...The Changing Geographies of Manufacturing in the UK since the 1970s Since the 1970's, the geographies of manufacturing in the UK has been one of steady decline in relative contribution to GDP and in relative and real terms of employment. This dominant trend can be explained by 4 Theses and this essay will focus on them. The Maturity thesis focuses on the decline in the relative contribution of manufacturing to the employment in the UK. A typical Industry is going through: 1. Growth Phase, in which the industry share in the country's employment rises rapidly. 2. Maturity Phase, when the share stabilises. 3. Declining Phase, marked by decline in this share. Figure 1 Employment change through maturity A sector in growth phase takes the labour needed for its growth from other sectors. The service sector was experiencing growth from the 1970’s onwards and in immature countries the labour was mostly taken from the agricultural sector. But the UK had just 3,6 % of civil employment in agriculture in 1966.(Martin and Rowthorn 1986, 2010) The consequence was that almost all of the labour needed for its growth (20%) from 1971 until 2009 was taken from the industry sector. This explains why the UK was the first developed country to experience de-industrialisation and its strong influence. Figure 2 UK Unemployment by broad sector, 1971-2009 Cambridge Econometrics analysis of ONS (2013) ...
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...UK manufacturing has been in relative decline since the 1960s. Manufacturing as a share of real GDP has fallen from 30% in 1970 to 12% in 2010. This essay answer looks at the reasons why, and how significant government policies are as a cause. Manufacturing plays a crucial role in the competitiveness of the UK economy. Despite this, for far too long government policy has neglected manufacturing. During this period of neglect British manufacturing firms have repositioned themselves away from price-based competition more towards forms of non-price based competitiveness. The recent re-shoring of manufacturing to the UK is the start of a much needed trend. The University of Birmingham is funding a two year research project entitled ‘Regeneration Economies: Transforming People, Places and Production’. This project is exploring new policy solutions that will support British manufacturing. There is a need to develop a much better understanding of regional and national economies. High value manufacturing firms no longer sell products, but many solutions combine manufactured products with embedded services. Thus, a manufacturing policy must be simultaneously a service policy. There is a need to encourage universities and colleges to provide courses that blend technical training with an understanding of services, this is where the government comes in, by making these changes to education The Regeneration Economies project is also exploring major developments in engineering that have the...
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...demand for the foreign versions increases. This means that imports rise- which is bad for the UK economy, because imports are a leakage from our economy meaning it’s not good for the UK economy as there is less cash flow in the economy and potential economic growth decreases. Furthermore imports increasing mean that aggregate demand would likely shift to the left too. This graph shows the implications of AD shifting to the left However, the UK economy is growing (0.7% growth between April and June 2015), and thus demand for these low-value added ‘inferior’ goods such as cheap t shirts from a supermarket is falling- and demand for more ‘normal’ and ‘luxury’ goods- of which the UK produce very well in the form of higher-added value goods rises, and thus the circular flow of income may not be as affected a initially thought, a sin theory imports won’t actually increase by as much as first presumed, meaning the UK should not be as concerned as first thought. Secondly, the UK should possibly be concerned due to the increasing global integration of the global economy. We do currently produce these aforementioned types of goods, but with the economy further integrating the competition is becoming more global, i.e. we are competing with more and more economies across a wider-scale, and we become outcompeted due to our production costs- meaning the UK should be concerned about not having a...
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...UK AUTOMOTIVE AT A GLANCE UK AUTOMOTIVE INDUSTRY: PROFILE MANUFACTURING THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS MOTOR INDUSTRY FACTS 2014 REGISTRATIONS VEHICLES ON THE ROAD ENVIRONMENT CONTENTS WHAT IS SMMT? The Society of Motor Manufacturers and Traders (SMMT) supports and promotes the interests of the UK automotive industry at home and abroad. Working closely with member companies, SMMT acts as the voice of the motor industry, promoting its position to government, stakeholders and the media. SMMT represents more than 600 automotive companies in the UK, providing its members with a forum to voice opinions on issues affecting the automotive sector, guiding strategies and building positive relationships with government and regulatory authorities. As one of the largest and most influential trade associations operating in the UK, SMMT’s resources, reputation and unrivalled automotive data place it at the heart of the UK automotive industry. UK AUTOMOTIVE AT A GLANCE UK AUTOMOTIVE INDUSTRY: PROFILE MANUFACTURING REGISTRATIONS To find out how to join SMMT and for more information, visit www.smmt.co.uk/memberservices or e-mail membership@smmt.co.uk. VEHICLES ON THE ROAD ENVIRONMENT www.smmt.co.uk CONTENTS 02 CONTENTS UK AUTOMOTIVE AT A GLANCE ................................. 4-5 REGISTRATIONS ........................................................ 16 Cars by fuel type ......................................................
