Industry Insight

Paul Butler, MBA Butler is CEO of the North East Automotive Alliance , an industry-led cluster which champions the automotive sector in the North East of England.

The organisation supports the economic sustainable growth and competitiveness of the automotive sector, and aims to establish the North East as a true global automotive and electrification powerhouse.

With the NEAA celebrating its tenth anniversary this year, we caught up with Paul to discuss the evolution of the cluster, its successes, and the future of the North East’s automotive sector.

Back in 2014, did you have any idea that the cluster would become what it has grown to be today?

The past 10 years have certainly been a whirlwind of ups and downs and, although I had confidence that an automotive cluster in the North East of England would succeed, I am still overwhelmed at the amount of impact the NEAA has had.

In keeping with cluster management excellence, much of this success is attributed to the fact that we have been industry-led and advised by a board since day one. In addition, each member of the NEAA team has specific expertise and experience that matches our key thematic areas of focus. This has enabled us to stay relevant to industry needs and offer a coordinated voice for our members across wider stakeholder groups.

The NEAA’s impact was immediate; within 11 months of launch we were officially the largest automotive cluster in the UK and in March 2016, in a record time, we were awarded the Bronze Label for Cluster Management Excellence. I guess these were all clear signs that the NEAA would be here today celebrating its decade in business, but I want to take this opportunity to thank members (past and present), the board and the fantastic NEAA team for their support in achieving this milestone.

What has been your personal highlight of the last ten years of the NEAA?

It’s difficult to choose as there has been many highlights. I’d probably suggest our response to the Covid pandemic. At a time when companies were facing significant cost pressures it would have been easy for them to cancel NEAA membership – and this was certainly a major concern at the start of the pandemic. However, the NEAA really demonstrated industry leadership and an agile response to the pandemic. Within days of the lockdown we held our first meeting of the NEAA Covid Emergency Response Group. It brought together global best practice from OEMs, Tier 1s and SMEs to share information and strategies regarding how companies were tackling the pandemic, planning for restart and working with government departments to gather critical information and feedback on policy decisions.

In addition, we delivered over 120 webinars during that period on a host of topics related the pandemic, creating business opportunities through online networking and helping the sector survive a very challenging period.

The thing I’m most proud of though is the impact we are making to people’s lives by enhancing our region, its competitiveness and future prosperity.

Why did you decide to take on the role of Chief Executive of the NEAA?

At the time I was part of the North East of England Process Industry Cluster (NEPIC) management team and was leading a project to deliver UKTI trade services in the region under ‘Going Global’ an SPV created through the delivery consortium including NEPIC, the North East Chamber of Commerce and RTC North. My role in this was to help create export opportunities through cluster networks. Tony Sarginson was brought in to lead the activity within the manufacturing sectors and he helped glean interest in the automotive sector in setting up a cluster body.

As a cluster management expert I offered to support the formation of the NEAA, utilising my benchmarking experience to ensure the NEAA was set up against European best practice to give it the best chance of success. It was during this time I was offered the opportunity to lead the NEAA – I jumped at the chance. People may think it’s a risk setting up a new venture like this, however I was confident that it would be a success and here we are, ten years later.

What has the NEAA brought to the North East’s (and the wider UK’s) automotive sector over the last decade? What have been the key achievements?

Undoubtedly, one of the main achievements of the NEAA is in developing a cohesive network with an unparalleled level of collaboration and trust across the sector. Previously, these lines of communication didn’t exist. This has delivered significant benefits to member companies and helped improve our regional competitiveness. It’s impossible for us to track the extent of this as we know once links are formed there’s many other spin offs being created by companies working together.

Another important point is that we are seen to represent the sector. The NEAA is now an established participant on 13 regional, national and international industry boards, articulating the challenges and opportunities faced by the sector, helping to inform policy direction and simply piecing the pieces of the jigsaw together to ensure there’s effective support for members.

Understanding our members’ challenges and opportunities has enabled the NEAA to play an active role in the delivery of over ￡31 million of publicly funded projects, covering areas such as business support, innovation and skills. Independent assessors have stated the NEAA is uniquely positioned to support the region’s automotive sector and our agile approach ensures companies received the right support at the right time.

We have also established several key cluster events, including the flagship North East Automotive Expo and the NEAA Annual Awards. These events are now cemented within industry calendars and provide a platform to showcase all that is great about the region’s automotive sector. In addition, the NEAA awards not only recognise success but ensure that we inspire and nurture our future talent by providing donations to schools and STEM activity. Since the launch of the awards in 2018, over ￡76,000 has been donated to this cause.

What has surprised you the most about the automotive sector’s development over the past 10 years?

The pace of change within the automotive sector is like no other. When I moved across from the chemicals and pharmaceuticals sector I expected it to be fairly similar – it isn’t. The automotive sector operates at a different pace all together, especially here in the North East – I describe it as a tsunami of work which has never let up.

I recall in 2016 being told that over the next ten years we will see more change in the automotive sector than we had seen in its entire history.

Electrification is a global mega-trend and the North East of England continues to lead the UK’s transition to electrification with over ￡3.1 billion of electrification investment being announced since 2021.

In other areas technology is now playing a greater role than ever across the industry, whether that be in the way cars are manufactured with automation and digitisation, how supply chain components and finished goods are moved around through connected and autonomous logistics, through to consumer behaviour formulating technology-driven trends including more customisation, autonomous driving and enhanced in-car entertainment.

Add into the mix Dieselgate, new emissions regulations, semiconductor shortages and the fall-out of Brexit. The sectors’ evolution over the past 10 years has been huge! Nevertheless, the automotive sector has shown the upmost resilience and perseverance to rise to these challenges and opportunities.

The North East Automotive Expo has grown to be a must-attend in the industry calendar – what makes it so successful?

Starting from modest beginnings in 2015, the North East Automotive Expo has become a regular feature within the North East automotive community, growing each year and attracting a wider audience. Having moved from the Stadium of Light, where it was held in the early days, to the Beacon of Light in Sunderland, has enabled us to grow the event to over 700 delegates.

I think we’ve created a very welcoming business event where the networking opportunities are vital for attendees. It is also very sector-specific, and is the only automotive event like this in the region, so its helped fill that industry need for collaboration. We are also mindful of quality over quantity and this event is supported by industry and our board, so it ensures that the right decision-making people are there.

The expo is an industry highlight for many of our automotive companies who come together to not only learn more about what is happening in the industry, but make new connections, reignite old ones and participate in vital supply chain networking across the sector. It plays a key role in showcasing our region, capabilities, skills and businesses who are proud to call the North East their home.

We have been fortunate to attract a series of sponsors, many who are long-standing, who have enabled us to grow and develop the event year on year. I’d like to extend my thanks to these supporters.

How has the NEAA’s role evolved since it was set up?

When we first set-up our membership offering was limited, but naturally as the cluster has grown, we have expanded not only our membership benefits, but also the impact we are able to offer to companies.

Now with a greater presence and stronger links into Government and wider stakeholders, we are able to better navigate and signpost companies to their needs. We have also increased the amount of public sector funding we have brought into the region, boosting innovation, skills and support.

What does the next ten years hold for the NEAA?

In recognition of the NEAA’s 10 years in business, we will shortly be launching our new strategy for 2030 which has been developed with industry to address and support their objectives over the next five years. This will include supporting the sector’s transition to electrification, addressing the skills needs and sector attractiveness to safeguard the future of our industry, as well as remaining cost competitive and optimising performance.

We look forward to working with the NEAA Board, our members and stakeholders as we navigate what the future holds for the automotive sector.

For more information on the NEAA, click here.

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