Regionalization of the Value Chain

juanmolina (68) in hive-175254 • 4 years ago

In the last 30 years, the technology applied to industrialization has evolved a lot, in this way now we have increasingly better machinery that performs more functions in an automated way.

Automation, artificial intelligence, 3D printing, will transform what until now is a "Manufacturing of a lot Workforce" into "Manufacturing of a lot of Capital".

Source

This means that it will be increasingly interesting for companies to have a modern factory, with state-of-the-art machinery, instead of having an old-fashioned factory with many workers.

With this theory, the wage factor takes a back seat when deciding "where to locate a factory", since it would be more profitable to establish several factories of regional scope, with fewer human personnel. In this way, logistics costs are considerably reduced, and if the labor is very expensive, then this can be supplied with automation.

Since quality levels would also be increased, cheap labor would no longer be of much interest as having better infrastructure, better raw material suppliers, cheap energy, and workers with a higher technical level to operate the machinery.

All this is going to mean a revolutionary change in the entire world industry and we would be facing a new industrial phenomenon called "Regionalization of the Production Chain".
This is just saying that: what is produced in Asia, is sold in Asia. What is produced in America, is sold in America. And what is produced in Europe stays in Europe.

Source

Conclusions

Although this industrial phenomenon is not something new, it is true that it has been catapulted by the recent policies implemented by the US, creating the famous "Trade War" with China, where the idea of having a factory in China to sell the products terminated in the US, has become meaningless.

With the pandemic generated by Covid-19, this reality was further accentuated.

The world could suffer the effects of not having the distribution of products made in China.
Many companies and marketers were affected to the point of going bankrupt due to the lack of electronic components, as well as finished products such as personal computers, laptops, cell phones, etc.

The Regionalization of the Value Chain must continue to be implemented. Companies must be less dependent on foreign manufacturers and maximize the use of new technologies to achieve operational self-sustainability.

@juanmolina

Vive la experiencia BraveBrowser. Navegue rápido y seguro mientras gana tokens BAT.
Por favor descargue el navegador Brave usando mi Enlace de Referencia.

In Project Hope we are pleased because the published works are of the highest quality, which increases our commitment to you. We are happy that you are part of our big and exclusive family.

We invite you to join this initiative of hope:

Project Hope Community

Follows @project.hope

hive-175254 worldtrade trading commerce leofinance industry

4 years ago by juanmolina (68)

$18.07

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!

Sort Order:

Trending

[-]

creativeblue (61) · 4 years ago

@tipu curate

$0.00

[-]

tipu (67) · 4 years ago

Upvoted 👌 (Mana: 12/16) Passive income with @tipU :)

$0.00

[-]

mandate (71) · 4 years ago

I think we have been living in the assumption world but I think the emergence of the covid-19 pandemic brings us to the reality we have been far from

$0.00

[-]

juanmolina (68) · 4 years ago

Covid-19 was a great slap in the face of all modern society.
Seeing it as something positive, it has been a real awakening.

$0.00

[-]

josevas217 (79) · 4 years ago

Hello @juanmolina
Interesting topic. There are many nuances to what you mention, if it is true that it is something that will not stop, it will bring consequences such as much higher unemployment, it is something that can not be stopped.
The world has changed radically, although energy is still focused on preventing contagion and recovering the economy.
It will be a matter of years before we realize the real effects that this trade war between the two powers will bring.
Thank you for sharing this good post.

$0.00

[-]

juanmolina (68) · 4 years ago

The consequences are in full swing.
But most importantly, the world must learn not to depend on a single provider.

Several events have occurred in the past (they are not compared to the current situation) but they have revealed the vulnerability of the world market.

$0.00

[-]

lanzjoseg (74) · 4 years ago

Hi @juanmolina

Then a new opportunity for man is born, and it is that they must specialize in the needs that these new companies in terms of the human factor and the need for labor, always always in some way these emerging companies need labor.

Saludos.

$0.00

[-]

gbenga (73) · 4 years ago

In the last 30 years, the technology applied to industrialization has evolved a lot, in this way now we have increasingly better machinery that performs more functions in an automated way

The difference in tech within the last 10 years have been really impressive. It us no lie that tech has been improving making human activities easier.

Investing in people might become a thing of the past as people would prefer to invest in machines. These things are inevitable in the future and the only thing that can be done is find a solution. For me, i will say Universal Basic Income is the solution.

$0.00

[-]

ramsesuchiha (70) · 4 years ago

This pandemic affected the economy very strongly, I hope it will end soon, I am afraid that in the future a worse pandemic will arrive, companies and the world must be prepared

$0.00

[-]

abdt (63) · 4 years ago

Hi sir, I am trying to join in discord channel of Project Hope, but it is happening nothing, not joining as well as not "revoke link" pop up. I hope you help me,