American vs. Cheap

[tonyvda]

The UK suffers from much the same market conditions as the USA, indeed even our service call centre jobs are disappearing fast into the Indian subcontinent.

The only way to survive in the global economy is to make the "clever stuff" that the low age economies cant make yet, and when they can, move onto even cleverer stuff. Continual development is needed together with a concentration on quality.

With chinese wage rates at one fortieth of UK wage rates we cant compete with the simple assembly tasks, but our high tech products are in demand. One of my collagues is in China as I type this signing a deal to supply product from the UK, I am in Korea next week doing the same, we have just sold into India and Malaysia will be next.

We sell products that improve productivity and quality within heavy industry, principally steel. Theres only one market in the world that doesnt seem interested in improving its performance, and funnily enough thats the USA.

Its not the fault of the workers, its a philosophy that Made in USA is best, often its not, combined with resistance to change. My own experience of visiting many automotive assembly and steel plants is that the USA has a long way to catch up with the rest of the world. Furthermore as China, India, etc grasp the chance to improve and reinvest in their originally low labour cost industries, the USA will fall even further behind.

I remember being on one car assembly track in the US only about 2 years ago and the guy fitting the wheel was so eager to light a cigarette that he forgot to tighten the wheel nuts, the result was that 45 minutes later the line stopped as the wheel fell off the car as it was being driven off the track.

In Europe he would have never have had the opportunity to smoke on the track, (fire and damage hazard), and secondly there would have been an investigation with all hell to pay. In the US it was just a good laugh as the reason for the stoppage made its way back along the track. Glad of the opportunity to take an unscheduled break the wheel guy lit up another cigarette...........

Cheers,

Tony