Nov 25, 2020

CIPS: latest PMI survey shows growth in UK manufacturing

Georgia Wilson
3 min
Manufacturing warehouse
CIPS reports the latest result of its PMI survey for the UK manufacturing sector and the impact of the second lockdown...

Latest reports from the Chartered Institute of Procurement & Supply (CIPS) highlighted that while business activity in the UK private sector decreased in November bringing an end to a four month expansion, manufacturing production experienced a strong expansion compared to October. However, the latest manufacturing PMI survey indicated that supplier delivery times are expected to lengthen, with severe delays at UK ports, and a robust level of stock building to accumulate critical inputs before the Brexit transition ends on 31 December 2020.

"Some comfort comes from the data suggesting that the impact of the lockdown has not been as severe as in the spring, and manufacturing has also received a significant boost from inventory building and a surge in exports ahead of the UK’s departure from the EU at the end of the year, providing a fillip for many companies. However, while the lockdown will be temporary, so too will this pre-Brexit boost,” commented Chris Williamson, Chief Business Economist at IHS Markit.

Other key findings outlined in the report:

  • Manufacturing’s growth has been linked to sustained recovery in production volumes after production stopped at the start of the pandemic, as well as rising demands from the export markets to complete delivery order before the end of the Brexit transition period
  • At 55.2 in November, the IHS Markit/CIPS Flash UK Manufacturing Purchasing Managers’ Index® increased from 53.7 in October, and is also its highest value since August
  • An increase in purchasing activity was attributed to the lengthening of supplier delivery times sine June, with 32% of respondents reporting longer lead times for suppliers, with only 2% reporting improvements
  • Supplier performance worsening was also linked to skipping delays due to bottlenecks at the UK ports

"With the biggest drop in private sector output since May, the end of the year unveils the different fates of the manufacturing and services sector as a result of continuing covid restrictions. Where manufacturing had a flat out month with the highest level of growth since September, the dominant services sector took another sudden tumble into contraction territory, resulting in deep concerns for the health of the UK economy, commented Duncan Brock, Group Director at CIPS.

"Manufacturing’s fortunes were fuelled by a rise in both domestic and export orders driven by forward-buying strategies to beat the approaching Brexit deadline. However, the flipside of this surge in activity was the sudden increase in delivery times, as supply chain snags in the form of shipping delays and UK port disruption offered both a glimpse into the coming months and contributed to the strongest cost inflation since 2018,” he adds.

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Jun 17, 2021

Canoo Awards Manufacturing Contract to VDL Nedcar

2 min
Canoo, a trailblazing company in the electric vehicle (EVs) manufacturing industry, has officially announced owned and contract manufacturing plans

Canoo, a trailblazing company in the electric vehicle (EVs) manufacturing industry, has officially announced owned and contract manufacturing plans that will ensure the company manages to deliver on its promise to consumers of production and delivery of vehicles in Q4, 2022. 


During the company’s first Investor Relations Day, Chairman & CEO of Canoo, Tony Aquila, named VDL Nedcar as its contract manufacturing partner. VDL Nedcar, which I’m sure many of you will already have heard of, is the only independent Vehicle Contract Manufacturer in the Netherlands and has enjoyed fifty years of growth under owners, including Mitsubishi Motors and Volvo cars. According to the report, Nedcar will manufacture the Lifestyle Vehicle for the United States and European Union markets, while Canoo builds a US-based mega micro-factory. 



"We conducted an exhaustive search, invested significant amounts of time and resources that span the globe, in our search for our Phase 1 contract manufacturer. VDL Nedcar is the right partner," said Tony Aquila, Investor, Chairman and CEO of Canoo, Inc. "They are the top trusted European manufacturer building high-quality products for leading OEMs, and they significantly outcompeted the other contenders. VDL is also independently owned by the van der Leegte family of entrepreneurs - which aligns with our commitment to support businesses that form the backbone of communities. This strategic partnership will enable us to deliver vehicles to market while we build our Phase 2 factory in Oklahoma. It also strongly positions us for geographic expansion in Europe and builds a lasting relationship with VDL Groep of companies. Our investment will help us scale quickly and fulfil our mission to bring affordable, purpose-built EVs to Everyone."


Canoo and VDL have already gotten to work on vehicle manufacturability and production planning so that Canoo can successfully lay the groundwork for its upcoming US manufacturing operations expansion, which will be completed in Oklahoma in 2022. The Nedcar facility currently expected to produce around 1000 units for both the US and European markets in 2022, with an additional 15000 targeted for the following year. 


"Canoo's bold approach to designing and building electric vehicles makes them an ideal partner as we work together to shape the future of mobility," said John van Soerland, CEO of VDL Nedcar. "This partnership advances our strategic vision to provide a contract manufacturing solution and expand our expertise in the EV arena."

Currently, Canoo is entering its GAMMA phase of development and is on track to start production soon. The company intends and expects to launch its Lifestyle Vehicle in Q4 2022, closely followed by the Multi-Purpose Delivery Vehicle and Pickup Truck.

Watch this space.

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