2. Manufacturing in the UK BUSS4 Section A 2015 www.time2resources.co.uk You will need a copy of the AQA Research Theme.

3. Manufacturing in the UK “The process of transforming raw materials or components into finished goods in order to add value and meet customer needs.” Manufacturing normally involves:  Man made machinery  Division of labour  Large scale production Recap BUSS1: Use the poster opposite to discuss the term manufacturing. Manufacturing is only part of the bigger picture – Evan Davies.

4. Manufacturing in the UK  What do you think of when you think about manufacturing?  Is this an accurate perception of manufacturing in the 21 st Century?  How important is manufacturing to the UK economy?  What does manufacturing in the UK look like in the 21 st Century? Why is manufacturing important to the UK economy? Made in Britain

5. A potted history leading to manufacturing in the 21 st Century  A look at how the importance of manufacturing in the UK has changed over time  Watch this 15 minute lecture from the FT’s Peter March  Consider the 4 th bullet point under the section “You are strongly recommended to:”  Make brief notes  170 years of industrial change

6. “Relevant business theory should not be neglected” Examiner’s report June 2014 Porter’s Generic Strategy “48% of UK companies focus on quality as one of their main areas of competitive advantage, compared with 17% that compete on price.” www.eef.org.ukwww.eef.org.uk

7. Manufacturing in the UK  Employs approx. 2.6m people  Contributes 10 -11% to GDP  Output declined sharply during the 2008/2009 recession  Declined again 2012  Relatively strong recovery 2013  What’s happening now? UK manufacturing growth at 14-month low, PMI survey finds. Eurozone manufacturing growth at 13-month low. Manufacturing growth slowing, says EEF. To what extent do you think it is right to be optimistic about UK manufacturing? The Guardian: Manufacturing data. Keep up to date by following this link.

8.  Manufacturing: statistics and policy Manufacturing: statistics and policy  Use the link above to access the Manufacturing: statistics and policy document  In pairs read through pages 3 to 7  For each chart or table of data select 1 or 2 key pieces of data  Write 2 sentences for each chart or table of data  What does the data tell us?  Analyse this trend Review regularly updated summary of key data from the manufacturing sector. Source: www.Parliament.uk Discuss the data presented in the Sept. 2014 Economic Indicators update. Compare this with the latest update using the link below. Source: www.Parliament.uk Manufacturing in the UK

9. Manufacturing Advisory Service  SMEs predict continued expansion:  64% predict rise in turnover  32% rise in staffing  Expect future growth would come mainly from domestic markets  Including work reshored from overseas  Unprecedented investment into sectors including:  Automotive  Growing reputation for high technology low carbon advancements  New infrastructure projects e.g. High Speed 2 and Hinkley Point  "This information was taken from the Manufacturing Advisory Service National Barometer.” View full MAS report. English manufacturers target home comforts to boost long term growth. What do the key findings on page 4 tell us about the current levels of confidence amongst the UK’s SMEs? How significant is this for the recovery of the UK economy? Produce a mind map, infographic, fact card to record key data from pages 4 to 7 and 10 and 11.

10. “Relevant business theory should not be neglected” Examiner’s report June 2014 View full MAS report. Ansoff’s matrix With reference to the data on page 8 reproduce a version of Ansoff’s matrix to show its application to SME manufacturers in the UK.

11. Manufacturing in the UK

13.  Consider how each of the bullet points are interlinked Your research task 2015 Manufacturing in the UK Technological change Opportunities and threats Factors affecting location Government policy Increasing globalisation Consider the 5 key trends outlined in this article in relation to your research theme. Add notes to the spider diagram.

14. “Industries are as individual as the people who work in them.” www.KPMG.org.uk  Automotive  Textile/fashion  Food and drink Industries Here are the 3 industries we have chosen to focus on this year. Your research can focus on just these, a selection of your own industries or a combination. MAS report review pages 12 and 13. In pairs: Define job, batch and flow production. What are the advantages and disadvantages of each? Can you think of examples of each within these 3 industries?

