reshoring

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pages: 391 words: 97,018

Better, Stronger, Faster: The Myth of American Decline . . . And the Rise of a New Economy by Daniel Gross

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, Airbnb, American Society of Civil Engineers: Report Card, asset-backed security, Bakken shale, banking crisis, BRICs, British Empire, business process, business process outsourcing, call centre, Carmen Reinhart, clean water, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, demand response, Donald Trump, Frederick Winslow Taylor, high net worth, housing crisis, hydraulic fracturing, If something cannot go on forever, it will stop, illegal immigration, index fund, intermodal, inventory management, Kenneth Rogoff, labor-force participation, LNG terminal, low skilled workers, Mark Zuckerberg, Martin Wolf, Maui Hawaii, McMansion, mortgage debt, Network effects, new economy, obamacare, oil shale / tar sands, oil shock, peak oil, Plutocrats, plutocrats, price stability, quantitative easing, race to the bottom, reserve currency, reshoring, Richard Florida, rising living standards, risk tolerance, risk/return, Silicon Valley, Silicon Valley startup, six sigma, Skype, sovereign wealth fund, Steve Jobs, superstar cities, the High Line, transit-oriented development, Wall-E, Yogi Berra, Zipcar

.: BMW in, 87, 97 GE in, 109–10, 174, 228 gross domestic product (GDP), 9, 17, 29, 31, 75, 198, 227 of BRIC nations, 19–20 and costs of bailouts, 38, 43 exports and, 98–99 in history, 13–14 Groupon, 203 Grupo Phoenix, 88–92 Gyourko, Joseph, 212 Hagerty, James, 108 Hamilton, Alexander, 218 Hanjour, Hani Hasan, 120 Hassett, Kevin, 18 Hawaii, 117–18, 123–25, 211 Hawaii Volcanoes National Park, 207 health care, 70, 91, 145–46, 172, 216–17, 225 exports and, 116, 125–26 inports and, 136, 145 North Dakota and, 157, 160, 162 Obama on, 5–6, 222 Healy, Tim, 72–74 hedge funds, 16, 19, 82, 85, 94, 156 timely policy decisions and, 36, 38 Helliker, Kevin, 161–62 higher education, 142, 175, 204, 215, 226 efficient consumers and, 192–95 export of, 115–21, 126, 131, 161–62, 164 inports and, 145–46 North Dakota and, 153, 160–62 tuition charges in, 118–20, 126, 146, 161 High Line, 121, 213, 225 Hildestad, Terry, 153 Hill Holliday, 50 Hoffman, Reid, 203–4 Holmes, Elizabeth, 125 HomeAway, 203 home equity lines of credit, 51, 54–56 Hong Kong, 7, 22, 92, 120, 138 Hoover Dam, 206 Hot Properties, 171 houses, housing, 12, 56, 74, 116, 180, 225 booms in, 9, 21, 54, 156, 171, 194 bubbles in, 15, 51, 54–55, 190, 219 in China, 7, 20 crises in, 4, 81, 190–91, 212, 219–20 efficiency economy and, 61, 224 efficient consumers and, 185–91, 194–96 exports and, 111–13 FDI and, 83–85 forecasts and, 16–18 infrastructure and, 211–13 in North Dakota, 150–52, 155–56, 158 prices of, 3, 9, 16–17, 24, 29, 54, 84, 150, 155–56, 211–12, 219 renting rooms in, 194–95 restructuring and, 53–55 strengthening recovery and, 215–17, 220–21 timely policy decisions and, 29, 32, 34–35, 42–43, 54–55 see also mortgages Howard, Tim, 126 “How the Great Recession Was Brought to an End” (Zandi and Blinder), 31 Huawei, 96 Hudson River, 206, 211, 225–26 hydraulic fracturing, 79, 86, 105, 151 Hy-Lite, 169 Hyman, Jennifer, 194 Hyundais, 77–78 IBM, 82, 133, 143, 199 Immelt, Jeff, 146 exports and, 109–10 and reshoring and insourcing, 172–73 immigrants, immigration, 21, 89, 91, 165, 182, 215 Erie Canal and, 205–6 exports and, 117, 121, 123 and reshoring and insourcing, 176–77 InBev, 95 incomes, 9, 16, 37, 72, 98, 111, 156, 168, 222 in China, 20, 164–67 efficient consumers and, 180–84 exports and, 101, 116, 118, 126, 164 FDI and, 83, 91 infrastructure and, 205–7, 209–10 inports and, 139–40 North Dakota and, 152, 160 and reshoring and insourcing, 169–70, 172, 178 restructuring and, 54, 56–57 supersizing and, 200–201 India, 19, 26, 100–101, 112, 125, 161, 164, 171–72 exports and, 106, 108–9, 117–18, 120–22, 127, 169 FDI and, 86–87, 94 inports and, 131–32, 138, 227 Indian Point nuclear power plant, 74 IndiGo, 108 Industrial and Commercial Bank of China (ICBC), 92–93 inflation, 9, 15, 20, 24, 165, 170 infrastructure, 13, 101, 137, 169, 207, 217, 224–25, 228 efficiency economy and, 79, 224 exports and, 103–4, 106, 113, 123, 208 North Dakota and, 150, 152–53, 157, 162 supersizing and, 202–14 initial public offerings (IPOs), 7, 35, 42, 68, 133, 201, 204 inports, 131–47 in auto industry, 133–37, 227 China and, 134–36, 138–43, 146, 164, 227 Disney and, 132, 137–38, 144 employment and, 132, 134–36, 140, 142, 146–47 health care and, 136, 145 higher education and, 145–46 Mary Kay and, 132, 141–43 Starbucks and, 139–41 supersizing and, 202–3 insourcing, see reshoring and insourcing Institute of International Education, 118–19 interest, interest rates, 10, 85, 217, 221 of Japan, 29–30 restructuring and, 48, 57, 136 timely policy decisions and, 34, 37–38, 42 International Trade Administration, 226 Internet, 10, 18, 26, 46, 84, 168, 180, 225 efficient consumers and, 183, 193–95 stocks and, 15, 21–22, 82 supersizing and, 200–201, 203, 208–10, 214 interstate highway system, 207 inventories, 9, 18, 155, 167, 170, 177, 194, 220 inports and, 135, 142 investors, investing, 1, 13, 16, 24, 32, 107, 133, 163, 199, 217, 219, 222, 226 automaker bailouts and, 41–42 economic declines and, 4, 17 efficiency economy and, 62, 65, 71–73, 76, 78–79, 224 efficient consumers and, 181, 184–85, 195–96 infrastructure and, 205, 207–8, 210–13 inports and, 131, 136–38 North Dakota and, 150–51, 157, 160–62 and reshoring and insourcing, 170, 173–74, 179 restructuring and, 44–45, 49–51, 78 strengthening recovery and, 215, 220 supersizing and, 200, 213 timely policy decisions and, 30, 36–38, 41–42 see also foreign direct investment iPads, 140, 193, 200 iPhones, 64, 140, 189, 198, 200, 204, 227 Iran, 227 Iraq, 110 Ireland, 38 Isaacson, Walter, 128, 200–201 Israel, 84, 123, 197, 211, 231 Italy, 14, 19, 29, 46–47, 71, 87, 106, 123, 133, 203 ITU, 209 iTunes, 184, 200, 210 Japan, 47, 140, 165, 168 automakers and, 14, 26, 41, 79, 87, 134–35, 173 comparisons between U.S. and, 8–9, 19, 21, 29, 202 demographics of, 8–9, 21, 29, 162 efficiency economy and, 60–61, 67 exports and, 101, 106, 109, 124–25, 128 FDI of, 82, 92–93, 95–96 in history, 13–14, 20, 61 inports and, 138, 144 timely decisions and, 29–30, 37 tsunami in, 21, 41, 124, 167 Jarden, 169–71 JBS, 95 Jobs, Steve, 128, 199–202 John F.

., 19 Reinhart, Carmen, 5, 17 Reliance Energy, 86 Religare Enterprises, 86–87 rents, renting, 94, 119, 226 efficiency economy and, 69–71 efficient consumers and, 189–91, 193–95 restructuring and, 47, 50, 55 supersizing and, 203–4, 212–13 of textbooks, 193, 195, 204 Rent the Runway, 194–95 Republicans, 5–6, 31, 205, 218, 221 reshoring and insourcing, 222 and employment, 163, 167–79 and immigrants, 176–77 of manufacturing, 164–78 and restructuring, 173–74 and services, 171–72, 174 restructuring, 23, 44–60, 80–81 automakers and, 46, 51–52, 78, 136, 173–74 consumers and, 44–45, 53–59 corporations and, 44–45, 47–49, 52–53, 57–58, 81, 166 personal, 44–45, 53–54 real estate and, 45, 49–51 and reshoring and insourcing, 173–74 retailers, retailing, 21, 75, 110–11, 125, 227 efficient consumer and, 188, 193–94 FDI and, 92–93, 95 inports and, 134–35, 140–41, 144 and reshoring and insourcing, 170, 176–77 restructuring and, 52–53, 55–57 supersizing and, 200, 203, 208 Revolutionary War, 81–82 Rhodium Group, 94 Robinson, Carl, 111 Rocky Mountain Institute, 70 Rogoff, Kenneth, 5, 17 Romney, Mitt, 50–51, 54–55, 182 Roosevelt, Franklin D., 12–15, 206 Roth, Philip, 127 Roubini, Nouriel, 4 Royal Bank of Scotland (RBS), 38–39 Royal Dutch Shell, 86 Rubinstein, Dana, 212 Rushdie, Salman, 127 Russian Federation, 19, 100, 168 exports and, 112, 129 FDI and, 84–85 inports and, 137–38, 144 Rybolovlev, Dmitry, 85 Sadove, Steve, 125 Saks Inc., 125 sales, 2, 21, 119, 163 efficiency economy and, 65–68, 74–76, 79 efficient consumers and, 183, 194 exports and, 98, 106, 108, 111–13, 116–17, 128, 226 FDI and, 83, 89, 92–93 inports and, 131–33, 135, 138, 140–43, 146 North Dakota and, 154–55, 157 and reshoring and insourcing, 170, 173, 177 restructuring and, 53–54, 56 supersizing and, 203–4, 210 San Francisco, Calif., 86, 122, 192, 211 San Joaquin Valley, 79 Sarkozy, Nicolas, 3 Saudi Arabia, 100, 102 exports and, 108–9, 112–13, 118, 125 Sauvant, Karl, 94 savings, saving, 141 efficiency economy and, 65–66, 68, 72, 74, 76–77 efficient consumers and, 181–82, 184–89, 193, 195 recovery and, 21, 215 restructuring and, 45, 54, 56 savings and loans industry, 43 Scale and Scope (Chandler), 206 Schiff, Peter, 4 Schramm Inc., 108 Schutt, Stephen, 115, 119–20 Schwarzman, Stephen, 26, 198 scrap metal, 107 Seagram, 129 Seltzer, Greg, 126 services: efficiency economy and, 62, 64 efficient consumers and, 181–82, 184, 187, 189, 194–96 employment and, 9, 83, 163–64 exports and, 98–99, 115–16, 126, 131, 169 inports and, 131–32, 141, 143–44 North Dakota and, 149–50, 160 and reshoring and insourcing, 171–72, 174 supersizing and, 199–202, 204, 206, 208 U.S. economic importance and, 227–28 Sex and the City, 144–45 Shanghai, 7, 120, 135–36, 138, 140–44 Sinai, Todd, 212 Siretsanou, Val and Vitaly, 187–88 Sirkin, Harold L., 167 Sisson, Francis, 13 Six Million Dollar Man, 15 Slim Helú, Carlos, 85 socialists, socialism, 5, 12–14, 25, 117 solar energy, 7, 26, 178, 211, 225 efficiency economy and, 64–65, 67, 70, 80 solar pool covers, 186–87 Souki, Charif, 106 soybeans, 101, 158 Spelling, Aaron, 84 Spence, Michael, 10, 100 Standard & Poor’s (S&P), 46, 58 500 index of, 132–33, 137 on U.S. credit rating, 1, 11 Starbucks, 90, 123, 132, 160, 181 inports and, 139–41 State Department, U.S., 120, 125 Steinberg, Jacques, 119 Steinmetz, Juergen T., 124 Stiglitz, Joseph, 6, 9 stimulus, 23, 57, 81 economic decline and, 5–6 infrastructure and, 209–10, 212 timely policy decisions and, 28, 30–32 stocks, stock markets, 1–2, 7–8, 12–13, 15–18, 109, 180, 185 capitalization of, 22, 25, 198–99, 204 declines and collapse of, 18, 56, 81, 171 inports and, 133, 136, 147 Internet and, 15, 21–22, 82 restructuring and, 51–52 timely policy decisions and, 35, 37–38, 42–43 Stoffel, Bob, 77 stress tests, 37 Subaru, 173 Subramanian, Arvind, 8 subways, 212–13 suicides, 8 Summers, Lawrence, 3–4, 10, 26 infrastructure and, 205, 208 Super Cool Biz campaign, 9, 60–61 Super Girl, 20 supersizing, 199–214, 216 ability to scale in, 204, 207–8, 214 Apple and, 199–201 employment and, 199–201, 203–7, 209–11 infrastructure and, 202–14 networks and, 199, 201–4, 206–9, 211–13 superstar cities thesis, 212–13 Swift, Earl, 207 Syria, 227 Taphandles, 177–78 Target, 58, 177 Tata, Ranan, 117 Tata Consultancy Services, 172 taxes, taxpayers, 46, 83, 109, 175, 212 on carbon, 61, 75, 103–4, 217 on corporations, 146–47, 163 cutting of, 10, 30–31, 150, 157, 181, 218, 221–22 economic policy proposals and, 217–18 efficiency economy and, 61, 75 efficient consumers and, 181, 191 employment and, 163, 166 infrastructure and, 205, 208 inports and, 133, 136–37, 146–47 North Dakota and, 150, 152, 157 timely policy decisions and, 30–36, 38–42 Taylor, Frederick Winslow, 61 TD Bank, 92 technology, 3, 7–8, 10, 14–15, 48–49, 96, 104, 108, 121–22, 164, 170, 195, 211 efficiency economy and, 77, 79–80 efficient consumers and, 184, 192 FDI and, 84, 86 North Dakota and, 151, 160 telegraph, 206, 209, 214 Temporary Liquidity Guarantee Program (TLGP), 34 Term Asset-Backed Securities Loan Facility (TALF), 34, 48 Terminator, The, 134 Tesla, 79 Texas, 5, 86, 118, 141–42, 206 Barnett Shale in, 79, 151 Thain, John, 48 This Time Is Different (Rogoff and Reinhart), 5, 17 Three Gorges, Three Gorges Dam, 7, 202 timely policy decisions, 28–44, 60, 80 auto industry and, 33, 40–43 bailouts and, 28, 31–43 banks and, 32–34, 36–40, 43 housing and, 29, 32, 34–35, 42–43, 54–55 restructuring and, 44, 58–59 stimulus and, 28, 30–32 TARP and, 36–38, 40 TMD Friction Group, 88 Tokyo, 8–9, 29, 67, 138, 168 Super Cool Biz campaign in, 9, 60–61 Toledo, Allan, 95 total quality management, 61–62 tourism, 82, 208, 215 exports and, 116, 121–26, 164 inports and, 132, 137–38, 144–45 medical, 125–26, 145 retrofitting Empire State Building and, 69, 71–72 Toyota, 79, 87 Toys“R”Us, 141 trade, 3, 14, 19, 22, 24, 26, 94, 106, 152 deficits in, 102, 107, 168, 221–22 surpluses in, 101, 122 see also exports Transformers, 129 transportation, 72, 101, 105, 167, 169, 224, 226 efficiency economy and, 76, 158, 223 North Dakota and, 152, 158 supersizing and, 205, 208, 210–13 see also autos, automakers Transportation Department, NYC, 192–93 Treasury Department, U.S., 21, 26, 47, 133, 218 TARP and, 37–38, 54 timely policy decisions and, 32–38, 42 Troubled Asset Relief Program (TARP), 47, 54 bailouts and, 36–38, 40–42 Trust Bank, 129 Tsongas, Paul, 14 Tung Chee Hwa, 22 Turkey, 26, 71, 117, 123, 126, 129 inports and, 132, 139 Twitter, 204, 227 U.K.

