As globalization speeds up, the manufacturing has changed significantly. Much of the activity in modern day manufacturing is characterized by high levels of technological innovation and investment in skills, knowledge and intangible investment such as branding, software and marketing.
The majority of manufacturing industries in the UK in the recent decades have been high-tech industries, such as computers and computer-related equipment, telecommunications and biotechnology/ pharmaceuticals.
Many traditional industries, for example the car assembly, have advanced by adopting new technologies and working practices to develop new products and to upgrade existing models through research and development (R&D).
Reasons for the changes in the manufacturing industries in the UK:
The provision of subsidies and economic infrastructure by the UK government has attracted massive investment by transnational companies from Japan, South Korea and Germany. In the case of motor vehicle industry, many Japanese car manufacturers have come to Britain and built huge new plants, the three largest being Nissan, Toyota and Honda. The factory of Nissan at Washington in northeast England is the largest single investment by a Japanese company. Provision of similar subsidies and incentives by different levels of governments has encouraged overseas and home investment in various areas of the UK.
The improvement of transport network has been a major factor in influencing the shifting location of manufacturing industry in UK. The latest rise of high-tech industries is closely related to the swift movement of people, raw materials and products. For example, a large Toyota plant was built next to the A38 trunk road at Burnaston in North Derbyshirem and a Honda assembly plant is located at Swindon on the M4 corridor.
Some industries tend to locate next to university campuses. This facilitates the industry to cooperate with academic organisation to conduct research and development projects. Moreover, universities also provide sufficient supply of manpower and technical support to the industry. An example of this is the Cambridge Science Park.
The beautiful environment of the green areas in the rural areas of UK has attracted some enterprises to develop their business there. In UK, many business organisations and science parks have been built on greenfield sites in the suburbs with relatively low cost of land and attractive environment.