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Post-Brexit: Building a License-Based UK Manufacturing Sector

by John Brian Shannon

One of the great things about Brexit will be the opportunity for the UK to sign trade deals with any country in the world and some of those trade deals may be quite innovative in nature. Novel trade opportunities shouldn’t be discounted simply because no one has ever done them, but such deals should be judged on their own merits.

In the age of the 3D-printing technology for example, there’s no reason why a company in America can’t electronically transmit code to a 3D-printer in the UK, allowing the UK company to manufacture the item there. Of course, this means paying a license fee to the American company, but think of the convenience for that UK manufacturer! Not to mention instant access to the item for the UK customer, and it means jobs at both ends of the equation. If you’re concerned about the CO2 emissions involved in shipping something from America to the UK, you’ll appreciate that transmitting a few hundred lines of computer code creates only a fractional amount of CO2.

Even better, is the case for cars and trucks to be built in the UK under license from American automakers.

For example, Ford Motor Company may choose to sell millions of automobile VIN numbers (basically, the serial number of each car or truck) and the complete instruction set for building and assembling each car or truck, to a UK company that specializes in building Ford vehicles. The UK company would pay a per-vehicle license fee to Ford Motor Company U.S.A. and agree to maintain the same high manufacturing standards of the American automaker and it would be required by Ford U.S.A. to adhere to the same warranty terms and conditions.

But still! Think of the CO2 savings, think of the jobs created in the UK, think about the UK building all Ford cars and trucks in the UK for the domestic market and exporting millions of those built-under-license vehicles to Commonwealth countries that have right-hand drive cars. That market, the right-hand drive car and truck market in the Commonwealth of Nations, would become the UK’s ‘beat’ and Ford would grant exclusive rights to the UK company to sell millions of Ford cars and trucks throughout the entire Commonwealth. (Note: Canada drives left-hand drive cars like the U.S., so Canadian cars would continue to be produced in the NAFTA countries)

So far, I’ve only talked about Ford vehicles. But what if it was all vehicles?

What if all American, Japanese, Korean and EU car manufacturers decided to make the same amount of profit per car as they do now, but only needed to sell a VIN number and the ‘vehicle blueprint’/computer code for each car to a UK manufacturer in order to do so? Ergo, all right-hand drive cars destined for UK and Commonwealth customers would be built in the UK and exported, where necessary, from Bristol.

What if it was more than cars and trucks?

What if Airbus, Boeing and Lockheed Martin sold per unit license fees to UK manufacturers, along with Bombardier and Embraer? What if Caterpillar heavy equipment and Toshiba and Hyundai Heavy Industries sold per unit license fees to UK companies? Yes, those companies would earn the same profit per unit as they do now — by selling only the license fee and VIN number and the technical aspects to the UK company — which, in turn, would manufacture those units within the UK and offer them for sale in the UK and to Commonwealth of Nations countries exclusively.

I’m still not done! What if everything sold in the UK was manufactured in the UK? How many jobs would that create?

What if you wanted a right-hand drive Mercedes CLA 250 4MATIC coupe? And what if you could simply order it from Mercedes online, and the Mercedes Benz approved manufacturer would fly you from anywhere in the UK to the factory in Bristol to pick up your new car, right off the assembly line. Some people might like to arrive a day early to watch their own car being built to their own option specifications. Then, you could take a nice leisurely drive home in your brand new car and not have to pay £2000 in shipping costs to get the car delivered from Germany, as is the case now.

What if you wanted an ACER computer, or a Lazy-Boy brand reclining chair? What if you wanted a Texas A&M hoodie for walks with your dog in cool weather? Get one for the dog too, is my advice, you’ll look great together! Or, what if you wanted the latest Italian cookware? Now, what if you could simply buy what you wanted, but it was manufactured in the UK under license from the original manufacturer, and in so doing, you received it sooner, with lower shipping costs, and far lower CO2 emissions — compared to the item being manufactured overseas and then shipped to the UK?

And what about companies in the UK making those items (and many more!) for Commonwealth of Nations consumers — which will number 2.5 billion by 2022?

