“In our lifetime, I don’t think we will compete with India and China,” he told the audience of 250 entrepreneurs. “We don’t have manufacturing anymore. If somebody approached me tomorrow to invest in a business where they were going to manufacture something in the UK, I probably wouldn’t invest. Within six months, that same product in India or China would be a third of the price. “We have to recognise what we’re good at,” he continued. “I think our current cost base means that we can kiss manufacturing goodbye. In Britain, we are – and we will continue to be – a service culture country. I think that is where our income’s going to come from." Well, that certainly caused a few raised eyebrows. “James Caan must win the prize for daft comment of the day,” said Gary Dutton, the entrepreneur behind windows and conservatories firm Synseal. “Well, I’ve got news for you, James. Good old Gary is in manufacturing and could likely buy you and Peter Jones out.” "James should listen to someone who knows about the British manufacturing industry properly. "The fact is that the unions and then the Far East have, in turn, decimated the UK manufacturing sector. But some industries such as mine are not labour intensive. In fact, 80 per cent of our cost is made up of raw materials. These are commodities that we and the Chinese buy on the markets. Therefore, what advantage they have by way of notional labour cost reductions are balanced out with getting the finished product from the other side of the world." Sir Robin Saxby, the founding CEO and chairman of ARM Holdings, threw more fat into the fire. "With increased pressure on our planet’s scarce resources, final assembly of finished goods close to the end customer will become a new trend, especially where products require a high degree of customisation. "It would be foolish to consider that a modern thriving economy could survive with a service only culture.” Harry Rawlinson, chief executive of upmarket shower-maker Aqualisa, also joined the fray, pointing out that, with labour comprising less than five per cent of his manufacturing costs, he would continue being a proud UK manufacturer. He was joined by at least two other high-end manufacturers who took umbrage at Caan’s comments.Should we kiss manufacturing goodbye? Let’s hear your views.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.