Manufacturing Oblivion in UK.

[Anna B]

Don't blame the workers, don't blame the unions, don't blame overseas for our decline, read this.

 

If the declared aim of this Government is to rebalance the economy towards manufacturing, how come we are constantly selling off our best assetts?

 

As the German vice president of the German-British Chamber of Industry and Commerce, Bob Bischof, says;

"Does anybody get the message that these deals are a sure way to manufacturing oblivion in the UK."

 

We have just sold one of the last substantial engineering companies in the UK, Ivensys, to the French Industrial Giant Schneider Electric.

 

Bischof says "It beggars belief, but is sadly a typical British Industrial story. In the UK, short-term shareholder value rules, and the Brits will sell anything and everything to please the City. There are dozens of industries and companies where the same or similar has happened. It's a favourite game in the UK to enhance so-called shareholder value. It promises faster returns for shareholders and bonuses for the board members rather than following the slower path of growing their companies organically, and investing in the future and prosperity of UK Plc.

As a German living in this country I am aghast at this"

 

Bischof goes on to demonstrate his point with several examples of ill-fated UK deals and sell outs that should never have happened.

 

This is the real reason why Britain is going down the pan. Bad management and governance and looking after number 1. Lets make even more money for ourselves and sod the country and the British people...

 

Where will it end...

[SevenRivers]

But if other companies (foreign or domestic) are buying or investing in other UK companies, why would would they be doing that unless they saw the potential for growth?

[andygardener]

But if other companies (foreign or domestic) are buying or investing in other UK companies, why would would they be doing that unless they saw the potential for growth?

 

I don't know the details of the ivensys deal but there are a variety of reasons why companies buy other companies and they are certainly by no means always good news for the company being bought.

 

Buy the company for the customer base and then start switching over the aquiring companies products, buy the company for the brand and keep the brand but start switching to the aquiring companies products or just straight buy the company to run it down to take a competitor out of the market.

 

Not saying this is the case here but all of the above have happened many times when foreign companies "invest" in the UK by acquisition (as opposed to investment from abroad in UK industries)

[Ela James]

Any neutral observer would quickly notice the problem with many British great stories.

Management.

An article on the BBC website last week said “ In Germany, management and unions worked closely together in the interests of the common good. .. In Britain, by contrast, car factories in the 1960s and 1970s became daily battlegrounds, where militant shop stewards and complacent managers fought out an overt class war.

One fact probably says it all about the difference between Britain and Germany in the post-war years. In 1978, for every day that German manufacturers lost to industrial action, we lost ten.”

[Vague_Boy]

In 1978, for every day that German manufacturers lost to industrial action, we lost ten.

 

Good post.

 

Post-war industrial relations in the UK is a very sorry story. The Boulting Brothers film I'm All Right Jack satirized both the unions and the management (in one plot point, Richard Attenborough's character is trying to provoke a strike in one company so that his factory can benefit).

 

This kind of short term, "me first" thinking is still very evident in a lot of manege rial decisions today.

[tinfoilhat]

Any neutral observer would quickly notice the problem with many British great stories.

Management.

An article on the BBC website last week said “ In Germany, management and unions worked closely together in the interests of the common good. .. In Britain, by contrast, car factories in the 1960s and 1970s became daily battlegrounds, where militant shop stewards and complacent managers fought out an overt class war.

One fact probably says it all about the difference between Britain and Germany in the post-war years. In 1978, for every day that German manufacturers lost to industrial action, we lost ten.”

 

And a very good article it was too. But mr gardener is right, we are way to keen at boardroom level to sell large companies to any old Tom dick or Harry and don't hold them to any promises once its sold. See the cadburys deal for example. It just doesn't happen any where else, but has happened here for decades.

[Ela James]

The problem is probably more complex if I am honest.

It might be a combination of Leadership + Management. I am aware that the relationship between management and labour is generally not so positive, I still blame the top guys for failing to find a solution, particularly and more so when the problem is familiar.

I am not English it saddens me and make me speechless when I see huge potential wasted … and this happens almost daily unfortunately

[Mecky]

Why sell your assets? Simple, people put themselves before others

[tinfoilhat]

Why sell your assets? Simple, people put themselves before others

 

Sort of. They sell to keep shareholders happy, which keeps share prices up (which helps pension funds too I guess)

[Anna B]

Many people are still under the illusion that we have a benign government that cares about its people, when actually most of them are basically in it for themselves. I'm afraid that we're just an afterthought.

 

What other reason could there be for the way they are running this country into the ground?

 

---------- Post added 08-08-2013 at 00:33 ----------

 

Any neutral observer would quickly notice the problem with many British great stories.

Management.

An article on the BBC website last week said “ In Germany, management and unions worked closely together in the interests of the common good. .. In Britain, by contrast, car factories in the 1960s and 1970s became daily battlegrounds, where militant shop stewards and complacent managers fought out an overt class war.

One fact probably says it all about the difference between Britain and Germany in the post-war years. In 1978, for every day that German manufacturers lost to industrial action, we lost ten.”

 

I read it too, and it made sense.

 

Even our terminology and language is confrontational - Management make 'offers,' but Unions make 'demands.'

 

No signs of co-operation there then....