They say Britain still produces high tech manufacturing will this disappear eventual

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hsv
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They say despite manufacturing and factories moving to the cheaper to produce in third world countries the UK still has high tech manufacturing in the UK. Will there be a point where even this will move to China or other cheaper to produce in countries and the UK will be completely de industrialised?

Also on a separate point will one day wages be so high in China that multinational firms will move out of China and into lower wage economies such as the Philippines and other less developed at present South East Asian economies?
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inniz
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er.. yes, since we need a balanced economy. but then when china develops, we simply have to find a new economic order.
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ElChapo
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Yes history suggests that China will outgrow basic factory work and begin to make high tech goods themselves. Look into a case study of the Asian Tigers and you will learn more

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MatureStudent36
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(Original post by hsv)
They say despite manufacturing and factories moving to the cheaper to produce in third world countries the UK still has high tech manufacturing in the UK. Will there be a point where even this will move to China or other cheaper to produce in countries and the UK will be completely de industrialised?

Also on a separate point will one day wages be so high in China that multinational firms will move out of China and into lower wage economies such as the Philippines and other less developed at present South East Asian economies?
Here's an interesting article, but its being seen in the UK as well
http://www.economist.com/news/specia...ng-back-united
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hsv
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(Original post by MatureStudent36)
Here's an interesting article, but its being seen in the UK as well
http://www.economist.com/news/specia...ng-back-united
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MatureStudent36
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(Original post by hsv)
Thanks
It's always advisable to build in the market you're operating in. With increasing labour rates in the Far East and India increasing, they're not as competitive as you think they are.
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chrisawhitmore
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(Original post by MatureStudent36)
It's always advisable to build in the market you're operating in. With increasing labour rates in the Far East and India increasing, they're not as competitive as you think they are.
b
Also, labour isn't the key factor in high tech manufacturing, especially for stuff like pharmaceuticals. It can take a staff of 6 to run a plant making $1bn a year, so the cost of those staff is far less important than having the infrastructure to support high tech industry, including an education system which can produce a steady flow of quality graduates and start up companies that the bigger companies can feed on.
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Alfissti
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Manufacturing jobs as a whole are starting to return to UK and most EU countries.

People around the world no longer want to buy just a British or German branded good, while they want it to continue being British or German branded they also are wanting it to be British or German made especially once you start marketing it as something that isn't at the bottom of the pyramid. That is just one aspect of it.

Where one said jobs leave the UK for cheaper labour this is generally somewhat untrue, most manufactured goods have a direct labour cost of less than 10% these days, it is generally rare that this is much of an issue these days especially in UK as there are plenty of people that can be had for NMW and deliver fairly high productivity ratings. While it is without a doubt wages in China are lower for the low-skilled workers, it doesn't count the benefits that you as a company need to pay, often you will also need to feed and house them and these costs aren't cheap any longer especially if you intend to keep your workers happy. Wage inflation is a problem much of industrialized China is having a problem to control, workers as a whole want 30% raises to continue with the job and therefore factories do need to continuously train up workers which does cost money.

There is also another major issue, intellectual property theft is a big problem in China, R&D = Receive & Duplicate and within days of your high value product arriving there will be plenty of fakes on the market and some of those fakes might just be production overruns that your contract manufacturer purposely did a production overrun on and this is something even big giant companies have problems with.

Logistics cost in China has gone up on average 400% in the last decade where in UK it only went up 30% I can hire an Eddie Stobbart lorry to move 30 tonnes of fish from Lands End to John O Groats for less money than it would cost me to move that same amount of goods with a reputable haulage company from the east of Shanghai to just out of that city. It can also move a lot faster in UK on that distance than it could move for a short distance in China. Infrastructure and energy is important, where China had the advantage in the early part of last decade, this has slowly been degraded as most infrastructure are either at or overcapacity and there is simply no space to expand. UK will become an expensive place too if it starts rejecting the building of infrastructure and energy generators.
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Rakas21
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(Original post by hsv)
They say despite manufacturing and factories moving to the cheaper to produce in third world countries the UK still has high tech manufacturing in the UK. Will there be a point where even this will move to China or other cheaper to produce in countries and the UK will be completely de industrialised?

Also on a separate point will one day wages be so high in China that multinational firms will move out of China and into lower wage economies such as the Philippines and other less developed at present South East Asian economies?
In regards to your first point the simple answer is no. Offshoring is most required for common consumer goods however the advanced technologies like medication or space technology are things where expertise and quality are far bigger considerations than simple labour costs.

With regards to your second point, its already happening.
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