He hired a handful of workers, paying low wages of $9 to $16 per hour to start, with hopes of employing up to 150 people at the plant.11 For Peerless Industries, which makes mounts for flat-panel television screens (“audiovisual mounting solutions,” in the parlance of the trade), reshoring production from Asia was a matter of control, speed, and differentiation. In March 2010 the company, which was founded in the early 1940s, announced that it would build new headquarters and a highly efficient factory on 22.5 acres in Aurora, Illinois. “We want to merge all operations to reduce operating expenses, and we are committed to being environmentally responsible as well as returning all manufacturing to the U.S. to shorten lead times and regain complete control,” said Michael A. Campagna, the company’s president and chief operating officer. Peerless installed solar panels and wind turbines and figured out a way to recycle heat generated by its processing equipment to help keep the plant warm in the cold winter months. As the company noted, reshoring production makes Peerless “the only major domestic mount producer with a 100 percent U.S.

 

pages: 484 words: 104,873

Rise of the Robots: Technology and the Threat of a Jobless Future by Martin Ford

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3D printing, additive manufacturing, Affordable Care Act / Obamacare, AI winter, algorithmic trading, Amazon Mechanical Turk, artificial general intelligence, autonomous vehicles, banking crisis, Baxter: Rethink Robotics, Bernie Madoff, Bill Joy: nanobots, call centre, Capital in the Twenty-First Century by Thomas Piketty, Chris Urmson, Clayton Christensen, clean water, cloud computing, collateralized debt obligation, computer age, debt deflation, deskilling, diversified portfolio, Erik Brynjolfsson, factory automation, financial innovation, Flash crash, Fractional reserve banking, Freestyle chess, full employment, Goldman Sachs: Vampire Squid, High speed trading, income inequality, indoor plumbing, industrial robot, informal economy, iterative process, Jaron Lanier, job automation, John Maynard Keynes: technological unemployment, John von Neumann, Khan Academy, knowledge worker, labor-force participation, labour mobility, liquidity trap, low skilled workers, low-wage service sector, Lyft, manufacturing employment, McJob, moral hazard, Narrative Science, Network effects, new economy, Nicholas Carr, Norbert Wiener, obamacare, optical character recognition, passive income, performance metric, Peter Thiel, Plutocrats, plutocrats, post scarcity, precision agriculture, price mechanism, Ray Kurzweil, rent control, rent-seeking, reshoring, RFID, Richard Feynman, Richard Feynman, Rodney Brooks, secular stagnation, self-driving car, Silicon Valley, Silicon Valley startup, single-payer health, software is eating the world, sovereign wealth fund, speech recognition, Spread Networks laid a new fibre optics cable between New York and Chicago, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Steven Pinker, strong AI, Stuxnet, technological singularity, telepresence, telepresence robot, The Bell Curve by Richard Herrnstein and Charles Murray, The Coming Technological Singularity, Thomas L Friedman, too big to fail, Tyler Cowen: Great Stagnation, union organizing, Vernor Vinge, very high income, Watson beat the top human players on Jeopardy!, women in the workforce

Domestic automated production could then put a finished product into a customer’s hands within days. There is, however, one important caveat to the reshoring narrative. Even the relatively small number of new factory jobs now being created as a result of reshoring won’t necessarily be around over the long term; as robots continue to get more capable and dexterous and as new technologies like 3D printing come into widespread use, it seems likely that many factories will eventually approach full automation. Manufacturing jobs in the United States currently account for well under 10 percent of total employment. As a result, manufacturing robots and reshoring are likely to have a fairly marginal impact on the overall job market. The story will be very different in developing countries like China, where employment is far more focused in the manufacturing sector.

While a robot like Baxter can certainly eliminate the jobs of some workers who perform routine tasks, it also helps make US manufacturing more competitive with low-wage countries. Indeed, there is now a significant “reshoring” trend under way, and this is being driven both by the availability of new technology and by rising offshore labor costs, especially in China where typical factory workers saw their pay increase by nearly 20 percent per year between 2005 and 2010. In April 2012, the Boston Consulting Group surveyed American manufacturing executives and found that nearly half of companies with sales exceeding $10 billion were either actively pursuing or considering bringing factories back to the United States.8 Factory reshoring dramatically decreases transportation costs and also provides many other advantages. Locating factories in close proximity to both consumer markets and product design centers allows companies to cut production lead times and be far more responsive to their customers.

Suitable Technologies offered remote presence at the tradeshow for a minimal fee, allowing visitors from outside the San Francisco Bay area to avoid thousands of dollars in travel costs. After a few minutes, the robots—each with a human face displayed on its screen—did not seem at all out of place as they prowled between booths and engaged other attendees in conversation. Manufacturing Jobs and Factory Reshoring In a September 2013 article, Stephanie Clifford of the New York Times told the story of Parkdale Mills, a textile factory in Gaffney, South Carolina. The Parkdale plant employs about 140 people. In 1980, the same level of production would have required more than 2,000 factory workers. Within the Parkdale plant, “only infrequently does a person interrupt the automation, mainly because certain tasks are still cheaper if performed by hand—like moving half-finished yarn between machines on forklifts.”6 Completed yarn is conveyed automatically toward packing and shipping machines along pathways attached to the ceiling.

 

pages: 385 words: 101,761

Creative Intelligence: Harnessing the Power to Create, Connect, and Inspire by Bruce Nussbaum

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3D printing, Airbnb, Albert Einstein, Berlin Wall, Black Swan, clean water, collapse of Lehman Brothers, Credit Default Swap, crony capitalism, crowdsourcing, Danny Hillis, declining real wages, demographic dividend, Elon Musk, en.wikipedia.org, Eugene Fama: efficient market hypothesis, Fall of the Berlin Wall, follow your passion, game design, housing crisis, Hyman Minsky, industrial robot, invisible hand, James Dyson, Jane Jacobs, Jeff Bezos, jimmy wales, John Gruber, Joseph Schumpeter, Kickstarter, lone genius, manufacturing employment, Mark Zuckerberg, Martin Wolf, new economy, Paul Graham, Peter Thiel, race to the bottom, reshoring, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, six sigma, Skype, Steve Ballmer, Steve Jobs, Steve Wozniak, supply-chain management, Tesla Model S, The Chicago School, The Design of Experiments, the High Line, The Myth of the Rational Market, thinkpad, Tim Cook: Apple, too big to fail, tulip mania, We are the 99%, Y Combinator, young professional, Zipcar

See also Knowledge mining cultivating Creative Intelligence, 257–61 gaming and process of, 140–41 Lee, Ben, 240 Lee, Cheng-Chung, 61 Lee, Jay, 244–45 Lee, Tzong-Ming, 61 Lenovo, 52–56, 101, 226 Leopard frogs, 71–72 Levy, Shawn, 4 Liberal arts education, 247 LinkedIn, 215 Little Alouette (company), 162–66 LKS Partners, 107–9 Local crowdfunding, 244–45 Local economies Indie Capitalism and, 38, 247–48 making and, 159 reshoring and, 160–62 Local networks, pivoting and, 204–8 Locavore food movement, 173 Lowry, Adam, 45–48 Lumi Process printing system, 198–99 MacCready, Paul B., 141 McGonigal, Jane, 131–32 Macintosh computer, 43–44 Mackay, Charles, 229 Mack Center for Technological Innovation, 234 McLain, Neal, 109 McQueen, Alexander, 56 Madonna, 66 Magic circle concept, 126–27, 142, 194 Make-it-local culture, 159 Make magazine, 152–53 MakerBot (company), 168–69 Maker Faires, 152–53 Makers’ universities, 169 Making, 147–75 3-D printing and, 167–71 creating satisfying lives and stronger economy with, 171–75 as Creative Intelligence competency, 36, 155 financial capitalism and beginnings of culture of, 149–56 General Electric’s reshoring and, 160–62 homegrown economy and, 156–59 Indie Capitalism and, 248 Little Alouette company on Etsy platform and, 162–66 private commercial rocket launch and, 147–49 Maliq, Irish, 91–92 Managers, wandering, 190–99 Manchanda, Sonia, 29, 75–76 Mandel, Michael, 234 Manufacturing, reshoring of, 160–62, 174–75.

He changed the portfolio of GE operations, selling off financial businesses, limiting GE Capital’s contribution to profits while revamping older factories, buying wind and solar companies, and reemphasizing high-end engineering. GE is spending $1 billion to bring manufacturing back to its plants in Louisville, Kentucky; Bloomington, Indiana; and Decatur, Alabama. Some 1,300 jobs will be added when the refurbishing of the facilities is completed. Water heaters and washing machines, now made in Asia, and refrigerators, currently made in Mexico, will be on assembly in Louisville. Why the shift to “reshoring”? Lower prices for technology make manufacturing at home in the United States easier. And rising wages in China, Mexico, and other suppliers coupled with falling wages in the United States have made it more advantageous to make things in America. Finally, and perhaps most important, being close to customers who increasingly want to participate in the design of their consumer goods makes manufacturing across oceans and time zones problematic.

