JLR cyber-attack hits 77% of West Midlands businesses

The research conducted by the Black Country, Greater Birmingham and Coventry and Warwickshire Chambers of Commerce aimed to discover the real impact of the automotive giant’s shutdown in the region.

The survey of 84 businesses, representing over 29,700 employees, found that 77 percent had experienced a negative impact as a result of the JLR cyber-attack, with 44 percent identifying this as 'significant'.

Nearly half (45 percent) reported significant negative financial impact including loss of revenue, increased costs and customer payment slowdowns.

The research showed that 79 percent of participating firms were members of JLR's supply chain, whilst 18 percent were businesses not directly in the supply chain but still experiencing knock-on effects.

As businesses struggle to cope, 35 percent have reduced staff hours or asked staff to temporarily not work, whilst 14 percent are already making redundancies.

A further 17 percent 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’re speaking to our members and to local and national government about the support [that] needs to be put in place.

“The survey showed that over half of the businesses who responded want to see a financial support package.

“It is telling that 18 percent of those companies are calling for specific protection from exposure under the Insolvency Act until the crisis ends.”

The Chambers will be sharing the survey findings directly with JLR as well as regional and national stakeholders to inform policy decision making and potential support measures.