Book Review: Steel 2050: How Steel Transformed the World and Now Must Transform Itself. Rod Beddows has an immense amount of knowledge and experience about the steel industry and this comes through in this book. He has achieved one of the prime aims he has set out to accomplish: to give a young person just setting out in the sector a primer about the business's evolution and key ideas for the future. He does this very well. I liked the historical material about how the steel industry has reached its current position of being a key supplier to just about every part of the global economy - but with technology and experience having driven down prices so much that the industry today struggles to make any money. There are some good points too about how the industry needs to change: for instance how it has to do better at offering a good service to its customers. In this book, Beddows has also produced some valuable insights into how steel is used that challenge conventional ways of looking at this. For instance, he analyses "steel intensity" as it is usually measured. This is done by consulting statistics about shipped material. Steel intensity per person is normally regarded as the total amount of steel in a basic metal form that is used each year in a country by head of population. That fails to give the full picture, says the author. The right way to do this is to count several factors often ignored by the statisticians. They include steel contained in goods that may be imported. That means the steel is used indirectly by consumers and industry in a specific nation, without anyone in that country
A new website to tell the world about modern UK manufacturing has been launched in the setting of a stunning 3D-printed model of London. The project has received support from 47 organisations from business, government and public life. Behind it is the aim to use the best writing, photography and design to paint a more upbeat picture of UK industry than is often seen in most mainstream media. A key aim of www.madeherenow.com is to use a fresh approach in an effort to tempt more young people into the sector. According to many involved with manufacturing industry, children and teenagers are often dissuaded from considering manufacturing as a career choice due to its poor image. The launch took place at New London Architecture in London, against the backdrop of a superb 1:2000 model of London, made using modern techniques including 3D printing. The model was made by Pipers, a small design and events company based in London. The idea of the website was conceived about a year ago. It is a collaboration mainly involving me and two digital agencies based in Manchester - INVENTID and Nine Sixty. The response I picked up at the launch about the website was overwhelmingly positive. "It seems people think MADE HERE NOW is fresh and informative and gives new insights into the sector," I said at the time of the launch. "People interested in manufacturing have for years complained about its poor image. With MADE HERE NOW we may have reached a turning point. It's a great platform to start with as we build the website into something bigger and even better." The first version of the website features four exemplar companies that opened up their operations to Made
On a visit to Seoul to take part in discussions on 21st century manufacturing, I was faced with a number of questions about the ideas in my book “The New industrial Revolution: Consumers, Globalisation and the End of Mass Production". I gave three lectures, two of them at events organised by the Korean Development Institute and the Korea Information Society Development Institute, and the third to a group of students taught by Prof Keun Lee, a prominent Korean economist at Seoul National University. Prof Lee is an authority on industrial policy and “economic catch-up” – how developing nations can close the gap in living standards and incomes with the richer parts of the world. He brought his students to a meeting that I addressed at the Seoul Science and Technology Policy Institute. In these three events, by far the toughest set of questions came from Prof Lee’s students, some of whom are pictured with me here. Here is an edited version of questions and answers from the encounter with the students - along with extracts from other conversations I had in Seoul. (You can see here the slides from the STEPI lecture.) Can you summarise what you mean by the “new industrial revolution”? Over the past 300 years, manufacturing industry has provided the world with the tools for most of its economic growth. There have been four previous industrial revolutions, starting with the changes in late 18th century England driven by advances in areas such as textile engineering and steam power. Subsequent revolutions were about shifts in communications capabilities led by advances such as railways; new science-based disciplines including chemicals and electricity generation; and the post-World War Two development of the electronic computer. The new