If we master the right competencies at the individual level and employ the right policies in business and government, Indie Capitalism would take the following shape. • Indie Capitalism would be more local and less global. Making things locally and in the United States would be a key priority, and this emphasis on localization would also change the way many global corporations operate domestically. The shift is beginning at a number of companies, with Boeing, Caterpillar, and GE “reshoring” a small part of their production back to the United States and publicizing the move in high-profile ad campaigns that reflect a growing demand for more domestic production. Finally, localism will require global corporations to adopt the values of the American local movement, paying workers higher wages, improving working conditions. It will mean pressuring American corporations to take pride in the label by paying a higher percentage of taxes rather than “booking” them outside the country specifically to avoid the IRS

 

pages: 323 words: 90,868

The Wealth of Humans: Work, Power, and Status in the Twenty-First Century by Ryan Avent

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3D printing, Airbnb, American energy revolution, autonomous vehicles, Bakken shale, barriers to entry, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population

The growing importance of knowledge (and the growing irrelevance of other cost sources) means that the advantage to rich-world firms of moving anything abroad is decreasing. ‘Reshoring’ in manufacturing, or the relocation of industrial production back to the rich economies that were priced out of such businesses decades ago, is often framed as a labour-cost phenomenon and a potential boon for middle-skill workers in advanced economies: with Chinese wages rising, some believe, it is increasingly attractive for firms to keep assembly in America, and to employ thousands of manufacturing workers in the process. But that is not, for the most part, what is occurring. Reshoring is predominantly a function of the rising knowledge-intensity of production, which means that variations in the cost of unskilled labour no longer matter all that much.

Reshoring is predominantly a function of the rising knowledge-intensity of production, which means that variations in the cost of unskilled labour no longer matter all that much. Better for Tesla to keep production close at hand (in Fremont, California, on the eastern shore of San Francisco Bay) where its skilled engineers can keep a watchful eye on the code operating the plants, than to move assembly abroad in search of modest savings on the wage bill. And sure enough, the reshoring phenomenon, where it has occurred, has not brought back mass employment of less-skilled workers. That means that economies which were hoping to establish an industrial foothold for themselves by using their low labour costs to wiggle onto a supply chain are increasingly out of luck. There are exceptions, but they are of a particular and unhelpful sort: where labour is so incredibly cheap that it remains economical to use people in place of available technologies. But in these cases the advantage to firms of locating in poor economies is precisely that the use of more sophisticated technologies is not necessary, which means that any transfer of technological knowledge to the local workers will be extremely limited, and the rungs which might otherwise have led to a more productive, sophisticated state of economic activity have been removed.

Acemoglu, Daron ageing populations agency, concept of Airbnb Amazon American Medical Association (AMA) anarchism Andreessen, Marc Anglo-Saxon economies Apple the iPhone the iPod artisanal goods and services Atkinson, Anthony Atlanta, Georgia austerity policies automation in car plants fully autonomous trucks of ‘green jobs’ during industrial revolution installation work as resistant to low-pay as check on of menial/routine work self-driving cars and technological deskilling automobiles assembly-line techniques automated car plants and dematerialization early days of car industry fully autonomous trucks self-driving cars baseball Baumol, William Belgium Bernanke, Ben Bezos, Jeff black plague (late Middle Ages) Boston, Massachusetts Brazil BRIC era Bridgewater Associates Britain deindustrialization education in extensions of franchise in financial crisis (2008) Great Exhibition (London 1851) housing wealth in and industrial revolution Labour Party in liberalization in political fractionalization in real wages in social capital in surpassed by US as leading nation wage subsidies in Brontë, Charlotte Brynjolfsson, Erik bubbles, asset-price Buffalo Bill (William Cody) BuzzFeed Cairncross, Frances, The Death of Distance (1997) capital ‘deepening’ infrastructure investment investment in developing world career, concept of cars see automobiles Catalan nationalism Central African Republic central banks Chait, Jonathan Charlotte chemistry, industrial Chicago meat packers in nineteenth-century expansion of World’s Columbia Exposition (1893) China Deng Xiaoping’s reforms economic slow-down in era of rapid growth foreign-exchange reserves ‘green jobs’ in illiberal institutions in inequality in iPod assembly in technological transformation in wage levels in Chorus (content-management system) Christensen, Clayton Cisco cities artisanal goods and services building-supply restrictions growth of and housing costs and industrial revolution and information membership battles in rich/skilled and social capital clerical work climate change Clinton, Hillary Coase, Ronald Columbia University, School of Mines communications technology communism communities of affinity computing app-based companies capability thresholds cloud services cycles of experimentation desktop market disk-drive industry ‘enterprise software’ products exponential progress narrative as general purpose technology hardware and software infrastructure history of ‘Moore’s Law’ and productivity switches transistors vacuum tubes see also digital revolution; software construction industry regulations on Corbyn, Jeremy Corliss steam engine corporate power Cowen, Tyler craft producers Craigslist creative destruction the Crystal Palace, London Dalio, Ray Dallas, Texas debt deindustrialization demand, chronically weak dematerialization Detroit developing economies and capital investment and digital revolution era of rapid growth and industrialization pockets of wealth in and ‘reshoring’ phenomenon and sharp slowdown and social capital see also emerging economies digital revolution and agency and company cultures and developing economies and distance distribution of benefits of dotcom tech boom emergence of and global imbalances and highly skilled few and industrial institutions and information flows investment in social capital niche markets pace of change and paradox of potential productivity and output and secular stagnation start-ups and technological deskilling techno-optimism techno-pessimism as tectonic economic transformation and trading patterns web journalism see also automation; computing; globalization discrimination and exclusion ‘disruption’, phenomenon of distribution of wealth see inequality; redistribution; wealth and income distribution dotcom boom eBay economics, classical The Economist education in emerging economies during industrial revolution racial segregation in USA and scarcity see also university education electricity Ellison, Glenn Ellison, Sara Fisher emerging economies deindustrialization economic growth in education in foreign-exchange reserves growth in global supply chains highly skilled workers in see also developing economies employment and basic income policy cheap labour as boost to and dot.com boom in Europe and financial crisis (2008) ‘green jobs’ low-pay sector minimum wage impact niche markets in public sector ‘reshoring’ phenomenon as rising globally and social contexts and social membership as source of personal identity and structural change trilemma in USA see also labour; wages Engels, Friedrich environmental issues Etsy euro- zone Europe extreme populist politics liberalized economies political fractionalization in European Union Facebook face-recognition technology factors of production land see also capital; labour ‘Factory Asia’ factory work assembly-line techniques during industrial revolution family fascism Federal Reserve financial crisis (2008) financial markets cross-border capital flows in developing economies Finland firms and companies Coase’s work on core competencies culture of dark matter (intangible capital) and dematerialization and ‘disruption’ ‘firm-specific’ knowledge and information flows internal incentive structures pay of top executives shifting boundaries of social capital of and social wealth start-ups Ford, Martin, Rise of the Robots (2015) Ford Motor Company fracking France franchise, electoral Friedman, Milton Fukuyama, Francis Gates, Bill gender discrimination general purpose technologies enormous benefits from exponential progress and skilled labour supporting infrastructure and time lags see also digital revolution Germany ‘gig economy’ Glaeser, Ed global economy growth in supply chains imbalances lack of international cooperation savings glut and social consensus globalization hyperglobalization and secular stagnation and separatist movements Goldman Sachs Google Gordon, Robert Gothenburg, Sweden Great Depression Great Depression (1930s) Great Exhibition, London (1851) Great Recession Great Stagnation Greece ‘green jobs’ growth, economic battle over spoils of boom (1994-2005) and classical economists as consistent in rich countries decline of ‘labour share’ dotcom boom emerging economies gains not flowing to workers and industrial revolution Kaldor’s ‘stylized facts of’ and Keynes during liberal era pie metaphor in post-war period and quality of institutions and rich/elite cities rich-poor nation gap and skilled labour guilds Hansen, Alvin Hayes, Chris, The Twilight of the Elites healthcare and medicine hedge funds and private equity firms Holmes, Oliver Wendell Hong Kong housing in Bay-Area NIMBY campaigns against soaring prices pre-2008 crisis zoning and regulations Houston, Texas Huffington Post human capital Hungary IBM identity, personal immigration and ethno-nationalist separatism and labour markets in Nordic countries and social capital income distribution see inequality; redistribution; wealth and income distribution India Indonesia industrial revolution automation during and economic growth and growth of cities need for better-educated workers and productivity ‘second revolution’ and social change and wages and World’s Fairs inequality and education levels between firms and housing wealth during industrial revolution during liberal era between nations pay of top executives rise of in emerging economies and secular stagnation in Sweden wild contingency of wealth see also rich people; wealth and income distribution inflation in 1970s hyperinflation information technology see computing Intel interest rates International Space Station (ISS) iRobot ISIS Italy Jacksonville, Florida Jacquard, Joseph Marie Japan journalism Kaldor, Nicholas Keynes, John Maynard Kurzweil.

 

pages: 324 words: 92,805

The Impulse Society: America in the Age of Instant Gratification by Paul Roberts

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, accounting loophole / creative accounting, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, asset allocation, business process, Cass Sunstein, centre right, choice architecture, collateralized debt obligation, collective bargaining, corporate governance, corporate social responsibility, crony capitalism, David Brooks, delayed gratification, double helix, factory automation, financial deregulation, financial innovation, full employment, game design, greed is good, If something cannot go on forever, it will stop, impulse control, income inequality, inflation targeting, invisible hand, job automation, Joseph Schumpeter, knowledge worker, late fees, Long Term Capital Management, loss aversion, low skilled workers, new economy, Nicholas Carr, obamacare, Occupy movement, oil shale / tar sands, performance metric, postindustrial economy, profit maximization, Report Card for America’s Infrastructure, reshoring, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, shareholder value, Silicon Valley, speech recognition, Steve Jobs, technoutopianism, the built environment, The Predators' Ball, the scientific method, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, Walter Mischel, winner-take-all economy

Personal communication, January 10, 2014. 28. “Coming Home: Reshoring Manufacturing,” The Economist, Jan. 19, 2013, http://www.economist.com/news/special-report/21569570-growing-number-american-companies-are-moving-their-manufacturing-back-united. 29. Alan B. Krueger, “Fairness as an Economic Force,” lecture delivered at “Learning and Labor Economics” Conference at Oberlin College, April26, 2013, http://www.whitehouse.gov/sites/default/files/docs/oberlin_finalrevised.pdf. 30. Richard Sennett, The Culture of the New Capitalism, pp. 4–5. 31. Christopher Null and Brian Caulfield, “Fade to Black: The 1980s Vision of ‘Lights-Out’ Manufacturing, Where Robots Do All the Work, Is a Dream No More,” CNNMoney, http://money.cnn.com/magazines/business2/business2_archive/2003/06/01/343371/index.htm. 32. “Coming Home: Reshoring Manufacturing.” 33.

And, in fact, in the aftermath of the Great Recession, some in the business world seemed unhappy with its chosen path. The offshoring miracle was losing some of its glow. There were continuing problems with quality and communication. Many foreign workers were demanding substantially higher wages. Slowly, some Western firms began bringing back some offshored jobs—a shift that was quickly dubbed reshoring, and has since spurred a lot of talk of an American manufacturing renaissance. At the same time, the widening gap between job requirements and workers’ skills was becoming so large and unsustainable that the education sector was under heavy pressure to reinvent itself. Of particular note have been efforts to upgrade education with the efficiencies to digital technology. In recent years, universities such as Harvard and MIT have rolled out ambitious new education programs centered on MOOCs, or “massive open online courses.”

“If I was to take a guess, I would say that ten years from now, we’re much more likely to have labor shortages than job shortages.”24 For Mandel and others, our innovation-and-job machine hasn’t stalled—rather, it has been delayed by the massive complexity of today’s technical challenges, and a lot of unnecessary government regulation, and is now poised for a major breakout. And yet, while it’s clearly the case that the innovation-jobs machine is nowhere near tapped out, even positive trends such as reshoring and a biotech revolution will be hard-pressed to counter the larger trends now in motion without a much deeper shift in our impulsive approach to innovation. To quote another economist, John Maynard Keynes, “Markets can remain irrational a lot longer than you and I can remain solvent.” And there have been many developments in our emerging, impulsive economy that will forestall any sort of market correction to our myopic innovation strategies.

