Driving demand for skills

After a recent spate of buy-outs of UK automotive brands by overseas firms, such as Tata's acquisition of Land Rover Jaguar, doubts have been raised about the future of British engineering jobs.

After the Land Rover Jaguar announcement was made, fears focused on whether Tata would do what Chinese car companies Shanghai Automotive and Nanjing did to MG Rover — taking control of the intellectual rights to the designs and brands while moving production offshore. Increased globalisation and pressure to cut vehicle costs are encouraging manufacturers to take the low-cost option.

But should British engineers be worried? Production of cars in the UK last year was just over 1.5 million. Although this is below the all-time peak of almost 2 million in 1972, it is still a healthy figure, comparable to the mid-1970s, and has remained constant in recent years.

'The impact of consolidation on the market and on skilled British engineers could be two-fold,' said Stuart Proctor, recruitment manager at Cummins. 'There could be increased reliance on centres of excellence for cutting-edge technological development. In this scenario, decisions on the development of new technology, products and the associated testing would continue to be divorced from the location of manufacture, which will be based on overall cost of production.