Why did British engineering and manufacturing skills decline so dramatically in the 60s, 70s and 80s, especially when compared with Germany's?

The decline of British engineering and manufacturing skills in the 1960s, 1970s, and 1980s can be attributed to several key factors, which contrast sharply with the strategies employed by Germany during the same period.

Key Factors Contributing to the Decline

1. Lack of Investment and Innovation:

   • Underinvestment: British manufacturing suffered from a chronic lack of investment in modern equipment and technology, which hindered its ability to compete with countries like West Germany15. In contrast, Germany invested heavily in manufacturing infrastructure and innovation.
   • Innovation Gap: The UK failed to adopt leading technologies and lacked a coherent strategy for innovation and growth, particularly in state investment in R&D5.

2. Industrial Policy and Management:

   • Post-War Settlement: The post-war policy regime in the UK included nationalization, support for failing companies, and toleration of militant trade unions, which led to poor industrial relations and a lack of effective competition policy15.
   • Management Practices: British firms were often too small-scale and lacked professional management, failing to exploit economies of scale and scope5.

3. Economic and Political Context:

   • Free Market Policies: The shift towards free market policies in the UK, especially under Thatcher, led to a fast and loose approach to manufacturing, favoring supply and demand dynamics that undermined the industry1.
   • Regional Disparities: The UK experienced significant regional disparities, with growth concentrated in London and the South East, while industrial areas in the North faced decline5.

4. Global Competition and Trade:

   • Global Economic Shifts: The UK faced challenges from rising global competitors like Japan and the USA, while also dealing with the economic volatility of the 1970s3.
   • Trade Balance: The UK became a net importer of manufactures, including components, which further eroded its manufacturing base2.

Comparison with Germany

• Investment and Innovation: Germany invested heavily in manufacturing and innovation, adopting advanced technologies and maintaining a strong focus on quality and efficiency.
• Industrial Policy: Germany had a more coherent industrial policy, supporting strategic sectors and fostering a collaborative environment between government, unions, and employers.
• Economic Stability: Germany maintained economic stability and a strong manufacturing sector, which helped it weather global economic challenges more effectively than the UK.

Overall, the combination of underinvestment, poor industrial policy, and economic instability contributed significantly to the decline of British engineering and manufacturing skills compared to Germany's more robust and strategic approach.