Textiles Manufacturing Plant (Based on information from the Financial Times fDi Benchmark tool, May...
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Transcript of Textiles Manufacturing Plant (Based on information from the Financial Times fDi Benchmark tool, May...
Textiles Manufacturing Plant(Based on information from the Financial Times fDi Benchmark tool, May 2012)
Content
Competitiveness of Scotland
Value for Money
Overall Attractiveness
Quality of the Location
Annual Operating Costs
Quality Competitiveness
General Business Environment
Labour Availability and Quality
Presence of an Industrial Cluster
Infrastructure and Accessibility
Living Environment
The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by
the Financial Times (FT)
fDi Benchmark compared the Scottish Central Belt with the leading locations globally for a Textiles manufacturing
plant based on an analysis of over 55 quality factors and 10 cost factors
A key emphasis was placed on:
- Labour availability and quality – overall size of labour market, tightness and competition for
labour and experienced industry-specific staff
- Presence of industrial cluster – size of the industry, track record and export competitiveness
- Infrastructure and accessibility – access to major overseas markets, quality of local infrastructure
and quality of utilities
Other factors including the general business environment and living environment were also
assessed
Benchmarking Study
Project Profile Overview
Cost Factor Usage Amount
Property
Total Occupancy cost (industrial rent) 66,000 m²
Total Occupancy cost (in town office rent) 2,500 m²
Weighting Model Overview Weight
Labour Availability and Quality 50
Presence of an Industrial Cluster 20
Infrastructure and Accessibility 15
General Business Environment 10
Living Environment 5
Employee Type Profile Head count
Logistics and Purchasing
Warehouse and Distribution Operative 20
Manufacturing
Head of Manufacturing 10
Production Manager 15
Production Operative (Highly Skilled) 30
Production Operative (Skilled) 125
Production Operative (Unskilled) 620
R&D / Engineering
Engineer 10
Administration
Facilities/Office Services Specialist 55
Secretary 15
fDi Benchmark Matrix
The fDi Benchmark Matrix shows the trade off between cost and quality across the 4 selected locations for the Textiles manufacturing plant profile. The average cost and quality score is 100 for the selected locations.
Source: fDi Intelligence, from the Financial Times Ltd
The ‘ideal’ quadrant is the
top left
(high quality/lower operating costs)
fDi Benchmark Matrix
• The matrix is based on the weighting and cost model for the Textiles manufacturing plant profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs.
• The results indicate the different location solutions for the investor as follows: the Scottish Central Belt and Milan offer
higher quality but at higher cost Bradford and Warsaw offer lower cost, but
at lower quality
The Operating Cost value is in GBP - United Kingdom Pound
Location Qualitative ScoreOperating Cost
IndexOperating Cost
Value
Bradford 68.1 93.6 17,342,981
Milan 120.9 130.1 24,109,435
Scottish Central Belt 112.3 114.4 21,206,790
Warsaw 98.7 62.0 11,491,387
Source: fDi Intelligence, from the Financial Times Ltd
Location Attractiveness Index
The location attractiveness index shows the overall attractiveness of the 4 selected locations for the Textiles manufacturing plant profile. The ratio of quality to cost is 50:50
Source: fDi Intelligence, from the Financial Times Ltd
Cost Quality Competitiveness
The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that:
The top location offering the highest quality for a given level of cost is Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
The annual operating cost calculation for Textiles manufacturing plant is based on the following primary input costs: Labour Cost
The average cost across the selected locations for Textiles manufacturing plant is GBP 18,537,647 The greatest cost saving between the selected locations is GBP 12,618,049 per annum The values in the chart below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
Location Labour Cost Property
Bradford 12,917,603 4,425,377
Milan 19,578,305 4,531,130
Scottish Central Belt 14,721,296 6,485,492
Warsaw 6,406,078 5,085,308
The location with the lowest operating costs is Warsaw
In terms of the individual cost factors, the location with the lowest costs is:
Labour Cost: Warsaw Property: Bradford
The values in the table below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
The quality competitiveness assessment is based on the weight model for the Textiles manufacturing plant profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100.