 

pages: 291 words: 81,703

Average Is Over: Powering America Beyond the Age of the Great Stagnation by Tyler Cowen

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Amazon Mechanical Turk, Black Swan, brain emulation, Brownian motion, Cass Sunstein, choice architecture, complexity theory, computer age, computer vision, cosmological constant, crowdsourcing, dark matter, David Brooks, David Ricardo: comparative advantage, deliberate practice, Drosophila, en.wikipedia.org, endowment effect, epigenetics, Erik Brynjolfsson, eurozone crisis, experimental economics, Flynn Effect, Freestyle chess, full employment, future of work, game design, income inequality, industrial robot, informal economy, Isaac Newton, Khan Academy, labor-force participation, Loebner Prize, low skilled workers, manufacturing employment, Mark Zuckerberg, meta analysis, meta-analysis, microcredit, Narrative Science, Netflix Prize, Nicholas Carr, pattern recognition, Peter Thiel, randomized controlled trial, Ray Kurzweil, reshoring, Richard Florida, Richard Thaler, Ronald Reagan, Silicon Valley, Skype, statistical model, stem cell, Steve Jobs, Turing test, Tyler Cowen: Great Stagnation, upwardly mobile, Yogi Berra

The United States is likely to continue as a leader in applying artificial intelligence and this will likely cement long-term American economic growth. One reason for this is simply that America can sell its artificial intelligence products to the rest of the world, but a deeper mechanism is operating too. If there aren’t many workers in a plant or project, hiring in a wealthy country brings less of a wage penalty. Indeed, some manufacturing plants are moving back to the United States—“reshoring” it is called—and those are the plants that use lots of robots and artificial intelligence. The technical proficiency is in the West for the most part and yet these plants will still create American jobs indirectly—through infrastructure, the service sector, and distribution—even if there are relatively few human jobs within the plant itself. Mexico, with its proximity to the United States and relatively high productivity levels, is also turning into a preferred destination for new manufacturing investments.

On the German population growing again, see Suzanne Daley and Nicholas Kulish, “Brain Drain Feared as German Jobs Lure Southern Europeans,” The New York Times, April 28, 2012. On job growth in services, see A. Michael Spence and Sandile Hlatshwayo, “The Evolving Structure of the American Economy and the Employment Challenge,” Council on Foreign Relations, March 2011. For one recent look at reshoring, see John Markoff, “Skilled Work, Without the Worker,” The New York Times, August 18, 2012. Chapter 10: Relearning Education For figures on K–12, see Stephanie Banchero and Stephanie Simon, “My Teacher is an App,” The Wall Street Journal, November 12, 2011. The point about stronger incentives for innovation I owe to Alex Tabarrok. On the Emporium model, see Daniel de Vise, “At Virginia Tech, computers help solve a math class problem,” The Washington Post, April 22, 2012.

, 7, 12, 157 Jobs, Steve, 25 Jones, Benjamin, 216 Journal of the American Statistical Association, 10 journalism, 9 Junior (chess program), 68, 72, 78 Jurafsky, Dan, 12–13 K-12 education, 4, 168, 181–82 Kabbalah, 153 Kahneman, Daniel, 105, 227 Kaiser Family Foundation, 60 Karlan, Dean, 223 Kasparov, Garry, 7, 69, 77, 80–81, 110, 124, 157 Kaufman, Larry, 203 Kempelen, Wolfgang von, 149 Kepler, Johannes, 153 Keynesian economics, 53–54, 56, 226 Khan Academy, 180, 184–85 KIPP schools, 199 Knoxville, Tennessee, 244 Komodo (chess program), 68, 203 Kraai, Jesse, 188 Kramnik, Vladimir, 103, 109, 149–50 Kronrod, Alexander, 68 Krueger, Alan, 59 Krugman, Paul, 180–81, 227 Kurzweil, Ray, 6, 137–38 labor market and age of workers, 41–42, 51–52, 62–63 and benefit costs, 36, 59, 113 careers in the changing market, 41–44 changing worker profiles, 29–40 and computer skills, 21, 33 and conscientiousness of workers, 201–2 and factor price equalization, 163 and global trends, 3–4 and healthcare reform, 238 and hiring costs, 36, 59, 60 important worker characteristics, 32 and income trends, 39 labor economics, 226 and layoffs, 54–55, 57–58, 61 and management, 27–29 and man-machine collaboration, 93 and marketing, 22–27 and outsourcing, 163–71 participation rates, 45, 46, 51 polarization in, 37, 55, 231 and “reshoring” trend, 177 and residential segregation, 247–48 and retraining, 202 and the social contract, 229 laboratory science, 100 land prices, 236, 247 language recognition, 119, 139–41 Latin America, 167–68, 170–71, 242 law and legal issues and the changing labor market, 41 costs of employing labor, 36, 59 lawsuits, 36, 59, 60 lawyer ratings, 121 malpractice suits, 128 and medical diagnosis, 128–29 and reliance on computer systems, 128–31 See also regulatory issues layoffs, 54–55, 57–58, 61 Levitt, Steven, 226–27 liberalism, 252, 253–54 libertarianism, 256–57 lie detection, 12–13, 16 The Lights in the Tunnel (Ford), 6 liquidity crunch, 54, 55 Liu, Runjuan, 164 Loebner Prize, 139–40 logistic function, 203 long-term unemployment, 58 machine intelligence.

 

pages: 606 words: 87,358

The Great Convergence: Information Technology and the New Globalization by Richard Baldwin

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3D printing, additive manufacturing, Admiral Zheng, agricultural Revolution, air freight, Amazon Mechanical Turk, Berlin Wall, bilateral investment treaty, Branko Milanovic, buy low sell high, call centre, Columbian Exchange, Commodity Super-Cycle, David Ricardo: comparative advantage, deindustrialization, domestication of the camel, Edward Glaeser, Erik Brynjolfsson, financial intermediation, George Gilder, global supply chain, global value chain, Henri Poincaré, imperial preference, industrial robot, invention of agriculture, invention of the telegraph, investor state dispute settlement, Isaac Newton, Islamic Golden Age, James Dyson, knowledge economy, knowledge worker, Lao Tzu, low skilled workers, market fragmentation, New Economic Geography, out of africa, paper trading, Pax Mongolica, profit motive, rent-seeking, reshoring, Richard Florida, rising living standards, Second Machine Age, Simon Kuznets, Skype, Snapchat, Stephen Hawking, telepresence, telerobotics, The Wealth of Nations by Adam Smith, trade liberalization, trade route, Washington Consensus

Frédéric Robert-Nicoud and I showed how twenty-first-century trade could be integrated seamlessly into the classic twentieth-century trade framework known as the Heckscher-Ohlin model. Importantly, this crystalized my view that the second unbundling should be thought of as a phenomenon with two basic elements, namely fractionalization of the production process and within-firm technology transfers. Tony Venables and I looked at theoretical interactions between offshoring and agglomeration in a piece that predicted, among other things, the reshoring of offshored stages that has been observed in recent years. When it comes to globalization and growth takeoffs, Philippe Martin, Gianmarco Ottaviano, and I wrote down the first model of the agglomeration-competitiveness growth cycle that I use in this book to explain the Great Divergence. Philippe and I later developed a strand of theory where the interplay between trade costs and knowledge spillovers could result in the Great Divergence in the nineteenth century and the Great Convergence in the twenty-first century.

See also developing nations; North Africa Against the Tide: An Intellectual History of Free Trade (Irwin), 119 Age of Discovery, European, 38, 39–40, 46 agglomeration (industrial clustering)/dispersion: cities and, 26; coordination and, 203, 204; free trade and, 129, 136, 194–196; future and, 290, 292–293; geographical distance and, 267; globalization and, 2, 19, 77, 127–130, 136, 140, 143; human capital and, 235; innovation and, 116, 123, 124; jobs and, 232; New Economic Geography and, 186–196, 189f, 194f, 214; Old Globalization (first unbundling) and, 122–124, 123f, 124f; specialization and, 202, 208; stickiness and, 231, 233, 235; tacit knowledge and, 230; transport costs and, 212; wages and, 114–115, 214–215. See also offshoring; reshoring; specialization; stickiness agriculture and food: bubonic plague and, 36; China and, 44; climate change and, 22f; first bundling and, 24–46; migration and, 138; multiple equlibria and, 255f–256; New Globalization/poverty line and, 242; New vs. Old Worlds and, 59, 61; population growth and, 26–30; production/consumption clusters and, 18, 21, 45, 116; productivity and, 59; shift to industry and, 277; summary, 109.

-net export method, 91, 92f, 93, 157 offshoring: communication and, 165, 204; competitive advantage and, 148, 168; cost of moving people and, 216; fractionalization/dispersion and, 196–198f, 201–206, 203f, 232; future and, 283, 287, 292–294; global value chain revolution and, 242; ICT and, 170, 179; knowledge/wages and, 214–215; location and, 268; mental models and, 137; moving ideas and, 109, 133–136, 134f, 135f, 140–141, 165, 204; moving people costs and, 296–300; New Globalization (second unbundling) and, 5–7, 8; policies and, 237; predictability and, 171–173; as regional, 132; sales-scale conundrum and, 257; sectors and, 231; smile curve and, 158; staged development and, 251. See also agglomeration (industrial clustering)/dispersion; bilateral investment treaties (BTIs); moving ideas; parts and components trade; production networks; reshoring; servicification “Offshoring: The Next Industrial Revolution?” (Blinder), 137 Ohlin, Bertil, 127 oil prices, 285, 286f Old Globalization (Phase Three) (first unbundling) (1820 to about 1990): agglomeration and, 122–124, 123f, 124f; BITs and, 104; communications and, 130–139; comparative advantage and, 12, 145, 146, 147, 166f–167, 179–185; endogenous growth/New Economic Geography and, 193–196, 194f; entangled flows and, 150, 151; GDP shares and, 81f; global value chain and, 155f; Great Convergence and, 135; ideas and, 151; mental models and, 111–112, 111–141, 113, 222, 225, 229f, 242; New Globalization (second unbundling) compared, 6, 138–141, 142–176, 166f–168, 177–220, 221–222; North-South back-and-forth trade and, 97f; pace of change and, 170; parts and components exports and, 151–154, 152, 153f; policies and, 237–240; poverty and, 106–108f, 242; predictability and, 171–172; resistance to, 148–149; rich nation/poor nations trade and, 161; summaries, 4–5, 4–5, 6, 9f, 18, 19, 47–48, 53–78; tariffs and, 101; trade and, 161; urbanization and, 63, 132; workers and, 162, 168.

 

pages: 475 words: 155,554

The Default Line: The Inside Story of People, Banks and Entire Nations on the Edge by Faisal Islam

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Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, British Empire, capital controls, carbon footprint, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, crony capitalism, dark matter, deindustrialization, Deng Xiaoping, disintermediation, energy security, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, financial repression, floating exchange rates, forensic accounting, forward guidance, full employment, ghettoisation, global rebalancing, global reserve currency, hiring and firing, inflation targeting, Irish property bubble, Just-in-time delivery, labour market flexibility, London Whale, Long Term Capital Management, margin call, market clearing, megacity, Mikhail Gorbachev, mini-job, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, North Sea oil, Northern Rock, offshore financial centre, open economy, paradox of thrift, pension reform, price mechanism, price stability, profit motive, quantitative easing, quantitative trading / quantitative finance, race to the bottom, regulatory arbitrage, reserve currency, reshoring, rising living standards, Ronald Reagan, savings glut, shareholder value, sovereign wealth fund, The Chicago School, the payments system, too big to fail, trade route, transaction costs, two tier labour market, unorthodox policies, uranium enrichment, urban planning, value at risk, working-age population

Under the ‘made in China’ model right now, a firm would have to put in their whole order for spring 2015 by October 2014. They’d have to second-guess emerging trends, the sizes, the colours. They’d have to discount 80 per cent of stock from full price because that equation would inevitably be wrong. Well, nearshoring and reshoring changes all that. The company can get the clothes on the shelves quicker. They can do a test run of, say, 500, and then swiftly reorder. They can shout at somebody in person if the colour is wrong. Reshoring takes huge amounts of risk out of the supply chain. Boohoo’s CEO Chris Bale told me that eighteen months previously 75 per cent of his product came from China. Now over half of it is made in the UK. One million ‘skater’ dresses were made and sold in Britain in this way. He says there isn’t enough textile manufacturing capacity to service the demand.

