Originally Posted by PFR
Surely we don't just want to be a an Island fabrication and machine shop
You make an interesting point. There is a popular belief, particularly amongst the current age "ruling classes" that we should do nice clean and respectable things like design stuff. To be avoided is the dirty brutish business of actually making things.
The latter case ignores a basic principle that many people are actually motivated and are quite good at getting their hands dirty making, modifying and repairing stuff. Park them in a call centre or warehouse/supermarket and they will be unfulfilled and not be as productive as they could be. The flaw is, what price are they prepared to do it for? The "East" and certain parts of S America will always probably undercut them. That is where the made here, paid here, taxed here and spent here argument might be easily overlooked.
As an aside, I remember my late Dad's occasional frustration at "drawing office" coming up with airframe modifications that couldn't be made by following the drawing. The legend "report all errors to drawing office" was not much consolation at the start of the night shift after the drawing office had buggered off home. This may suggest a new point; you may need to know how to make it before you can design it. Unless a large sample of future designers are set loose making things, there may be reduced likelyhood of the best of the best ascending to be the inovative designers. It's a similar principle to the Army not having a large enough bedrock to select and train its Special Forces.