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...a strategy for growth and sustainability in the UK automotive sector July 2013 Contents | 3 Contents Foreword Executive summary Challenges and opportunities Investing in innovation and technology Enhancing supply chain competitiveness and growth Investing in people – ensuring the right skills A business environment that enables a competitive automotive industry 1 The UK automotive industry Overview of the sector Competitiveness – a high productivity sector Enhancing UK competitiveness: strengths and weaknesses Vision for the UK automotive sector Investing in innovation and technology Success through collaboration Developing more detailed technology roadmaps Maintaining the UK’s strength in propulsion systems Hydrogen and fuel cells Enhanced links with motorsport Enhancing collaboration with the research base Better engagement with EU funding Delivering intelligent mobility Future technologies Enhancing supply chain competitiveness and growth Key challenges for the supply chain Quantifying and capitalising on the business opportunity for the UK supply chain Improving long-term supply chain competitiveness Encouraging inward investment in the UK supply chain and creating export opportunities Access to finance Innovative processes for premium manufacturers 3 5 6 6 7 8 8 9 9 10 12 16 18 21 24 26 31 31 32 32 32 33 34 37 38 40 44 47 48 2 3 4 | Driving success – a strategy for growth and sustainability in the UK automotive sector 4 Investing in people –...
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...in the UK using PESTEL and SWOT frameworks. Britain’s automobile industry dates back to the late 19th century, when Daimler began manufacturing cars. Today, the UK is a major automobile and automobile part manufacturing hub and home to seven major car manufacturers. It produces a wide range of standard specification, premium and specialist vehicles, including Formula One cars and sports vehicles. An analysis of the industry using the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework is carried out below: Political: The automotive industry has always received political support on account of several factors such as employment potential, export earnings and membership of the European Union. The Government has signed free trade deals with Singapore and also benefits from the EU-South Korea trade agreement. The UK is increasing exports to emerging economies in order to boost exports. This has attracted new foreign investment to the tune of GBP 6 billion from BMW, Jaguar Land Rover, Nissan, Ford and others. UK-manufactured cars sold within the EU are exempt from customs tariffs and are therefore cheaper. Economic: The UK is now the second largest car producer in the world after Germany. It exports 25 per cent of the cars it manufactures and provides 730,000 jobs. In terms of value, automobile exports stand at a staggering GBP 27 billion, helping to reduce Britain’s large trade deficit and constitute 11 per cent of all manufacturing exports...
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...We can make it A consultation document Manufacturing 2020 Panel Contents Message from the Chairman....................................................................3 What are the Issues? ........................................................................................4 ISSUE 1: REDEFINING MANUFACTURING.............................................................4 ISSUE 2: THE IMPACT OF THE INTERNET .............................................................5 ISSUE 3 - PEOPLE ARE THE KEY TO THE FUTURE..............................................7 ISSUE 4 - MANUFACTURING TO A UNIT OF ONE..............................................8 ISSUE 5 - TECHNOLOGY AND INNOVATION AS THE KEY ENABLERS ..........9 What do I do now? .......................................................................................11 Panel and Task Force Members .........................................................12 What is Foresight....................................................................inside back cover www.foresight.gov.uk 1 What’s this all about? It is easy for people in business to downplay or ignore the importance of thinking strategically about the future. Day-to-day problems always seem to need immediate attention. Predictions about the future are invariably wrong. And, on the surface, the world we live in today doesn’t look or feel that different to what it was 10 years ago. So why should it change much over the next 10-20 years? But the fact is...
