| Abstract: | The competitiveness of Western European manufacturing is slowly being eroded away and European firms must act decisively to halt this decline. Costs in Europe are high and getting higher. Productivity is not keeping pace. European manufacturers have adopted some of the ideas that have proved useful to manufacturers elsewhere around the globe, but they need to do more. Many European countries remain net exporters of direct investment. If the erosion is to be halted, European manufacturers must address overcapacity, particularly among the many small factories there, inappropriate plant locations, and company organizations that foster too much country-specific independence. |