15. UK manufacturing statistics  Use this report to complete the table below  Can you reach any conclusions about the relative size and role of these 3 industries? Industries IndustrySizeInvestmentFinancial data Contribution to GVA Employment Automotive Food and drink Textiles

16. Background to the automotive industry Automotive industry o What vehicles are made in the UK? o Are any of these UK owned or just UK produced? o Do you know where the vehicles are made in the UK? o Scroll down to watch this video overview of the UK automotive sector o It is recommended to watch this 2 or 3 times o 1 watch o 2 watch and note down key facts o 3 watch and pause to discuss the manufacturing taking place e.g. look for robotics etc. o Look at just what is made in Britain “British made motors take over the Mall” o Diverse, vibrant, world class – view the images on the first and last page of the “Driving success” document. Do you agree with this 3 word summary of the UK automotive sector?

17. Motor industry facts 2013  On average, the UK produces 1.6 million cars and commercial vehicles and over 2.5 million engines  Around 80% of vehicles and 60% of engines are sold overseas  UK automotive is a vital part of the UK economy and typically generates around £60 billion in annual turnover, delivering around £12 billion in net value-added to the economy  The automotive industry is the UK’s largest sector in terms of exports and generated £27 billion of export revenue for the UK in 2011. In a typical year, the sector exports to over 100 markets worldwide and accounts for around 11% of total UK exports  Average new car CO 2 emissions fell to a new low of 133.1g/km in 2012, and have fallen by over 20% in the last 10 years Source: Motor Manufacturers and Traders’ (SMMT) Automotive industry View page 8 of the SMMT fact book – what is the UK home to? Can you name any of them? UK car industry firing on all cylinders British car manufacturing accelerates sharply in April.

18. Background to the food and drink industry Food and drink industry o The UK’s largest manufacturing industry o View this FDF video clip as an introduction to some UK based food manufacturers o Consider the various stages in the production process o How important is it to the UK economy? Read more about the industry. Produce a summary of key points for your notes.

19. Background to the food and drink industry Food and drink industry What other famous UK food and drink brands can you name?

20. Background to the textile/fashion industry  The textile industry in the UK has a long history and is probably the industry behind the industrial revolution in the UK  View the history of the UK textile industry  Where is it today?  Produce a spider diagram, fact card or infographic to summarise the statistics for the UK textile industry Textile/fashion industry

21. What is the impact of technological change on businesses manufacturing in the UK?  New product development  New processes  Consumers’ expectations  Competitors’ actions  Communication  Distribution  Marketing opportunities  How might these technological changes affect the strategies of businesses manufacturing in the UK? BP1 Technological change Discuss how each of these changes may impact on manufacturing firms. Try to think of positive and negative impacts. What’s hot in manufacturing? The Economist: How robots and people team up to manufacture things in new ways.

22. Research activity Automotive industry Technology change within the automotive industry 2 themes: Theme 1 - Research and development and manufacturing processes “Additive Manufacturing (AM) refers to a revolutionary range of processes that can create parts with hitherto impossible geometries; often within a space of hours” What does additive manufacturing or 3D printing mean? Theme 2 - Green technologies Low carbon fuel technologies New fuels Electric and hybrid systems Lightweight structures Advanced propulsion systems Intelligent transport systems There is a strong link between technological change, green technologies, and legislation. This links BP1 and BP3 together. View pages 13, 45 and 46 of the SMMT Motor Industry Fact Guide.

