When deciding where to locate a manufacturing business, major concerns will often be the proximity to suppliers and/or the size of land needed for their operations. Consequently many manufacturing companies will locate in out-of-town sites that provide opportunities for later expansion if required.
Find out more about location factors on pages 53 to 56 of this book...
Source of information:
According to 'The Future of Manufacturing report' of the Government Office for Science, the location of manufacturing in the future is likely to have the following features:
Diversity, central hubs, urban sites, distributed and mobile, home integrated design-make environments
Find out more:
Richard Holberton, Senior Director, EMEA Research at CBRE highlights some of the key areas of change in the manufacturing sector and how these are driving location decisions for manufacturers, including; changing labour costs, new technologies and supply chain integration.
Technology has facilitated easy communication meaning that many companies can operate anywhere.
Electrical goods manufacturer Dyson, for example, moved its factories from Wiltshire to Malaysia. James Dyson believes this has led to reduced costs and improved production quality.
Information from AQA Business for AS, page 55.
This BBC video explains that a growing number of UK companies are favouring manufacturing in the UK and discusses the reasons why more companies are moving their manufacturing bases back to the UK.
In 2011 a HSBC report suggested that a number of 'Super-cities', which include Bristol, Glasgow, Newcastle, Liverpool, Leeds, Brighton and London, would help to drive the return of British manufacturing.