Productivity, Machinery and Skills in a Sample of British and German Manufacturing Plants

Abstract

On the basis of interviews with management and factory floor employees at 45 matched firms in Britain and West Germany, this article examines the roles of machinery and workforce skills in explaining comparative produc tivity performance. The average age of British machinery was not very different from that found in German plants, but it was less technically advanced, was subject to more frequent breakdowns and breakdowns took longer to correct. Productivity was higher in Germany in each of our matched product groups and the importance of skills at all levels was apparent.