4 minute read
Chris Aylett
A curious business
The opening line of Kipling’s famous poem seems currently relevant. Unexpected, confusing, fascinating and full of opportunities – has there ever been such a curious time for business?
Recent discussions with the motorsport engineering community in the UK and USA show most are doing well. MIA members report substantially increased revenues over the past few years and constant and growing demand.
It’s true, extraordinary supply issues and cost increases beset all businesses, affecting efficiency, profitability and financial planning. But if demand is strong, and customer pressure maintained, all involved will find acceptable solutions.
‘Right time, right crowd, right content and the right price – free!’ was just one of many positive comments made online after the MIA’s CTS 2022 Show closed. Clearly, the motorsport business community really enjoyed and valued getting together in October to re-establish connections and make new ones.
Before hectic 2023 manufacturing and delivery schedules start, the show was just what the high-quality business audience, from the UK, USA and Europe, wanted. Buyers from F1 teams are a rare sight at trade shows but were there, along with those from rally and endurance racing, their confidence reflecting the continuing strength of demand.
On target
I visited every exhibitor before the show closed, and only one was disappointed. The rest said the quality of delegates, location and timing were right on target. And backing that up, the majority of stands have been re-booked, even enlarged, for next October’s CTS23 show.
One factor behind the current high demand is the popularity of TV sports entertainment, which exploded during Covid. Millions of new people of all ages, genders and countries were hooked, and many of these new ‘eyeballs’ have stayed, bringing more sponsorship to the teams and suppliers.
Formula 1 and NASCAR are just two series that have increased revenues and are expanding rapidly into new international markets. NASCAR entering a car at Le Mans will bring yet more global attention to the ‘brand’.
At last, motorsport is fully embracing the entertainment business, an unfulfilled promise over many years. This demand for entertaining competition on track, combined with endless new regulations, drives demand for more supplies.
But there is another factor that has increased demand. The commitment to reduce carbon emissions, which correctly has global support.
Many governments have announced the imminent end of the internal combustion engine. Personally, I believe this overly simplified, blanket ban – always a vote winner – will steadily be eroded country by country, consumer by consumer, as realistic barriers emerge.
Cars and motorbikes are only a small part of the global emissions problem. Motorsport, held primarily on private land over limited distances, is an even smaller part of this sub set.
‘Competition drives innovation’ has never been more relevant. Our community has reacted fast and positively to the demand to develop and promote a multiplicity of powertrain solutions. Our vast new global motorsport audience will be highly influential as actual car buyers witness the performance of these new alternatives.
Already, part of the substantial motorsport R&D expenditure is being directed towards development of high-performance solutions.
These should help prove, or disprove, the suitability of hydrogen, sustainable fuels, hybrids and so on. Outcomes will be demonstrated faster than from the slower moving automotive or transport industry.
Challenge-led
Demand is also growing fast from aerospace, marine and defence. They know our ‘challenge-led’ industry will test, develop and deliver good solutions quickly. Racebred, winning solutions are always the result of successful, innovative collaboration being delivered at pace and on time. This exciting growth in demand is why CTS 2022 was created by the MIA members at this important time. A trade show, free of charge, to potential customers and partners, They knew a show, focused on technology and engineering from motorsport competition, would attract buyers, investors, and partners from many sectors and countries. Research showed October to be the right month. Well before the next motorsport season, a time when minds can be more open to new business and developments. Walking the CTS Show, I saw first The MIA handed out awards at a ceremony after the close of day one at the show. hand just how dynamic, positive and Multimatic was named Business of the Year with sales over £5m well-motivated people in motorsport are, even during difficult times. In the grand scheme, global motorsport is a relatively small business community relying on extensive collaboration. Indeed, working together to resolve a difficulty with the FIA was the reason this community created the MIA in the first place and still own it today. It is the UK’s good fortune that these people came together and created the Motorsport Valley business cluster. Now home to an international business community supplying advanced technology to the extremely competitive world of motorsport engineering. For more information on the MIA, check out www.the-mia.com, or make contact directly via info@the-mia.com. Alternatively, if you wish to speak to me directly, just email chris.aylett@the-mia.com