In uncertain economic times, many countries are looking to manufacturing to provide useful growth and employment. Barack Obama and David Cameron in the US and UK are both long-time converts to the "pro-manufacturing" argument. Narendra Modi, India’s new-ish prime minister, has espoused a "Make in India" programme to give his country a lift. In Nigeria, Goodluck Jonathan has instituted the "Nigerian Industrial Revolution Plan" to do much the same. A key to all this interest is that the "manufacturing" most nations are interested in is different to the sort of production operations that dominated in the past. Old-style manufacturing in the shape of big, inflexible, polluting factories is not what these countries have in mind. More important are small, nimble companies applying new technologies and business methods. These can be applied to suit the requirements of customers both at home and thousands of kilometres away. A set of new themes are important. They include: “tailoring” goods to meet individual needs; blending different technologies to create new products with outstanding properties; using the power of the internet plus other digital techniques to provided new capabilities; combining production with services; and running factories so as to have a minimal negative impact on the environment. Uniting the old and the new elements is one unchanging characteristic. Manufacturing is at heart very simple: it's about adding value to the world’s limited stock of materials to make useful things. Perhaps this is why the topic remains fascinating, several thousand years after manufacturing in its earliest forms started up. In the light of this interest, it seemed a good time for the Vienna-based United Nations Industrial Development Organisation to organise a five-day training workshop to explore some of the themes. Unido
Detroit and the state of Michigan have been in the headlines a lot over the past few years - mainly as a result of a welter of grim economic news including the city's slide into bankruptcy. But more recently have come some signs of a significant improvement in the fortunes of the region, driven partly by indications of greater optimism and investments by local manufacturers including the big car companies. Among the Michigan manufacturers that have been hiring more workers and expanding production is Fullerton Tool, whose chief executive Patrick Curry is pictured here. Cheered by receiving positive news about their fortunes from Mr Curry and other local business people, I made a speech at an event in Detroit on September 17 examining the health of Michigan-based manufacturing. The event was organized by the Detroit Manufacturing Renaissance Council, an offshoot of the Chicago Manufacturing Renaissance Council. In the chair was William Jones, chief executive of Focus: Hope, a Detroit community development and human rights group. For background, read this good article by William Hemphill on the manufacturing renaissance movement in the US. YOU CAN DOWNLOAD MY PRESENTATION HERE Detroit Manufacturing Renaissance Council seminar on future for US & Michigan manufacturing, Detroit Read about details of an earlier talk in Chicago at a previous meeting organized by the Chicago manufacturing renaissance council.
Manufacturing Renaissance Councils: Models for Success? By Thomas Hemphill Americans generally agree that they want their nation to remain the global leader in manufacturing. According to Leadership Wanted: U.S. Public Opinions on Manufacturing, a 2012 national survey, 90% of respondents rated manufacturing as “important” or “very important” for their economic prosperity and America’s standard of living. This survey reinforces the importance of the manufacturing sector to the good health of the American economy. While continuing to expand its productivity over the last two years, the U.S. manufacturing sector has only modestly expanded its employment base. Since December 2011, the Bureau of Labor Statistics has reported an increase of 231,000 manufacturing jobs, for a total of 12,028,000 employed in the sector. Yet the need to develop a long-term, stable supply of next-generation employees for advanced manufacturing industries is a challenge that needs to be undertaken now—not later. With an anticipated surge in retirements from an aging workforce over the next few years, the demand for high-skilled workers will be needed for replacement and continued expansion. There has also been a recent groundswell of business, government, labor, and academic support for the creation of a U.S. manufacturing strategy.... Read full article
