Examine why the impact of reindustrialisation is greater in some locations than in others, using examples at the regional and national scales.
Examine why the impact of reindustrialisation is greater in some locations than in others, using examples at the regional and national scales
Reindustrialisation is the development of new industries, such as the high-technology sector, and small businesses in many economically developed countries. It has occurred due to the increasing level of global competition forcing all industries to improve productivity, leading to restructuring by introducing more efficient production methods (mechanisation or automation), but also through agglomeration (merging) with another company in the same sector.
The impact of reindustrialisation can be seen on a large scale around the world. The UK and the EU have received massive foreign direct investment (FDI) from firms eager to set up business in Europe. Transnational corporations (TNCs) are very large firms which market products globally and have worldwide manufacturing capabilities. Their location at a national scale is largely influenced by political factors, particularly governments, who are keen to encourage inward investment not only as this creates jobs, but also as it increases a countries trade by boosting export. New TNCs have chosen to locate in the UK as opposed to other parts of Europe for numerous reasons, including the stable political climate, low wages, relatively high productivity, and there is a big market for their products. They operate under a system where labour is spatially distributed between different functions (headquarters, design, research and development, and production) at separate sites. TNCs powered the revival of many old industrial regions through inward investment into the area. An example of the impact reindustrialisation has had on such a region is through the regeneration of the North-East, primarily by the Japanese car manufacturer, Nissan. It opened its first European assembly plant at Sunderland in 1986, creating thousands of jobs in the car industry. It also influenced several automotive parts manufacturers to follow, including the electronics companies Fujitsu, located in Newton Aycliffe, Durham, and Siemens, located in Newcastle, employing more skilled and highly qualified persons. The foreign inward investment into the North-East transformed the region’s industrial structure.