The decline in manufacturing employment in the West Midlands Region of England has been dramatic. This paper situates the changes in the economy of the region in the context of the changing international and national economies. It is argued that the shift in trading patterns from the old Empire towards Europe and North America made manufacturing sectors more vulnerable to competition both in the home market and in the overseas markets. This vulnerability has been exacerbated by the high value of sterling at certain crucial periods.
National economic conditions and policies have also had detrimental effects on the regional economy, especially demand-management policies, which concentrated on consumer credit. The development of the vehicle sector has been disrupted by frequent and sudden changes in credit regulations. In addition to these problems, there is evidence that credit and labour-market conditions have both hampered development, and there is some evidence that land shortages in the conurbation have been a hindrance.
National government policy towards particular sectors has been applied without major attention being paid to its regional impact. Given the high level of integration of the regional economy, shocks to one part of the economy transmit themselves rapidly to others.
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