Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Cameron In Push To Bring Western Firms Back From Asia

Recommended Posts

http://www.reuters.com/article/2014/01/24/us-davos-britain-cameron-idUSBREA0N00K20140124

Prime Minister David Cameron will use a speech at Davos on Friday to say Britain and the West have an opportunity to boost their economic fortunes by luring back jobs and factories from Asia, a trend he says is already underway.

Speaking at the World Economic Forum's annual meeting, Cameron will say that rising costs in Asia and the need to react more quickly to changing consumer demands mean companies find the prospect of relocating jobs and services back to their home countries attractive.

"For years the West has been written off. People say that we are facing some sort of inevitable decline. They say we can't make anything anymore," he will say, according to extracts of his speech released by his office.

"I don't believe it has to be this way. If we make the right decisions, we may also see more of what has been a small but discernible trend where some jobs that were once offshored are coming back from East to West."

Citing the example of the United States, where a boom in domestic shale gas production has helped lower energy costs, he will hold out the prospect of cheaper energy in Britain if it can tap its shale resources in a similar way as another possible reason for firms to relocate.

Trouble is Dave no one is going to allow energy prices to fall in the UK as the UK consumer is to be bled dry.

Share this post


Link to post
Share on other sites

But what other country could produce something like Dave? Bluster, condescension and over-confidence. We've still got something unique to give the world I tell you!

Share this post


Link to post
Share on other sites
If we make the right decisions...

So what are the right decisions Dave? Offshore production to somewhere where the labor is cheaper? Is theat the correct decision for a profitable company to make?

Share this post


Link to post
Share on other sites

BBC reported some nonsense about Dave saying Fracking would make us competitive and attract loadsa business.

Sorry Dave, it might help the GDP, but energy purchase is energy purchase to a blind chimp...I dont recall fuel prices falling because we dug it up ourselves....something to do with selling it abroad at the best possible price???

Dave, you are a tosser.

Share this post


Link to post
Share on other sites

My whole business revolves around importing everything from China.

One product line i can get made in around 18 different factories in China,some better than others.In the UK not one factory could make it.

Another product line i can get made in 7 factories in China but in the UK none.

The first product costs me £21.80 a unit in China FOB (onto the cargo ship) and sells in the uk at £79.99.Landed to me with all extras (VAT,Import Duty,Shiping,Lorry,paperwork) takes the final landed cost up to £33.00 a unit.

The rent on a small site to manufacture alone would cost me more than the landed price from China.

The business rates would add on another chunk.

Wages another 20%,

EU rules etc and paperwork another 14%

The end result is id be selling at a loss if i manufactured them here instead of a 120% markup if i import from China.

Not only that but i dont need to employ anyone,dont need any fixed costs.

No Dave these factories arent coming back from China,,not unless their costs go up by 100%+ while ours dont move,we leave the EU,we slash red tape and we make employing people cheap again.

The only thing i need here is somewhere to warehouse,and that is why instead of a factory industrial estates are now simply for warehousing.

In blunt terms they are there to hold Chinese made goods until shipped to the end customer.

Dave ,the expert on the economics of Asian/UK manufacturing.

Share this post


Link to post
Share on other sites

BBC reported some nonsense about Dave saying Fracking would make us competitive and attract loadsa business.

Sorry Dave, it might help the GDP, but energy purchase is energy purchase to a blind chimp...I dont recall fuel prices falling because we dug it up ourselves....something to do with selling it abroad at the best possible price???

Dave, you are a tosser.

Exactly.

We did the same with North Sea gas.

Share this post


Link to post
Share on other sites

My whole business revolves around importing everything from China.

One product line i can get made in around 18 different factories in China,some better than others.In the UK not one factory could make it.

Another product line i can get made in 7 factories in China but in the UK none.

The first product costs me £21.80 a unit in China FOB (onto the cargo ship) and sells in the uk at £79.99.Landed to me with all extras (VAT,Import Duty,Shiping,Lorry,paperwork) takes the final landed cost up to £33.00 a unit.

The rent on a small site to manufacture alone would cost me more than the landed price from China.

The business rates would add on another chunk.

Wages another 20%,

EU rules etc and paperwork another 14%

The end result is id be selling at a loss if i manufactured them here instead of a 120% markup if i import from China.

Not only that but i dont need to employ anyone,dont need any fixed costs.

No Dave these factories arent coming back from China,,not unless their costs go up by 100%+ while ours dont move,we leave the EU,we slash red tape and we make employing people cheap again.

The only thing i need here is somewhere to warehouse,and that is why instead of a factory industrial estates are now simply for warehousing.

In blunt terms they are there to hold Chinese made goods until shipped to the end customer.

Dave ,the expert on the economics of Asian/UK manufacturing.

Isn't this reshoring happening quite a bit in the USA?

If it happens, presumably it will start with the higher value added, higher skilled stuff first? Like offshoring in reverse?

Edited by oldsport

Share this post


Link to post
Share on other sites

My whole business revolves around importing everything from China.

One product line i can get made in around 18 different factories in China,some better than others.In the UK not one factory could make it.

Another product line i can get made in 7 factories in China but in the UK none.

The first product costs me £21.80 a unit in China FOB (onto the cargo ship) and sells in the uk at £79.99.Landed to me with all extras (VAT,Import Duty,Shiping,Lorry,paperwork) takes the final landed cost up to £33.00 a unit.

The rent on a small site to manufacture alone would cost me more than the landed price from China.

The business rates would add on another chunk.

Wages another 20%,

EU rules etc and paperwork another 14%

The end result is id be selling at a loss if i manufactured them here instead of a 120% markup if i import from China.

Not only that but i dont need to employ anyone,dont need any fixed costs.

