Deindustrialisation in London Over the past 50 years, the UK's employment structure has changed in line with the Clark Fisher Model. 50 years ago, the UK's secondary sector was of fairly high importance with 38% of people employed in it, but since 1960, it has been in decline with the UK experiencing deindustrialisation. In 2010, only 18% of of people were employed in the secondary sector while 80% of people were employed in the tertiary sector. The main reason for this is globalisation. Since goods can now be transported a lot easier, many companies prefer to hold their manufacturing units offshore in LEDCs such as China, India, Bangladesh etc. Land and labour in these countries are a lot cheaper, allowing more goods to be manufactured …show more content…
This would result in the government needing to spend more on social security for these workers. Additionally most of these people would need to be re-trained and re-skilled to perform other tasks. This would again require a large amount of funds to do so.Sheffield used to be UK's steel industry until the 1980s when the industry declined dramatically with deindustrialization. As a result of industrialisation 120,000 people lost their jobs between 1971-2008, a 74% loss. On the other hand the deindustrialisation of Sheffield has improved the water and air quality in the area. During the industrial period the factories would expel large amounts of industrial waste and exhaust fumes. Since these industries have shut down no waste is being dumped into the waters and the air quality has improved as there are no exhaust fumes being released. In addition old industrial sites are now available for regeneration to be made into apartments or shopping centres.These are known as brownfield sites. In conclusion deindustrialisation in UK has both its positive and negative effects. The movement toward the tertiary and quaternary sector has allowed the country’s economy to grow drastically over the last few year. It has also allowed the carbon emissions to reduce and water quality to increase. Due to these factors the quality of life and standard of living for many people has also risen in the last few
The changing composition of employment relates to the change in the structure of the workforce. Job growth has become generally greater in those segments of the labour force with relatively low levels of trade union membership, and a contraction of employment among the more highly unionised segments of the labour force (Healey, 1995). Most of the employment growth that occurred in the 80’s and 90’s was confined to the private sector whose union density was considerably lower to that of the public sector. In addition to that, the constant decline in the manufacturing industries, where unionisation is high, compared to
With bringing your factories to foreign countries you get cheaper labor land and can avoid many taxes.
If we look at the UK over the last 50 years there has been a huge increase in the number of jobs, which has been met by immigrants, more women working and the ‘baby boomers’, but this is unlikely to continue much longer. So moving forward the labour market may well tighten coming out of the recession, with a lack of available talent, which needs to be addressed by training or better reward programmes.
There are a number of reasons why we should care about brownfields. From encouraging urban sprawl through the ‘development’ of greenfields to their environmental impacts on soil, air and ground water, these properties are a drain upon the urban environment. Redevelopment of brownfields are complicated by the potential contamination of hazardous waste, heavy metals and pollution that has been left behind in the soil. Although this land can be used once the soil has been cleaned, landowners are not financially
Even though the elevation of manufactured goods, the growth of Manchester caused more harm than good. It caused overcrowding, pollution to the air, water and street, and harm to citizens and workers. If people don’t take care of the earth as we have it, it will soon become polluted and overcrowded to an extent that it could be harmful for humans to continue living
How the structure of the UK economy has evolved and changed since the 1970’s, the impact on organisations and HR functions
The article “Making the Most of Foreign Factories”, written by Kasra Ferdows discusses how companies can and should obtain the full potential of their factories abroad. She begins by stating that there are two approaches to manufacturing and a factory’s importance to the company is based on the approach the manager of the factory takes. She also exclaims how she thinks the gap between companies that treat their foreign factories as a source of competitive advantage and those that do not is widening.
However this view is not necessarily shared by all. In 2004 James Dyson explained to the BBC that in order for a city to progress it must sustain a manufacturing base instead of moving away from it. He uses the example of a modern day developing country such as china, whose economic progression is enormous, with most of the regards going to their extensive engineering and manufacturing industry. However, if this is applied as the predominant way of generating wealth in Birmingham then this may not be as affective. To begin with, the labour pool is far smaller so to keep up the pace with China may be impossible especially as China have already mastered low-cost production. Also Dyson’s view on industry is extremely idealistic. He states the need to return to manufacturing. He mentions past accomplishments made by Britain in accordance to great engineering feats such as the coal mines. However he fails to acknowledge the simple fact that in Britain’s manufacturing base is in decline whilst the growing industries are, service and the creative sectors. Failure to tenure these industries will end chance of Britain and its major cities such as Birmingham maintaining economic power in the world.
Urban decline can be defined as the drastic decline of a city into infirmity and disrepair. It is usually characterised by increased unemployment, depopulation, deindustrialization, increased crime and political disenfranchisement. Not only does it cause these problems but also it can make the area look unattractive – consequently less people being enticed to the area. This can then lead to a vicious cycle. The causes of these factors, which ultimately cause urban decline, can be: educated workers keep moving to the suburbs to avoid crime, poor schools, taxes and racial
Most American companies have moved manufacturing overseas to countries like China, Indonesia, and Vietnam, are just a few. The cost for production is much cheaper there, even with the
The growth in the developing nation’s economy over the past 3 decades was heavily dependent on its low cost advantage compared to those of other countries. During this period of growth, foreign companies flocked to China to set up production facilities and factories to capitalize on this cost advantage. Raw materials are shipped to China, where factory workers build the final products and export them out to various countries (Wassener 2014).
According to Mr. Robert C. Feenstra, an economy professor from University of California, Davis, when the company off-shores its production, most of the time, it will off-shore the least technical part because of both its concern about piracy of intellectual property and the low technological level of its offshore partners. However, when it has benefited from this relocation and starts to consider further off-shoring its production, it now has to move the part with the currently lowest technological requirement. But this requirement is higher than that of the part which is already off-shored, leading to the relative increase in the demand for skilled labor in developing countries and thus, increasing their relative wage rates (Figure 1). At the same time, this benefit may be partly offset by the popularization of education and the high incentive, i.e. higher wages, to become skilled labor, which will increase its supply and thus, decrease its wage rates. Luckily for them, the net effect is still positive, probably because the rapid growth of production offshoring outpaces the growth of skilled labor.
For years now it has been widely practised for large companies and firms to outsource manufacturing, services, and innovation activities to low-cost countries like China and India. However, while it may have always existed, it has only been in recent years that is has really started to take off. As discussed by Dossani and Kenney (2007, p.779), “in less than six years, offshoring of services has evolved from an exotic and risky strategy to a routine business decision.” The extent of this growth is having a huge effect on both emerging economies and advanced economies. According to Apte (2006), new product development is now the fastest growing offshoring segment in India. Advanced economies now have the ability to produce products at a far more productive and efficient rate than ever before. This also means that emerging economies can expand their own economies by having more people employed and paid. Unfortunately, many firms still have not taken advantage of this, and as discussed by Waltz (2005) it’s the stability and quality of work that is often what discourages firms.
Among global manufacturers, offshoring, obtaining products and services from overseas, has been one of the most widely used strategies to take advantage of the arbitrage of labour cost. However, in recently years, reshoring seem to be the new trend in business as a recent survey conducted by the Boston Consulting Group found that 21 per cent of a sample of 200 executives of large manufacturers were either already relocating production to the US, or planning to do so within the next two years. A further 33 per cent said they were considering it, or would consider it in the near future. [1] Many well-known companies such as Google, General Electric, Caterpillar and Ford Motor Company are moving part of their production or adding new plants back in their country of origin.[3]
Since China has a big imbalance in trade deficit, meaning it exports more than it imports, many European and US companies are looking to set up production facilities in China for exporting and this may help with China’s imbalance. China also