A snap survey of businesses across the West Midlands has revealed the stark financial and operational challenges facing
Jaguar Land Rover’s (JLR) supply chain following the recent major cyber-attack on the automotive manufacturer. The research conducted jointly by the
Black Country,
Greater Birmingham and
Coventry and Warwickshire Chambers of Commerce aimed to discover the real impact of the forced shutdown in the region.
The survey of 84 businesses, representing over 29,700 employees, found that 77% had experienced a negative impact as a result of the JLR cyberattack, with 44% identifying the effect as ‘significant’. Nearly half (45%) reported significant negative financial impact including loss of revenue, increased costs and customer payment slowdowns. The research showed that 79% of participating firms were members of JLR’s supply chain, while 18% were businesses not directly in the supply chain but still experiencing knock-on effects.
As businesses struggle to cope, 35% have reduced staff hours or asked staff to temporarily not work, while 14% are already making redundancies. A further 17% are seeking additional finance from banks to help tide their businesses over.
Sarah Moorhouse, chief executive of the Black Country Chamber of Commerce, said: “The Black Country's automotive supply chain employs 13,000 people so the ripple effects of this cyber-attack are being felt right across our business community. What these initial survey results show is that this isn't just about JLR - it's about the suppliers, manufacturers and service providers that make the West Midlands the powerhouse of UK automotive production.
“We are speaking to our members and to local and national government about the support which needs to be put in place. The survey showed that over 50% of the businesses that responded want to see a financial support package. It is telling that 18% of those companies are calling for specific protection from exposure under the Insolvency Act until the crisis ends.”
The Chambers will be sharing their survey findings directly with JLR as well as regional and national stakeholders to inform policy decision making and influence potential support measures.