UK commercial vehicle manufacturing output fell 17.1% in February, after falling by 20.5% in January, compared to the same periods in 2012.
Stable domestic demand for new UK-built commercial vehicles is doing nothing to offset the dramatic collapse in export volumes, which fell by 31.4% in February compared to February 2012. The fall comes on the heels of a 37.2% drop in exports in January — clearly the eurozone crisis (most exports are to Europe) is nowhere near abating, whatever the politicians and bankers would have us believe.
Here’s a snapshot of the latest UK commercial vehicle manufacturing figures:
| CV manufacturing | Feb-12 | Feb-13 | % Change | YTD-12 | YTD-13 | % Change |
| Total | 9,655 | 8,005 | -17.1% | 19,499 | 15,827 | -18.8% |
| Home | 4,060 | 4,165 | 2.6% | 8,126 | 8,361 | 2.9% |
| Export | 5,595 | 3,840 | -31.4% | 11,373 | 7,466 | -34.4% |
| % export | 57.9% | 48.0% | 58.3% | 47.2% |
Data courtesy of Society of Motor Manufacturers and Traders (www.smmt.co.uk)
As the graph below shows, UK commercial vehicle exports are now lower than they were at the depths of the 2009/10 downturn, and while total CV manufacturing remains higher, flat UK demand — which is below historical norms — is not sufficient to support a recovery in manufacturing:
UK commercial vehicle manufacturing output rolling year Feb 2008 – Feb 2013 (courtesy of SMMT)
Commenting on the figures, Mike Baunton, SMMT Interim Chief Executive, said:
“Manufacturing of commercial vehicles in the UK continues to struggle with the fall in European demand. However, with the Commercial Vehicle Show coming up in April, we have an opportunity to showcase the very best in new technology, environmental performance and safety of these vehicles which are so crucial to the UK economy.”
Sadly, I don’t think that a lack of desire for new technology is the cause of the slump in sales. I suspect that companies (and public sector buyers) across Europe simply don’t have the spare cash or the confidence necessary to ramp up spending on new vehicles when they don’t strictly need to.