Staffordshire-based excavator manufacturer JCB (www.jcb.com) expects its production plants to build a record 70,000 machines globally during 2017, according to a briefing given to the Black Country-based Confederation of British Metalforming (CBM).

Members of the association also heard that JCB’s raw-materials budget had soared since sterling slumped after the EU referendum in June 2016.

Group purchase manager Chris Bell told CBM members that the price of hot-rolled steel was up 57% and rubber now costs 83% more, while the price of copper has risen by 20% since then. “It really has hit our costs, and it presents a big challenge.

“The up-side is that products exported from the UK are more competitive. However, sterling’s devaluation has also made it easier for us to source supplies and components competitively in the UK.

“At the moment, the UK supplier base appears to be operating at capacity. One of the barriers to increasing capacity is the non-availability of some skilled labour — for example, welders.”

The CBM visit was arranged to enlighten members about opportunities to enter JCB’s supply chains, and chief executive Geraldine Bolton was delighted at Mr Bell’s willingness to provide so much detail.

She said: “Everything we do is driven by our members, and given that JCB offers long-term supply contracts, it was vital to learn more about its requirements and its strategic thinking.”