicyandProgrammeInclusion
ThemotorcycleindustryhasmuchtoofferafullyroundedautomotivepolicyfortheUKasit
seekseconomicgrowth,technologicaldevelopment,alowcarboneconomy,socialinclusion
andbetterroadsafety.Inordertorealisetheopportunitiesforsocietyandtransportthatare
representedbymotorcycling,theindustryshouldbeincludedincurrentandfuturepolicies
andprogrammeswhichaimtodirectlysupporttheautomotiveindustryandassistconsumer
choice.AnexampleofthisisthecurrentPluginGrantwhichcurrentlyexcludeselectric
motorcycles.
17.3 FullIndustryRecognition
Theindustrywouldbenefitfromgreatersupportfromgovernment,particularlyintermsof
encouragingandpromotingmotorcycleuseaspartofholistictransportstrategies,thegrowth
agenda,greenertransportandsocialinclusion.Increasedmotorcycleusecouldalsodeliver
somekeygovernmentobjectives,suchasreducingcarbonemissions,roadcongestionand
parkingissues.Motorcyclinginthecontextoftransportforjobsisalreadybeingrecognisedby
directDfTsupportfortheWheelstoWorkprogramme.Howeverrecognitionofthe
motorcycleindustryscurrentandpotentialcontributiontosocietyasawholeisstilllargely
unrecognisedacrossthefullspectrumofGovernment.
Date of Issue:
November 2012
Page: 16
17.4 BalancedWiderPolicies
Anotherpolicyissuefortheindustryregardstherecentandforthcomingchangestothe
motorcycletestingprocess,inparticularthe2009motorcyclelicencetestchanges.Industry
representativesareconcernedthatthesechangesarehavinganadverseimpactonthe
numberofnewmotorcyclistsbyincreasingcostsforthelearnerandreducingthenumberof
testsites,whichhasaffectedavailabilityandaccess.Thisishavingsignificantknockoneffects
forboththemotorcycleeconomyandjobsinthesector.Thepotentialemergenceofa
permanentlearnerclass(duetothelackofavailabilityandcomplexityofthetest)couldlead
tounintendedandnegativeconsequencesforroadsafety.ADfTreviewintothetesthasstill
tocompleteitswork,despiterunningforwellovertwoyears.
18.
BalancedandsustainablegrowththeMCIview
Onwiderissuesregardingbalancedandsustainablegrowth,theMCIsviewsarebroadlyinline
withthoseoftheCBI.MCIisindirectlyrepresentedontheCBIviatheTradeAssociation
Forum.
18.1 Manufacturing&Innovation
InvestmentinR&DandinnovationisessentialfortheUKseconomicrecoverywhilethe
growingmotorcyclemanufacturingbaseisoneofthekeydriverstoarebalancedeconomy
Innovationwillunderpinfuturegrowthinproductivityandcompetitiveness,inparticularfor
highvalueaddedexportindustriesandinthewiderknowledgeeconomy.Innovationwill
providethebasisfortacklingmajorglobalchallenges.
Itisessentialthatthemotorcyclemanufacturingindustryispartofanyinitiativeswhere
Governmentandbusinessworktogethertoplacemanufacturingattheforefrontofeconomic
development,creatingastrongandsustainable,internationallycompetitiveindustrialbase.
18.2 TheEconomy
Themotorcycleindustrybelievesthatthereisnocrediblealternativetodeficitreduction.This
iswhyindustryhassupportedthebroadthrustoftheCoalitionGovernmentsdeficitreduction
plansforthelasttwoandahalfyears,andstilldoes.Butthishastogohandinhandwith
dynamicactionforgrowth.
ThebulkofthedeficitreductionneedstocomethroughreducedGovernmentspending,but
theremustbeafocusonhelpingpeoplebackintowork.Aspartofeffortstorebalancethe
economy,Governmentneedstohelpbusinesstohelppeoplewhichitwhyitsupportsfurther
taxationreformandsupportforapprenticeshipandtraininginitiatives.Thisisalsowherethe
WheelstoWorkprogramme,amongotherinitiatives,hasaroletoplay.
Date of Issue:
November 2012
Page: 17
Someofthiscountry'smostinnovativenewproductsaredevelopedthroughuniversity
businesscollaborations,sotheadditionalGovernmentfundingforR&Dcollaboration,
announcedbytheChancellor,couldmakearealdifference.BeingattheforefrontofR&Dcan
helptheUKboostexports,attractinwardinvestmentanddrivegrowth.
18.3 Education&Skills
Thefutureoftheeducationsystemprimary,secondary,furtherandhighereducationalike
isvitaltotheUKeconomyandeducationiscriticaltobusinesscompetitiveness.Schoolsand
collegeshaveanessentialroletoplayinensuringyoungpeoplehavegoodskills,including
literacyandnumeracy,tohelpthemachievetheirpotentialandsucceedatwork.
Theacquisitionofscience,technology,engineeringandmathematicsskillsisparticularly
valuable,astheseenableanenhancedUKskillsbaseinachangingworld.Universitiesand
collegesneedtofocusonproducingstudentswhohavetheskillsandknowledgetodrive
