Posted by Michael-w on 02/10/2017 14:58:21:
Posted by SillyOldDuffer on 02/10/2017 11:32:39:
Bear in mind that Britons today are richer than at any time in the past. Manufacturing isn't a particularly lucrative way of making money.
Dave
But surely if nobody is making anything, then all those other jobs would be pretty hard to justify?
…
Michael W
Edited By Michael-w on 02/10/2017 14:59:18
Not really, there are lots of things that people need and want that aren't knocked out in a factory. Manufactured goods are often cheap compared with the services that go with them. Toothpaste is cheap, Dentists are expensive. It costs more to fit a pacemaker than to buy one. And so on.
Now that basic needs have been satisfied, quite a lot of manufacturing is about wish fulfilment. Much of what's made today has temporary appeal. Not a lot of call for flat irons or Walkmen any more. Technology often starts being very expensive (like TVs) and ends up being dirt cheap as soon as demand falls. In order to keep demand going, it's necessary to keep the product fresh so that people will want to buy again. As it's much harder to keep products moving than it is to make them, sales people are better paid than production workers. On the engineering side, design is an earner, machine maintenance is an overhead.
In the west employees are usually the heaviest cost carried by an employer. As manufacture is internationally very competitive it makes a lot of sense to reduce manufacturing costs by having it made abroad where labour is cheaper. It's not simply a question of increasing profits, it may be the only way for a company to survive. Quite often the people displaced when their jobs disappear move to more profitable jobs. It doesn't matter if that's in banking or hairdressing.
At the moment the sun is shining on the Far East. It won't last. China is following the same trajectory as all other manufacturing nations – rapid growth that can't be sustained. They are already having to compete with the growing list of countries where labour is cheaper than it is in China. Even more threatening is what's developing in the West; robotics, Artificial Intelligence, advanced 3D production methods and the rising price of fossil fuels are all likely to make it more cost effective to manufacture close to the customer. If China fails in due course to transition to a post-Industrial economy, they'll end up living in an industrial wasteland. Think Tyneside, Sheffield and Detroit just after the fire went out.
I fully expect China to end up with a Model Engineer Forum like this one by 2067. It will be full of elderly Chinamen complaining bitterly about the poor quality of modern tools and the rubbish being imported from abroad…
Dave
Edited By SillyOldDuffer on 02/10/2017 18:12:22