An Assessment of Air cargo Service Costs and Capacity for Electronic Manufacturers in Scotland

The quality of international transport services available in peripheral regions of the UK could be a source of competitive disadvantage, particularly for manufacturers of high value products with extensive international sourcing and distribution networks. This paper aims to determine if electronics manufacturers based in Scotland are disadvantaged in their access and use of air cargo services and assesses how they minimize the effects of peripheral location. The models developed indicate that electronics manufacturers in Scotland are at a disadvantage in access to services but not in the cost of services. Operating practices within companies can, however, negate or minimize the service disadvantage, and the importance of the disadvantage varies between companies.