EXTERNAL FACTOR OR FACTORS NOT DOMESTIC TO 
ANY ONE INDUSTRY. ’ 
British Engineering, however, is in a peculiar position. 
In any examination of the Engineering Industry it must be kept 
in mind that Engineering is a finishing industry, i.e., it uses as its 
raw material the finished products of many other industries, and 
its products are sold for immediate use in production. 
It has to carry the accumulated burden of charges of other 
industries which at the various stages contribute to the supply of 
its materials. 
It will thus be clear that according as the selling prices of 
these other industries are high, so its own costs and therefore its 
prices to customers, are increased. 
This applies with equal force in the case of wages, taxation, 
rating, social charges, transport, etc., which these prior industries 
pay. They are all reflected in their selling price to the Engineer, 
and so the latter has to contend, throughout the processes of 
industry, with an accumulation of these charges. 
Taking all these factors together, which for the purpose of 
clarity and simplicity are herein described as “ pre-charges,” there 
remain of the prices charged by British Engineering to its 
customers, at the most some 30 per cent. within which a direct 
reduction of costs can be sought. 
It follows that no inquiry into the causes of unemployment in 
this industry is of value unless there is also an inquiry into the 
charges made on it for the materials which it uses, or the services 
for example, transport, power and light—which it employs. 
Then there are causes imposed due to the action of Trade 
Unions, as, for example, restrictions which limit output, compel 
unnecessary employment of several classes of workmen when in fact 
no such variety is necessary, and where there is a consequent loss of 
time in carrying out particular work, and a resultant increase of 
cost. since overhead charges accumulate while work is interrupted. 
WAGES. | 
It is important to keep in mind that wages as wages are liable 
to give the outsider an entirely wrong impression. They should on 
no account be confused with earnings.