The managing director of Teesside-based car parts manufacturer Nifco UK has said the business expects to “reap huge rewards” as market conditions normalise, after reporting a dip in sales as a result of challenging trading conditions.
For the 12 months ending December 31 2021, the business, which produces parts for some of the world’s biggest carmakers, generated turnover of £44.2m, down slightly from £47.5m in 2020.
The reduction in sales was largely down to the global shortage of semiconductors which was compounded by the ongoing residual effect of the Covid-19 pandemic such as overseas lockdowns and their impact on global supply chains.
Exceptional events such as the Suez Canal blockage also influenced sales.
Managing director Jim Casey said: “Despite an air of optimism from the output during Q1, the remainder of the year experienced further suppressed sales linked to a continuation of global supply chain issues that has plagued the entire global automotive industry.
“I’m proud of the way the team has responded and maintained focus on efficiency improvements, training and general continual improvement which has helped to offset much of the output reduction impact.
“The fundamentals of our business remain very strong and with the benefit of the efficiency improvements made over the last two years, we expect to reap huge rewards as business conditions improve.
“We remain carefully focused on forward market expectations and are working hard to secure additional future business through all of our customer partners. And, as last year, although challenges remain, underlying industry demand continues to remain strong, and Nifco remains poised to take full advantage as market conditions improve.”
