Points In Favour of Capital Goods

Points In Favour of Capital Goods

Points in favour of shares in capital goods

(1) British companies, because of the wealth of experience and matured technical ability they possess, still rank high in the world's competitive markets. There is a constant and world-wide demand for British design, manufacture and installation of factories, plant, engines, locomotives, planes, ships, equipment, power stations, buildings, bridges, railways, reservoirs and other engineering works.

(ii)Earnings are derived from a relatively simple range of contracts but for very high figures, so that handsome profits can be made from comparatively few deals.

(iii)The major companies in this section are already commissioned by the Government to build nuclear power stations and nuclear submarines, contracts which alone run into many millions sterling.

(iv)In addition to their world-wide installations, these concerns are constantly supplying spare parts, overhaul facilities, maintenance and replacement, and technical assistance, all of which form a major part of their earnings.

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