The impact of the single market of the European Union on the manufacturing sector in a sub-regional economy.

This thesis is an investigation into aspects of the impact on the manufacturing sector in South Yorkshire of the Single European Market (SEM) legislation of the European Union. The SEM represents a major economic integration programme of the European Union. It is of interest, therefore, to assess how producers are reacting to the implementation of the programme of legislation. It is widely expected that the degree of competition for markets will be enhanced and it is relevant to consider which manufacturing companies are the most likely to be taking steps to prepare, and what forms of preparation activity are taking place. It is also of concern to gauge what impact, if any, this has had or is likely to have on corporate performance. The SEM represents a fundamental change to the trading environment in which producers operate and, although it is expected that winners and losers will emerge from this process, it is estimated that a net gain will accrue. The logic behind the introduction of the SEM, in terms of the standard theory of international economic integration, appears to be sound. It is a remedy to a previously fragmented collection of national markets, and estimates of the expected impact over the medium to long term have been rather dramatic. In the UK economic environment, as elsewhere in the EU, the SEM is just one of many business influences and pressures which are considered and reacted to by the corporate sector in pursuit of achieving a successful business outcome. Nevertheless, the impact of the SEM is expected to be significant. South Yorkshire is a good example of an industrial sub-region struggling to come to terms with the new and emerging realities of world trading. It has a high proportion of industrial sectors thought likely, on the grounds of market and production characteristics, to be vulnerable to the impact of the extra competition embodied in the SEM. It therefore forms a good case study. The empirical analysis in the thesis is based on the results of a survey of 139 manufacturing companies located in South Yorkshire in March, 1994 (ie. not long after the official completion date for the introduction of the SEM legislation on January 1st, 1993). Data has been derived by questionnaire on the following company characteristics and activities: general corporate structures; activities in preparation for trading in European markets in general and, more specifically, in the SEM; recent company performance levels; and information and advice needs of companies with regard to trading in the SEM. A number of statistical analyses are applied to the data and the findings are presented within the context of the underlying economic rationale. An original contribution to knowledge is made in the following respects. The data reveals varied involvement of the South-Yorkshire based manufacturing sector with activities in preparation for trading in the SEM in particular and, more generally, for trading in more open European markets. The scale and extent of involvement in preparation activity and the types of activity undertaken are shown.