23. Research activity  Changes in technological processes, or how we manufacture, include:  ICT for modelling and simulations  Sensors to check inventory and to diagnose faults  Additive manufacturing i.e. 3D printing  Biotechnology to provide better health treatment  Advanced materials to create intelligent production processes and products  Robotics and automation to carry out routine operations cleanly, safely and accurately Fashion/textile industry

24. Glossary of key terms  Technological change: the developments and sharing/spreading of technological advances in product and processes  Technology: the use of scientific discoveries in a practical way  Additive manufacturing (3D printing): an emerging technology that allows an object to be created by printing razor-thin layers of material on top of each other until a three-dimensional shape emerges  Technical economies of scale: the benefits enjoyed when a firm is able to spend more on larger and more efficient machinery leading to a fall in average costs  Capital intensive: manufacturing processes that use a high proportion of capital, such as machinery, in the production of a good or service BP1 Technological change

25.  Practice question 1 Practice question 1 50 minutes = 10 minutes reading and planning + 40 minutes writing LevelDescriptorMark L5Application/analysis both good26-23 L4Application/analysis 1 good and 1 reasonable22-18 L3Application/analysis both reasonable or 1 good and 1 limited17-13 L2Application/analysis 1 reasonable and 1 limited12-8 L1Limited response knowledge only7-1 LevelDescriptorMark E3Good evaluation with evidence of research (+QOL)14-11 E2Reasonable evaluation with evidence of research (+QOL)10-6 E1Limited evaluation (+QOL)5-1 Assessment Activity

26. What is the impact of globalisation on businesses manufacturing in the UK?  Access to global markets  Competition  Economic and geopolitical influences on demand  Remember impacts can be positive and negative! Read the 2 articles to identify positive and negatve impacts Globalisation “FEW words invoke such contrasting feelings as “globalisation”. For some it is pejorative: Wall Street protestors use it is as shorthand for the evils of global capitalism, sweat shops and malignant power.” The Economist What does globalisation mean to you? BBC Key facts: The global economy.

27. Research activity - Automotive  Identify key trends from pages 20 and 21 of the SMMT motor fact guide  Visit these 2 UK shoe manufacturers websites  http://www.crockettandjones.com/ http://www.crockettandjones.com/  http://www.cheaney.co.uk/ http://www.cheaney.co.uk/  What image do they portray? BP2 Globalisation Research activity - Fashion

28. Glossary of key terms  Globalisation: The integration of international economies leading to a world market or the process of greater integration and inter- connectedness between countries  Geopolitical factors: the combination of geographical and political factors  Emerging markets: countries with low to middle average income per person  G7: a group of 7 major economic powers who meet to discuss key economic issues. The 7 members are Canada, France, Germany, Italy, Japan, UK and USA Globalisation

29.  Practice question 2 Practice question 2 50 minutes = 10 minutes reading and planning + 40 minutes writing LevelDescriptorMark L5Application/analysis both good26-23 L4Application/analysis 1 good and 1 reasonable22-18 L3Application/analysis both reasonable or 1 good and 1 limited17-13 L2Application/analysis 1 reasonable and 1 limited12-8 L1Limited response knowledge only7-1 LevelDescriptorMark E3Good evaluation with evidence of research (+QOL)14-11 E2Reasonable evaluation with evidence of research (+QOL)10-6 E1Limited evaluation (+QOL)5-1 Assessment Activity

30. What is the impact of government policy on businesses manufacturing in the UK?  George Osborne “is hoping the UK economy will develop a greater reliance on manufacturing and exports and a lesser reliance on debt fuelled spending and financial services” Source The Guardian  Vital to economic prosperity therefore the Government needs to address:  Energy costs  Education  Transport systems  Rebalancing the economy/sustainability Government policy “A great story of the future of Britain” David Cameron visits JLR. “The Government has committed £400 million to make the UK a leading market for ultra low carbon vehicles. ” David Cameron visits Nissan Leaf. Revisit the “Why Make it Britain?” Based on your research to date to what extent do you agree with the comment “Manufacturing is crucially important to the UK’s economic prosperity”.

