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Japanese blueprint the way forward for Wales
by Tomos Livingstone - 18/01/2010
"WALES needs to follow the lead of Japan to retain key hi-tech manufacturing jobs, industry experts said last night."
With Chancellor Alistair Darling insisting he was “confident” the recession was over, workers at the Bosch plant near Cardiff were picking up the pieces yesterday after an announcement that 900 jobs were to go.
The car parts manufacturer is planning to close its operation at Miskin, Vale of Glamorgan, in 2011 and shift production to Hungary.
“This is not going to be the last announcement of its kind that we will see in British or Welsh manufacturing,” said Garel Rhys, emeritus professor at Cardiff University Business School.
“We have to move to being in front of the game and that is not going to be easy – but it is not impossible. If you look at countries such as Japan and the US, they are high-wage economies where manufacturing is still a major part of their employment.
“We must make clever products or we must have very clever processes to make products.”
Brands like Lexus, Toyota and Panasonic have established Japan as one of the world’s leading centres of highly-skilled manufacturing.
Bosch said sales of alternator products dropped by 45% between 2008 and 2009, and were expected to more than halve again this year.
Efforts are now under way to help the workers affected by the closure, and to secure work for the firms around South Wales that were part of the Bosch supply chain.
The Assembly Government is hoping a deal can be struck so those firms continue to supply Bosch, even if that means exporting goods to the German giant’s plants elsewhere in Europe.
Figures to be released next week are expected to show the recession is over, and Mr Darling said yesterday: “Everybody should be very cautious. You’ve had one of the biggest shocks to the system for a long, long time.
“It’s not something that you can just pick yourself up from and walk away as if nothing has happened. But I am confident.”
But Prof Rhys said unemployment would still rise until GDP growth was above 2%.
More Details: http://www.walesonline.co.uk/news/wales-news/2010/01/16/japanese-blueprint-the-way-forward-for-wales-91466-25612840/
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