The location with the highest quality score is Milan
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
Location
General Business
Environment
Labour Availability and
QualityPresence of an
Industrial ClusterInfrastructure
and AccessibilityLiving
Environment
Bradford 13 35 4 11 4
Milan 19 54 32 11 5
Scottish Central Belt 15 66 16 10 5
Warsaw 12 45 28 8 6
In terms of the individual quality factors, the location with the highest score is:
General Business Environment: Milan Labour Availability and Quality: the Scottish Central Belt Presence of an Industrial Cluster: Milan Infrastructure and Accessibility: Bradford Living Environment: Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
The quality competitiveness breakdown for General Business Environment for the Textiles manufacturing plant profile is shown below.
The location with the highest overall score for General Business Environment is Milan
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
Location
Economic growth and stability
Operating riskTaxation and
incentivesRegulatory
environment
Bradford 1.13 1.51 6.48 4.18
Milan 6.53 7.58 3.24 1.92
Scottish Central Belt 3.16 1.51 6.48 4.18
Warsaw 4.18 1.41 4.81 1.71
In terms of the individual quality criteria within General Business Environment, the location with the highest score is: Economic growth and stability: Milan Operating risk: Milan Taxation and incentives: the Scottish Central Belt Regulatory environment: the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
The quality competitiveness breakdown for Labour Availability and Quality for the Textiles manufacturing plant profile is shown below
The location with the highest overall score for Labour Availability and Quality is the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
LocationOverall size of labour market
Tightness and competition for
labour
Experienced industry-specific
staff
Flexibility of labour regulations
Bradford 2.61 10.90 3.34 17.99
Milan 22.58 5.72 14.16 11.43
Scottish Central Belt 13.26 9.63 25.56 17.99
Warsaw 11.55 3.74 16.95 12.59
In terms of the individual quality criteria within Labour Availability and Quality, the location with the highest score is: Overall size of labour market: Milan Tightness and competition for labour: Bradford Experienced industry-specific staff: the Scottish Central Belt Flexibility of labour regulations: the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
The quality competitiveness breakdown for Presence of an Industrial Cluster for the Textiles manufacturing plant profile is shown below
The location with the highest overall score for Presence of an Industrial Cluster is Milan
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
LocationSize of industry Track record
Bradford1.72 2.67
Milan19.15 13.33
Scottish Central Belt4.86 10.67
Warsaw14.28 13.33
In terms of the individual quality criteria within Presence of an Industrial Cluster, the location with the highest score is: Size of industry: Milan Track record: Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
The quality competitiveness breakdown for Infrastructure and Accessibility for the Textiles manufacturing plant profile is shown below
The location with the highest overall score for Infrastructure and Accessibility is Bradford
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
Location
Access to major overseas markets
Quality of utilitiesQuality of ICT infrastructure
Bradford 6.93 3.72 0.53
Milan 6.66 3.47 0.44
Scottish Central Belt 5.76 3.72 0.49
Warsaw 4.65 3.08 0.54
In terms of the individual quality criteria within Infrastructure and Accessibility, the location with the highest score is: Access to major overseas markets: Bradford Quality of utilities: Bradford Quality of ICT infrastructure: Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
The quality competitiveness breakdown for Living Environment for the Textiles manufacturing plant profile is shown below
The location with the highest overall score for Living Environment is Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
Location
Cost of livingAttractiveness for international staff
Bradford2.74 1.70
Milan1.88 2.78
Scottish Central Belt2.69 2.32
Warsaw2.69 3.21
In terms of the individual quality criteria within Living Environment, the location with the highest score is: Cost of living: Bradford Attractiveness for international staff: Warsaw
Source: fDi Intelligence, from the Financial Times Ltd
To realise the potential,please contact:
Scottish Development International150 Broomielaw, Atlantic Quay Glasgow G2 8LU Scotland, UK T +44 141 228 2828F +44 141 228 2089www.sdi.co.uk
Worldwide offices in: Americas, Europe, Middle East, Africa and Asia Pacific