Cpt. Rishwat
T20I Captain
- Joined
- May 8, 2010
- Runs
- 43,354
Read an interesting article this morning about how new technologies might actually support more localised economies rather than the mass production of goods abroad. Anyone think there is anything in this? It would make international branding even more important I would have thought.
https://www.thetimes.co.uk/edition/comment/brexit-may-be-just-what-british-trade-needs-pqlhw9ltc
For the past three decades, the overarching trend in commerce has been the development of vast supply chains. These days a phone or plane that was once made in a single factory is instead assembled from parts that have literally traversed the world. In 1995 the components in the average new aircraft had travelled a grand total of 1,559km before they became part of the finished product. By 2011 the length of the supply chain had increased to 2,453km.
The assumption had been that these internal trade flows would only lengthen and multiply in the coming years. In such circumstances, Brexit would look economically suicidal. Given Britain is smack bang in the middle of these supply chains, why rupture itself from the frictionless trade zone it inhabits?
But some economists now believe we are on the brink of a new shift: that thanks to novel manufacturing techniques, businesses may increasingly reshore production. Adidas’s new “speedfactory” in the Bavarian town of Ansbach is an intriguing example. Where once the company would spend months developing a trainer before churning out tens of thousands in their Asian factories, the speedfactory uses robotics and 3D printing to produce small numbers, customised for local territories.
Might this mark the end of mass production and the beginning of a new era of mass customisation? What if we can produce most manufactured goods locally? What if, to take it to the extreme, we might one day be able to 3D-print our own trainers at home, simply paying Adidas for the software template?