Saturday, 13 January 2018

Growth goes where the skills are

Supercar manufacturer McClaren is to create almost 200 jobs in South Yorkshire, UK manufacturing chassis which are currently made in Europe and sent to the UK to form the basis of the assembly process.  Why did McClaren choose South Yorkshire?  Because South Yorkshire (and Sheffield in particular) has a history of investing in Advanced Manufacturing techniques and skills.

My colleague Tom Tuttle, a board member of the World Confederation of Productivity Science, in his recent book looked at the reasons why some areas in America were more successful in securing inward investment than others - and one key point to emerge was that manufacturers take factories (and jobs) to where the skills are.

So Sheffield snd South Yorkshire are getting a return on their investment and securing a manufacturing future for the region.

It is good to see their long-term commitment bearing fruit.

Saturday, 6 January 2018

Public sector unproductive?

Australia's Productivity commission has slated the public sector for its poor productivity. Yet when you read the report what it is really saying is that the public sector, unlike the private sector, fails to measure productivity - and therefore is unable to know whether it is moving in the right direction.

This seems a little harsh.

How does the Australian public sector compare to the US, the UK, Canada or Denmark?

I don't know - but I suspect neither does the Productivity Commission.  Making conclusions on the basis of insufficient information is not what we expect form a body charged with promoting productivity.

So give the public sector a chance. Give them some targets to achieve - and chastise them if they fail to meet them.  But don't criticise them for not achieving unknown targets.