I read with interest your article on "the exodus in manufacturing and services" (The great Indian takeaway, Business, June 8). The trend to move manufacturing and now services to lower-cost economies has been accelerating over the past 10 years. This is an inevitable consequence of competing in a global market.
The article misses a key point: that if the globalisation process continues, it is better to have strong global companies that are based in Britain even if they don't have a manufacturing presence in this country.
It is clear that companies must relocate to exploit lower cost bases or they will become uncompetitive. In our work we have come across too many examples of companies that have remained manufacturers in Britain and have slowly been driven out of business by global competitors.
It is also true that companies that are based in Britain (even if they have moved their manufacturing or back-office operations) tend to keep more British jobs, in sourcing, head office, R&D, finance, marketing and supply chain.
Ultimately, we should focus our energies on building British-based companies that have a global presence or need to build one. This will help to ensure that good high-value jobs remain in this country, rather than concerning ourselves with preserving jobs that can be done more cheaply and better elsewhere.
