Honda of the UK Manufacturing (HUM) is asking their suppliers to invest in their businesses to provide them with better supply chain flexibility.
Glasgow, South Lanarkshire -- (SBWIRE) -- 04/24/2015 -- In March, HUM announced that they would be investing £200m in their Swindon plant. This investment in the South Marsden plant, which is located on Highworth Road, is expected to create 3,000 jobs.
The investment has been made to allow the firm to turn the Swindon plant into the main production hub for the new Civic. Production of the next generation Civic is due to begin in summer 2016.
Currently the plant uses several local suppliers. Local component suppliers expect the Honda plant to drastically increase their orders. In response, many suppliers are already in the process of preparing for this expected uplift in demand.
Dr Renaud Durand, who is a manufacturing sector consultant, has highlighted the fact that the expansion of the Honda plant will only be successful if suppliers can respond quickly enough to the increase in demand. The announcement by Honda has definitely created confidence in the minds of suppliers and their investors, but they still face challenges. Honda will only be able to step up production at the necessary pace if their suppliers can keep up with the plant's changing needs.
Demand for Hondas made in the UK is already strong, and that demand is expected to continue to grow in the near future. Growing numbers of consumers are looking for either a new or used Honda in Glasgow and in other large UK cities. Dealers have seen demand grow steadily and the fact that some Honda models are manufactured in the UK is definitely something that makes them attractive to buyers. Increasingly, people are keen to support the UK's economy, which they know is struggling, which means that they do take into consideration where the vehicle is built when making their purchasing decision.
Most manufacturers are already taking steps to increase their efficiency and are investing in new plant and training. However, with production of the new Civic to start in just over the year suppliers are having to move fast to ensure that they are ready in time to meet Honda's increasing needs.
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