Industry Analysis & Industry Trends
Consumers love electronic gadgets. Demand for consumer electronics, such as flat-screen TVs, headphones and high-definition sound systems, is growing as prices fall and new products are released. However, the steep drop in prices has negatively affected the value of sales. Additionally, consumer electronics are increasingly being manufactured in foreign countries where labour costs are low and supply chains are deep. The industry is highly globalised, with exports estimated to account for £1.8 billion of revenue and imports for approximately £6.2 billion of domestic demand in 2015-16. However, exports and, to a lesser extent, imports are inflated by re-exports, which are exports of imported products... purchase to read more
Industry Report - Industry Investment Chapter
The Consumer Electronics Manufacturing industry has a high level of capital intensity and a capital-to-labour ratio of 0.51:1. This means that for every £1.00 spent on wages, 51p is spent on capital.
Wages are relatively high in the industry. This is a high-technology industry, which can involve the use of highly skilled employees in the areas of R&D, production and sales. On the other hand, an increased use of machinery in production processes has increased productivity. The relatively high cost of labour in the United Kingdom has, however, been a major factor in some companies shifting production operations, or outsourcing production, to countries where labour costs are relatively low... purchase to read more