1. Ownership and fragmentation in UK manufacturing presentation by Richard Harris This work contains statistical data from ONS which is Crown copyright and reproduced with the permission of the controller of HMSO and Queen's Printer for Scotland. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. Source of material: Recent micro-economic trends in the manufacturing sector (submitted to Foresight project on the Future of Manufacturing by John Moffat (Durham University).Recent micro-economic trends in the manufacturing sector

2. Overview Foreign ownership of manufacturing Fragmentation – Ownership structure of plants and firms – Rise in intermediate input usage – Relationship between manufacturing and services

3. Rise of foreign ownership Real Gross Output by Country of Ownership in UK Manufacturing, 1973-2009 (2000 prices)

4. Implication (I): R&D spending R&D expenditure (2005 prices) by ownership status in UK Manufacturing, 1997-2008

5. Sources of Funding for R&D Expenditure (2005 prices) in UK Manufacturing, 1997-2008

6. Implication (II): Productivity growth

7. Fragmentation – ownership structure Outsourcing – To plants in different locations (same firm) – To firms in different locations – To plants/firms in different sectors Why? – Rise of ICT combined with concentration on ‘core activities’ (economies of scope) – Lowering cost of transportation and lower costs of inputs in other locations

8. Real Gross Output, Gross Value Added and Intermediate Inputs in UK Manufacturing, 1973- 2009 (2000 prices)

9. Average plant size for multi-plant and single-plant firms UK manufacturing, 1973-2009 Employment in Multi-Plant and Single- Plant and Multi-Industry and Single- Industry Firms in UK manufacturing, 1973-2009

10. Fragmentation – use of intermediate inputs Median Ratio of Intermediate Inputs to Real Gross Output in UK Manufacturing, 1973-2009

11. Percentage of Multi-Plant Firms that operated in more than industry in UK Manufacturing, 1973-2009

12. Fragmentation – relationship between manufacturing & services Employment in UK Manufacturing and Non-Manufacturing of firms operating plants in both sectors, 1997-2009

13. Distribution of Employment across other sectors for Firms with Manufacturing Plants, 1997- 2009

14. Purchase of intermediate inputs in UK manufacturing, 1973-79, 1994-2009 (2000 prices)

15. Thank you