These were the words used in 1844 by Friedrich Engels to describe his visit to the textile mills near the centre of a Manchester booming during Britain’s Industrial Revolution, and home to waves of migrant workers from Ireland. In 2012, a plan was hatched to lure them back. The promise was no less than the return of Manchester’s rag trade, but in a form less dark and less satanic than its nineteenth-century predecessor. Reshoring, rebalancing and reindustrialising Manchester’s textile industry was the call – the rag trade returning to its historic home. In theory, this was the reverse of offshoring, imbalances, and deindustrialisation: just what George Osborne said he wanted for the UK economy. At Headen & Quarmby in Middleton, the retail guru Mary Portas commissioned a range of upscale women’s underwear called ‘Kinky Knickers’.

In the times of plenty, tax credits were focused on pensioners and families, but childless workers missed out. In more austere times the support for pensioners has been maintained, and tax credits for working families reduced. This is the reality of politics of an ageing electorate. It perhaps makes little economic sense. The minimum wage could be an important policy lever to bridge the gap. But large rises in the minimum wage could also imperil some forms of reshoring and reindustrialisation. More local discretion over minimum wage levels is probably worth exploring. DEFAULT LINE #2: Housing and intergenerational equity A different form of state action on living standards could be this: an all-encompassing strategy to make things cheaper: housing, education, transport, energy and food. Housing obviously has a rather bizarre status in the inflationary firmament.

 

pages: 179 words: 43,441

The Fourth Industrial Revolution by Klaus Schwab

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3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, barriers to entry, Baxter: Rethink Robotics, bitcoin, blockchain, Buckminster Fuller, call centre, clean water, collaborative consumption, conceptual framework, continuous integration, crowdsourcing, disintermediation, distributed ledger, Edward Snowden, Elon Musk, epigenetics, Erik Brynjolfsson, future of work, global value chain, Google Glasses, income inequality, Internet Archive, Internet of things, invention of the steam engine, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, life extension, Lyft, megacity, meta analysis, meta-analysis, more computing power than Apollo, mutually assured destruction, Narrative Science, Network effects, Nicholas Carr, personalized medicine, precariat, precision agriculture, Productivity paradox, race to the bottom, randomized controlled trial, reshoring, RFID, rising living standards, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, smart cities, smart contracts, software as a service, Stephen Hawking, Steve Jobs, Steven Levy, Stuxnet, The Spirit Level, total factor productivity, transaction costs, Uber and Lyft, Watson beat the top human players on Jeopardy!, WikiLeaks, winner-take-all economy, women in the workforce, working-age population, Y Combinator, Zipcar

These difficult questions must be given the attention they require, even at a time when the most advanced economies are preoccupied with their own challenges. Ensuring that swathes of the globe are not left behind is not a moral imperative; it is a critical goal that would mitigate the risk of global instability due to geopolitical and security challenges such as migration flows. One challenging scenario for low-income countries is if the fourth industrial revolution leads to significant “re-shoring” of global manufacturing to advanced economies, something very possible if access to low-cost labour no longer drives the competitiveness of firms. The ability to develop strong manufacturing sectors serving the global economy based on cost advantages is a well-worn development pathway, allowing countries to accumulate capital, transfer technology and raise incomes. If this pathway closes, many countries will have to rethink their models and strategies of industrialization.

According to the International Federation of Robotics, the world now includes 1.1 million working robots, and machines account for 80% of the work in manufacturing a car.93 Robots are streamlining supply chains to deliver more efficient and predictable business results. Positive impacts – Supply chain and logistics, eliminations – More leisure time – Improved health outcomes (big data for pharmaceutical gains in research and development) – Banking ATM as early adopter – More access to materials – Production “re-shoring” (i.e. replacing overseas workers with robots) Negative impacts – Job losses – Liability, accountability – Day-to-day social norms, end of 9-to-5 and 24-hour services – Hacking and cyber-risk The shift in action An article from The Fiscal Times appearing on CNBC.com states that: “Rethink Robotics released Baxter [in the fall of 2012] and received an overwhelming response from the manufacturing industry, selling out of their production capacity through April … [In April] Rethink launch[ed] a software platform that [allows] Baxter to do a more complex sequencing of tasks – for example, picking up a part, holding it in front of an inspection station and receiving a signal to place it in a ‘good’ or ‘not good’ pile.

 

pages: 357 words: 95,986

Inventing the Future: Postcapitalism and a World Without Work by Nick Srnicek, Alex Williams

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3D printing, additive manufacturing, air freight, algorithmic trading, anti-work, back-to-the-land, banking crisis, battle of ideas, blockchain, Bretton Woods, call centre, capital controls, carbon footprint, Cass Sunstein, centre right, collective bargaining, crowdsourcing, cryptocurrency, David Graeber, decarbonisation, deindustrialization, deskilling, Doha Development Round, Elon Musk, Erik Brynjolfsson, Ferguson, Missouri, financial independence, food miles, Francis Fukuyama: the end of history, full employment, future of work, gender pay gap, housing crisis, income inequality, industrial robot, informal economy, intermodal, Internet Archive, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, late capitalism, low skilled workers, manufacturing employment, market design, Martin Wolf, means of production, minimum wage unemployment, Mont Pelerin Society, neoliberal agenda, New Urbanism, Occupy movement, oil shale / tar sands, oil shock, patent troll, pattern recognition, post scarcity, postnationalism / post nation state, precariat, price stability, profit motive, quantitative easing, reshoring, Richard Florida, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Second Machine Age, secular stagnation, self-driving car, Slavoj Žižek, social web, stakhanovite, Steve Jobs, surplus humans, the built environment, The Chicago School, Tyler Cowen: Great Stagnation, universal basic income, wages for housework, We are the 99%, women in the workforce, working poor, working-age population

Technological and economic developments now enable countries to virtually leapfrog the industrialisation phase, which means that developing economies are now deindustrialising at much lower rates of per capita income and with much lower shares of manufacturing employment.106 China is a good example of this, with manufacturing employment in decline,107 labour struggles becoming more confident,108 real wages surging109 and demographic limits leading to a focus on ‘technological upgrading [and] productivity enhancements’ in order to maintain growth.110 The automation of factories is at the leading edge of this deindustrialisation trend, with China already the biggest purchaser of industrial robots, and expected to soon have more industrial robots in operation than either Europe or North America.111 The factory of the world is going robotic. Deindustrialisation can also be seen in ‘reshoring’, where manufacturing returns to developed economies in jobless, automated forms.112 These deindustrialisation trends are taking hold across the developing economies of Latin America, sub-Saharan Africa and most of Asia.113 Even in countries where manufacturing employment has increased in absolute terms, there have been significant decreases in the labour-intensity of the process.114 The result of all of this is not only an incomplete transition to a significant working class, but also the stymying of the expected employment path for the workforce.

ILO, Global Wage Report 2012/13: Wages and Equitable Growth (Geneva: International Labour Organization, 2013), pdf available at ilo.org, p. 20. 110.ILO, Global Employment Trends 2014, p. 29. 111.International Federation of Robotics, World Robotics: Industrial Robots 2014 (Frankfurt: International Federation of Robotics, 2014), pdf available at worldrobotics.org, p. 19; Lee Chyen Yee and Clare Jim, ‘Foxconn to Rely More on Robots; Could Use 1 Million in 3 Years’, Reuters, 1 August 2011; ‘Guangzhou Spurs Robot Use amid Rising Labor Costs’, China Daily, 16 April 2014, at chinadaily.com.cn; Angelo Young, ‘Nike Unloads Contract Factory Workers, Showing How Automation Is Costing Jobs of Vulnerable Emerging Market Laborers’, International Business Times, 20 May 2014. 112.Majority of Large Manufacturers Are Now Planning or Considering ‘Reshoring’ from China to the US, Boston Consulting Group, 24 September 2013, at bcg.com; Stephanie Clifford, ‘US Textile Plants Return, with Floors Largely Empty of People’, New York Times, 19 September 2013. 113.Dani Rodrik, Premature Deindustrialization, BREAD Working Paper No. 439, Bureau for Research and Economic Analysis of Development, 2015, at ipl.econ.duke.edu, p. 2. 114.Fiona Tregenna, Manufacturing Productivity, Deindustrialization, and Reindustrialization, World Institute for Development Economics Research, 2011, at econstor.eu, p. 11. 115.Out of a labour force of 481 million, approximately 1 million work in this sector.

 

pages: 338 words: 92,465

Reskilling America: Learning to Labor in the Twenty-First Century by Katherine S. Newman, Hella Winston

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blue-collar work, collective bargaining, deindustrialization, desegregation, factory automation, interchangeable parts, invisible hand, job-hopping, knowledge economy, low skilled workers, performance metric, reshoring, Ronald Reagan, Silicon Valley, two tier labour market, union organizing, upwardly mobile, War on Poverty, Wolfgang Streeck, working poor

What once required a strong work ethic and the willingness to withstand the heat of the furnace is now a highly mechanized, automated production process. Looking out over the vast expanse of a modern steel mill, there are hardly any people on the shop floor at all. Automation has replaced human workers with preprogrammed machines that can operate twenty-four hours a day without getting tired, at levels of precision that are far superior to what line workers once produced. As a consequence, the re-shoring of manufacturing is not likely to produce millions of jobs. Ninety-four thousand people working in the steel industry in 2012 produced 14 percent more steel than nearly four hundred thousand workers did in 1980.11 And as manufacturing comes back to the Rust Belt states, the employees it does need will be different from the ones it turfed out in the off-shoring era. The workers who are finding their way back to America’s car factories and steel mills spend their work hours in front of a computer screen.

Most of these jobs will require at least a bachelor’s degree, but there are two STEM occupations (electrical and electronic engineering technicians and surveying and mapping technicians) in which students with either some college (including postsecondary certificate holders) or associate degrees will earn more on average than workers who hold bachelor’s degrees, although the differences are rather small.21 Notes Please note that some of the links referenced in this work are no longer active Epigraph 1.   Jeffrey Goldberg, “A Matter of Black Lives,” Atlantic, September 2015, http://www.theatlantic.com/magazine/archive/2015/09/a-matter-of-black-lives/399386/. Introduction 1.   Andrea Cheng, “Record Number of Manufacturing Jobs Returning to the US,” Marketwatch, May 1, 2015, http://www.marketwatch.com/story/us-flips-the-script-on-jobs-reshoring-finally-outpaced-offshoring-in-2014-2015-05-01. 2.   Megan Woolhouse, “Some Offshored Manufacturing Jobs Return to US,” Boston Globe, July 26, 2015. 3.   Harold L. Sirkin, Michael Zinser, and Douglas Hohner, “Made in America, Again: Why Manufacturing Will Return to the U.S.,” Boston Consulting Group (August 2011), https://www.bcg.com/documents/file84471.pdf. 4.   EMSI, Middle-skill Spotlight: An Analysis of Four In-demand Sectors with a Community College Focus (Moscow, ID: EMSI, 2014), http://www.economicmodeling.com/cc-report2014/. 5.   

