Alex Moulton laments demise of local manufacturing

[fiamme red]

http://www.birminghampost.net/birmingham-business/birmingham-business-news/automotive-business/2010/02/19/mini-designer-alex-moulton-saddened-by-manufacturing-demise-65233-25864285/

“It’s a terrible tragedy that we have in effect just given up on our manufacturing”, he said. “The employment the new Mini gives to English workers is good, and it’s good that it’s been a success, but the tragedy is that it just isn’t a British car.

“What I am sad about is the fact that we in England no longer seem to have the ambition to make things ourselves.

“We are too keen on giving things away by just looking at the bottom line.

“It’s a very unnatural thing to be a civilisation that doesn’t want to make things – I believe that’s a fundamental thing.

“We are far too influenced by the pressures to simply sell up and move things abroad.”

[fiamme red]

By the way, his autobiography is now available: http://www.alexmoultonbooks.co.uk/

[Tobias]

“It’s a very unnatural thing to be a civilisation that doesn’t want to make things – I believe that’s a fundamental thing."


We either make things or do things. And we are trading manufacturing for service. Not my first choice but no one asked me. :rolleyes:

[Chief]

We either make things or do things. And we are trading manufacturing for service. Not my first choice but no one asked me. :rolleyes:

I need not be either or, but it is what it is.

[RPS]

About 10 years ago I was driving back home late at night from Waco after a rough day at a manufacturing plant and a prophet on late-night radio was stating how we were transitioning from a manufacturing to a service economy. He stated matter-of-fact that in the future there would be little need for careers like engineering, other than to support R&D and a few other functions. He said engineers and others like them whose primary mission was to make “things” would become the farmers of the 1800s. As an engineer his prediction stuck with me.

I had no reason to question the validity of his prediction but wondered what would happen to the economy when we stopped “making” stuff, and also when most of us were forced into service-oriented jobs. Who would make the tangible things we normally purchased – cars, boats, bikes, TVs, or for that matter power plants?

With the exception of large power plants that can’t be made in China and shipped to the US I guess I have my answer. And when we go solar they’ll make the panels there too.

[bzbvh5]

I'm no economist, so this is an acutal question. Are services included in economic indicators like Gross National Product or Trade Deficit?

[AndrewS]

The Neal Stephenson book "Snow Crash" predicts a near future where everyone in the US either works in entertainment - writing video games or making TV - or delivers pizza.

We are really good at being consumers. That will last only as long as we have something to consume with. You can only juggle money so long before a lack of a true economic base undermines the economy entirely. The first world nations need to start wondering what they think the Chinese or Indians are ever going to need from them when they have both all the money, all the manufacturing capacity and the populations to create their own consumer demand.

It is wise to take a note from the history of the Spanish: They went broke importing gold. England became rich during the same period on an economy based largely on sheep. One made money, the other made things.

[LesMiner]

We are really good at being consumers.
Our consumer ethic is much stronger than our work ethic. Stangely that translates to many things like should one lose 5 pounds or spend a few hundred to get a few light weight components?

[goonster]

With the exception of large power plants that can’t be made in China and shipped to the US I guess I have my answer. And when we go solar they’ll make the panels there too.
They key driver here is labor arbitrage. That can't continue forever. Some manufacturing is already shifting out of China for even cheaper labor in Vietnam. Over time, changing economic factors (energy costs, cost of living, exchange rates) will shift some manufacturing back here.

One thing that has changed permanently is how quickly these shiftsb take place. When steel prices rose to record levels a couple of years ago, U.S. steel mills experienced a (brief) resurgence.

[Kines]

Our consumer ethic is much stronger than our work ethic. Stangely that translates to many things like should one lose 5 pounds or spend a few hundred to get a few light weight components?

Ouch.

Well said.

KN

[Ahneida Ride]

It is wise to take a note from the history of the Spanish: They went broke importing gold. England became rich during the same period on an economy based largely on sheep. One made money, the other made things.

Excellent point. Egypt also went in economic turmoil when the Sultan of
Timbuktu passed thru Egypt on his way to Mecca. He gave out free gold.

I humble submit that the sheep was money ... gold was not ...

Money, by definition, can't be easily counterfeited. When it can be, it
ceases to be money, but degenerates into shopping coupons.