I still think that the UK is missing out on the Lions share of any profit / boost which these ideas are 'supposed' to create.
Taking Televisions and the forced changeover to digital, and also this scrappage scheme as two recent examples. In both cases some labour element has been boosted, for example those fitting aerials and those assembling and selling cars. Yes, its a move in the right direction, but in the grand scale of things its very little in real terms in relation to the aspect of UK Manufacturing. Whilst you may find that buying a new TV keeps the one man aerial company in business, those hundreds of production line jobs at Fidelity, Ferguson, Amstrad and other UK TV Manufacturers went decades ago, and I haven't seen many TV Assembly plants being built in relation to the digital fiasco, neither have I seen many new car plants springing up in relation to the scrappage scheme. Have you?.
So surely the BULK of the profit from these industries is actually in the design and manufacturing of these products? is that not where the biggest money and profit margin lies? and sadly the bulk of that is not investment in the UK nor helping UK companies, these TV are still being made by several hundred people in a Factory in Korea. Poland or China as opposed to Sunderland, Nottingham and Wolverhampton - as are most car parts and assembly.
In most cases the labour has been retained, but all they are doing is assembling a 'kit' manufactured in other countries.
This was also highlighted on the 'Tonight' program a few weeks ago which covered this angle. They interviewed a key person within a car manufacturing plant abroad and asked him what parts of the car (I think it was a Golf) were made / exported from the UK.
After a period of silence & thought, the guy eventually mentioned that he thought that the Tyres were bought from the UK.
Well whoopee do!, when you buy this model under the scrappage scheme, then you help to keep one UK tyre manufacturer in business. What about the several thousand other components in this vehicle? where are they manufactured?, obviously not in the UK, so how exactly is encouraging people to buy new cars securing the long term future of UK manufacturing then?, if only a tiny fraction of a percentage of a very popular car is actually being made in the UK?. If there is hardly anything in the car being made in the UK right from the start, then there is no possible way that it can be boosting our manufacturing output.
Perhaps those tempted to buy a new car under this scheme should perhaps be encouraged to visit the dealer of their chosen model and make purchase a proviso of being given a sheet stating which components are made and assembled in the UK and so they can see how much of our manufacturing is being saved by this scheme and their purchase. I suspect the results would be one hell of an eye opener.
Basically the other reason that we retain some of this manufacturing and assembly within the UK, is because our labour rates are still significantly less than those in other countries. Not the Far East / Eastern Europe obviously, but compared to other European countries our workforce earn less per hour than their European counterparts. So thats 'okay' is it?.
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Yes, Britain does price itself out of the market in a ridiculous fashion.
It's not about pricing ourselves out of the market. Compared to some manufacturers elsewhere in the world, UK products are still reasonably priced and our minimum wage low. However to compete with the Far East we would have to work for about £15 a week!. Would you be willing to work for that?
Incidentally, in my job I also have not had a pay review this year, I earn less than £14k / year and have no pension or sick pay. Hardly a glowing accolaide for UK Manufacturing is it? and I don't consider my employer to be spending ridiculously

however its still preferable to Unemployment. I wonder if the Car Manufacturing / Assembly Industry in Germany, (for example) is so hard done too?. I honestly can't see those working at Bosch, Hella, Tyco, BMW, Mercedes etc etc working under those terms!.
Most of the cost levied to manufacturing in this country comes down to the fact that we are taxed to the hilt and there is very little incentive out there for getting people to start their own companies along with few proper apprenticeships for them to gain a trade in order to start a business in the first place!.
So the OP asked if anybody from inside the industry, could comment on the situation. So in reply, I can speak from experience on the manufacturing aspect of Automotive components and say that this scrappage scheme has done nothing to boost our workload (we wouldn't be on short time if it had), nor has it done anything to secure our jobs (or our confidence) or boost our turnover.
This scrappage scheme may well have been good intentioned, but you can't polish a turd, and that pretty much sums up the state of manufacturing and level of investment into new industry here.