Industry Analysis & Industry Trends
The Computer and Peripheral Equipment Manufacturing industry is very competitive, as falling selling prices and low profit margins show. 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 has tended to shift to countries that have access to low-cost labour and 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 £1.1 billion in 2014-15, down 4.5% on the previous year. The domestic market for computers and peripheral equipment is estimated to be worth £8.4 billion in 2014-15... 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 29p 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