AMT Investment in the Larger UK Firm

Abstract

A survey of investment in new production technology and specific AMT techniques in larger UK firms are described. Though the majority of the responding firms were in the manufacturing sector, some were not. Interestingly, some of these considered that they had invested substantially in new production technology. Companies were also questioned about which factors they considered most important in making investment decisions. These showed an unexpected emphasis on the importance of “intangible” factors. Responses were analysed separately for manufacturing companies belonging to process industries and those classified as belonging to “general manufacturing”. As might have been expected, companies in the latter category had invested more heavily in AMT techniques. However, process industry companies had also invested significantly. Around two‐thirds of companies in the general manufacturing category reported difficulties in assessing the benefits of AMT investment. About a quarter of process industries companies had experienced similar difficulties. However, few companies appeared to have altered their investment appraisal systems to treat AMT investments any differently to ordinary ones, despite the literature that suggests that this may be necessary.