For a named manufacturing industry in a medc, explain its decline and outline related problems, this has caused.
Oliver Anthony: Geography Essay
For a named manufacturing industry in a medc, explain its decline and outline related problems, this has caused. (25 marks)
The industry I am using as my example is the once booming British steel industry. The specific site I am using is that of Ravens Craig which is situated in Lanarkshire Scotland. The plant produced its last steel in 1992 closing and making over 12,000 workers unemployed. Its closure came unexpectedly just like one of the latest incidents which Llanwern steel works close in 1999 with the loss of over 10,000 workers. Many people have asked why Ravens Craig was closed. One of the biggest reason was British Steel becoming sold by the government and becoming a privately run company in 1986.
Due to British steel being sold by the government the whole industry faced redevelopment on both the production aspect and the business side. Ravens Craig was operating at a loss of revenue so seemed destined to face closure as the newly formed British steel chief executives seek ways to cut coasts of steel to production so they could compete with the Chinese and eastern European market. One of the reasons form the loss of turnover at Ravens Craig, was due to the fact that other countries like the ones I have already named, could produce steel at a fraction of which we could. For example the Chinese, are able to run steel factories at a fraction of ours due to their labour force. The Chinese do not have a minimum wage policy, meaning the Chinese population will work for the bare minimum and will work shifts when they are told too, if not they could face server reprimand. Another advantage that foreign countries have on British steel, is the strength of there currency. For the last decade the British pound has been too high in the financial markets meaning, Ledc countries find it difficult to trade with Britain as do other Medc’s. Due to the pound being so strong, British companies have suffered with the loss of investors as there trading partners have sort after companies often in the third world where they can receive more goods for their investments. British steel up until I went public were a force to be feared, just like, like the industries before them such as the coal industry, a huge decline hit them due to the fact that other countries have caught them up and have over taken them as there steel is easier and produced cheaper. Another reason why Corus have struggled is Globalisation. Raw materials also became dearer and dearer as they were forced to import more and more raw materials to make the steel due to the fact that the UK were no longer developing coal, iron ore or limestone as Britain had started to run out of these goods.