The methodology is successfully applied to a wide range of made-to-order (MTO) products, including offshore production platforms, process plant, power stations, and steel mills.
The offshore products segment (19%) makes connection technology for offshore production, including pipeline and remote intervention systems, rig and vessel equipment, and installation tools and services.
"It's not about subsidy, it is about bringing offshore production back to the UK," he said.
In turn, companies that decide to offshore production often have little choice but to outsource as well.
Technological advances led to an increase in offshore production in the last decades of the 20th century.
Fast fashion retailers, trapped by the economics of cheap offshore production and customers highly sensitive to price, face meaningful challenges to improving working conditions in their supply chains.
Now the venture, called Fels Setal, has hit its stride, winning a $75 million contract to convert an aging tanker into an offshore production center.
This legislation will have real teeth, including penalties for those that offshore production and then look for government contracts and tax relief for investing domestically.
But the Chinese authorities required that CNOOC be allowed to buy a stake, in part to let the company gain experience with offshore production of liquefied natural gas.
Computerisation, offshore production, outsourcing, deregulation, privatisation - the full nine yards of globalisation, in other words - had resulted in excess capacity in every industry in the world, he said.
South Korean firms offshore production to their own factories overseas, but they seldom outsource.Many companies are now rethinking the outsourcing of ever more important functions.
