PER 2015
The geographical location of the UK means that, due to the development of shipping containers and cross continental distribution of goods, the UK has had to compete globally. The extensive coastline present means the UK is more connected than others to global networks than others; subsequently manufacturing in the UK has had more pressure placed on it. Due to this island based market the competition from world super powers like China because of their capacity to ship on a global and mass scale; so much so that shipping accounts for 90% of world trade 14 , the UK manufacturing scene has simply been unable to cope. Take Dubai which, in recent years, has strived towards a tourist based industry with the offer of over 100 new hotels providing an extra 29,000 rooms 15 . Dubai’s well placed for business tourism, coupled with the limited supply of oil; the country has adapted for the future after the need for economic diversification. Therefore the UK followed this concept and diversified itself, which has led to heightened growth and less emphasis placed on the importance of manufacturing. This Change has been forced up Britain by the abovementioned technological development, most notably container ships, which have lead to a shrinking world. This concept dictates that the relative distance of the world has decreased, breaking the limiting boundaries and enabling cross world trade. This creates a larger market and a larger competition base which Britain are unable to compete with. Any potential action by the British Government might be seen as hostile, for example government intervention to reduce the level of competition through a trade tariff; might be met with a reaction. Such as the spat between China and America, as China imposed a 100 percent tax on Chicken feet imports, which was an industry worth $278 million in 2009 16 , an industry based on a good which was previously deemed as useless and worthless. Which was an action following the Obama administration’s decision in 2009 to set a tariff on Chinese tire exports. It is the case that every action made by a government would most likely have an equal reaction which like that of the American the poultry industry, could mean alternative industry may suffer. Considering the UK is still extremely vulnerable, following the global economic recession in 2008, this would mean that any event which might harm British industry; the effect would likely be magnified. Supporting the British manufacturing industry is likely to be inequitable and have an excessive opportunity cost. This is because the relevant cost of a scheme of supporting the manufacturing industry is likely to be far greater than the benefit. Coupled with a rising drive to enforce governmental spending cuts, set at around £55 billion worth 19 , would likely mean that this would not be supported in reality. As a strand of manufacturing decline, low skilled, a new high skilled industry emerged; such as the likes of British Aerospace industry accounting for over 100,000 jobs 13 . Therefore a new form of industry is growing; but this does not need to be supported and would likely not be supported by this government.
14 http://www.ics-shipping.org/shipping-facts/key-facts 15 http://www.businessdestinations.com/destinations/dubais-thriving-tourism-industry/ 16 http://www.washingtonpost.com/world/asia_pacific/us-china-embroiled-in-trade-spat-over-chicken- feet/2011/12/13/gIQASphjxO_story.html
19 http://www.themanufacturer.com/uk-manufacturing-statistics/
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