The Benefits of Offshoring

This is an excellent piece which deserves to be read in full. By shifting manufacturing offshoe Hornby has been able to reduce manufacturing costs, of course. But in the process it\’s raised total employment in the UK and those jobs here are in hte design side, the high wage end of the business. Oh, and better products and a wider range of them.

The workers there, the workers here, the consumers and the investors all benefit.

Long live globalisation, eh?

4 comments on “The Benefits of Offshoring

  1. “By shifting manufacturing offshoe Hornby has been able to reduce manufacturing costs, of course.”

    It’s also been able to survive – Hornby nearly died. But it’s better to be dead and ideologically pure, than be alive and part of the global capitalist conspiracy against workers, eh?

  2. Its not quite clear whether the increase in workers is because of the acquisitions which included Airfix Humbrol and Corgi or through organic growth.

    Of course without him off-shoring manufacturing and turning the company round there wouldn’t have been the opportunity to make the acquisitions. In which case all 180 would have been made redundant, so yest its a great success story.

  3. Didn’t the great EU fan, James Dyson, move manufacturing off-shore but not, oddly enough, to another part of the EU but to Malaysia? It seems, when it comes to their money (as against ours), even ideologues opt for common sense.

    Tim adds: Indeed, he did, and he now employs more people in Melksham to do the design and marketing work alone than he ever did in total when he was manufacturing there.

  4. Indeed, he did, and he now employs more people in Melksham to do the design and marketing work alone than he ever did in total when he was manufacturing there.

    I’d heard he made considerable efforts to remain in the UK though, but the ludicrous regulation and planning laws eventually forced him out.

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