Transcript Presentation - Martina Kancheva

Walker Exhaust Systems
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Edward Bateman
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David Sutcliffe
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Martina Kancheva

Peiwen Huang

James Brown
Introduction
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Section 1 – The Economy
Section 2 – The Government
Section 3 – Labour Force
Section 4 – Education
Section 5 – Local Assembly Units
Section 6 – Infrastructure
Section 7 – Specific Location Manufacturing
Section 8 – Specific Location Research &
Development
Section 1
The economy
Total GDP
◦ The GDP in the UK is
the second largest in
Europe and fifth largest
in the world with a
Gross Domestic
Product of $2.7 trillion,
measured on
purchasing power
parity basis.
Source: www.worldcompetitiveness.com
GDP Growth
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Note the difference between the two countries growth in the
past 5 years. The UK averaging above 2.2% growth, whereas the
German economy has exceeded 1% growth only 3 times in the
past 20 quarters.
Foreign Direct Investment
In 2007, the cumulative ‘‘stock’’
of foreign investment in the
UK was more than US$1,350
billion, the second highest level
of FDI stock globally, behind
only the US.
In 2007, the UK attracted the
second highest amount of
foreign
investment globally, receiving
US$224 billion of FDI inflows,
representing 28
per cent of all FDI inflows into
the European Union
Source: www.worldcompetitiveness.com
Interest Rates
As we can see the Interest Rates in UK have traditionally been very steady. The Bank of
England ensure a stable interest rate. We can see the effect of the recent credit crisis as
the Bank of England and the European Central Bank attempt to stimulate spending via
lower interest rates.
Exchange Rates
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The Euro has risen to 0.9 against the pound.
Significance with regard a Japanese company.
The Euro zone relies hugely on exports,
therefore the strengthening of their
currency could prove dangerous.
With an autonomous body such as the Bank
of England, the UK has more control over
hot money and therefore exchange rates.
Inflation
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The UK has traditionally had a stable inflation, as we can see since 2000 it
has been centred on the Bank of England’s target of 2%. The German
inflation rate, shown on right has clearly been more erratic.
Unemployment
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The UK has consistently enjoyed a low unemployment rate as it is one of the
Government’s main priorities. As we can see the rate has consistently been below
3.4%. The German unemployment rate has not gone below 7% in the last ten
years
Section 2
The Government
Taxation
The UK has been operating with a
28% corporate taxation system
since April 2008. As we can see
this is one of the lowest in Europe,
considerably less than rivals France
and Germany. It is also a
considerable drop from 41% in
Japan
Source: European Commission 2008
Taxation Cont.
Source: Forbes Magazine, Tax Misery Index 2008
R&D Tax Credits and Incentives
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The R&D Tax Credits, the Technology Programme and other R&D Support
Products.
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R&D Tax Credits are the biggest single funding mechanism for business
R&D provided by Government.
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R&D tax credits are at the heart of the Government's strategy to raise
levels of business investment in R&D and encourage business innovation by
providing a tax incentive
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So for a large company such as Walker, in addition to the normal 100 per
cent deduction, Walker would be entitled to a further deduction from
their taxable income of 30 per cent of their current spending on qualifying
R&D.
Section 3
Labour Force
UK’s Labour force
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Over 30 million people.
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In 2008- 29.42 million people in work .
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Employment level at 74.4%.
Cost of Labour Force
•Average Annual Salaries
•National Insurance
Contributions
Flexibility
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World Bank Doing Business
2005 survey.
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Average hours worked per
week
Foreign workers
European Economic Area (Romania and
Bulgaria)
 Non Economic Area
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Age of Workforce
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60, 975, 000 in 2007
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Average age was 39 years.
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The working age accounted for
62%.
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Of working age, 52% were
below 40.
Foreign Direct Investment
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Japanese Companies Accounts
for 26.8% of employment
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Fujitsu employed 20,000
people in the UK in 2003.
Section 4
Education
Universities
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6 of the top universities
globally. Oxford and
Cambridge.
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Over 650000 students
graduate annually
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2.3 million people
currently studying a wide
range of education
courses
Automotive Universities
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There are 16 key
Universities for the
automotive industry.
Design and Performance
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21 key universities for
Design and Performance
Engineering Centres of
Excellence
MBA Courses and Language
highest number of leading MBA courses
in Europe, with 15
 38 per cent of the UK population are able
to speak a world language other than
their mother tongue
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Section 5
Local Assembly Units
Benefits of LAUs
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Transport Costs
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Closer links
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Quicker problem resolution
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Overall saving for Walker and OEMs
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Expertise and pride
Costs
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Inflexibility
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Opportunistic re-contracting
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JIT
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Added further costs
Potential Layout
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Parent Plant
◦ Manufacturing Component Parts
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Local Assembly Unit:
◦ Final Assembly
Section 6
Infrastructure
Road Infrastructure
England has an extensive road network, with £7 billion invested each year.
Rail Infrastructure
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Efficient
Competitive
Reliable
Fast
No congestion issue
Environmentally
friendly
Significant growth
◦ 11.5% market share
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Onward to Europe
Section 7
Manufacturing
Specific Location
Birmingham
Integrated plants:
combined steel making
and rolling mills
Other rolling mills
Tube mills
Birmingham Cont.
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Close proximity to 7
manufacturing plants.
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Toyota(2), VW, Jaguar ,
Peugeot, BMW, Rover,
Ford(2), Honda and Nissan.
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Clear market for exhausts.
Birmingham Cont.
Road & Rail Hub:
•Channel Tunnel Rail Depot
•75% UK Population in ½ day
Birmingham Cont.
Birmingham International Airport:
 40 Direct Destinations Worldwide
 Fastest Growing Airport
 2nd Largest outside London
 5 times winner of “Best Business Airport”
 9.2 Million Passengers (2007)
Passenger Transport:
 3 Mainline Rail Stations
 Metro
 24/7 Bus Service
Seaports
 Felixtowe, Dover and Hull 4.5 hrs Drive
Birmingham Cont.
Workforce:
 Competitive Wage Rates
 2.5m people
Foreign Investment:
 Top in UK
 5th in Europe
Manufacturing Centre:
 20% Workforce
Logistics Companies:
 300+
Birmingham Cont.
Lifestyle:
 Vibrant arts, culture and nightlife.
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Quality of life ahead of Dubai, Prague and
Hong Kong
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Bull Ring
Birmingham
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Steel Manufacturers
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Car Manufacturers
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Strong, Versatile Infrastructure and Logistical Options
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Large, Competitive Workforce
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High Foreign Investment
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Manufacturing Hub
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Good Lifestyle
SPECIFIC LOCATION
Section 8
Research & Development
Bristol
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Population of 382,000
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2005, the council of the Exchequer
conferred the title of Science to the City
on Bristol, one of only six cities in England
to receive this accolade.
Economy
South West- worth 80 billion
 Over the last 5 years been the second
fastest growing UK region
 The region has twice the UK average level
of Government expenditure on R and D
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Workforce
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Access to a 600,000 workforce living
within 1 hour's travel of Bristol
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43.5% of Bristol's resident working age
population qualified to degree level or
above.
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Results of Bristol and Bath's Universities'
Research Assessment Exercise (2001)
Infrastructure
M4 and M5
 2 principle railway stations- Bristol
Parkway, Bristol Temple Meads
 Bristol International Airport
 Port-74% of the UK population living
within 300 km’s.
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