Section A: Energy Costs - Do you agree that the competitiveness of UK manufacturing will not improve significantly unless substantial government action is taken to reduce energy costs?
- Created by: Megan
- Created on: 14-06-15 12:15
Section A: Energy Costs - Do you agree that the competitiveness of UK manufacturing will not improve significantly unless substantial government action is taken to reduce energy costs? |
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EvaluationCompetitiveness of a country can be defined in many different ways, e.g. through energy costs, location or value added. In the UK, while energy costs are high, we are still seeing a trend of re-shoring of manufacturing back to the UK. However, rising energy costs will deter manufacturers that are energy intensive because the costs of energy will weigh out the costs of transportation or tariff costs, if the country is not part of the EU for example. A EEF survey found that energy prices and green taxes are worrying industry more than other issues, which means that businesses will reconsider their location if costs begin to rise to high. UK manufacturing will improve over time with the trend of re-shoring and other competitive advantages, however the competitiveness will not significantly improve unless substantial government actions is taken because rising energy prices happen to be the biggest concern to manufacturers, especially energy intensive. So it will deter manufacturers from moving production to the UK or even force current UK manufacturers abroad. |
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