Inditex has become the world’s largest fashion retailer. But how long can its dizzying expansion last? By Tobias Buck, Financial Times, June 18, 2014 A few weeks from now, young women all over the world will decide that what they really want to wear this summer is a long, flowing trenchcoat with a buckle belt and soft shoulders. They don’t know it yet. But Manuel Ruyman Santos knows, and Inditex knows, and €17bn in sales says they will be right once again. For the moment, the trenchcoat is a prototype, hanging on a clothes rack at Inditex´s sprawling headquarters in Arteixo, northern Spain. But Mr Ruyman Santos, one of the designers of the new garment, is confident it will be a success. Soft trenchcoats have sold well in recent months, so he knows the new creation will tap into a broader trend. For Inditex, the biggest fashion retailer in the world, the success or failure of one trenchcoat is of marginal importance. It is just one of 18,000 individual designs made every year for its chain of Zara shops alone. Add in the group’s seven other brands – from upmarket Massimo Dutti to casual Pull & Bear – and the number rises to more than 30,000. The new coat is nothing but a tiny thread in a much bigger story – but one that illustrates how a small family-owned clothes manufacturer on the edge of Spain turned into one of the most striking corporate success stories of recent years. The rise of Inditex holds valuable lessons.... Read full article
By Peter Marsh, Financial Times, June 17, 2014 Among the many champions of their own specific area of science and technology, at least Jennifer Holmgren, chief executive of Lanzatech, has something to shout about. The Illinois-based company is developing a chemical treatment capable of turning the carbon-rich waste gases of many industries into valuable chemicals and fuels. Ms Holmgren estimates that if all the waste gases of the global steel business alone were treated using her company’s process, the world would instantly find a way to create a fifth of the annual fuel requirement of the global aircraft fleet. The Lanzatech technology “challenges our perceptions of waste and will have a game-changing impact on the way we think about commodity sourcing and supply”, Ms Holmgren says. The ideas under development at Lanzatech are just one instance of the range of technology-based concepts that look capable of transforming people’s lives over the next 30 years. The statistics behind the trends are impressive. This year, according to projections by Battelle, the US science and technology development group, the world will spend about $1.6tn on research and development in a range of engineering-related disciplines from robotics to social media. The numbers of people working in technology-related research now stands at more than 7m, with growing numbers in countries such as China, India and Brazil that have only in the past 15 years started to register in the top league of technology. Read full article
By James Woudhuysen, Spiked Online, June 14 2014 Despite the slew of advertising for fashion, cars and appliances, hostility to ‘stuff’ – manufactured products – has grown enormously in recent years. Books have been published in America, Australia and Britain on the subject of what they call ‘affluenza’, the nasty and even infectious side-effects of owning too much stuff. Since 2011, two American corporate high-flyers, Joshua Fields Millburn and Ryan Nicodemus, have together penned seven books on so-called minimalist consumer habits – quite a feat of trees-to-paper consumption in itself. The London-based futurologist James Wallman has popularised the idea of ‘stuffocation’ – the feeling you get ‘when you look in your wardrobe and it’s bursting with clothes but you can’t find a thing to wear’. And every Christmas, the Guardian denounces consumers for a ‘peculiar form of mental illness’: buying toys, smart cuckoo clocks or mahogany skateboards, and failing to feel guilty about it. Read full article
By Peter Marsh, May 25 2014 The UK features many great literary festivals - and of these the long-running Ways with Words event held in the splendid location of Dartington Hall (pictured left), in the countryside in south Devon, is one of the best. It's not often that the world of industry receives an airing at these occasions. But this year, there is a difference. I will be speaking on The New Industrial Revolution and its implications for the UK at the Ways with Words festival on July 10 at 6.30pm. Tickets are £10, available from the festival website. There are many other highly interesting speakers at this year's event, which starts on July 4 and lasts for 10 days. If you want to listen to Michael Meacher MP, he is speaking immediately before me, and afterwards it's Sir Harrison Birtwhistle in conversation with Fiona Maddocks. Other people giving talks include Lord Ashdown, Claire Tomalin, Roger Scruton, Julie Bindel, Gerard Lyons and Sir Mark Moody-Stuart. The closest railway station is Totnes, connected by trains from London Paddington, and from here it's a 45 minute walk along the River Dart or 15 minutes by car. The festival programme titles my talk: "Industry: Past, Present and Future" and goes on to say: "In a thrilling display of ingenuity, the world's factories every year produce 10bn types of products from a limited stock of materials. Now manufacturing is undergoing a revolution from which Britain, unexpectedly, is poised to benefit. Peter Marsh tells the fascinating story of industrial change, from the Iron Age to the biochip."