Motorsport Engineering Sales in the Ascendancy
Motorsport engineering sales are in the ascendancy. Over half of the specialist high precision engineering companies that cater for this exclusive market, have reported increased sales year on year according to figures released by the MIA (Motorsport Industry Association). The MIA’s report states that 10% of suppliers realised increases of over 50%. It is clearly a trend that is bucking that of UK manufacturing sector as a whole.
Research and Development Fuels Growth
It’s all down to research and development (R&D). As competition increases between Motorsport engineering companies, the pressure is on to find that all important edge over their competitors. This increase in investment is not only leads to an increase in the demand for skilled engineers. It also creates an increased demand at the entry level, with a rise in the number of apprenticeships being offered. It’s great news, especially in the light of the continuation of the depression still dogging the world’s economy.
Keeping Ahead of the Game
Motorsport engineering is precision engineering at the cutting edge of today’s technology. PRV Engineering provides the industry with high precision component machining services to the most demanding of specifications. They manage to not only stay in the game, but to actually get ahead of it. They do this through their proactive attitude to investment in the latest high performance machinery. Great examples of this are their two new Mazaks, a VTC800/30SR and an i400Integrex which are full 5 axis multi tasking machining centres.
As you Sow so Shall you Reap
The investment principle is one that has stood PRV Engineering in excellent stead. It is this same principle that is fuelling the increase in Motorsport engineering sales. The fact of the matter is that 17% of Motorsport engineering service providers have invested as much as 30% of their turnover into R&D. Another 25% of service providers have invested between 15 and 30%.
Let the Government take a Bow
But this increase in Motorsport sales is not purely down to investment. There has also been another incentive. It is an incentive planted by our Government, and one which is responsible for creating the extra investment. Much as they get maligned by many, in this particular instance, it seems that their tax credit scheme has had a significant part to play. Figures show that 55% of Motorsport engineering companies have used tax benefits to their best advantage. They used them to fund diversification into new areas. This of course has a spin off effect on the Motorsport engineering suppliers and sub-contractors that the industry uses.
Investment & Acquisition Fuels Growth
A year on year increase in turnover is nothing new to PRV Engineering. In fact they have recorded more than a 20% increase over the past 2/3 years, and not just in Motorsport related turnover. It all goes to show that CEO Simon Jones’ policies of new investment in plant and labour, and expansion through acquisition, really have paid off. PRV continue to be one of the fasting growing high precision engineering service providers in Wales.
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