Great for exports and great for those countries! Why? Well, assuming the UK government doesn’t blow this once-in-a-lifetime opportunity, there won’t be enough labourers in the UK to build all those cars, trucks, forklifts, computers, furniture, t-shirts, medical instruments, dishwashers, etc., etc., etc., and the UK will need to import Commonwealth workers to keep up with demand. Which itself, will help Commonwealth nations improve their per capita, disposable income — meaning, they’ll have more opportunity to afford such items.

Yes, via the UK hiring Commonwealth workers for UK assembly plants, people from Commonwealth nations will then have more money to spend on UK-manufactured goods, goods that might well be assembled by their very own children who work in the UK during their gap year between high school and university. Even mature workers from Commonwealth nations should be able to gain a UK work visa for one-year, to earn some British sterling, thereby advancing their own family finances, and find themselves better able to purchase a UK manufactured car or other item once they return home.

Just because it hasn’t been done before, doesn’t mean it can’t be done.

Just look at what JFK did… he promised America would put a man on the Moon by the end of the decade, and he succeeded in that. Nobody else was doing it, but that didn’t mean it couldn’t be done.

All the UK needs now is for a JFK-like leader (either in UK politics or a captain of industry) to do what nobody else is doing and make this thing fly. Many will say it can’t be done, but I don’t believe it for a second. Only mediocre people say things can’t be done.

So, stop talking about it, and get it done!

Because if you think you can dither and delay for 3.5 years like you did with Brexit, don’t bother trying, as you’ll soon find that every country in the world has beaten you to the punch and it will no longer be worth doing.


It Couldn’t Be Done

by Edgar Albert Guest

Somebody said that it couldn’t be done
But he with a chuckle replied
That “maybe it couldn’t,” but he would be one
Who wouldn’t say so till he’d tried.

So he buckled right in with the trace of a grin
On his face. If he worried he hid it.
He started to sing as he tackled the thing
That couldn’t be done, and he did it!

Somebody scoffed: “Oh, you’ll never do that;
At least no one ever has done it;”
But he took off his coat and he took off his hat
And the first thing we knew he’d begun it.

With a lift of his chin and a bit of a grin,
Without any doubting or quiddit,
He started to sing as he tackled the thing
That couldn’t be done, and he did it.

There are thousands to tell you it cannot be done,
There are thousands to prophesy failure,
There are thousands to point out to you one by one,
The dangers that wait to assail you.

But just buckle in with a bit of a grin,
Just take off your coat and get to it;
Just start in to sing as you tackle the thing
That “cannot be done,” and you’ll do it!

                          ###


And this is the attitude sorely lacking in recent generations. In my generation (yes, I know what that sounds like) our generation arrived at the best plan and got right to it.

We left our egos at the door, we left our personal lives at home, and we got the job done on-time and on-budget — or we were judged by our peers to be ‘not worth spit’.

And while that modality may seem harsh to some, it’s the best way to build a rocketing middle class economy, it’s the best way to create a thriving family lifestyle, and it’s the best way to stay ahead of our competitors who aren’t in the business of working for our best interests.

‘All for one and one for all, must henceforth be Britain’s clarion call’ if post-Brexit Britain is to succeed!

Getting Brexit Done Will Allow the UK to Get onto ‘the Good Stuff’

by John Brian Shannon

‘What Could be Better than Brexit?’ You Ask

Once Brexit is completed, the UK will be perfectly positioned to sign free trade deals with every country in the world. Indeed, some countries are eagerly anticipating signing free trade agreements with the United Kingdom post-Brexit.

Here in Canada, free trade with Britain is viewed as nothing more than the natural and obvious progression in our centuries-old relationship, and Australia, New Zealand, Singapore and India see free trade with the UK as a true Win-Win situation where all sides benefit from membership in that free trading relationship.

But in the UK for some inexplicable reason, free trade with Commonwealth nations is seen as a long-shot, something Britons would like to have but feel is almost impossible, and some seem to think the UK is ‘unworthy’ of such treatment by other Commonwealth countries and their 2.3 billion citizens.

‘The British really need to get out more, and see the world for what it is instead of seeing it through the prism of an imperial guilt trip’ seems to be the prevailing wisdom in the former colonies.

