Tag Archives: manufacturing

In the bleak midwinter……

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winter 006

In around 5 months time the people of the U.K will go to the polls to elect the Government for the next parliamentary term.

Over the last 13 years of Labour government manufacturing output has declined dramatically from around 20 % of GDP to around 11% today.

The Economy has become grossly inbalanced in favour of the Financial Services and Property sectors. This has proved disastrous and has contributed to the deepest recession we have seen in a lifetime.

To rebuild a robust economy we need a mixed economy in which manufacturing plays a major and significant part.

It’s easy to be cynical about Political parties but it’s interesting to visit the main parties websites to find out what their policies are towards the Economy and manufacturing in particular.

You may be surprised by what you find.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Sad for Saab…….

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saab93 Recent news that GM has failed to find a buyer for Saab leading to the imminent demise of this once great automotive manufacturer will sadden those of us who once owned one of these iconic vehicles.

The Swedish manufacturer has a tremendous tradition of innovation. They were the leaders in Turbo development which was incorporated into a range of models in the 1960’s.

The Duck-Billed shape of the 9-3 and earlier 900 series made their looks distinctive and original.  The Saab cockpit reflected the brand’s Aero heritage with its wrap around style and distinctive dash. Saab cars had headlight wipers long before anyone else and everyone who has driven a 9-3 or a 900 came to love the ignition being next to the handbrake (rather than next to the steering wheel) meaning the car had to be left in reverse gear before the keys could be removed – proving an excellent mechanical theft deterrent.

Let’s hope someone comes in at the last moment to rescue this iconic and innovative automotive brand.

Dad, why don’t we make anything anymore…

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ManufIts common knowledge in the U.K that manufacturing has declined over several years but the attached graphic illustrates just how serious that decline is compared to other leading nations. The situation after the credit crunch is likely to paint an even grimmer picture.

But why should anyone care ?   Does it reallly matter if we are making things or providing services instead ?

The fact that Japan, Germany, France and most leading nations are emerging from recession before the U.K may give some indication of that importance.

Manufacturing provides highly skilled jobs which are well paid. This leads to more purchasing power for the economy as a whole.

Also, for every job in manufacturing another 10 may be created in support functions and in the supply chain.

But, can we still afford to manufacture in the U.K ?

Anyone who has done a Business Plan for an engineering project should have realised that, when considering modern manufacturing equipment, direct labour cost is virually insignificant. What has a massive effect is the COST OF CAPITAL and therein lies the biggest clue to our problems.

If we want to prosper in the U.K with a fare distribution of wealth and an effective social care structure we need a vibrant, mixed economy of which manufacturing is a major key component.

This can only happen if Goverment has an effective manufacturing strategy with a good supply of reasonably priced Capital investment.

That is the challenge for Government of whatever persuassion.

chris@amberhill.biz