the decline of UK manufacturing

Thrugelmir

Generali wrote: »

4
ahead of countries such as France, Italy and South Korea.

None of whom have the benefit of oil and gas extraction.

Generali

Thrugelmir wrote: »

None of whom have the benefit of oil and gas extraction.

Oil and gas extraction normally come at the expense of domestic industry. Google 'The Dutch Disease' for more info.

cells

Generali wrote: »

Oil and gas extraction normally come at the expense of domestic industry. Google 'The Dutch Disease' for more info.

the uk was poorer than France in the 70s 80s and 1990s so in our case I doubt it displaced manufacturers more like saved the country from being a total basket case

westernpromise

DiggerUK wrote: »

Wealth can only be produced from making 'stuff',

Utter, utter rubbish.

zagubov

Is this just reflecting the fact that automation has meant we're producing more goods with only 40% of the factory workers we used to have those decades ago.

Mistermeaner

Some good points about the cost of manufactured stuff dropping and more disposable income so we choose to spend it on services.

Fundamental thing for me and the thrust of the article was about whether we should be exploiting shale..... something which could give UK a special edge over other eu countries in terms of cheap energy.

A countries policies have massive impact on its ability to attract global investment and create jobs. Who in their right mind would want to employ labour in France for example.

We can carry on being the world leader in banking etc and provide lots of other services but why not go after shale as well?

Scotland's position on this really surprises me as they could benefit hugely from shale.

antrobus

DiggerUK wrote: »

Wealth can only be produced from making 'stuff', profits can be accrued from servicing manufacturing, but that's all the service sector can do..._

And yet Apple has managed to get its hands on $200 billion in cash by hardly manufacturing anything at all.

Strange that.:)

antrobus

Mistermeaner wrote: »

...Fundamental thing for me and the thrust of the article was about whether we should be exploiting shale...

What's 'exploiting shale' got to do with manufacturing?

Mistermeaner wrote: »

..We can carry on being the world leader in banking etc and provide lots of other services but why not go after shale as well?..

Perhaps because the cost of fracking would be greater than the value of the gas extracted, what with Brent Crude being $34 or whatever?

Linton

DiggerUK wrote: »

Productivity is vastly improved, here and all over the world. But as a percentage of UK GDP, it has halved in ten years.

Reduce manufacturing of 'stuff' like cars, and fewer people have wages to spend in service industries.
Service industries are reliant on manufacturing industries, not the other way round..._

Manufacturing is dependent on the service industries - design, banking, advertising, transport for example. We and the rest of the developed world have the technology to manufacture all the physical goods we could ever use with a small fraction of our labour force. Manufacturing vastly more physical goods wont do us much good. Look around the shopping malls - they are full of unnecessary manufactured tat. Making the general population happier with more services is a far better use of our labour, is much less poluting, minimises need for natural resources, better working conditions. All in all a Good Thing.

However the most important point about services is that the service industries create well paid customers eager to buy both manufactured goods and services. Without the service industries the vast majority of the population would be unemployed and unemployable leading to poverty for everyone.

The only way I can see a major move to manufacturing would be feasible is to forgo automation and return to the middle ages with manufacturing being a high skilled craft industry supplying the rich.

DiggerUK

Take away the manufacturing base and what would the service industries rely on, who would pay their bills.

Transport fleets without 'stuff' to transport, isn't a good business model for those with a transport fleet is it.
Advertising agencies without 'stuff' to advertise.....how long would they last.

Service industries are reliant on manufacturing.....the Manchester model in the 19th century is proof that wealth must be manufactured. China didn't get were it is today by providing the world with banking and insurance services.

And in case nobodies noticed, Apple make 'stuff'....just not here..._