Get out there, UK! And, welcome to the 21st-century. We need to trade with you.


The Post-Brexit Domestic Agenda

Once freedom is established across the land, the UK government can rightly turn its attention to how citizens are faring. Spending on the NHS, education, housing, the manufacturing sector, agriculture and transportation networks can be improved from the present (underfunded) model.

How? Easy!

Presently, UK taxpayers dutifully send their money off to the government, which then sends a substantial portion of it on to Brussels. And every month, UK taxpayers send £1 billion more than they receive back from the EU. Which, as you’ve guessed, means that UK taxpayers send £12 billion more annually to the EU than they receive in return.

With an extra £12 billion a year to spend on the NHS post-Brexit — that’s £230 million a week — the NHS would eventually recover from being cash-starved since 2010 or thereabout.

But if the government elected to spend that £12 billion per year on education — British students would be in for a world-class education where no student gets left behind and every one of them would receive a tuition-free PhD-level education or tuition-free trade-certificate education — just as many European and some South American countries already offer. What a great leg-up for the country! Every British student turns into a highly-educated intellectual or tradesperson with the relevant documentation to prove their dedication to their profession or trade.

Or, if the government decided to solve the UK housing crisis by building tens-of-thousands of low-income homes for Britons. Which (housing crisis) is in the process of being solved anyway, as thousands of EU citizens return to the continent prior to the final Brexit date — thereby freeing-up housing in the UK market — whether rental or purchased.


And similar applies to other sectors of the UK economy. Once Brexit finally happens, the UK will have an extra £12 billion to spend annually. How the UK government chooses to spend it, is down to the priorities of the post-election government.

One thing is for certain, leaving the EU will allow an extra £12 billion to be spent every year in the UK economy. Which means that ONE major problem can be solved per year (NHS, education, housing, manufacturing, agriculture, transportation networks, high taxation) but not ALL major problems at once!


The Piecemeal Approach is the Wrong Approach!

To my mind, dropping a few billion here and there throughout the economy in an attempt to please everyone… definitely ISN’T the way to proceed.

With an extra £12 billion, the next government should decide which problem to solve in year-1 (£12 billion) then, in year-2, another major problem can be nailed-down to a satisfying conclusion (the second £12 billion spend), and in the 3rd-year something else can be solved once and for all time with the third £12 billion spend.

Typically, democratic governments seek to please the largest number of voters by dispersing such economic windfalls (a £12 billion annual windfall in this case) relatively evenly throughout the economy. But in the UK, each major problem in the country could be permanently solved via a single-year £12 billion spend in each problem area.

And that should galvanize British minds into prioritizing the next 5-year spending round.


How Would YOU Spend It?

Maybe you’re an overworked healthcare worker. We know how you’d spend the money. And we don’t blame you. Thank you again! for all the great work you do saving lives and dramatically improving the lives of the sick and elderly with your fulsome commitment. We salute you!

Or, maybe you’re a social worker who sees lives being wasted because there aren’t enough entry-level jobs, or safe housing, or supports in place to help the young, the elderly, the infirm, or the marginalized, to help them progress out of their poverty-based existence. In such cases, even relatively small amounts of money can make a huge difference in their lives — lifting them out of poverty and into work in a matter of weeks.

Every country needs more taxpayers and lifting people from UC to employment results in a double benefit for the economy — instead of the government paying such people to basically stay alive until they’re needed in the workforce, those people will then begin to pay into the tax revenue stream. Entire towns and boroughs could be revolutionized by the addition of a relatively inexpensive 1-year spending programme to the mix.


Brexit Can Work for Farmers!

Maybe you’re a farmer/rancher worrying about your EU subsidies going away. (And they will) Of course it would be great if the UK government decided to pay you the same subsidies that you enjoyed when the UK was a member of the EU.

But even better solutions await.

Why grow a crop that doesn’t earn any money? Why continue to stay in the dairy business competing with the heavily-subsidized EU, U.S., and Canadian dairy industries? Maybe it’s time to switch gears and raise animals or grow crops that don’t need subsidies.

