For the last 20 years at least the development of China’s workforce and technological capabilities have convinced many manufacturing bosses in Britain to outsource production overseas.
It was, and in many cases still is, cheaper and more efficient and basically made sound economic sense.
But modernisation and the development of China’s middle class are factors which will drive a steep rise in inflation over the next few years – pushing costs up for foreign firms.
Britain’s workforce is still the more highly skilled of the two countries, on balance, so if the cost benefits go out of the equation, the sensible thing will be to bring production back home.
That’s exactly what Nottingham based manufacturer of child safety products Clippasafe has done. It outsourced part of its business to China years ago, but changing economic fortunes convinced the founders to return.
This video on the BBC website tells the story. Could it be the start of a trend? Who knows: in 20 years’ time perhaps Britain will be back at the centre of the world’s industrial community.
Related article:India: a superpower by 2030
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