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Why Doesn't Britain Have a Huauei of its own?

This was the headline in the Guardian Opinion section for May 8 th 2019 written by Aditya Chakrabortty.


To answer this question he examines the history of GEC after Arnold Weinstock left in 1996  and <quote> "all hell broke loose" with the appointment of George Simpson (an accountant), and John Mayo (from the Merchant Banking world).


Even companies outside of Britain (examples RCA and Westinghouse)  have been afflicted by the same upper management failures.


What does Britain have to do to create a business climate that will allow world class companies to thrive?


Peter Brooks MIET

Palm Bay Florida USA
  • Former Community Member
    0 Former Community Member
    Perhaps because UK hasn't had and still doesn't have real industrial strategies. Also, too many decades, as a dogma and mantra of 'market forces must dominate policy',  successive UK government have allowed all its best IT companies to be bought by foreigners that then get saddled with buyers financial problems, profits exported, UK tax payments reduced through accountancy manipulations, pensions raided or poorly funded, etc - a loss, loss scenario for UK plc and national industrial capability?


    Dialog bought by American Apple - https://www.independent.co.uk/news/business/news/apple-buys-dialog-600-million-deal-uk-chipmaker-a8578731.html 


    Imagination bought by Chinese company Canyon Bridge - https://www.bbc.com/news/business-41369376 


    ARM bought by Japanese Softbank  https://www.thisismoney.co.uk/money/news/article-5492145/Chip-maker-giant-ARM-set-saddled-3-6bn-debt.html 


    For decades UK governments have cut industrial costs at home (with subsequent loss of jobs, taxes, indigenous capability) by exporting manufacturing capability, jobs and IPR, then bought it back (further sending uk money abroad) and becoming vulnerable to the whims and technology exploitation of foreign companies and governments.


    Perhaps certain critical capabilities, technologies and companies need to be declared critical national infrastructure and saved from being raided, bought out and diminished by foreign companies and governments, and a 'develop and buy UK' attitude taken as part of UK government sustainable procurement?

  • Hello Maurice:


    I think you are 100 % correct.


    From my perspective, I believe my favorite UK musical group " Peter Shop Boys " nailed it is 1987 with their song "Shopping". If you haven't ever listened to it or don't remember it, try youtube.com.


    It is due to Politics (Parliament)  and money (The City banking system).


    Peter Brooks MIET

    Palm Bay Florida USA
  • Correction"


    PET SHOP BOYS -on the record "Actually".


    Peter Brooks
  • Former Community Member
    0 Former Community Member
    Excellent reminder


    "I heard it in the House of Commons, everything is for sale"
    https://www.youtube.com/watch?v=TMRCuB0Ykc8
  • Former Community Member
    0 Former Community Member
    with the lyrics
    https://www.youtube.com/watch?v=Vn2NQrdhlhI
  • This reminds me of albums I must dig out again. I guess even the Pet Shop Boys are now golden oldies?
  • Sometimes one has to look to the arts (such as the PSB song) to see the root causes of the current situation, but that doesn't supply the answers of what Britain has to do to resolve it them.


    Obviously government has to be involved in providing direction and "seed" funding, but unbiased countrywide public pressure/education must come first. 


    For me one of the best British assets has always been the Political Cartoons -- I am showing my age, but the role played by "Punch" can not be denied.


    Currently one of the best cartoons concerning the "city" banking system is In the Telegraph business section called "Alex"- it reflects the tensions within the banking community in its attempts to circumvent curbs on previous excesses.


    Peter Brooks MIET

    Palm Bay Florida USA
  • GEC, Plessey, Marconi, ITT, STC  are the big non-existent UK names who might have been, but behind them were very many smaller makers of the test gear and the design tools, like Advance (of signal generator fame), Cossor ( 'scopes and  test receivers) AVO for meters, and many others - along with smaller essentials to a fast R and D operation. The PCB prototyping houses, the folk who can make metal boxes quickly, in effect without the big demand, the entire infrastructure of these businesses slowly withers, ideally you need indigineous capability not just to design 'phone hardware, but to build the network analysers, design and make the antenna arrays, manufacture substrates for RF PCBs etc.  Esssentially, over the last 30 years or so it has either closed totally, or become an importing shop for other countries skills.


    It is very telling that there are no semiconductor foundries making microwave ICs in the UK, and no makers of high frequency PCB material or the small passive components like Mullard and EMI and others used to do, so it all has to be imported, and that makes it slow and expensive compared to the folk who can just get something sent in the post next day from within the same country.


    So it just never gets off the ground.

    You can debate the detail  of the cause, but once its gone, short of a wartime type stimulus, it will almost certainly not restart.

  • Maurice Dixon:

    Perhaps because UK hasn't had and still doesn't have real industrial strategies. Also, too many decades, as a dogma and mantra of 'market forces must dominate policy',  successive UK government have allowed all its best IT companies to be bought by foreigners that then get saddled with buyers financial problems, profits exported, UK tax payments reduced through accountancy manipulations, pensions raided or poorly funded, etc - a loss, loss scenario for UK plc and national industrial capability?




    Would you consider it to be the result of a succession of 'unpatriotic' governments when it comes to infrastructure and strategic industries?


    I have long suggested that what is needed as an alternative to the economic policy that has prevailed since 1979 is not a government based on socialism but one based on nationalism. Basically a government that is a respectable version of the BNP!


    Has the EU been instrumental at eroding away engineering in Britain since 1979? The IET campaigned for Remain back in 2016 but would there be potentially better opportunities to revive strategic industries after Britain has left the EU?


  • If you go back a little further in time you would have mentioned Marconi Osram Valve (MOV) company where I started work.


    I don't think that the majority of parts used in electronics systems need to be sourced locally anymore.


    Yes Apple assembles its product in China but the majority of the parts come from companies in other countries - example Samsung in South Korea. The small low weight parts can be transported by air for "Just in Time" operations.


    There are still certain sheet metal parts that require a machine shop operation but that may disappear in the future with low cost 3D printing. Maybe a local source of high frequency multi-layer PCB's would be desirable based on local CAD system designs. Attachment glues can be purchased from Japan and South Korea. These are not show stoppers.   


    So it gets back to Political will/direction and MONEY!


    Peter Brooks MIET

    Palm Bay Florida USA