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...printing the most important opportunity facing manufacturers in the UK? 3D printing is the process for making a physical object from a three-dimensional digital model, typically by laying down many successive thin layers of a material. In my view 3d printing is currently the most important opportunity facing UK manufacturers however, there are also many other exciting opportunities becoming available to the UK manufacturing industry. Previously 3D printing was simply an idea that had a lot of issues to resolve but now the machines have become more reliable and can be used to produce various products from a number of different materials including but not limited to plastic, metals, glass, concrete and chocolate. 3D printing is ideal for products that need low quantities producing or where high customisation is required (mass customization). Now, instead of using the technology to make prototypes it can be used to produce the real thing quicker and probably cheaper than ever before. This significant cost reduction should help to reduce unit costs and improve competitiveness as well as reducing manufacturing waste by up to 90%, and with our strong heritage in engineering and materials science, the UK is definitely in the right place to take advantage of 3D printing which will not only encourage investment in to our economy from abroad but it should also revolutionise the way manufacturing is conducted in the UK making Britain a template for a changing world if executed effectively...
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...Automobile Industry in UK - An Internal and External environmental study Introduction: The automobile sector in United Kingdom (UK) is very vibrant and innovative with Seven commercial vehicle manufacturers, nine bus and coach manufacturers, eight major premium and sports car producers, seven mainstream cars manufacturers; eight formula one teams; thirteen R&D centers; and over 100 specialist brands and niche manufacturers. Some of the best premium and sports cars manufactured in UK are Aston Martin, Bentley, Daimler, Jaguar, Lagonda, LandRover, Lotus, McLaren, MG, Mini, Morgan and Rolls-Royce. UK automotive industry is producing over 1.5 million vehicles and 2.5 million engines every year. Another key point about the UK automobile industry is that it exports around 75 % of its production which makes UK the largest exporter of cars in the world. Apart from automobile manufacturing, UK also has notable presence in motorsport industry and auto racing industry. UK motorsport industry contributes with an annual turnover of £6 billion out of which more than 50% is exported with about 4500 companies involved in this industry. UK automobile sector has undergone tremendous change since its inception in the 19th century. From being the second largest manufacturer of cars in the world (next to United States), it went down to be the 14th largest producer of cars by 2012 because of the rising competition from countries like...
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...To some extent, government investment is the most important factor in the revival of British industry as it simulates growth with the economy. Government intervention is required to ensure the UK has the infrastructure, skills and access to investment to allow manufacturing to thrive. Financially attractive environments provide incentives to locate manufacturing industries in the UK. Nissan has been provided a £9.3m grant for the Nissan note to be built in the UK, production would have been in India if not for this investment, jobs would have left the uk resulting in an increase in unemployment, Nissan currently provides 6000 jobs in the UK. The regional growth fund help to meet the educational policies set by the government. More teachers and young people will go behind the scenes, this gives people a first-hand view of modern manufacturing and the exciting careers that are available to inspire the next generation to go into engineering and manufacturing. This will assist with the skills shortage that the uk is currently facing. Airbus, the world’s leading aircraft company, received £1.4m in funding from the fund to help provide training to develop a £190m investment in the production of new low carbon diesel engines at its Dagenham, £8m of the investment coming from the Regional Growth fund, this investment will create 300 jobs in that area, further reducing unemployment and through the training scheme people will gain the necessary skills that they need to revive the British...
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...and share holders then enterprises come out regularly with the activity of reporting (Stittle, 2003). Enterprises know that by announcing their financial health (annual report) publically, they are able to connect to their shareholders, distributors and investors, which is very important for both growth and expansion of the business. Meanwhile, annual reports also assess market position as by expressing financial numbers the feedback of market (consumer, investor, shareholder and competitor) is testified and generated (Stittle, 2003). This study is going to access the importance of annual reports in terms of market analysis, productivity analysis and financial health assessment. The study will focus on Tesco, a giant retailer company of UK in order to better understand the importance of annual reporting (Flack, 2007). Tesco being a global retailer company holds a comprehensive reporting...