 

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The Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metal Age by David S. Abraham

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3D printing, carbon footprint, clean water, cleantech, Deng Xiaoping, Elon Musk, en.wikipedia.org, glass ceiling, global supply chain, information retrieval, Internet of things, new economy, oil shale / tar sands, oil shock, reshoring, Ronald Reagan, Silicon Valley, South China Sea, Steve Ballmer, Steve Jobs, telemarketer, Tesla Model S, thinkpad, upwardly mobile, uranium enrichment, Y2K

See also Gold; Silver Prices: benchmark prices, lack of, 94–95 price bubbles, 113–14 rare earth crisis, 138–40, 227 volatility of, 90–91 PricewaterhouseCoopers (PwC), 51, 131, 138 Processing industry, 276n20 Production (of rare metals): change in quantities of, 8–9 environmental impact of, 16, 177–79 lead time for, 49–50 product losses during, 76–80, 283n13 Production difficulties, 67–88 Chinese refining capacity, 82–85 element isolation, 72–76 overview, 67–69 production efficiencies and costs, 76–80 refining, steps in, 69–72 Silmet’s niobium processing, 80–82 workforce, lack of knowledgeable, 85–88 Product lifecycles, 178 Promethium, 72 Purdue University, 164–65 PwC (PricewaterhouseCoopers), 51, 131, 138 Qinhua Wang, 203 Quantum Rare Earth Developments (NioCorp), 56, 66 Radar, 164–65 Radiation-detection systems, 167 Radioactive materials, 3, 38, 40, 55, 71, 176, 179, 182–83 Ralston, Oliver, 276n20 Rappaport, Michael, 94 Rare earth crisis, 138–40, 227 Rare earth elements (REEs), xi, 5, 61, 202 Rare earth magnets, 112–13, 122, 165–66, 191 Rare Earth Office, Ministry of Industry and Information Technology (China), 198 Rare earth permanent magnets, 137–38, 145–46 Rare Metal Age, ix, 3, 120, 130, 214–30 business models, need for change in, 223–25 conclusions on, 229–30 consumer habits, need for change in, 223 decision-making processes, 227–28 in developing countries, 218–19 global forum, need for, 228–29 government role in, 225–27, 228 from National Renewable Energy Laboratory, 217–18 overview, 214–17 rare metals supply and, 219–20 research, need for, 220–23 smartphones, 218 Rare metal exchanges, 96–98 Rare metal risk committees, 131 Rare metals: corporate issues, 38–66 environmental needs, 134–54 geopolitics, 194–213 list of, 6–7 national struggles and, 18–37 overview, 1–17 production difficulties of, 67–88 Rare Metal Age, prospering in, 214–30 sustainable use and, 173–93 tech needs and, 115–33 as term, xiii, 232n7 trading networks for, 89–114 ubiquity, 3 in war, 155–72. See also names of individual elements Raytheon, 171 Reagan, Ronald, 30, 239n30 Reck, Barbara, 188, 189, 190, 191, 192 Recycling, 177, 184–92, 224, 285n34 Reeck, David, 141 REEs (rare earth elements), xi, 5, 61 Refining, steps in, 69–72 Reisman, Lisa, 110, 111 Renewable energy, 135, 136–37 Research, need for, 220–23 Reshoring, 212 Resource constraints, 205–8 Resource needs, x, 12 Resource security, 28–32, 203–5, 208–12, 228 Rhenium, 113, 114, 128–30, 132, 256n42 Rhodia (Solvay, metal processing firm), 70 Richard Hammen, 70 Richardson, Ed, 165–66 Rive, Lyndon, 148 Romans (ancient), 158 Roosevelt, Franklin Delano, 30, 238n28 Royal Philips Sonicare, 115 Rule of law, 200–201 Sagawa, Masato, 20–22, 25–28, 205, 229 Samarium, 20, 121 Samarium-cobalt magnets, 20, 22, 189–90 Santini, 235n2 Saudi Arabia, control of oil prices, 40 Savagian, Pete, 142, 143 ScanWind, 139 Schlumberger, 86 Screens: flat-screen technology, 122–24 LCD screens, 264n33 touch screens, 1, 261n19 Seafood, 208–9 “Sea of Death” (Dokai Bay, Japan), pollution in, 181 Search engine use, in China, 199 Secondary sources, rare metals recovery from, 79–80 Second China Rare Earth Summit, 194 Secrecy, xi–xii, 67, 68, 70, 87, 147, 160, 161, 196, 197, 268n17 Securing Materials for Emerging Technologies (American Physical Society & Material Research Society), 208, 211, 212–13 Selenium, 79, 149, 150, 190, 246n40 Semiconductors, 165 Senkaku Islands (Diaoyu Islands), territorial dispute over, 22–24 Senter, William, 156 Sesa-Opas (pseud., Indonesian social media user), 126, 127 Shanghai International Securities, 252–53n17 Shape memory, 221 Sheffi, Yossi, 112–13, 172 Sichuan Province, China, opposition to mining in, 49 Siemens, 139 Sillamäe, Estonia, refining in, 67–69 Silmet (Factory Number 7), 67–69, 72–76, 80–82 Silver, xiii, 4, 187, 190 Silver, Michael, 35, 139–40, 218 Simbol Materials, 211 Sinclair, Clive, 118, 119 Skyscrapers, molybdenum in, 162 Smartphones, 121, 216, 218, 260n15 Smith, John, 131–32 “Smoke Capital” (Osaka, Japan), pollution in, 181 Smuggling, 98, 203.

., 30 Tungsten: Allied actions on, in WWII, 239n28 China, production in, 32, 205, 240n33, 289n16 conflict tungsten, 108, 109 Congo production, 108 export quota, 240n34 in glass, 217 importance, xi, 11 in lighting, 151 patents, 211 production locations, 48 shortage fears, 207, 219 sources of, 32, 48, 93, 108, 205, 240n24, 240n33, 289n16 wartime use of, 29, 30, 239n28 in weaponry, 29, 161–62, 167 Tunna, Nigel, 96 Twitter, 126 Uganda, cassiterites from, 111 Umicore, 191 UN Intergovernmental Panel on Climate Change, 135 United States: aluminum can recycling, 285n34 Bureau of Mines closure, 222 China, trade case against, 36 on China’s materials exports, 203 cobalt supplies, 19 commodity stockpiles, 291n36 conflict materials, actions on, 110–11 Japan, embargo against, 30 rare metal security strategy, 206, 208–12 reshoring, 212 tungsten, wartime actions on, 162, 239n28. See also Military (U.S.) Uranium, ix, 67–68, 164 Urban mining. See Recycling U.S. Chamber of Commerce, 288n11 U.S. Commercial Company, 238n28 U.S. Defense Department: rare metal stockpiles, 31. See also Military (U.S.) U.S. Department of Energy, 136–37, 138, 146, 207 U.S. Geological Survey, 91 U.S. National Renewable Energy Laboratory, 79, 80 U.S.

 

Frugal Innovation: How to Do Better With Less by Jaideep Prabhu Navi Radjou

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3D printing, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, barriers to entry, Baxter: Rethink Robotics, Bretton Woods, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cloud computing, collaborative consumption, collaborative economy, connected car, corporate social responsibility, crowdsourcing, Elon Musk, financial innovation, global supply chain, income inequality, industrial robot, Internet of things, job satisfaction, Khan Academy, Kickstarter, late fees, Lean Startup, low cost carrier, M-Pesa, Mahatma Gandhi, megacity, minimum viable product, more computing power than Apollo, new economy, payday loans, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, precision agriculture, race to the bottom, reshoring, ride hailing / ride sharing, risk tolerance, Ronald Coase, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, software as a service, Steve Jobs, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, transaction costs, unbanked and underbanked, underbanked, women in the workforce, X Prize, yield management, Zipcar

Costs also rise because manufacturers must hold extra inventory in case of unexpected market changes. These inventory costs can add billions of dollars in multi-tiered industry value chains such as automotive and electronics. Together, these two obstacles can be called the “value gap”, and they prevent firms from meeting demand faster, better and cheaper. Some firms, however, have been able to bridge the value gap in the following ways. Reshoring After several decades of unbridled offshoring to low-cost destinations from China to Mexico, manufacturing is now returning to the developed world, as a way to cut costs. Much of the savings involve a product’s physical distribution. The 20th-century industrial model worked only as long as cheap labour and economies of scale outweighed shipping costs. This is no longer always the case. Emerging-market wages are rising.