31. Discuss, unpick and annotate the 2 quotes below: “Government and business must work together to place manufacturing at the forefront of economic development, creating a strong and sustainable, internationally competitive industrial base.”www.cbi.org.ukwww.cbi.org.uk “ We want the words: “Made in Britain”, “Created in Britain”, “Designed in Britain” and “Invented in Britain” to drive the nation forward – a Britain carried aloft by the march of the makers. That is how we will create jobs and support families.” The Chancellor of the Exchequer March 2011  Manufacturing: statistics and policy Manufacturing: statistics and policy  Use the link above to access the Manufacturing: statistics and policy document  Read and make summary notes on pages 8 to 11 Government policy

32. Government Apprenticeship Scheme  Growing manufacturing apprenticeships  Nick Clegg meets apprentices  Vince Cable tells apprentices to “Get in and Go far”  Vince Cable to boost apprenticeship pay  New skills programme for Bentley

33. Motor industry and government policy WHY? In 2012 generated £12 billion directly employed 731,000 people exports were valued at £31 billion, 10% of UK exports by value attracts inward investment from a wide variety of foreign countries supports over 2,000 businesses HOW? The Automotive Council UK www.smmt.co.uk formed in 2009www.smmt.co.uk Joint partnership between the UK’s automotive industry and government to create an environment in which the industry can be successful and grow The Council is co-chaired by the Secretary of State for Business Innovation and Skills and industry chair Brings together the leaders of from across the sector The Government have also announced the following key policies to help the industry: £1bn co-funded Advanced Propulsion Centre to develop new technologies A target of 7,600 apprentices and 1,700 graduates to be recruited over the next five years Automotive Investment Organisation set up to support inward investment www.parliament.ukwww.parliament.uk Above the line R&D tax credit introduced in 2013 makes projects more affordable and encourages higher investment in R&D Government policy

34. Research activity  Can you remember:  What is the UK government’s target is for CO2 emissions?  How much has been invested?  Revisit the article “Car technology driving more sustainable transport systems.” http://www.bbc.co.uk/news/business-27327540 http://www.bbc.co.uk/news/business-27327540  What role has the government played in supporting the UK automotive industry? Why is this important? Automotive industry

35. Research activity - Fashion  Before looking in detail at the textile and fashion industry take a brief look at what David Cameron says about the food and drink industry? Textile/fashion industry

36. Glossary of key terms o Government policy: actions taken by the Government to stimulate or control economic activity o Servitisation: providing services to support a business’ main sector e.g. a manufacturing firm providing services and solutions along side their products o Regional growth fund: a Government fund of £3.2bn designed to encourage investment in the private sector to support sustainable growth and employment Government policy

37.  Practice question 3 Practice question 3 50 minutes = 10 minutes reading and planning + 40 minutes writing LevelDescriptorMark L5Application/analysis both good26-23 L4Application/analysis 1 good and 1 reasonable22-18 L3Application/analysis both reasonable or 1 good and 1 limited17-13 L2Application/analysis 1 reasonable and 1 limited12-8 L1Limited response knowledge only7-1 LevelDescriptorMark E3Good evaluation with evidence of research (+QOL)14-11 E2Reasonable evaluation with evidence of research (+QOL)10-6 E1Limited evaluation (+QOL)5-1 Assessment Activity

38. What are the factors affecting the location decisions made by UK manufacturing businesses?  Infrastructure  Inertia/tradition  External economies of scale  Proximity to customers  Proximity to raw materials  Availability of workforce  Government incentives Location decisions What are Lord Sugar’s views on manufacturers’ location decisions? Discuss the significance of manufacturing to different UK regions? Why do you think some regions have significantly more manufacturing than others? Read and make notes – pages 3 – 10 Backing Britain.

39. You are strongly recommended to consider decisions by businesses to:  Manufacture in the UK  Offshore manufacturing from the UK  Re-shore manufacturing to the UK Location decisions View key facts about re-shoring to the UK. How significant is the EU when considering manufacturing in the UK. Read and make notes – pages11 – 18 Backing Britain. Is re-shoring the way forward?

