The car industry's supply chain is under distinct pressure from a reduced level of supply and uncertainty of the government's level of support, Laura Marcero, a partner at Grant Thornton, has told the Automotive Press Association (APA).
A statement from audit and tax company Grant Thornton outlines the issues Ms Marcero spoke about, after she warned the APA of the threats to the US car manufacturing supply chain.
Although Ms Marcero was explaining the US problems, there have been several calls pointing out the difficulties involved with the UK's own automotive supply chain.
"Suppliers struggled to make money when industry volumes were almost double what they are today, and the consolidation that has occurred has been happening mostly among smaller companies at the lower tiers," Ms Marcero told the APA.
"Now, we are near a tipping point where the scale and scope of supplier failures at all levels will increase dramatically."
Businesses struggling in the UK already could benefit from contracting a third-party supply chain management company, which could find ways of ensuring a company has a secondary plan in the event of a supplier failing.
Supply chain management could also ensure a product is more ethically sourced, allowing for the chance to add value to a product, in order to create higher revenue streams.
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