Localised Industrial Regions
• The developments in ICT have led to
similar industries clustering in an area that
is useful to them.
• They have global connections as internet
communications are rapid across the
world.
Motorsport Valley
• In 2013, 8 out of 12 F1 teams based here
• VIP to UK economy
• Technology cluster-companies work
closely with universities, research centre
and industry
• Global centre –engineering solutions and
high performance cars
• Global communication links VIP
Which teams are based where?
1.
2.
3.
4.
5.
6.
7.
8.
Mercedes .
Caterham-Renault
Force India
Red Bull
McLaren
Lotus
Marussia
Williams .
All in the UK
The only teams based outside the UK are:Ferrari - Italy
Toro Rosso - Italy
HRT - Spain
Sauber - Switzerland.
Motorsport Valley
• Midlands
• Oxford and
Northamptonshire
• Close to Silverstone?
• Skilled workers
• Drivers/Engineers fly
in
• Internet
• 40,000 employed
• 2,200 related
businesses-design,
research, develop.
• 80% world market
• sales>£6billion and
65% exports
• Links to Beijing to
develop F2 circuit
To do!
• Study the map and factfile to produce a poster to
illustrate the cluster of the Motorsport industry
and the reasons for it
• It needs to include
• A labelled sketch map using a UK outline to
show the advantages of the location
• 5 good reasons for locating the car industry
here, including one that relates to ICT and
the need for international communications
Why do industries cluster in local
regions?
Why do industries cluster in local
regions?
• Similar industries group together as in
Motorsport valley in Oxfordshire as they have a
skilled workforce and drivers/engineers can use
the airports at Coventry for global transfers.
There are 2,200 related businesses ( Mercedes,
Aston Martin) in research, design and
development and event organisation with 40,
000 employed. Silverstone circuit is available for
performance and events. Improvements in ICT
have allowed high speed contact between firms
and people-video conferencing, e-mail, skype
Review:
Why do industries cluster in local regions?
• Similar industries XXXXX together as in Motorsport
valley in XXXXXXXXXXX as they have a XXXXXXX
workforce and drivers/engineers can use the
XXXXXXXX at Coventry for global transfers. There
are 2,200 related businesses ( Mercedes, Aston
Martin) in research, design and development and
event organisation with 40,000 employed.
XXXXXXXXXXX circuit is available for performance
and events. Improvements in XXX have allowed
high speed contact between firms and people-video
conferencing, e-mail, skype
Call Centres
• Big Business
• 400,000people employed UK
• Small towns –Harrogate, Carlisle,
Warrington
• Banks and insurance 1st
• Now with Asda, Virgin Media, Tesco, BT,
BA,HSBC moved to big cities in ----• M______,D______,H________B_____
Call centre location in India
Factors
• 10% speak English
fluently(100 million )
• 787 million live in
towns and 80% are
literate and 18% are
graduates
• Operating costs are
between 10 and 60%
lower than UK
• Salaries are lower
eg £1,200 compared
to £12,000 in UK
• Low staff turnover
• 9 hour shifts to fit in
with origin country
• Development ICT
allows fast and clear
communication
Task
• 1 Why have so many jobs been
transferred from the UK to India?
• 2 What are the advantages of locating call
centres in India?
Why move to India?
• There are jobs in Bangalore and Mumbaii
as the operating costs are lower as the
wage bill is less. In the UK average wage
is £200 weekly compared to £40 in India.
Also the Indian workers are well educated
to degree level and are fluent in English.
They are prepared to work unsocial hours
and there is low staff turnover. Global
communications with the internet are fast
and efficient
Exam Question:
What are the advantages in
locating call centres in poor
countries? (6 + 2 spg)
The advantages of locating call
centres in India?
•
•
•
•
•
Low labour costs-low operating costs
Low staff turnover
Graduate workers-well educated
Fluent in English
High speed ICT communications-internet