| Former UK manufacturing engineer here (1980s onwards). The manufacturing industry in the UK at that time suffered from three serious problems: - Low productivity workforce. There was a huge pool of skilled, low wage, workers that had little incentive (or will) to up-skill. There were few apprenticeship schemes or other education programs to train them for the modern world. - Poor quality management. "Working in trade" had a low social status compared to working in, say, the Civil Service. So the best and the brightest were not interested in manufacturing. - Lack of access to capital. Banks were very reluctant to lend to that sector which made modernisation really difficult. With the ever present threat of nationalization it was hard to raise capital from shareholders. Why invest in technology when you could be nationalised on a whim? I don't believe that these were significantly contributory, from experience: - Margret Thatcher: whilst I'm no fan of her, at most she just administered the needle to a sector that was already on end-of-life support. - The unions: I worked for a large engineering company (fully unionised) that had not had a strike for 30 years. We also introduced modern automation without resistence. The reason? Good management. UK manufacturing is what long term decline looks like. Apart from a few small examples the UK has not been a world beater in manufacturing for fifty years or more. On the other hand the UK is particularly good at Finance, Insurance etc. |