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M4 Corridor

M4 Corridor

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M4 Corridor

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  1. M4 Corridor Roy Chan Kay Kwan Jacky Sun Sandy Wong David Ng

  2. Background Information • Area of development for Hi-Tech industry along the M4 Motorway spanning from London to Bristol (South Wales). • Area adjacent to the M4 motorway. It's eastern end in particular is home to a large number of businesses, particularly in Berkshire and the Thames Valley. • The M4 corridor is possibly Europe's premier business location, and home to many of the world's leading multinational companies, as well as playing host the vast majority of the UK's technology sector.

  3. Map of M4 corridor (1)

  4. Map of M4 corridor (2)

  5. Location Characteristics • Links with universities and research organizations. • Office and factory space is cheaper than in London • Easy access to the whole country via the motorway network • Good rail access along the M4 corridor • a high quality of life and attractive countryside that helps to recruit and retain staff • Heathrow Airport provides links to Europe and the rest of the world

  6. Industries dominated in M4 Corridor (HI-TECH/Sunrise* INDUSTRIES) Examples: Cisco Microsoft HondaMCI HewlettVodafone Packard *Sunrise industries means industries which have a high technology base.

  7. Characteristics of these industries • A research and development-intensive industry • Human resources are an relatively important locational factor • A high value-added industry • A footloose industry • Serve the global market • Transnational and multi-point production

  8. Transportational Factor • High accessibility attract professionals came from different parts of the world. Examples: • The proximity of the M4 and mainline railways. • The presence of Heathrow Airport. • Good transport links with other business area. For example, London.

  9. Labour Factor • Labour quality is much important than labour quantity in these industries. • Need a large numbers of skilled labour. • A skilled labour force due to the proximity of universities and research institutes. (University Graduates) • Need scientists and engineer to carry out research and development project

  10. Institutional factor • Existence of government and other research centers. (Example: Government paid £180 Million in subsidies to LG) • Nearness to universities with expertise and research facilities available. A science park is located near to a university so that high-tech firm can closely with that campus. • Cambridge, Oxford Universities and Thanes Valley University as research centers.

  11. Land factor • Space for building on ‘Greenfield’ sites (Suburbs)and attractively-planned business parks • An attractive, pleasant environment in M4 corridor. Map of M4 corridor (1) names the Cotswold, Mendips, Chilterns and Marlborough Downs, which provide a convenient base for living near London. • An “Attractive countryside” should feature so prominently as a selling point of the M4 corridor. The Mosaic apartments, High Street Slough, along M4 corridor.

  12. Raw-material Factor • The cost of raw materials is little. • It is a labour intensive industry, requiring mainly in research and development on design and improving a product. • Raw materials is relatively unimportant.

  13. Energy Factor • The cost of power resources is little. • It is not a power oriented industry. • Energy is relatively unimportant.

  14. Entrepreneur Factor • A large sum of money is invested in research and development project. • A large sum of money is need to pay for the high salary of the skilled labour. • A large and venture capital is needed. • Important to find an investors who are willing to take the risk.

  15. Market Factor • Due to globalization, firms and countries all over the world have become more inter-related. (TNCs) • Product can be sold to different parts of the world. • Market become less important as the market become globalize.

  16. Industrial agglomeration • The proximity of other associated industries with which ideas and information can be exchanged. • Sharing maintenance and supportive services, e.g. connecting roads and build up a pool of highly skilled labour. • When industries cluster together, it helps to reduce production cost and increase their competitiveness in markets.

  17. Future development • South Wales is still a significant industrial heartland of the UK. One site of note on the M4 Corridor is Port Talbot Steelworks - the largest steel producer in the UK and one of the biggest steel producers in Europe. • In the future, the M4 corridor will still be the main IT industrial area of Britain, providing a place for research and development, to be a ‘Silicon Valley” in Europe.