MacArthur Foundation 14 John Deere 67 John Lewis 195 Johnson & Johnson 100, 111 Johnson, Warren 98 Jones, Don 112 jugaad (frugal ingenuity) 199, 202 Jugaad Innovation (Radjou, Prabhu and Ahuja, 2012) xvii, 17 just-in-time design 33–4 K Kaeser, Joe 217 Kalanick, Travis 163 Kalundborg (Denmark) 160 kanju 201 Karkal, Shamir 124 Kaufman, Ben 50–1, 126 Kawai, Daisuke 29–30 Kelly, John 199–200 Kennedy, President John 138 Kenya 57, 200–1 key performance indicators see KPIs Khan Academy 16–17, 113–14, 164 Khan, Salman (Sal) 16–17, 113–14 Kickstarter 17, 48, 137, 138 KieranTimberlake 196 Kimberly-Clark 25, 145 Kingfisher 86–7, 91, 97, 157, 158–9, 185–6, 192–3, 208 KissKissBankBank 17, 137 Knox, Steve 145 Knudstorp, Jørgen Vig 37, 68, 69 Kobori, Michael 83, 100 KPIs (key performance indicators) 38–9, 67, 91–2, 185–6, 208 Kuhndt, Michael 194 Kurniawan, Arie 151–2 L La Chose 108 La Poste 92–3, 157 La Ruche qui dit Oui 137 “labs on a chip” 52 Lacheret, Yves 173–5 Lada 1 laser cutters 134, 166 Laskey, Alex 119 last-mile challenge 57, 146, 156 L’Atelier 168–9 Latin America 161 lattice organisation 63–4 Laury, Véronique 208 Laville, Elisabeth 91 Lawrence, Jamie 185, 192–3, 208 LCA (life-cycle assessment) 196–7 leaders 179, 203–5, 214, 217 lean manufacturing 192 leanness 33–4, 41, 42, 170, 192 Learnbox 114 learning by doing 173, 179 learning organisations 179 leasing 123 Lee, Deishin 159 Lego 51, 126 Lego Group 37, 68, 69, 144 Legrand 157 Lenovo 56 Leroy, Adolphe 127 Leroy Merlin 127–8 Leslie, Garthen 150–1 Lever, William Hesketh 96 Levi Strauss & Co 60, 82–4, 100, 122–3 Lewis, Dijuana 212 life cycle of buildings 196 see also product life cycle life-cycle assessment (LCA) 196–7 life-cycle costs 12, 24, 196 Lifebuoy soap 95, 97 lifespan of companies 154 lighting 32, 56, 123, 201 “lightweighting” 47 linear development cycles 21, 23 linear model of production 80–1 Link 131 littleBits 51 Livi, Daniele 88 Livi, Vittorio 88 local communities 52, 57, 146, 206–7 local markets 183–4 Local Motors 52, 129, 152 local solutions 188, 201–2 local sourcing 51–2, 56, 137, 174, 181 localisation 56, 137 Locavesting (Cortese, 2011) 138 Logan car 2–3, 12, 179, 198–9 logistics 46, 57–8, 161, 191, 207 longevity 121, 124 Lopez, Maribel 65–6 Lopez Research 65–6 L’Oréal 174 Los Alamos National Laboratory 170 low-cost airlines 60, 121 low-cost innovation 11 low-income markets 12–13, 161, 203, 207 Lowry, Adam 81–2 M m-health 109, 111–12 M-KOPA 201 M-Pesa 57, 201 M3D 48, 132 McDonough Braungart Design Chemistry (MBDC) 84 McDonough, William 82 McGregor, Douglas 63 MacGyvers 17–18, 130, 134, 167 McKelvey, Jim 135 McKinsey & Company 81, 87, 209 mainstream, frugal products in 216 maintenance 66, 75, 76, 124, 187 costs 48–9, 66 Mainwaring, Simon 8 Maistre, Christophe de 187–8, 216 Maker Faire 18, 133–4 Maker platform 70 makers 18, 133–4, 145 manufacturing 20th-century model 46, 55, 80–1 additive 47–9 continuous 44–5 costs 47, 48, 52 decentralised 9, 44, 51–2 frugal 44–54 integration with logistics 57–8 new approaches 50–4 social 50–1 subtractive method 48 tools for 47, 47–50 Margarine Unie 96 market 15, 28, 38, 64, 186, 189, 192 R&D and 21, 26, 33, 34 market research 25, 61, 139, 141 market share 100 marketing 21–2, 24, 36, 61–3, 91, 116–20, 131, 139 and R&D 34, 37, 37–8 marketing teams 143, 150 markets 12–13, 42, 62, 215 see also emerging markets Marks & Spencer (M&S) 97, 215 Plan A 90, 156, 179–81, 183–4, 186–7, 214 Marriott 140 Mars 57, 158–9, 161 Martin Marietta 159 Martin, Tod 154 mass customisation 9, 46, 47, 48, 57–8 mass market 189 mass marketing 21–2 mass production 9, 46, 57, 58, 74, 129, 196 Massachusetts Institute of Technology see MIT massive open online courses see MOOCs materials 3, 47, 48, 73, 92, 161 costs 153, 161, 190 recyclable 74, 81, 196 recycled 77, 81–2, 83, 86, 89, 183, 193 renewable 77, 86 repurposing 93 see also C2C; reuse Mayhew, Stephen 35, 36 Mazoyer, Eric 90 Mazzella, Frédéric 163 MBDC (McDonough Braungart Design Chemistry) 84 MDI 16 measurable goals 185–6 Mechanical Engineer Laboratory (MEL) 52 “MEcosystems” 154–5, 156–8 Medicare 110 medication 111–12 Medicity 211 MedStartr 17 MEL (Mechanical Engineer Laboratory) 52 mental models 2, 193–203, 206, 216 Mercure 173 Merlin, Rose 127 Mestrallet, Gérard 53, 54 method (company) 81–2 Mexico 38, 56 Michelin 160 micro-factories 51–2, 52, 66, 129, 152 micro-robots 52 Microsoft 38 Microsoft Kinect 130 Microsoft Word 24 middle classes 197–8, 216 Migicovsky, Eric 137–8 Mikkiche, Karim 199 millennials 7, 14, 17, 131–2, 137, 141, 142 MindCET 165 miniaturisation 52, 53–4 Mint.com 125 MIT (Massachusetts Institute of Technology) 44–5, 107, 130, 134, 202 mobile health see m-health mobile phones 24, 32, 61, 129–30, 130, 168, 174 emerging market use 198 infrastructure 56, 198 see also smartphones mobile production units 66–7 mobile technologies 16, 17, 103, 133, 174, 200–1, 207 Mocana 151 Mochon, Daniel 132 modular design 67, 90 modular production units 66–7 Modularer Querbaukasten see MQB “mompreneurs” 145 Mondelez 158–9 Money Dashboard 125 Moneythink 162 monitoring 65–6, 106, 131 Monopoly 144 MOOCs (massive open online courses) 60, 61, 112, 113, 114, 164 Morieux, Yves 64 Morocco 207 Morris, Robert 199–200 motivation, employees 178, 180, 186, 192, 205–8 motivational approaches to shaping consumer behaviour 105–6 Motorola 56 MQB (Modularer Querbaukasten) 44, 45–6 Mulally, Alan 70, 166 Mulcahy, Simon 157 Mulliez family 126–7 Mulliez, Vianney 13, 126 multi-nodal innovation 202–3 Munari, Bruno 93 Murray, Mike 48–9 Musk, Elon 172 N Nano car 119, 156 National Geographic 102 natural capital, loss of 158–9 Natural Capital Leaders Platform 158–9 natural resources 45, 86 depletion 7, 72, 105, 153, 158–9 see also resources NCR 55–6 near-shoring 55 Nelson, Simon 113 Nemo, Sophie-Noëlle 93 Nest Labs 98–100, 103 Nestlé 31, 44, 68, 78, 94, 158–9, 194, 195 NetPositive plan 86, 208 networking 152–3, 153 new materials 47, 92 New Matter 132 new technologies 21, 27 Newtopia 32 next-generation customers 121–2 next-generation manufacturing techniques 44–6, 46–7 see also frugal manufacturing Nigeria 152, 197–8 Nike 84 NineSigma 151 Nissan 4, 4–5, 44, 199 see also Renault-Nissan non-governmental organisations 167 non-profit organisations 161, 162, 202 Nooyi, Indra 217 Norman, Donald 120 Norris, Greg 196 North American companies 216–17 North American market 22 Northrup Grumman 68 Norton, Michael 132 Norway 103 Novartis 44–5, 215 Novotel 173, 174 nudging 100, 108, 111, 117, 162 Nussbaum, Bruce 140 O O2 147 Obama, President Barack 6, 8, 13, 134, 138, 208 obsolescence, planned 24, 121 offshoring 55 Oh, Amy 145 Ohayon, Elie 71–2 Oliver Wyman 22 Olocco, Gregory 206 O’Marah, Kevin 58 on-demand services 39, 124 online communities 31, 50, 61, 134 online marketing 143 online retailing 60, 132 onshoring 55 Opel 4 open innovation 104, 151, 152, 153, 154 open-source approach 48, 129, 134, 135, 172 open-source hardware 51, 52, 89, 130, 135, 139 open-source software 48, 130, 132, 144–5, 167 OpenIDEO 142 operating costs 45, 215 Opower 103, 109, 119 Orange 157 Orbitz 173 organisational change 36–7, 90–1, 176, 177–90, 203–8, 213–14, 216 business models 190–3 mental models 193–203 organisational culture 36–7, 170, 176, 177–9, 213–14, 217 efficacy focus 181–3 entrepreneurial 76, 173 see also organisational change organisational structure 63–5, 69 outsourcing 59, 143, 146 over-engineering 27, 42, 170 Overby, Christine 25 ownership 9 Oxylane Group 127 P P&G (Procter & Gamble) 19, 31, 58, 94, 117, 123, 145, 195 packaging 57, 96, 195 Page, Larry 63 “pain points” 29, 30, 31 Palmer, Michael 212 Palo Alto Junior League 20 ParkatmyHouse 17, 63, 85 Parker, Philip 61 participation, customers 128–9 partner ecosystems 153, 154, 200 partners 65, 72, 148, 153, 156–8 sharing data with 59–60 see also distributors; hyper-collaboration; suppliers Partners in Care Foundation 202 partnerships 41, 42, 152–3, 156–7, 171–2, 174, 191 with SMBs 173, 174, 175 with start-ups 20, 164–5, 175 with suppliers 192–3 see also hyper-collaboration patents 171–2 Payne, Alex 124 PE International 196 Pearson 164–5, 167, 181–3, 186, 215 Pebble 137–8 peer-to-peer economic model 10 peer-to-peer lending 10 peer-to-peer sales 60 peer-to-peer sharing 136–7 Pélisson, Gérard 172–3 PepsiCo 38, 40, 179, 190, 194, 215 performance 47, 73, 77, 80, 95 of employees 69 Pernod Ricard 157 personalisation 9, 45, 46, 48, 62, 129–30, 132, 149 Peters, Tom 21 pharmaceutical industry 13, 22, 23, 33, 58, 171, 181 continuous manufacturing 44–6 see also GSK Philippines 191 Philips 56, 84, 100, 123 Philips Lighting 32 Picaud, Philippe 122 Piggy Mojo 119 piggybacking 57 Piketty, Thomas 6 Plan A (M&S) 90, 156, 179–81, 183–4, 186–7, 214 Planet 21 (Accor) 174–5 planned obsolescence 24, 121 Plastyc 17 Plumridge, Rupert 18 point-of-sale data 58 Poland 103 pollution 74, 78, 87, 116, 187, 200 Polman, Paul 11, 72, 77, 94, 203–5, 217 portfolio management tools 27, 33 Portugal 55, 103 postponement 57–8 Potočnik, Janez 8, 79 Prabhu, Arun 25 Prahalad, C.K. 12 predictive analytics 32–3 predictive maintenance 66, 67–8 Priceline 173 pricing 81, 117 processes digitising 65–6 entrenched 14–16 re-engineering 74 simplifying 169, 173 Procter & Gamble see P&G procurement priorities 67–8 product life cycle 21, 75, 92, 186 costs 12, 24, 196 sustainability 73–5 product-sharing initiatives 87 production costs 9, 83 productivity 49, 59, 65, 79–80, 153 staff 14 profit 14, 105 Progressive 100, 116 Project Ara 130 promotion 61–3 Propeller Health 111 prosumers xix–xx, 17–18, 125, 126–33, 136–7, 148, 154 empowering and engaging 139–46 see also horizontal economy Protomax 159 prototypes 31–2, 50, 144, 152 prototyping 42, 52, 65, 152, 167, 192, 206 public 50–1, 215 public sector, working with 161–2 publishers 17, 61 Pullman 173 Puma 194 purchasing power 5–6, 216 pyramidal model of production 51 pyramidal organisations 69 Q Qarnot Computing 89 Qualcomm 84 Qualcomm Life 112 quality 3, 11–12, 15, 24, 45, 49, 82, 206, 216 high 1, 9, 93, 198, 216 measure of 105 versus quantity 8, 23 quality of life 8, 204 Quicken 19–21 Quirky 50–1, 126, 150–1, 152 R R&D 35, 67, 92, 151 big-ticket programmes 35–6 and business development 37–8 China 40, 188, 206 customer focus 27, 39, 43 frugal approach 12, 26–33, 82 global networks 39–40 incentives 38–9 industrial model 2, 21–6, 33, 36, 42 market-focused, agile model 26–33 and marketing 34, 37, 37–8 recommendations for managers 34–41 speed 23, 27, 34, 149 spending 15, 22, 23, 28, 141, 149, 152, 171, 187 technology culture 14–15, 38–9 see also Air Liquide; Ford; GSK; IBM; immersion; Renault; SNCF; Tarkett; Unilever R&D labs 9, 21–6, 70, 149, 218 in emerging markets 40, 188, 200 R&D teams 26, 34, 38–9, 65, 127, 150, 194–5 hackers as 142 innovation brokering 168 shaping customer behaviour 120–2 Raspberry Pi 135–6, 164 Ratti, Carlo 107 raw materials see materials real-time demand signals 58, 59 Rebours, Christophe 157–8 recession 5–6, 6, 46, 131, 180 Reckitt Benckiser 102 recommendations for managers flexing assets 65–71 R&D 34–41 shaping consumer behaviour 116–24 sustainability 90–3 recruiting 70–1 recyclable materials 74, 81, 196 recyclable products 3, 73, 159, 195–6 recycled materials 77, 81–2, 83, 86, 89, 183, 193 recycling 8, 9, 87, 93, 142, 159 e-waste 87–8 electronic and electrical goods (EU) 8, 79 by Tarkett 73–7 water 83, 175 see also C2C; circular economy Recy’Go 92–3 regional champions 182 regulation 7–8, 13, 78–9, 103, 216 Reich, Joshua 124 RelayRides 17 Renault 1–5, 12, 117, 156–7, 179 Renault-Nissan 4–5, 40, 198–9, 215 renewable energy 8, 53, 74, 86, 91, 136, 142, 196 renewable materials 77, 86 Replicator 132 repurposing 93 Requardt, Hermann 189 reshoring 55–6 resource constraints 4–5, 217 resource efficiency 7–8, 46, 47–9, 79, 190 Resource Revolution (Heck, Rogers and Carroll, 2014) 87–8 resources 40, 42, 73, 86, 197, 199 consumption 9, 26, 73–7, 101–2 costs 78, 203 depletion 7, 72, 105, 153, 158–9 reducing use 45, 52, 65, 73–7, 104, 199, 203 saving 72, 77, 200 scarcity 22, 46, 72, 73, 77–8, 80, 158–9, 190, 203 sharing 56–7, 159–61, 167 substitution 92 wasting 169–70 retailers 56, 129, 214 “big-box” 9, 18, 137 Rethink Robotics 49 return on investment 22, 197 reuse 9, 73, 76–7, 81, 84–5, 92–3, 200 see also C2C revenues, generating 77, 167, 180 reverse innovation 202–3 rewards 37, 178, 208 Riboud, Franck 66, 184, 217 Rifkin, Jeremy 9–10 robots 47, 49–50, 70, 144–5, 150 Rock Health 151 Rogers, Jay 129 Rogers, Matt 87–8 Romania 2–3, 103 rookie mindset 164, 168 Rose, Stuart 179–80, 180 Roulin, Anne 195 Ryan, Eric 81–2 Ryanair 60 S S-Oil 106 SaaS (software as a service) 60 Saatchi & Saatchi 70–1 Saatchi & Saatchi + Duke 71–2, 143 sales function 15, 21, 25–6, 36, 116–18, 146 Salesforce.com 157 Santi, Paolo 108 SAP 59, 186 Saunders, Charles 211 savings 115 Sawa Orchards 29–31 Scandinavian countries 6–7 see also Norway Schmidt, Eric 136 Schneider Electric 150 Schulman, Dan 161–2 Schumacher, E.F. 104–5, 105 Schweitzer, Louis 1, 2, 3, 4, 179 SCM (supply chain management) systems 59 SCOR (supply chain operations reference) model 67 Seattle 107 SEB 157 self-sufficiency 8 selling less 123–4 senior managers 122–4, 199 see also CEOs; organisational change sensors 65–6, 106, 118, 135, 201 services 9, 41–3, 67–8, 124, 149 frugal 60–3, 216 value-added 62–3, 76, 150, 206, 209 Shapeways 51, 132 shareholders 14, 15, 76, 123–4, 180, 204–5 sharing 9–10, 193 assets 159–61, 167 customers 156–8 ideas 63–4 intellectual assets 171–2 knowledge 153 peer-to-peer 136–9 resources 56–7, 159–61, 167 sharing economy 9–10, 17, 57, 77, 80, 84–7, 108, 124 peer-to-peer sharing 136–9 sharing between companies 159–60 shipping costs 55, 59 shopping experience 121–2 SIEH hotel group 172–3 Siemens 117–18, 150, 187–9, 215, 216 Sigismondi, Pier Luigi 100 Silicon Valley 42, 98, 109, 150, 151, 162, 175 silos, breaking out of 36–7 Simple Bank 124–5 simplicity 8, 41, 64–5, 170, 194 Singapore 175 Six Sigma 11 Skillshare 85 SkyPlus 62 Small is Beautiful (Schumacher, 1973) 104–5 “small is beautiful” values 8 small and medium-sized businesses see SMBs Smart + Connected Communities 29 SMART car 119–20 SMART strategy (Siemens) 188–9 smartphones 17, 100, 106, 118, 130, 131, 135, 198 in health care 110, 111 see also apps SmartScan 29 SMBs (small and medium-sized businesses) 173, 174, 175, 176 SMS-based systems 42–3 SnapShot 116 SNCF 41–3, 156–7, 167 SoapBox 28–9 social business model 206–7 social comparison 109 social development 14 social goals 94 social learning 113 social manufacturing 47, 50–1 social media 16, 71, 85, 106, 108, 168, 174 for marketing 61, 62, 143 mining 29, 58 social pressure of 119 tools 109, 141 and transaction costs 133 see also Facebook; social networks; Twitter social networks 29, 71, 72, 132–3, 145, 146 see also Facebook; Twitter social pressure 119 social problems 82, 101–2, 141, 142, 153, 161–2, 204 social responsibility 7, 10, 14, 141, 142, 197, 204 corporate 77, 82, 94, 161 social sector, working with 161–2 “social tinkerers” 134–5 socialising education 112–14 Sofitel 173 software 72 software as a service (SaaS) 60 solar power 136, 201 sourcing, local 51–2, 56 Southwest Airlines 60 Spain 5, 6, 103 Spark 48 speed dating 175, 176 spending, on R&D 15, 22, 23, 28, 141, 149, 152, 171, 187 spiral economy 77, 87–90 SRI International 49, 52 staff see employees Stampanato, Gary 55 standards 78, 196 Starbucks 7, 140 start-ups 16–17, 40–1, 61, 89, 110, 145, 148, 150, 169, 216 investing in 137–8, 157 as partners 42, 72, 153, 175, 191, 206 see also Nest Labs; Silicon Valley Statoil 160 Steelcase 142 Stem 151 Stepner, Diana 165 Stewart, Emma 196–7 Stewart, Osamuyimen 201–2 Sto Corp 84 Stora Enso 195 storytelling 112, 113 Strategy& see Booz & Company Subramanian, Prabhu 114 substitution of resources 92 subtractive manufacturing 48 Sun Tzu 158 suppliers 67–8, 83, 148, 153, 167, 176, 192–3 collaboration with 76, 155–6 sharing with 59–60, 91 visibility 59–60 supply chain management see SCM supply chain operations reference (SCOR) model 67 supply chains 34, 36, 54, 65, 107, 137, 192–3 carbon footprint 156 costs 58, 84 decentralisation 66–7 frugal 54–60 integrating 161 small-circuit 137 sustainability 137 visibility 34, 59–60 support 135, 152 sustainability xix, 9, 12, 72, 77–80, 82, 97, 186 certification 84 as competitive advantage 80 consumers and 95, 97, 101–4 core design principle 82–4, 93, 195–6 and growth 76, 80, 104–5 perceptions of 15–16, 80, 91 recommendations for managers 90–3 regulatory demand for 78–9, 216 standard bearers of 80, 97, 215 see also Accor; circular economy; Kingfisher; Marks & Spencer; Tarkett; Unilever sustainable design 82–4 see also C2C sustainable distribution 57, 161 sustainable growth 72, 76–7 sustainable lifestyles 107–8 Sustainable Living Plan (Unilever) 94–7, 179, 203–4 sustainable manufacturing 9, 52 T “T-shaped” employees 70–1 take-back programmes 9, 75, 77, 78 Tally 196–7 Tarkett 73–7, 80, 84 TaskRabbit 85 Tata Motors 16, 119 Taylor, Frederick 71 technical design 37–8 technical support, by customers 146 technology 2, 14–15, 21–2, 26, 27 TechShop 9, 70, 134–5, 152, 166–7 telecoms sector 53, 56 Telefónica 147 telematic monitoring 116 Ternois, Laurence 42 Tesco 102 Tesla Motors 92, 172 testing 28, 42, 141, 170, 192 Texas Industries 159 Textoris, Vincent 127 TGV Lab 42–3 thermostats 98–100 thinking, entrenched 14–16 Thompson, Gav 147 Timberland 90 time 4, 7, 11, 41, 72, 129, 170, 200 constraints 36, 42 see also development cycle tinkerers 17–18, 133–5, 144, 150, 152, 153, 165–7, 168 TiVo 62 Tohamy, Noha 59–60 top-down change 177–8 top-down management 69 Total 157 total quality management (TQM) 11 total volatile organic compounds see TVOC Toyota 44, 100 Toyota Sweden 106–7 TQM (total quality management) 11 traffic 108, 116, 201 training 76, 93, 152, 167, 170, 189 transaction costs 133 transparency 178, 185 transport 46, 57, 96, 156–7 Transport for London 195 TrashTrack 107 Travelocity 174 trial and error 173, 179 Trout, Bernhardt 45 trust 7, 37, 143 TVOC (total volatile organic compounds) 74, 77 Twitter 29, 62, 135, 143, 147 U Uber 136, 163 Ubuntu 202 Uchiyama, Shunichi 50 UCLA Health 202–3 Udacity 61, 112 UK 194 budget cuts 6 consumer empowerment 103 industrial symbiosis 160 savings 115 sharing 85, 138 “un-management” 63–4, 64 Unboundary 154 Unilever 11, 31, 57, 97, 100, 142, 203–5, 215 and sustainability 94–7, 104, 179, 203–4 University of Cambridge Engineering Design Centre (EDC) 194–5 Inclusive Design team 31 Institute for Sustainability Leadership (CISL) 158–9 upcycling 77, 88–9, 93, 159 upselling 189 Upton, Eben 135–6 US 8, 38, 44, 87, 115, 133, 188 access to financial services 13, 17, 161–2 ageing population 194 ageing workforce 13 commuting 131 consumer spending 5, 6, 103 crowdfunding 137–8, 138 economic pressures 5, 6 energy use 103, 119, 196 environmental awareness 7, 102 frugal innovation in 215–16, 218 health care 13, 110, 208–13, 213 intellectual property 171 onshoring 55 regulation 8, 78, 216 sharing 85, 138–9 shifting production from China to 55, 56 tinkering culture 18, 133–4 user communities 62, 89 user interfaces 98, 99 user-friendliness 194 Utopies 91 V validators 144 value 11, 132, 177, 186, 189–90 aspirational 88–9 to customers 6–7, 21, 77, 87, 131, 203 from employees 217 shareholder value 14 value chains 9, 80, 128–9, 143, 159–60, 190, 215 value engineering 192 “value gap” 54–5 value-added services 62–3, 76, 150, 206, 209 values 6–7, 14, 178, 205 Vandebroek, Sophie 169 Vasanthakumar, Vaithegi 182–3 Vats, Tanmaya 190, 192 vehicle fleets, sharing 57, 161 Verbaken, Joop 118 vertical integration 133, 154 virtual prototyping 65 virtuous cycle 212–13 visibility 34, 59–60 visible learning 112–13 visioning sessions 193–4 visualisation 106–8 Vitality 111 Volac 158–9 Volkswagen 4, 44, 45–6, 129, 144 Volvo 62 W wage costs 48 wages, in emerging markets 55 Waitrose, local suppliers 56 Walker, James 87 walking the walk 122–3 Waller, Sam 195 Walmart 9, 18, 56, 162, 216 Walton, Sam 9 Wan Jia 144 Washington DC 123 waste 24, 87–9, 107, 159–60, 175, 192, 196 beautifying 88–9, 93 e-waste 24, 79, 87–8, 121 of energy 119 post-consumer 9, 75, 77, 78, 83 reducing 47, 74, 85, 96, 180, 209 of resources 169–70 in US health-care system 209 see also C2C; recycling; reuse water 78, 83, 104, 106, 158, 175, 188, 206 water consumption 79, 82–3, 100, 196 reducing 74, 75, 79, 104, 122–3, 174, 183 wealth 105, 218 Wear It Share It (Wishi) 85 Weijmarshausen, Peter 51 well-being 104–5 Wham-O 56 Whirlpool 36 “wicked” problems 153 wireless technologies 65–6 Wiseman, Liz 164 Wishi (Wear It Share It) 85 Witty, Andrew 35, 35–6, 37, 39, 217 W.L.

