Industry Analysis & Industry Trends
The Computer and Peripheral Equipment Manufacturing industry is very competitive, as indicated by falling selling prices and low profit margins. Demand for computers and peripheral equipment has been promoted by cheap prices and by the release of new and enhanced products, computer software and applications. However, computer and peripheral equipment manufacturing shifted to countries that have access to low-cost labour and more efficient supply chains, which means that the number of firms and establishments in the United Kingdom has been falling.
The industry is expected to generate revenue of £1039.8 million in 2015-16, down 5.9% on the previous year. Industry revenue is forecast to contract at a compound annual rate of 3.7%... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity. Labour costs can be relatively high in the industry, with £1.00 spent on labour for every 31p spent on machinery. This is a high-technology industry, which can involve the use of highly skilled employees in the areas of research and development (R&D), production and sales.
On the other hand, the UK industry mainly focuses on assembly, so levels of R&D are relatively low. Most high-value components, which involve very capital-intensive production processes, are imported. Profit margins in the industry are very low and several companies have failed.
The growing use of machinery in production processes has increased productivity and enabled scale economies... purchase to read more