A tantalising prospect (from the Economist)

vivatifosi

Interesting article from this week's Economist:

http://www.economist.com/news/science-and-technology/21571847-exotic-useful-metals-such-tantalum-and-titanium-are-about-become-cheap

It looks like a firm has worked out how to use a different process to manufacture exotic minerals at a much lower price. Although this is early days, it's an exciting development. If they achieve their aim of producing low cost titanium, it could change engineering and manufacturing processes dramatically. The technology has come out of university research, so again, a good advert for science and technology research in this country.

Coming hot on the heels of the news re graphene and also new possibilities with 3D printing, how amazing would it be if at some point we experienced a manufacturing renaissance here?

Thrugelmir

Let's hope that the business remains in UK hands. Rather than being sold onto the highest international bidder.

michaels

Thrugelmir wrote: »

Let's hope that the business remains in UK hands. Rather than being sold onto the highest international bidder.

Would there be a problem if we did the basic research and then profited form selling the ideas rather than doing the actual metal bashing?

MacMickster

michaels wrote: »

Would there be a problem if we did the basic research and then profited form selling the ideas rather than doing the actual metal bashing?

The problem that we have is that we need jobs for unskilled workers in the UK, or else the divisions between the have's and have-not's will get wider.

Research can generate a huge amount of wealth for the UK, but is likely to remain concentrated in the hands of relatively few people. Whilst there would be some trickle down of that wealth, we can't neglect to look to create employment for the many rather than just the lucky few.

Thrugelmir

michaels wrote: »

Would there be a problem if we did the basic research and then profited form selling the ideas rather than doing the actual metal bashing?

Few benefit from a business being sold. There's no job creation.

kabayiri

My concern is that it turns into another bunfight between corporations and nation states, waged not on the battlefield, but in the patent world.

http://www.theregister.co.uk/2013/01/15/graphene_patents_study/

Look at who is scooping up all the patents in the above article?

It's either big business or nation state (essentially hoping to back their own big business).

Patent wars are slowly killing innovation in the software world. Big business like Google, Microsoft, Apple, Samsung fight it out with law suits worth billions.

The smaller innovators rarely have a chance, for fear of violating some obscure patent which would have them dragged through the courts.

It's a different era now to the Victorian era when Britain innovated and led things.

vivatifosi

Thrugelmir wrote: »

Few benefit from a business being sold. There's no job creation.

On the contrary, there can be. It just depends whether you take a narrow view of businesses being bought and sold. For sure, PE firms have a poor image in terms of squeezing the value out of the business and laying off staff, but they aren't the only businesses sold.

In limited companies there are owners who want to divest of a business for a whole host of reasons: they want to retire, they have an illness, it's no longer what they want to do. If someone didn't buy those they would fold and a whole bunch of people would be out of jobs. However people do buy them, and often with a fresh pair of eyes and new enthusiasm grow them.

The issue with a company like this one though, is it will almost certainly require step changes in investment to take it to the next development frontier, for that it will require funding well above angel level and that's where you're likely to get PE/VC involvement. There are PE companies out there that seek to build value into companies and develop them, give capital to expand and grow the workforce, unfortunately they get a bad name from elsewhere in the industry.

Spirit_2

michaels wrote: »

Would there be a problem if we did the basic research and then profited form selling the ideas rather than doing the actual metal bashing?

I believe we need a 'mixed' economy with the capability to translate world class research into a long term economic benefit through manufacturing and UK based job.

With relatively high labour costs to match relatively high welfare and living standards it has to be a strong case to attract and retain investment. Aligning research, skilled workers and a fiscal regime that does not punish innovation and profitability - is that too much to hope for?

ILW

People have been banging on about 3D printing for years now as if it is going to be a real game changer. Reminds me of the virtual reality boom of around 20 years ago that never happened.

Thrugelmir

vivatifosi wrote: »

On the contrary, there can be. It just depends whether you take a narrow view of businesses being bought and sold. For sure, PE firms have a poor image in terms of squeezing the value out of the business and laying off staff, but they aren't the only businesses sold.

In limited companies there are owners who want to divest of a business for a whole host of reasons: they want to retire, they have an illness, it's no longer what they want to do. If someone didn't buy those they would fold and a whole bunch of people would be out of jobs. However people do buy them, and often with a fresh pair of eyes and new enthusiasm grow them.

The issue with a company like this one though, is it will almost certainly require step changes in investment to take it to the next development frontier, for that it will require funding well above angel level and that's where you're likely to get PE/VC involvement. There are PE companies out there that seek to build value into companies and develop them, give capital to expand and grow the workforce, unfortunately they get a bad name from elsewhere in the industry.

In the UK we have a infatuation for short termism in business. Instant profit. An exit route to realise maximum profit in the shortest possible time.

Who owns the power companies, the airports, the local water companies, the London hotels etc. They are not from the Uk.

Even the M6 toll road is owned by a highly leveraged private equity firm based in Oz.

Then we wonder why there's no growth, no tax revenues, no jobs and a worsening balance of trade deficit.

We need to wake up and take back control over our own destiny.

sheffield_lad

Thanks for the great article, very interesting to me based on my fondness for metal miners also interesting that the company are based in my home town of Rotherham yet I have never heard of them before today or seen any local press reports.