I don't know what it is about this country that makes us expect that we can just survive during a period of economic downturn. Muscle labour goes where muscle labour is cheaper and that is not here. The likes of India, Pakistan, Africa, China & other countries can buy and sell us in GNP and we still have an unfounded sense of superiority, there is glory in the high street. I can't help feel sorry for this country and it inability to see its flawed state, the lack of education and perception by the general population is worrying.
In the industry I am seeing a shift towards the supplier handling engineering information & the distribution of capital. This shift removes the need for responsibility from the client onto the sub-contractor, allowing any loss of earn
ings or wealth to be placed on the contractor and as such its moves down the supply chain affecting the small businesses. In an ever increasing technology market where information plays a key role to defining project outlines, an information age equips companies at the low level of supply chain to adequately protect themselves by use of referencing electronic sources. This therefore drives prices higher as contractors are usually submitting fixed prices in accordance with limited specifications which are left open to
perception, prices are increased accordingly with notions of contingencies, out of hours works and in the case of the more wary contractor, sundries of captital to cover equipment poorly or wrongly manufactured. The more astute contractor will search the www or by use of previous examples of work to outline the scope of supply.
Going forward, small manufacturing companies are quoting work well above their capabilities and sub-contracting out the parts to suppliers who ought to have had the project placed on them entirely. Generally companies supplying any pr
oduct outside of their scope of work have alot of things to be wary about, a first venture into an unknown or generally known product will ultimately lead to many problems including:
A loss
Over stretched resources (affecting standard
working practices)
Loss of reputation through poor comparative standard
In conclusion, it really affects industry when a new competitor undercuts everyone fulfilling the specification & produces an inferior product. This then leads to hesitance with existing suppliers by clients demanding much more stringent deliverables through lack of trust in the industry, leading to poor product service.
Rant over.
