The above remarks may be correct for the car manufacturers wrecked by unions and management,
This is a huge oversimplification that's effectively taken as a truism these days, and it deeply irritates me (being that industrial strategy and policy is one of the things I've specialised in over the past decade).
The automotive industry was wrecked by the "Picking Winners" approach of the various governments (both labour and conservative) which directly interfered in the running of various nationalised and quasi-nationalised companies with neither any real understanding of what they were doing, nor the foresight to understand how the markets those companies sold to were changing.
By the time the Unionists really started kicking off, the damage was already done, and when you listen to detailed accounts from the primary sources, its clear that by the early 70's both management and union figures were already well aware that it was only a matter of time until a precipitous collapse.
As a result, the 70's were spent with that whole industry sector (management and labour force alike) effectively fighting amongst themselves (at company, plant and department levels) to ensure that
their particular bit would survive when that came...
Predictably, but nevertheless kind of ironically this lack of unity and inward-looking outlook had pretty much the opposite effect, and it was only with foreign investment, the formation of the Automotive Council, and subsequent sector deals from the DTI and it's successors, that the remaining players were able to get back on the straight and narrow.
but we had a thriving furniture industry until clowns in the Cotswolds started "carefully assembling" the contents of containers from China.
To me, this speaks clearly of one of the factors that lurker was talking about:
Our manufacturing was killed by a combination of management greed and complacency.
If the management was less complacent, they would have seen that coming a mile off (or maybe a bit closer given I'm speaking with the benefit of hindsight, but certainly they should have been able to see it coming in time to
react, even if they couldn't
proactively identify it).
IKEA's
"Clear out your chintz" campaign in the early 90's should have been a warning shot across the bows of furniture manufacturers that change was coming, and they would need to adapt to survive. At that point the quality of the furniture UK manufacturers made was still a good way to differentiate from the new competitor on the block; but the designs* weren't really changing to meet consumer tastes or expectations.
It should have been obvious from what had happened to the consumer electronics industry in the 60's and the automotive industry in the 80's & 90's that:
They were very vulnerable to:
- The business model of importing products cheaply made overseas, which were of adequate quality, but at lower cost and to suit every conceivable taste (or lack thereof).
- The rise and rise of conspicuous consumption, meaning that it became desirable to frequently renew one's possessions.
- The (wholly connected) ever decreasing awareness of (and importance to) consumers of the functionality and durability of products, relative to their superficial appearance.
- The power of brand and marketing.
And
- The dawn of "Free Trade" meant that there were even lower barriers to people importing foreign alternatives at lower prices, making the risk even higher.
But nothing changed, and about a decade after the swedes arrived, drop-shippers like "
Oak Generic Hardwood Furniture Tat Land" appeared on the scene realising a number of things:
- People knew that furniture from the likes of IKEA wasn't as sturdy or durable as "Solid Wood" furniture
- There wasn't a really well known national brand that you could go to for true quality furniture.
- People didn't really know what made furniture "good quality" anyway.
- There was actually a market rate for quality furniture, which indicated what prices could be supported.
- That the general population was unaware of this market rate, so you could charge prices just very slightly lower than those a charged when craftsman had carefully constructed the product, whilst all the while indirectly intimating via an aggressive marketing campaign that you were a far cheaper option than the alternative and they'd never afford to go out and buy the real thing. Thus attracting much higher margins on your poor quality tat.
And that, was (very quickly) that.
What's particularly alarming of course,
is that for the most part, it was in the business model and marketing, rather than by competing on price which we saw the the drop-shippers win out over the traditional enterprises...
The very same business model pioneered by UK upholstery retailers like DFS (who still manufacture in the UK to this day) around the same time IKEA arrived on the scene a decade earlier.
*I've always found it odd that whilst the UK has continued to produce designers and craftsmen who produce innovative and beautiful furniture to the current day, at some point in the late 1940's this wealth of UK skill, became seemingly detached from our mass-manufactured furniture.
I agree with your sentiments about British manufacturing, but much of that was dead before the Chinese started sending stuff here.
Our manufacturing was killed by a combination of management greed and complacency.
That's definitely a factor but is not the whole story... The way in which politics has acted as an unseen hand changing in fundamental ways how our economy functions has a lot to do with
Just How Badly things have gone for the manufacturing (and other capital intensive) sector(s) of UK PLC and UK SME's.
The 80's saw a fundamental shift in the assumptions that underpinned economic policy, from a system which was empirically shown to be somewhat accurate, to a system with little evidence to support it and founded on some ideological assumptions
which weren't well supported, but were convenient to politicians of the era.
The dawn of the "Free Market" changed the way that our financial system worked in such a way that "making money" became increasingly if not wholly detached from "making, owning or trading in things which have intrinsic worth"; at which point the rates of return expected by investors or financiers when they provided money to a business in order to grow or change course shot through the roof, as they expected returns which would match the returns that speculating (rather than investing in a true sense) on various newly de-regulated markets where there was no connection back to physical reality to act as some kind of limitation on short-run growth.
Suddenly after hundreds of years in a world where automation, equipment, factories etc were cheap compared to the costs of staffing and running them, in the UK and US where these new economic policies had been adopted first, and most vehemently, the opposite became true (
and not because staff suddenly got cheaper).
So businesses struggled to attract the investment to grow without taking large risks predicated around an un-ending spiral of growth, and as a result were forced to take unnecessary risks all in the name of "Shareholder Value" (or "not being slowly crushed by the competition" for smaller firms)...
Roll on the early 90's and it becomes apparent that the short-run growth was in fact a speculative bubble, add in more disastrous economic policy linked to ideology rather than reality (thanks Mr Major!) and all those businesses which took on huge amounts of risk, are now faced with a recession.
So obviously the next government presses on with the same failed concepts, we have a warning shot from the bursting of the "Dot-Com Boom" bubble in 2000 which gets ignored, and we're round to 2008, when another recession comes along to ensure that anyone who survived the first one is now really screwed...
At which point obviously, we doubled down on the failed economic policy
Again...