I wonder where these branded products are made nowerdays…
Almost anywhere in the world it’s cheap. Manufacturing has been heavily deskilled, and a modern installation needn’t rely on trained operatives. Instead, high-end machines are set-up by a relatively small team of experts and operated by unskilled low-paid locals. In these regimes, quality can be set to whatever level is required, anything from cheap and nasty to aerospace.
Manufacturing nations follow much the same trajectory. They enter the game by making cheap tat, but because there’s very little profit in it, they gradually move up-market. As their standard of living rises, it becomes harder to recruit cheap workers, many of whom having been educated, prefer not to spend their lives minding machines.
Birmingham England was once world famous for tat, and were later out-tatted by Belgium and the USA. In the early 20th century Germany swamped the USA, who were leaving tat behind, with cheap goods. Cheap German tat gave us the phrase ‘on the fritz’. Tat production moved later to mittle-europa, with honourable contributions from Spain and Italy, after which the far-east took on that role.
Making tat is a temporary phase. ‘Made in Japan’ was once a synonym for complete rubbish. Not so today – Japan is high-end, as are the manufactured products of the UK, Germany, USA and all the other early manufacturing nations. Now they make expensive premium products, think CAT machines and aerospace rather than plastic clothes pegs and toasters, and millions of jobs have gone!
China is mid-way through the process, with India trailing a little behind. Both countries have a mix of low-end primitive enterprise and state-of-the-art technology. As the proportion of state of the art rises, so it becomes more difficult in that country to make a living out of tat. There is still demand for it because customers are always looking for the cheapest way of getting what they want, which opens to door to other undeveloped countries joining the game. Quite likely in 20 years that China will be flooded with tat originating from Africa or unlikely South American nations! Also possible that low-end manufacturing could restart in the west, but only if labour costs drop significantly due to a major economic collapse – maybe a big chunk of service sector is a bubble.
On average the way manufacturing shifts internationally to the cheapest provider makes us richer. UK consumers don’t have to subsidise low-productivity British firms, and British firms don’t have to compete for workers who can get well-paid comfy jobs in the more profitable service sector. People tend to follow the money, which grows the economy in some areas whilst shrinking others. Of course there are serious disadvantages too!
At the moment most branded products come from China. I’m not a betting man, but predict China will face increasing competition in my lifetime from India, with several others waiting in the wings. As a way of making a living, manufacturing is brutal. What worked for the UK, USA and others in the previous millennium isn’t profitable today. It’s essential to adapt and change.
Dave