Is This the End for UK Electronic Manufactures?
In today’s era, we have access to assets all round the world to purchase with thanks to the latest technology and fast shipping organisations. In some instances, we can purchase a product from as far as America and it can arrive at your doorstep in the UK the next working day. One example of speedy shipping would be from Mouser Electronics. Mouser say that ‘Selection, speed, and accuracy are the core of Mouser’s state-of-the-art warehouse with sophisticated equipment, enabling us to process orders 24/7. So, if you place your order by 8 pm CST, we will ship it out the same day’. With the up to date technology we have nowadays, it is very easy to access assets from near and far with a click of a button.
It has got to the stage where many British people purchase assets from countries such as China and Thailand because the products are cheaper, rather than assets from their own countries. According to Whistl, British women are more likely to shop from China than any other overseas country, with 47% reporting they have purchased an item from the country in the last 12 months. This also applies for companies as well. Many UK based companies will import goods from oversea electronic suppliers to sell them rather than purchasing that same product from a UK manufacturer. But why do companies do this? One of the main reasons is because it is considered more cost effective to import from overseas. Countries such as China and Japan have lower minimum wages than the UK and therefore can lower the cost of products due to less labour spend. According to www.china-briefing.com the minimum wage in Shanghai is RMB 2,480 (US$369) and the hourly minimum wage for part-time workers is RMB 22 (US$3.27). However, from the GOV UK website, the UK minim wage for over 25s is £8.21.
But What Has This Got to Do with UK Manufactures?
Well if you think about it, the more UK buyers who are purchasing products from oversea manufactures due to cost, the less business UK manufactures will receive.
Or, is This Just the Beginning for UK Manufactures?
The final decision of whether the UK remains or leaves the EU is fast approaching on October 31st, 2019. For many industries there is moral panic on how this may impact the British economy. However, UK manufactures may be in luck.
According to World Stop Exports, well over half (59.3%) of United Kingdom’s total imports by value in 2018 were purchased from fellow European countries. However, if the UK officially leaves the European Union, it could be more costly for UK citizens to import goods from European countries due to restrictions and in-depth boarder checks. Therefore, more UK based buyers may turn to UK manufactures to purchase their goods.
In today’s era, social media plays such a big part of our lives. We are constantly swamped with the latest news, products to buy, campaigns and much more. We regularly see social media campaigns about how workers are treated unfairly in harsh working environments over seas. This could potentially result in more people buying from UK manufactures as they pay a fair minimum wage of £8.21.
What Can I Do to Support UK Manufactures?
In my opinion, I would always encourage people to purchase items from UK manufactures as you are almost certain that the workers are paid a fair wage and in good working conditions. I also think that it is always beneficial for our economy to purchase items from our home soil. Not only does it cost less on postage to purchase from our home country rather than from overseas, it also is better for the environment. Purchasing items which are manufactured in the UK means there is less fuel emissions released into the atmosphere. This is because there is less transportation of product compared to shipping a product from China.
By Amy Leary
