instantly, his life insurance policy still unsigned within a breast pocket. He left behind a lovely young wife, two dear children and a gaping hole in the lives of all who knew him. Andrew did his best for them, which even now he felt had not been much, and turned to steadying his shell-shocked company.
Within a year, a new managing director was hired along with a cocky ex-army engineer who set about designing a new model. Andrewâs empire now consisted of three parts: the original revitalized subcontract engineering business in its new factory, the machine tool business and a new unit tasked with utilizing the rapidly-evolving micro-computing technology to help with production scheduling â the task of optimizing the flow of work through a factory.
So long as sales were increasing, the machine tool business was a cash generator. A deposit was taken with each order and machine components were purchased from outside, leaving only the assembly, design, maintenance and marketing in-house. So while suppliers could be paid after two months, most of every machine ordered had been paid for prior to delivery. This positive dynamic was dented slightly by the fact that some of the components in the punching machine were made by their own sub-contract unit, but at least that was cash neutral.
The micro-systems business was decidedly cash negative as it consisted of a small team writing production-programming software suitable for use in a micro-computer. Andrew knew he would have to attract outside investors to augment his companyâs meagre £100 in share capital and mountain of debt courtesy of the bank. A subcontract engineering business would attract no interest and although a machine tool business might attract some, it would be the micro-computer products outsiders would want to back.
In spite of the bedlam in the country generally, with over 1.5 million unemployed and much of private industry ignoring the governmentâs restrictive pay policy, 1978 had been a reasonableyear for the Champion Group, the name Andrew had given his commercial activities, and 1979 looked as if it would be better still. Heâd even been interviewed by a journalist from The Sentinel doing a piece on what the nation can achieve without the unions. They had all been a bit chuffed by that. He knew his companyâs balance sheet was severely stretched, with a preponderance of creditors, but cash was finally beginning to flow in rather than out.
The nationâs predicament was simple enough. Unlike the private sector, which had been forced to come to terms with inflation and marry what it produced to what it could sell, government-controlled industries were being run to maximize employment and the government simply couldnât meet its escalating wages bill. Neither taxes nor prices could be raised and public sector employees could not be reduced quickly enough without triggering waves of strikes. From autos, to coal, to steel, industries taken into public ownership by past socialist governments were becoming progressively uneconomic. Although few on the left cared to admit it, capitalism was proving smarter than Karl Marx. Even the centre ground was shifting. Under a barrage of bad publicity about public sector strikes, the 5% lead Prime Minister Callaghan had enjoyed in the polls before Christmas was gone.
Andrew wasnât much interested in politics. He had backed Edward Heath against the miners. Heâd even gathered all his workers together at the time and told them that if Heath lost, which, in the end, Heath had, the country would go to hell in a hand cart. Now the Conservative Party had a female leader who seemed to believe that a nationâs economy was little different from a household budget. Perhaps such simplicity was all an electorate could understand. In any event, this time he planned to keep his views to himself, although he had spilled his heart out to Harvey Mudd, the journalist from The Sentinel .
Within a year, a new managing director was hired along with a cocky ex-army engineer who set about designing a new model. Andrewâs empire now consisted of three parts: the original revitalized subcontract engineering business in its new factory, the machine tool business and a new unit tasked with utilizing the rapidly-evolving micro-computing technology to help with production scheduling â the task of optimizing the flow of work through a factory.
So long as sales were increasing, the machine tool business was a cash generator. A deposit was taken with each order and machine components were purchased from outside, leaving only the assembly, design, maintenance and marketing in-house. So while suppliers could be paid after two months, most of every machine ordered had been paid for prior to delivery. This positive dynamic was dented slightly by the fact that some of the components in the punching machine were made by their own sub-contract unit, but at least that was cash neutral.
The micro-systems business was decidedly cash negative as it consisted of a small team writing production-programming software suitable for use in a micro-computer. Andrew knew he would have to attract outside investors to augment his companyâs meagre £100 in share capital and mountain of debt courtesy of the bank. A subcontract engineering business would attract no interest and although a machine tool business might attract some, it would be the micro-computer products outsiders would want to back.
In spite of the bedlam in the country generally, with over 1.5 million unemployed and much of private industry ignoring the governmentâs restrictive pay policy, 1978 had been a reasonableyear for the Champion Group, the name Andrew had given his commercial activities, and 1979 looked as if it would be better still. Heâd even been interviewed by a journalist from The Sentinel doing a piece on what the nation can achieve without the unions. They had all been a bit chuffed by that. He knew his companyâs balance sheet was severely stretched, with a preponderance of creditors, but cash was finally beginning to flow in rather than out.
The nationâs predicament was simple enough. Unlike the private sector, which had been forced to come to terms with inflation and marry what it produced to what it could sell, government-controlled industries were being run to maximize employment and the government simply couldnât meet its escalating wages bill. Neither taxes nor prices could be raised and public sector employees could not be reduced quickly enough without triggering waves of strikes. From autos, to coal, to steel, industries taken into public ownership by past socialist governments were becoming progressively uneconomic. Although few on the left cared to admit it, capitalism was proving smarter than Karl Marx. Even the centre ground was shifting. Under a barrage of bad publicity about public sector strikes, the 5% lead Prime Minister Callaghan had enjoyed in the polls before Christmas was gone.
Andrew wasnât much interested in politics. He had backed Edward Heath against the miners. Heâd even gathered all his workers together at the time and told them that if Heath lost, which, in the end, Heath had, the country would go to hell in a hand cart. Now the Conservative Party had a female leader who seemed to believe that a nationâs economy was little different from a household budget. Perhaps such simplicity was all an electorate could understand. In any event, this time he planned to keep his views to himself, although he had spilled his heart out to Harvey Mudd, the journalist from The Sentinel .
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