businessesforwardandhelpshapeworkablesolutionsforemployersandthewider
community.Themotorcycleindustrywouldwelcomeanapproachfromtheeducation
authoritieswithaviewtoutilisingthemathematicsandscienceelementsofmotorcycles
withincurriculumorprojectbasedwork
Weneedhandsontechnicalskillswhichhavetobemadeattractivetoacquire.The
motorcycleindustryneedsengineers,designers,techniciansandforGovernmenttorecognise
theindustryspotentialintheUKeconomicsector.
18.4 Employment
FortheUKeconomytogrowandgeneratenewjobs,businessesneedanenvironmentwhere
employmentlawandpracticeencouragejobcreation.Themotorcycleindustryiskeentobuild
uponthecurrentapproximately60,000peoplethatareemployeddirectlyandindirectly.
Longtermprosperityandsustainableemploymentcanonlybeachievedonlybymakingthe
UKahighlyattractivelocationinwhichtodobusinessandemploypeople.Thatrequiresa
clear,workableframeworkofbasicemploymentrightscombinedwithlabourmarket
flexibility.Engagingemployeeseffectively,usingtheirskillstobesteffectandrewardingthem
appropriatelyarecentraltobusinesssuccessinaglobalisedeconomy.Opportunitiestoaccess
employment,particularlyinruralareasneedtobeenhancedwhichiswhereWheelstoWork
programmeshavearoletoplay.
18.5 EnergyandClimateChange
ForUKbusiness,climatechangecouldbeanopportunitytodiversifytheeconomyandlead
theworld.ParticularlyindevelopingaleadingUKroleinR&Dforalternativepoweredvehicles.
Date of Issue:
November 2012
Page: 18
TheUKgovernmenthassetatargetfor2020ofcuttingcarbonemissionsto34%below1990
levels.Tacklingclimatechangemeansusingenergymoreefficientlyandmovingbusiness
operationstowardscarbonneutralitybutinawaythatissustainableforbusiness.
Integrateduseofmotorcyclesasutilitytransportcanmovemorepeoplemoreefficientlywith
lesspollutionandshouldbeencouragedaspartofaclimatechangeprogramme.Climate
changeonitsownoffersapowerfulargumentforsupportoflowerCo2vehiclessuchas
motorcycles.
18.6 FinancialServices
Motorcyclingcreatesapproximately2bnofvalueaddedinthefinancialsector.Thefinancial
servicesindustryplaysacriticalroleinsupportingUKbusinessesandenablingtheUK's
economytogrow.TheproductsandservicesitoffersareasignificantpartoftheUKeconomy
intheirownright,andformoneofourfewworldclasssectors.
Theimportanceoffinancialservicesinamoderneconomymeansitisessentialthatfinancial
reformssupporteconomicgrowthandhelptobuildacompetitiveandresilientfinancial
systemthatisfreefromtaxpayersupportandiscoordinatedinternationally.
18.7 Infrastructure
TheUKeconomycanonlygrowifithastherighteconomicinfrastructuretosupportit.
InvestmentisstillneededtoensuretheUKsinfrastructureisfitforpurpose.Whenbusinesses
makeinvestmentdecisions,thereliability,costandqualityofinfrastructurefromroadsand
airportstoenergysupplyandbroadbandnetworksaremajorconsiderations.Thisis
particularlythecaseformanybusinessinthemotorcycleindustry,whicharebasedUKwide,
ratherthaninoneparticularregion.TriumphisbasedintheMidlandsandCCMisbasedinthe
NorthWestforexample.Additionally,Infrastructuredevelopmentswillbekeytoenhancing
thecompetitivenessofthemotorcycleindustrysupplychain.
ToensuretheUKisattractivetomorrowweneedgovernmentactiontoday.Thisrequiresa
newapproach,includingalongtermgovernmentvision,tacklingplanningbarriersandfar
reachingreformofregulation.
18.8
Taxation
TheUKneedsacompetitivetaxregimeifitistoprosperinanincreasinglyglobalisedeconomy.
Themotorcycleindustrypaysonaverage1billionperannumintaxes.
Taxtouchesonalmosteveryaspectofbusinessandhasamajorimpactondecisionsand
behaviour.Sothetaxregimemustbekeptundercontinuousreviewandreformed
strategicallytoenhancetheUK'scompetitivenessandcreategrowth.
Date of Issue:
November 2012
Page: 19

Motorcycle Industry Manufacturing Public Policy

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Motorcycle Industry Manufacturing Public Policy

Загружено:

Авторское право:

Доступные форматы

TheUKMotorcycleIndustry

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

The industry is estimated to consist of approximately 6,350 businesses, primarily based on

Motorcycle Industry Association

The value of imports in 201112 is estimated to be 707.9million (IBISWorld), leaving a

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Motorcycle Industry Association

Вам также может понравиться