Or, maybe it’s time for you to rent your land to the utility companies for the installation of wind turbines for £4000. per year/per turbine? In that way, you’re earning income instead of waiting for government subsidies to suddenly fall, as we’ve seen over the decades.

In the case of wind turbine installations, most of your land remains available to you, it’s just that you lose the footprint of the turbine tower and the utility company needs a gravel access laneway to each turbine which translates to an average loss of 1-acre of land per turbine for the farmer.

Some land is too rocky to grow crops/graze cattle anyway, so that isn’t much of a loss in some cases. Certainly, receiving £4000. per year/per acre from a utility company in land lease fees beats all the work that goes into growing crops, only to gain £800. to £1200. per acre annually! And, as for grazing cattle or sheep on marginal land, an acre of that land might only be worth £60. to £100. annually to your farm. Or less.

Yes, you can tell that I love farmers and ranchers because I’ve devoted all this space to them. But it illustrates how Britons and the government need to think differently in the post-Brexit world.

Instead of competing against highly-subsidized countries (and bigger countries will always win as they have more taxpayers to pay those high subsidies) it’s time to change gears and switch towards a more sustainable and more profitable economic model.

Grow those high-demand/no-subsidy crops! Raise those animals that don’t require subsidies! Rent your less-productive farmland to utility companies for more profitable wind turbine or solar panel installations — where your profits aren’t decided in a closed-door backroom in the EU, America, or Canada.


Britons: Compete on Your Strengths, Not on Your Weaknesses!

In short, dear Britons, compete on your strengths and cease competing on your weaknesses against much larger and more highly-subsidized blocs. The degree to which you can succeed in that is the degree to which you, your family, and the UK itself, will prosper.

And in case I didn’t make it clear enough, above;

In a post-Brexit UK economy, innovation ruled by merit-based thinking is the best way for individual Britons, British families, and the UK to succeed.

Remind Me Again Why We Want to Brexit

by John Brian Shannon

The next general election in the United Kingdom is scheduled for May 5, 2022 and many are beginning to wonder whether Brexit will be completed by that date.

Of course, with a new Prime Minister at the helm starting July 23, 2019 there is the chance that injecting new blood into the ongoing Brexit debacle will finally get the UK over the line and at long last(!) allow the country to become all that it can and should be.

After 3-years of economic uncertainty that’s caused harm to the UK economy and to the other economies depending on a strong British economy (such as the Republic of Ireland) it will be refreshing to know that restoring the UK economy to the roaring lion it once was is on the horizon. And that’s a good thing.


Let’s Talk About the Benefits of Brexit for a Moment

With the passage of time, some Brexit benefits may have faded in the minds of some. Hey, you’re busy people and you’ve got lots on your mind, so let’s refresh, shall we?

