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April 05, 2006



Morning Chris,

"I honestly don't know what the answer is here. But I do know that if UK manufacturing can't grow now, when the global economy is strong, one wonders whether it ever can."

Well, diminishing comparative advantage is forever decreasing our range of manufactured products. At this junction (that our country arrived at many years ago) a resilient world economy is almost irrelevant because we are competitively disadvantaged. Those countries that are at a competitive advantage will gain more from a resilient world economy.

The UK manufacturing industry will have to be highly specialised and sell high value added products, like gears for racing cars, but that will make a small impact on our economy, though it currently stands at around 15%. The times are even gloomier and - I'm sorry to say - will only get worse. Blame globalisation (which I am a proponent of).

On a separate mote, I responded to your efficiency bias article here:

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