The Relationship between Materials, Economic Structure and Performance.

Abstract

The objective of this work is to contribute to the understanding of the role of the engineering and construction materials industries in the economic performance of the United Kingdom between 1954 and 1974. This requires the establishment of a framework for the analysis and quantification of the factors affecting materials consumption, and of the influence of developments in materials production technology and consumption trends upon aspects of the national economy. The change in the output of materials over time is explained in terms of various economic structural and technological factors, and the relationship between materials substitution and changes in the relative price and resource requirements for the production of materials is analysed. The role of engineering materials in the external trade of the United Kingdom is investigated. Finally an attempt is made to establish the effect of changes in materials use upon engineering industry productivity and hence overall economic performance. A suitable productivity criterion is devised for this purpose. The principal conclusions are: (i) Substitution between materials in the production of engineering goods was the major determinant of the change in the relative level of output of each material. This substitution was partly attributable to changes in relative price, but also to improvements in the manufacturing properties and processes associated with particular materials. (ii) Efficiency of processing materials in the engineering industries was a potentially more important influence upon the United Kingdom's balance of trade than its dependence upon (non-energy) raw materials imports. (iii) Whilst there was evidence that there had been substitution in favour of those materials which had shown the most progress in their economy of labour and capital use, more detailed information would be required to estimate the influence of materials use upon the total productivity of an industry.