Britain's Manufacturing Renaissance: Embracing the Developing Country Mindset
As Keir Starmer recently discovered during his visit to China, the tables have turned. What was once the epitome of manufacturing prowess now finds itself eclipsed by its East Asian counterpart. The reality is stark: Britain has ceased to be a major player in the industrial sector and is now reliant on services.
To regain its footing, Britain must adopt a new mindset – that of a developing country. Thatcher's ideology, which once drove the nation's manufacturing ambitions, no longer holds sway. Instead, it's time to recognize that manufacturing matters and that a strong productive base is essential for economic prosperity.
The statistics are telling: services now account for 80% of Britain's economy, dwarfing its manufacturing sector. Yet, this imbalance has persisted for decades, with productivity lagging behind global peers. The reason lies in the interdependence between services and industry – without a robust manufacturing sector, exports of services cannot compensate.
China's transformation serves as a prime example. Deng Xiaoping's 'socialism with Chinese characteristics' initially focused on mass-produced goods, leveraging lower labor costs to gain a competitive edge. Today, China is an industrial powerhouse, producing electric vehicles and vying with the US in artificial intelligence.
To rebuild Britain's industrial base, a colossal effort is required. This will necessitate charting a new course and sticking to it for longer than a couple of years. A dedicated economic ministry with the power to face down bean counters in the Treasury would be invaluable, as investment – both public and private – will be crucial.
However, several challenges arise. Can Britain's fledgling factories compete with established overseas competitors? The answer lies in government intervention. Measures such as stipulating domestic components for goods sold in Britain, a "buy British" procurement policy, or subsidies and tax credits for UK manufacturing plants could help level the playing field.
Ultimately, Britain must adopt a developing country mindset to rebuild its manufacturing sector. By embracing this approach, it can create a thriving industrial base that complements its services sector. The bottom line is that time has run out for complacency – the future of British manufacturing depends on it.
As Keir Starmer recently discovered during his visit to China, the tables have turned. What was once the epitome of manufacturing prowess now finds itself eclipsed by its East Asian counterpart. The reality is stark: Britain has ceased to be a major player in the industrial sector and is now reliant on services.
To regain its footing, Britain must adopt a new mindset – that of a developing country. Thatcher's ideology, which once drove the nation's manufacturing ambitions, no longer holds sway. Instead, it's time to recognize that manufacturing matters and that a strong productive base is essential for economic prosperity.
The statistics are telling: services now account for 80% of Britain's economy, dwarfing its manufacturing sector. Yet, this imbalance has persisted for decades, with productivity lagging behind global peers. The reason lies in the interdependence between services and industry – without a robust manufacturing sector, exports of services cannot compensate.
China's transformation serves as a prime example. Deng Xiaoping's 'socialism with Chinese characteristics' initially focused on mass-produced goods, leveraging lower labor costs to gain a competitive edge. Today, China is an industrial powerhouse, producing electric vehicles and vying with the US in artificial intelligence.
To rebuild Britain's industrial base, a colossal effort is required. This will necessitate charting a new course and sticking to it for longer than a couple of years. A dedicated economic ministry with the power to face down bean counters in the Treasury would be invaluable, as investment – both public and private – will be crucial.
However, several challenges arise. Can Britain's fledgling factories compete with established overseas competitors? The answer lies in government intervention. Measures such as stipulating domestic components for goods sold in Britain, a "buy British" procurement policy, or subsidies and tax credits for UK manufacturing plants could help level the playing field.
Ultimately, Britain must adopt a developing country mindset to rebuild its manufacturing sector. By embracing this approach, it can create a thriving industrial base that complements its services sector. The bottom line is that time has run out for complacency – the future of British manufacturing depends on it.
. It's crazy to think about Thatcher's era being all about industrial might, and now they're basically chasing after services 
. China is literally an example of what happens when you focus on mass production - they went from nothing to a full-fledged industrial powerhouse! 
Like, wouldn’t that just end up pricing UK consumers out of the market? And what about the EU? Are they gonna be okay with this new policy if they're still part of the union? 
. It'd give them more freedom to make decisions and invest in UK manufacturing without being held back by bean counters 
.
. Time to rethink their whole industrial strategy... maybe? 
. i mean, don't get me wrong, we do have some nice gadgets and whatnot but come on, we're basically a services country now... it's like the rest of the world is moving forward without us 
.
they figured out how to make good tech and cars and now they're giving the US a run for their money 
. we need to do the same thing in Britain, adopt a mindset that says manufacturing matters and we can't just rely on services forever 
. its not just about making things, its about creating jobs and industries that will grow and bring in revenue 
. government needs to step up and support these new factories with subsidies and stuff 
with a major breakdown. we need to switch to developing country mode 
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. this means gov intervention like stipulating domestic components or "buy british" policies 
. but most importantly, we need to rethink our approach and not just focus on services 
.
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