Bikers are worth £5.3bn to UK PLC

Posted by Whealie
Apr 14, 2015 • NewsNo Comments
Triumph motorbike

Triumph, part of the £5.3bn motorcycles add to UK PLC

The motorcycle industry contributes £5.3bn to the UK economy each year, according to the Motorcycle Industry Association (MCII). It pays more than £1bn in tax.

The MCII, made up of manufacturers, distributors and the associated biker businesses, has produced its first new figures in five years to help bikers lobby politicians in the run-up to the election and after.

Bikers are at best ignored by MPs and too often attacked by ignorant politicians.

The report, Economic Benefits of the UK Motorcycle Industry 2014, calculates that:

  • 5.3bn is generated through net annual sales, with an added value of £2bn
  • The industry directly employs 58,500 people in 5,700 businesses, plus an additional 16,400 jobs through motorcycle businesses purchasing goods and services from other UK sectors
  • Pays more than £1bn in tax
  • Exports equal around £450m each year, up 12% in real terms since 2008
  • Tourism associated with motorcycling is estimated to support an additional 13,200 jobs

The report breaks down the industry by five sectors, which include:

  • Manufacturing
  • Distribution and retail
  • Repair, servicing and maintenance
  • Sports and leisure
  • Support services, which include finance and insurance

It shows that the £2bn ‘added value’ generated by the motorcycle industry is more than the following industries:

  • Retailers of automotive fuels, lubricants and cooling products (£1.2billion)
  • Call centres (£1.4billion)
  • Performing arts (£1.5billion)
  • PR and communications activities (£1.3billion)

The number of jobs supported by the industry is more than:

  • Taxi driving (36,000)
  • Manufactures of pharmaceuticals (50,000)
  • Agriculture, forestry and fishing activities (46.000)
  • Manufacture of textiles (47,000)

Social benefits:

  • Saves the NHS several million pounds a year through voluntary ‘blood biker’ services, couriering life saving products
  • Used by emergency services to cut through traffic
  • Addresses transport poverty through Wheels to Work schemes

Motorcycle market

The report states that the motorcycle industry has “demonstrated resilience”, despite difficult economic conditions. Motorcycle retail and distribution was hit in line with other retail sectors during the economic downturn. Sales declined during this period, exports actually increased slightly.

After a period of bottoming out, new registrations have begun to climb. In 2014 they were up around 10%, with similar rates of growth in the first quarter of 2015.

UK motorbike manufacturing

The report shows around 3,000 people in the UK are employed in the manufacture of high quality motorcycles, components, clothing, accessories and fuel. Triumph plays a major part in contributing to these figures, but the report also highlights the contribution of a number of smaller high value high performance manufacturers including Norton, CCM and Métisse.

There are also UK businesses involved in the development and manufacture of electrical and other low carbon motorcycles. These include Agility Global, which makes a high performance electric sports bike and Intelligent Energy, which is working with Suzuki to develop the first commercial fuel cell vehicle.

Twice as many bikes

MCIA CEO Steve Kenward says this document should be read by all those making policy decisions about transport:

“There are now nearly twice as many motorcycles licensed (and licence exempt) for the road than there were 20 years ago and the general trajectory for motorcycle use is upwards. Around a third of all new registrations are for smaller motorcycles, likely to be used for commuting, and we see this as an increasing trend with motorcycles helping to tackle congestion as part of a low carbon future.

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