40. Research activity - Automotive  “More than 40 companies manufacture vehicles in the UK ranging from global volume car, van, truck and bus builders to specialist niche makers.” Source: www.SMMT.co.ukwww.SMMT.co.uk  Interactive map: do you know what is made near you?  The AA: Made in Britain BP4 Location decisions Research activity - Fashion

41. Glossary of key terms  Location decisions: an important strategic decision that will influence a firm’s ability to meet corporate objectives  Off-shoring: relocating abroad i.e. away from the domestic country  Re-shoring: relocating back home i.e. bringing a business back to the domestic country  External economies of scale: the benefits enjoyed by a firm from being part of a larger industry leading to a fall in average costs Location decisions

42.  Practice question 4 Practice question 4 50 minutes = 10 minutes reading and planning + 40 minutes writing LevelDescriptorMark L5Application/analysis both good26-23 L4Application/analysis 1 good and 1 reasonable22-18 L3Application/analysis both reasonable or 1 good and 1 limited17-13 L2Application/analysis 1 reasonable and 1 limited12-8 L1Limited response knowledge only7-1 LevelDescriptorMark E3Good evaluation with evidence of research (+QOL)14-11 E2Reasonable evaluation with evidence of research (+QOL)10-6 E1Limited evaluation (+QOL)5-1 Assessment Activity

43. What are the opportunities facing businesses manufacturing in the UK? What are the threats facing businesses manufacturing in the UK?  Reread the article “UK manufacturers hit by global economic worries.” http://www.bbc.co.uk/news/business-29591389http://www.bbc.co.uk/news/business-29591389  To what extent is the external economic environment a major threat to UK manufacturers? Opportunities and threats. “After years of decline, it’s time to be optimistic about UK manufacturing” Read this article and identify opportunities and threats. Add to your notes. What would Lord Digby Jones say are the opportunities and threats?

44. Opportunities include:  The UK has used its skills base to develop niche manufacturing  This has seen market development in the US, EU and larger emerging markets such as BRICS and MINT  Product development has taken place to cater for these different markets  As the global economy grows increased income will lead to greater demand for quality, environmentally friendly products  Changing demographics are creating growing markets  Structural change is occurring through general purpose technology e.g. the internet  The UK produces high value products at home and low value products abroad  It is highly exposed to foreign investment and ideas that can benefit the economy in future years Opportunities

45. Threats include:  Increasing skills in emerging economies and a lack of skills in the UK have seen an increase in higher value output abroad  This could cause significant problems in future years as overseas students are educated in the UK and transfer knowledge back to their own economies  This is also happening with the foreign takeover of UK plc  A lack of understanding of export markets could prevent UK manufacturers from fully developing their export potential  Inadequate investment in R&D and automation is a concern  There are significant energy costs to manufacturing Threats

46. Manufacturing Advisory Service Opportunities and threats View full MAS report. "This information was taken from the Manufacturing Advisory Service National Barometer.” Discuss the extent to which each of these strengths and challenges can create opportunities and threats.

47. Research activity - Automotive  Read the article “JLR chief’s review urges UK research and skills investment  Visit the following websites  http://www.harristweed.org/ http://www.harristweed.org/  http://www.hunterboots.com/ http://www.hunterboots.com/  http://www.barbour.com/uk http://www.barbour.com/uk Opportunities and Threats Discussion points: Are research and skills in the UK an opportunity or a threat? Is EU membership an opportunity or a threat? Research activity - Fashion

48. Glossary of key terms  Opportunities: the external aspects of the business environment that can benefit manufacturing businesses that are able to positively exploit them  Threats: the external aspects of the business environment that can harm manufacturing business that are not able to avoid them or turn them to their advantage  Provenance: the place of origin of a product Opportunities and threats

49.  Practice question 5 Practice question 5 50 minutes = 10 minutes reading and planning + 40 minutes writing LevelDescriptorMark L5Application/analysis both good26-23 L4Application/analysis 1 good and 1 reasonable22-18 L3Application/analysis both reasonable or 1 good and 1 limited17-13 L2Application/analysis 1 reasonable and 1 limited12-8 L1Limited response knowledge only7-1 LevelDescriptorMark E3Good evaluation with evidence of research (+QOL)14-11 E2Reasonable evaluation with evidence of research (+QOL)10-6 E1Limited evaluation (+QOL)5-1 Assessment Activity

50. Trial Exam  Trial Assessment  55 minutes  15 minutes reading and planning  40 minutes writing