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. Mercedes .

2. Caterham-Renault

3. Force India

4. Red Bull

5. McLaren

6. Lotus

7. Marussia

8. Williams .

All in the UK

The only teams based outside the UK are:-Ferrari - Italy Toro Rosso - ItalyHRT - 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