Since the mid-1970s, the United Kingdom in common with other European countries has been undergoing major changes in the nature, volume and location of manufacturing industry (Keeble, 1987). The most striking of these in aggregate terms was the acute decline of manufacturing output and employment with recession between 1979 and 1981 (see Figure 4.1), after earlier substantial growth of production in the 1960s and early 1970s. Since 1981, manufacturing recovery has been characterised by high rates of growth of labour productivity and output per head, though manufacturing employment has continued to fall.