 

pages: 483 words: 143,123

The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters by Gregory Zuckerman

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American energy revolution, Asian financial crisis, Bakken shale, Bernie Sanders, Buckminster Fuller, corporate governance, credit crunch, energy security, Exxon Valdez, housing crisis, hydraulic fracturing, LNG terminal, margin call, Maui Hawaii, North Sea oil, oil rush, oil shale / tar sands, oil shock, peak oil, Peter Thiel, reshoring, self-driving car, Silicon Valley, sovereign wealth fund, Steve Jobs, urban decay

North Dakota enjoys an unemployment rate of about 3 percent, a Walmart in the heart of the state’s oil region pays employees twenty-two dollars an hour, and some local McDonald’s outlets have resorted to offering bonuses of $300 and thirty-two-inch flat-screen televisions to lure new employees.1 Electricity and natural gas prices are so much cheaper in the United States than in most other countries that they could help usher in a new era of American economic dominance. A “reshoring” trend already is under way, as steel, chemical, fertilizer, plastics, tire, and other companies move production back to the country or expand existing factories, while foreign firms build new plants in the United States. The shift is helping to bring back some jobs once believed to have been lost forever to China and other low-cost economies. Some even see a manufacturing rebound in the making as “made in the USA” again becomes de rigueur.

 

pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial robot, information retrieval, intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

In the 1990s and the 2000s we called this “offshoring,” and it mostly meant sending manual and repetitive parts of the value chain (such as assembly and customer help) off to low-cost countries. Now this term is passé; it implies an idea of home and away that management needs to purge if it is to compete in today’s markets. Products are “made in the world”—and some, like the iPhone, are bought in the world, too. Business breaks apart the entire value chain and locates each piece for strategic reasons: offshoring some, re-shoring and near-shoring others. Cost matters, but it does not dominate the decision. In the twenty-first century, it can be just as profitable to make components for US automobiles in Tennessee as in Guangzhou—once time, overheads, risk and responsiveness are factored in. See Figure 3-1. Figure 3-1. Trade has become a genuinely global phenomenon. Image credit: Rahul C. Basole and Hyunwoo Park, for Pankaj Ghemawat and Steven A.

 

pages: 598 words: 172,137

Who Stole the American Dream? by Hedrick Smith

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Affordable Care Act / Obamacare, airline deregulation, anti-communist, asset allocation, banking crisis, Bonfire of the Vanities, British Empire, business process, clean water, cloud computing, collateralized debt obligation, collective bargaining, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, desegregation, Double Irish / Dutch Sandwich, family office, full employment, global supply chain, Gordon Gekko, guest worker program, hiring and firing, housing crisis, Howard Zinn, income inequality, index fund, informal economy, invisible hand, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, laissez-faire capitalism, late fees, Long Term Capital Management, low cost carrier, manufacturing employment, market fundamentalism, Maui Hawaii, mortgage debt, new economy, Occupy movement, Own Your Own Home, Peter Thiel, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, Ralph Nader, RAND corporation, Renaissance Technologies, reshoring, rising living standards, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Steve Jobs, The Chicago School, The Spirit Level, too big to fail, transaction costs, transcontinental railway, union organizing, Unsafe at Any Speed, Vanguard fund, We are the 99%, women in the workforce, working poor, Y2K

With labor unrest and wage inflation in China and stagnant or falling wages in America, a few companies such as General Electric, Otis Elevator, and Master Lock of Milwaukee have begun to bring jobs back from China to the United States—and smart government policies could foster that trend. In all, some 25,000 manufacturing jobs have returned to the United States in the past few years, according to Harry Moser, president of the nonprofit Reshoring Initiative. Personal Involvement But for the long-term effort to level the economic playing field and to reclaim the American Dream, what is needed is a modern political crusade by average Americans on the model of the civil rights and environmental movements of the 1960s and ’70s. Inevitably, people ask for leadership: Where is the great new Lincoln to heal the fissures of our divided nation and set our nation on an upward path?