One third prospering…but what about the rest?
We’re familiar with many of the factors that have contributed to the recession in the UK. The inciting incident is the credit crunch, which sent the entire global economy into a tail spin. This in turn revealed the UK economy’s over-exposure to a financial services sector, which at best may be characterised as self-serving.
Over the last 20 years or so, the focus on a service and knowledge based economy has moved us into a post-industrial era. This has seen UK owned businesses largely exit from many industries such as motor manufacturing and ship building. Many operate globalised supply chains, outsourcing the manufacture of a vast amount of goods from overseas markets.
In the US, this experience is broadly similar. About one third of the US workforce is prospering in the knowledge economy. But what about the rest? Some commentators believe the majority of these are unemployed or low paid service workers that are falling further behind, increasing the polarisation of society in the US.
The case for bringing manufacturing back to the UK
The relationship between the disappearance of skilled jobs and the growth in the numbers of unemployed and low paid workers is strongly recognised in the US. Bad handling of the issue proved terminal to Mitt Romney in his attempt to woo voters in the key swing state of Ohio during the 2012 US Presidential election.
US broadcast network ABC has probably done no harm to its popular image with its ‘Made in America’ campaign. Since 2011 a strand of ABC ‘World News’ has used ‘Made in America,’ to examine American manufacturing and the economy. Throughout 2012 it highlighted various American businesses that are contributing to their local economies and creating more jobs in the U.S. In the run up to the festive season ‘Made in America Christmas’ simply asked each American to pledge to spend $64 on one gift, as US economists have stated that if everyone did this then it would generate 200,000 jobs.
As issues such as increasing transport costs and rising wage demands continue to drive up the TLC (Total Landed Cost) of BRIC manufactured goods for wholesale and distribution in the UK, ‘Made in Britain’ could become a mantra for those operating supply chains; if UK consumers shift to this mindset as well then it could be the way to see rapid economic growth and the return of prosperity to the UK.
Know when the time is right for ‘Made in Britain’ with NetSuite
NetSuite cloud-based ERP lets wholesale distribution businesses take control of the supply chain by enabling better management. With accurate cost analysis and the ability to understand how individual variables such as transport costs or labour costs impact TLC, NetSuite lets you see when ‘Made in Britain’ becomes a solid financial business policy for your business.
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