  1. The UK will be able to sign as many free trade deals as it likes. Many countries including the Commonwealth of Nations countries, the USA, the CPTPP countries and more have all said they’d like free trading arrangements with the UK. Also, the African Union, MERCOSUR (an Atlantic Ocean-facing South American trade bloc) and the Pacific Alliance (a South American trade bloc fronting the Pacific Ocean) want trade deals with the UK in the immediate post-Brexit timeframe. GCC countries too, have expressed an interest in improved UK trade. Impressive, as those countries in totality represent about 4.5 billion citizens. And if you’re a moneygrubber like me, you don’t think of those people so much as ‘citizens’ of those countries, you think of them as ‘potential consumers’ of UK products and services. Hehe. (But if ‘we’ don’t fill their orders — then ‘some other country’ will) Consequently, if UK GDP doesn’t subsequently improve by £1 trillion within 5-years, Britain’s business community is doing it all wrong. Get used to seeing UK exporters selling record amounts of goods and services due to the new trade opportunities presented by Brexit.
  2. The UK will again control who is allowed to enter the country and be able (and allowed!) to properly police its borders in the same way that every normal country in the world polices their borders. At this point, the UK border force and the country’s police and security services have some rather large gaps in their information — as to who’s in or out of the country — due to the EU’s lax (irresponsible?) border and immigration policies. Commonwealth nations stand to gain the most from Brexit as many of them are rapidly developing nations whose young people may enjoy gaining streamlined access to seasonal work visas, returning home at the end of each season with some hard-earned cash in hand and a newfound appreciation for the opportunities the UK affords decent and hardworking Commonwealth citizens.
  3. The UK will again be in full control of its own laws and its courts. And no longer will a situation exist where the UK surrendered some of its hard-won sovereignty to a foreign power — which is expressly forbidden under the UK’s constitutional framework by the way. What kind of politicians would willingly surrender the sovereignty of their own country to a foreign power, and an economic competitor power at that? None! (Well, none… other than the pollyanna, globalist, snowflake generation of British politicians in power when the UK joined the European Union. And all of it done without the benefit of a referendum until 23-years later) Shameful in the extreme! Heads should roll. They won’t. They should. But as long as it gets straightened out before the next UK general election I’m fine with letting bygones be bygones.
  4. The UK will no longer pay an average net payment of £10 billion per year to the EU. Over 10-years that’s £100 billion (not £100 million, but billion!) Who could’ve negotiated such a deal? Only British-hating UK negotiators, that’s who.
  5. Cheaper food for UK consumers and a wider selection of goods from which to choose in the shops. This will occur due to the huge economies of scale of the North American marketplace and via the competition inherent within the EU marketplace, and from goods and services sourced from other continents.
  6. UK universities full and expanding due to higher enrolment from new free trade partner countries. And increased employment opportunities for British educators at UK universities is just one more benefit of Brexit.
  7. UK tourism operators will experience record year-on-year numbers as citizens from new trading partners become interested in the UK. For one example, if your Commonwealth son or daughter is working or studying in the UK, chances are you’ll end up in the UK at the holidays for a visit. And that’s good for UK tourism.
  8. UK hospitals will earn billions as patients from new trade partner countries travel to the UK for treatment. NHS expertise is highly respected around the world and Medical Doctors in other nations that have free trade agreements with the UK may have the option to send their patients to the UK for treatment. Billions that could be earned by the NHS are presently missed because no one is looking at this great cash-cow which could re-energize NHS budgets to a very high degree.
  9. The UK could dedicate its foreign aid spending to Commonwealth of Nations countries exclusively and keep the money in the family so to speak. The problem with foreign aid spending (as noble as it is for rich countries to help developing nations) is that once it’s spent, the UK will never see any benefit in return from such spending as the number of people who know which foreign aid donor funded this or that project in their nation is very small. Sometimes only a handful of people are in the know. But if the UK decided to spend their entire foreign aid budget in Commonwealth nations exclusively, the UK would become known as a major financier in their projects (projects that create much-needed jobs for citizens in developing nations) and the UK would gain recognition as a force for good in that country. PR like that you can’t buy from a public relations firm! It’s called, ‘Brand Loyalty’. Thenceforth expect UK companies to export more goods to each of those countries as disposable income rises among their population.
  10. Abolishing the Common Agricultural Policy (CAP) “The CAP costs British taxpayers twice over – once through subsidies paid to farmers and twice by keeping food prices artificially high. OECD data suggests EU farm prices are around 5% above world prices and our estimates based on this data suggest UK consumers pay around £2billion per year in higher prices due to the CAP.” AND: Abolishing the Common Fisheries Policy (CFP) “The UK fishing industry could potentially double in size after Brexit, as the UK takes full control of a natural resource which currently is mostly harvested by EU boats. Estimates by Napier (2018) and others suggest a rise in catch of up to £700m-800m per year which with positive supply chain effects could see a total boost to output of around £3bn per year – already offsetting a third of the possible trade losses.”BrexitCentral

How’s That For a Few Benefits of the UK’s pending Brexit from the EU?

There are more benefits, of course. But for now, let’s agree that 3-years of Brexit dithering has cost the UK economy plenty and has negatively impacted countries whose economies depend on a healthy UK economy, and that it’s time for UK politicians to get their act together and deliver what ‘The People’ voted for in the June 23, 2016 referendum.

Whether you think ‘The People’ are right or wrong is wholly irrelevant. What matters, is democracy. And either the UK is a democratic nation or it isn’t. You can’t have it both ways.

So, let’s decide right now to make a success of Brexit and just get on with it.

Image courtesy of LondonThamesPort.co.uk