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Old 06-21-2011, 02:32 PM   #1
Reveeen   Reveeen is offline
 
Join Date: Jun 2009
Location: orbital platform
Posts: 741
Legacy, legacy and no new development money.......

What you have there is a BSA "unit single" designed in 1958 as a 250. With limited funds for new product development the 1958 design was improved and enlarged. Built in workshops, with tools/tooling, in many cases predating WW1.

Japanese industry, on the other hand, has no history (or very limited history) before 1945. Combined with the generous donation of re-construction funds/tooling from the US they were set to dominate any market they desired to dominate. With low production costs, free financing, and no (0) legacy costs, they were laughing all the way to the bank (and did).

Currently the Japanese are suffering just like the British before them (and American industry). They are suffering from "legacy costs". You open plants to manufacture, your workers bargain for pensions and health care, get them, and you pay for these things long past any employee usefulness, adding to the general unit cost of your production.

There are none of these costs in 3rd world countries, and we are seeing investors flocking to those places to invest, and companies closing down here (or in Japan) to manufacture there.


 
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