How Europe’s audio industry benefited from offshoring
Europe’s high-end hi-fi industry has long had an excellent reputation. But in the past 30 years, European manufacturers have found it difficult to compete against cheaper products from Asian manufacturers. European manufacturers that have chosen to be “patriotic” and keep production at home have often found themselves going out of business. But Europe’s hi-fi industry has seen successes too. Audio Partnership plc, which bought up a range of European hi-fi brands like Cambridge Audio and Mordaunt-Short loudspeakers, moved production to Asia while creating high-wage research and development jobs in the UK. The lower cost of manufacturing frees up money for research and development, making future generations of product more competitive and keeping the business sustainable. This is an excellent example of a European company properly taking advantage of globalisation.
Trade unions don’t like it when companies offshore production. They seem to want a Europe that lives in the past, where workers are doing jobs that have become commoditised. The simple fact is that we Europeans cannot rely on commodity manufacturing jobs. Those jobs do not pay enough. Instead, we should allow specialisation throughout the world economy, creating high-wage jobs here and allowing those who place more value on commodity jobs to take them. Far from being squeamish about offshoring, policymakers should welcome it as an essential part of creating new and better jobs in Europe.