(The third industrial revolution) 'The digitisation of manufacturing..' - The Economist
thoughts site

Advanced

(The third industrial revolution) 'The digitisation of manufacturing..' - The Economist

Posted by ProjectC 
'..Offshore production is increasingly moving back to rich countries not because Chinese wages are rising, but because companies now want to be closer to their customers..'

'Like all revolutions, this one will be disruptive. Digital technology has already rocked the media and retailing industries, just as cotton mills crushed hand looms and the Model T put farriers out of work. Many people will look at the factories of the future and shudder. They will not be full of grimy machines manned by men in oily overalls. Many will be squeaky clean—and almost deserted. Some carmakers already produce twice as many vehicles per employee as they did only a decade or so ago. Most jobs will not be on the factory floor but in the offices nearby, which will be full of designers, engineers, IT specialists, logistics experts, marketing staff and other professionals. The manufacturing jobs of the future will require more skills. Many dull, repetitive tasks will become obsolete: you no longer need riveters when a product has no rivets.

The revolution will affect not only how things are made, but where. Factories used to move to low-wage countries to curb labour costs. But labour costs are growing less and less important: a $499 first-generation iPad included only about $33 of manufacturing labour, of which the final assembly in China accounted for just $8. Offshore production is increasingly moving back to rich countries not because Chinese wages are rising, but because companies now want to be closer to their customers so that they can respond more quickly to changes in demand. And some products are so sophisticated that it helps to have the people who design them and the people who make them in the same place. The Boston Consulting Group reckons that in areas such as transport, computers, fabricated metals and machinery, 10-30% of the goods that America now imports from China could be made at home by 2020, boosting American output by $20 billion-55 billion a year.'

- The third industrial revolution, Apr 21st 2012


Context '..The Third Industrial Revolution has begun (6)'

(EU) - European Investment Bank - '..supporting European R&D projects..'

(Space) - Planetary Resources (asteroid mining) - '..Arkyd Series 100 spacecraft.'

'The Ecole Nationale d’Administration has produced .. very few entrepreneurs.'

'..a product of human thought..'