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...Internationalisation within the UK Car Industry and the Success of Jaguar Land Rover ADD REFERENCES PROPERLY AT END OF PARAGRAPHS SENTENCES CHECK THROUGH OUT!!! Introduction This report will critically evaluate the impact of globalisation on the UK car manufacturing sector. It shall provide a brief insight into the UK Car Industry; highlight the trade and non-trade barriers affecting UK car manufacturers and the adjustments they need to make regarding culture, language and regulatory frameworks as well as intellectual property protection. All information used to complete this research was contemporary information from 2007 to 2015. Then it will explain how multinationals such as Jaguar Land Rover can provide impetus to the UK Car Manufacturing Sector and critically analyse the success of the Jaguar Land Rover brand since 2008. (Check this introduction once report completed) UK Car industry background 1975 to Present In 1975 the UK produced 5% of the worlds Cars but by 2005 they had lost a significant share to Korea, Brazil, China, Spain, India who produce a significant amount of the worlds cars over see Figure 2 with the UK producing less than 2%. Figure 1 – World Car Production 1975 Figure 2 – World Car Production 2005 Source: Source: From 1996-2006 alone UK Car Production decreased by over 14% from 1.926 million to 1.65 million a dip of 10% from the previous year in 2005 was enough...
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...union in 1800 added the Kingdom of Ireland to create the United Kingdom of Great Britain and Ireland. Introduction: The United Kingdom (official name United Kingdom of Great Britain and Northern Ireland) consists of four countries united under one monarch and government. The countries are England, Scotland, Wales and Northern Ireland. Each have a distinct culture and feel of their own with some in Northern Ireland wishing to split from the United Kingdom and join the Republic of Ireland, with which the UK shares its only land border. England has traditionally been the dominant nation within the UK has over 80 percent of the share of the total population. People in Scotland and Wales have proud national traditions and languages. Scottish Gaelic is mainly spoken in the north west of the country, by a small proportion of the population. Welsh has a much bigger number of people speaking the language and all public signs in Wales are displayed in both Welsh and English. Economy Of Uk: Statistical Data Economy of the United Kingdom | Canary Wharf business district in London | Rank | 7th (nominal) / 8th (PPP) (3rd and 2nd in Europe respectively) | Currency | Pound sterling (GBP) | Fiscal year | 6 April – 5 April | Trade organizations | EU, BCN, OECD and WTO | Statistics | GDP | $2.480 trillion (2011)[1] (nominal; 7th)$2.253 trillion (2011)[2] (PPP; 8th) | GDP growth | 1.0% in Q3, 2012 (ONS) | GDP per...
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...Will UK manufacturers ever be competitive enough to compete effectively with overseas companies? (40) As globalisation continues and western values spread around the world some UK manufacturers are slowly becoming more competitive again. However being competitive can be defined as many things for some businesses like Rolls Royce it is quality, so they have never had much of a problem, but for others who rely on tight margins it is price and in many cases they have been massively squeezed by overseas competitors. Although, some UK manufactures are still lacking competitiveness compared to other countries lots are improving as stated in item A 34% of UK manufacturers have seen an increase in orders in the past 3 months. One reason UK manufactures will very soon be highly competitive in comparison to the rest of the world is because of rising overseas costs in rapidly developing economies like China. As wages remain stable in the UK they have rapidly increased in China 500% in the last 8 years because there are more jobs than people. This coupled with the high rate of Chinese inflation and export costs to the UK means many businesses are now not bothering moving production overseas. A good example of this is Caldeira UK they produce cushions partly in the UK and partly in China. Last year the difference between producing a cushion in China and a cushion in the UK was 55pence now it is just 8. With a reputation for good quality as well this shows the UK is a competitive place to...
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...Economic Environment The economy of each country has features that could be measured in different ways to see how they are changing. The economic environment of countries has an effect on countries due to the trading between countries affecting the money coming in and out of the country which then affects the cost of goods and prices. The economic environment would affect jaguar land rover as the goods and prices will have been affected. By this happening it would result in the prices of the cars costing more due to the resources used costing more for the manufacturer. Business Cycle Increases and falls in the production are shown through the business cycle as well as income and the expenditure of the country over a period of time. During a boom the demand of products get so high that manufacturers cannot supply these products and as an alternative they have to put the prices higher. With the prices going higher the result of this is rising inflation. As there are so many costs increasing the price of products becomes so high that the demands of these products start to fall as people are unable to pay for them. If this occurs this then leads to productivity falling as businesses do not need to make as many products or services being used so they start to cut costs. At this point businesses start to reduce the number of staff that they have or reduce prices to try and increase the demand of products. Profits also start to fall. After this an economy could fall into a recession...
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