Gloomy Silicon Glen

I’m almost surprised to see any stories that relate to fabrication or electronics pop up in Scottish news these days. It seems that all I’ve done for years is either watch former clients vanish, or read of yet another of the dwindling number of related manufacturers departing our shores in the hope of surviving increasing western manufacturing costs, or falling eastern costs.

I used to look in envy at former associates who had gone to work for the big name employers in the industry, as they seemed to enjoy an easy life (albeit having to be very well technically qualified), with fat pay packets and perks, and what then appeared to be job security. I know a lot of them found themselves floundering 15 years ago, panicking as their cushy life evaporated, and they had to up sticks and move to make use of their specialised knowledge, or start all over again.

I watched some as they hopped from factory to factory as they tried to avoid such a move, only to find that each new prospect was forced to go down the same route, as overseas manufacturing costs fell and fell.

Back in September 2007, Freescale (which took on the former Motorola plant in East Kilbride, set up back in 1969) announced it had appointed an agent to find a buyer for its East Kilbride factory. This process has failed to attract a buyer, and it seems that the factory will now have to be closed, with the loss of some 800 jobs by 2009. Reading further, it seems the company also had to dispose of a 150 acre site in Dunfermline, which was never completed.

In reality, unless they could have come up with some sort of radical plan to reduce costs, there was little Freescale could do. After all, they can hardly run a factory that loses money, and the politicians can’t prop the place up forever, despite not wanting to have jobs lost on their “watch”.

Nevertheless, I still find it strange to wander through industrial estates which once buzzed with an industry that the occupants I visited didn’t seem to consider would all but evaporate, and didn’t seem to see the rising star of reduced costs in the east threatening their future.

The estates aren’t empty, and I still see the premises of those that operate support services flourishing, provided they have moved forward. One in particular is a little photocopier and office equipment company which fell into good company with a larger operator in the same business. We used them because they went down the path of digital photocopiers and related hardware before anyone else even noticed such equipment was available. They went from a few contracts to covering most of Scotland, and the boss is able to indulge in the latest top end Jag every year, while the parent company’s boss can enjoy Ferraris. No, I’m not going to give them a free plug.

I should have been a photocopier salesman!