No Dave these factories arent coming back from China,,not unless their costs go up by 100%+ while ours dont move,we leave the EU,we slash red tape and we make employing people cheap again.

The only thing i need here is somewhere to warehouse,and that is why instead of a factory industrial estates are now simply for warehousing.

In blunt terms they are there to hold Chinese made goods until shipped to the end customer.

Dave ,the expert on the economics of Asian/UK manufacturing.

I am sure what you say is generally true. However its not wrong to try and get more goods manufactured here. Costs in China have risen quite sharply of late. If any manufacturing does return in any quantity worth discussing, then it won't be because a Tory govt is a success, but only because something became economic.

Share this post


Link to post
Share on other sites
Isn't this reshoring happening quite a bit in the USA?

If it happens, presumably it will start with the higher value added, higher skilled stuff first? Like offshoring in reverse?

It is happening in some places- but the plants are heavily automated so it's not a lot of new jobs being created, which why I guess they can afford to come back.

Share this post


Link to post
Share on other sites

He just wants more business to set up over here, so his mates can flog 'em off later and cream 25% off the top!

The bankers have sold everything off and have got nothing to do. :lol:

Share this post


Link to post
Share on other sites

Even with the best will in the world apparently fracking is quite short lived. What's going to happen then. The UK offshored a lot of jobs when there was plenty of North Sea oil and now Glib Dave says fracking will bring industry back to the UK. Pull the other one.

It's all just part of the fake recovery hype. In fact it just confirms how hyped and fake the recovery story is.

Share this post


Link to post
Share on other sites

It is happening in some places- but the plants are heavily automated so it's not a lot of new jobs being created, which why I guess they can afford to come back.

Exactly, the manufacturing might come back but the jobs won't.

Products that require a lot of hand-finishing will be the ones most likely to stay in China. However, what's interesting is presenting products in a manner suitable for retail display is often an element of production particularly hand-finish intensive. As distribution transitions from shops to online the retail packaging element of production becomes redundant.

Edited by SNACR

Share this post


Link to post
Share on other sites

Exactly, the manufacturing might come back but the jobs won't.

Products that require a lot of hand-finishing will be the ones most likely to stay in China. However, what's interesting is presenting products in a manner suitable for retail display is often an element of production particularly hand-finish intensive. As distribution transitions from shops to online the retail packaging element of production becomes redundant.

If the jobs don't come back people won't be able to buy at any price.......bulk automation with lower energy costs will make some things affordable to buy as British...... If wages increase and fuel and rent continue to increase as they have been, how could we sell to our own let alone export to other countries that could or would buy from us when they don't have to?

Share this post


Link to post
Share on other sites

I am sure what you say is generally true. However its not wrong to try and get more goods manufactured here. Costs in China have risen quite sharply of late. If any manufacturing does return in any quantity worth discussing, then it won't be because a Tory govt is a success, but only because something became economic.

Not only manufacturing... Take IT ... The big India based outsourcers have wage bills now approaching western levels ..where a decade back the differential would have been to the order of 7-10 times , its now at best 2 times local wages.. And admittedly if the industry invested in training local talent, they could make up that advantage ...

Share this post


Link to post
Share on other sites

Prices havent increased in China,far from it.

Prices nearly started to rise two years ago and factories were trying to push through increases then.However as input costs fell they stopped asking for increases.

Im paying the same FOB (on the boat) prices as i was 3 years ago.

The only part of the import cycle that has gone up is the UK end.Shipping port to warehouse mainly.

Some large scale process manufacturing would return if shale gas meant cheap energy as their costs are mostly that very energy.

Some assembly might return as its cheaper to ship in containers of parts and build here rather than ship in the finished goods.A good example are washing machines as they contain a lot of empty space and you cant get many on a container.

The bread and butter manufacturing though that creates the most jobs wont be coming back.No chance unless the £ collapses.

Share this post


Link to post
Share on other sites

snip

Some large scale process manufacturing would return if shale gas meant cheap energy as their costs are mostly that very energy.

snip

I read that Fracking is expensive...it is only possible while prices are high.

Prices, therefore, arent going to be cheap.

Share this post


Link to post
Share on other sites

Exactly, the manufacturing might come back but the jobs won't.

Products that require a lot of hand-finishing will be the ones most likely to stay in China. However, what's interesting is presenting products in a manner suitable for retail display is often an element of production particularly hand-finish intensive. As distribution transitions from shops to online the retail packaging element of production becomes redundant.

not necessarily.

geopolitics may yet force the hand of some of these offshorers to think again.

specifically the situation in the Middle east.

yes we have syria/iran on the front burner,but that could(and probably will) escalate to engulf other oil states like saudi ,jordan and qatar-and probably iraq again(I think the bandar/putin debacle has pretty much guaranteed that).

when oil is not only $400-500 per barrel, and 80% of the middle east supply is dried up because of warfare/terrorism the UK/US Eurpoean car manufacturers etc will not have the luxury of shipping things halfway round the world to be polished for $1 per day, and then shipping them back again.

at which point we need to cement our old alliances(like canada), and have a look at some less hostile ones like brazil.

Edited by oracle

Share this post


Link to post
Share on other sites

when oil is not only $400-500 per barrel, and 80% of the middle east supply is dried up because of warfare/terrorism the UK/US Eurpoean car manufacturers etc will not have the luxury of shipping things halfway round the world to be polished for $1 per day, and then shipping them back again.

Will never happen. The US has all those military bases to ensure the oil-producing states keep using the US dollar. Nothing else is more important than protecting the western monetary system. They can descend into anarchy all they like (just look at Iraq) but they will keep using the US dollar.

Just look at Nigeria. The oil is pumped right out of the country and the people barely benefit.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   204 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.