West vs East – Why British Manufacturing Can Be Optimistic for the Future
China has long been considered the world’s factory, producing a quarter of all global manufactured goods. With such tight control over the market, China has been edging out global competition with the prospect of a cheap yet skilled labour force. Their dominance in manufacturing has led to exponential economic growth over at least the past two decades, however things have begun to change. In what is being dubbed China’s ‘economic slowdown’, the economy continues to grow, however it is no longer at the considerable pace which it had been and that is cause for optimism for other corners of the world.
The prospect of a cheap yet skilled workforce has seen many British manufacturers make the move east to a country where there are more jobs than workers and staff are prepared to move thousands of miles for the right job. Whereas in Britain, the workforce is shrinking with greater focus on automated technology as well as an aging workforce and very little incentive for younger generations to follow a career path in manufacturing. The result has left British manufacturers struggling to compete on a global stage, all while in China alone, competition continues to be incredibly fierce as companies fight to make the most of China’s economic boom.
However, China’s recent economic policies have leaned towards invigorating its services sector while manufacturing has been somewhat neglected. At the same time, as education levels in China rise, workers are literally able to pick and choose their employer as they realise the value of their skills. Some go as far as to ask for significant wage rises as they know they can achieve the same working at another manufacturer. This attitude has led to the average wage rising from twenty pence an hour to one pound in recent years. Considering that moving manufacturing to China can save around fifty pence per unit, the financial benefit of moving to China is beginning to wane.
This is where Britain now has an opportunity to regain a stake in the global manufacturing market. While Asia and the east has dominated low cost products, British manufacturing still retains a significant reputation amongst the global audience for high quality, reliable products. With a highly skilled workforce combined with innovative technology, British manufacturing still has a lot to offer at the high end of the market. While manufacturing in the east can offer speed and quantity, the west instead creates products which undergo rigorous quality assurance and are very often hand finished.
As Britain moves to make its manufacturing industry great again, it is already ahead of the east as it aims for sustainability. While Chinese policies benefit a snowball-esque approach to meeting demand, Britain has the infrastructure to foster and develop smaller, more innovative companies which are at the heart of technological progress. For fans of products ‘Made in Britain’, there is cause for quiet optimism if British manufacturers continue to use their skills and innovation to compete with the competition.
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