The New Industrial RevolutionPeter Marsh

Outline Four Industrial Revolutions: First, Transport, Scientific, Computer

The New Industrial Revolution: Seven Principal themes

China’s Powering Up

Further Steps

First Industrial Revolution The first industrial revolution took place over about 80 years from 1780.

It involved a combination of technical changes in fields such as textile engineering, metallurgy and power systems (chiefly new steam engines) to deliver a competitive boost mainly in the United Kingdom and the rest of Europe, infiltrating the United States later.

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Transport Revolution The second industrial revolution took place between 1850 and 1900.

It was brought about by a set of technology changes involving communications systems such as the railway, iron or steel hulled steamship and telegraph. 

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Scientific Revolution The third industrial revolution occurred between 1870 and 1930.

It was triggered by the stimulus of a number of new industries made possible by key science based discoveries, including ways to make metals and other products cheaply and in high volumes, with the new era greatly helped by the then-novelty of low cost and readily available electricity.   Retrieved from http://lessons-from-history.com/Images/series-second%20industrial%20rev2.jpg

Computer Revolution The fourth industrial revolution took place over half a century from 1950.

It was based on the powerful impetus that cheap electronic computer processing provided to a huge part of the global economy, including manufacturing.

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A Conclusion from Four Revolutions All of them have a time lag to a long time to have their full effect. The impact of the first industrial revolution was initially focused on a few sectors, such as metals, textiles and heavy machinery. It became relevant to other fields of industry, sometimes many years later due to many different reasons such as geographical limitedness.

Aircraft was a key transport to drive the transport revolution but the concept of air travel for most people, even for `the developed world`, has settled around 70’s.

`The first electronic computer was developed in 1946. But the power of the computer became evident to most people only after the invention of the microprocessor 25 years later. It took another quarter of a century after this - to the late 1990s - for the first signs of the internet to become evident. Other applications for the internet – including Twitter or Facebook - began to appear some years after this.`

The New Industrial Revolution`The new industrial revolution started around 2005, and will probably last for about 50 years. `

The New Industrial RevolutionOverlapping Technologies

Customized Manufacturing

Environmentally Responsiveness

Niche Approach

Hybridized Manufacturing

China’s Powering Up

Cluster DynamicsRetrieved from http://scienceofthetime.com/wp-content/blogs.dir/2/files/2012/12/InternetRevolution.jpeg

Customized Manufacturing `There will be more opportunities for customization - with many companies offering a mix of 'mass customization' and 'mass personalization' to widen choice. The way goods are designed and made will become more complex.`

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Environmental Responsiveness `Manufacturers will demonstrate a greater awareness of the environment,attempting to make things on a sustainable rather than a destructive basis.`

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Niche Approach `The need for craft-based disciplines- centred on traditional concepts of 'touch labour' - will continue to be strong. `

`Even in parts of the world where labour costs are high, so long as companies choose industrial sectors to compete in where customers are happy to pay relatively high prices.`Retrieved from

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Hybridized Manufacturing `Companies will increasingly spread their manufacturing between emerging economies and 'developed' nations in a 'hybridized' style. The new period will be an age of 'industrial democracy' in its truest sense.`

 

`Behind hybridization strategies will frequently be companies' need to gain maximum access to the growing markets in the developing part of the world.`

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China’s Powering Up‘In 2010, China reacquired the title of the world's largest manufacturing country by output.``It has 130 million people working in manufacturing, or roughly 40 per cent of the total world manufacturing.`

Technology Push ‘Scientists and technologists rarely discover anything completely new.’

‘They generally build on what is already known.’

‘Big companies such as General Electric, Electrolux and ABB are channelling more of their spending on research and development into countries such as China, India and Brazil by setting up research and technology centres.’

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China’s Rise ‘The changes have moved UK - the number one in manufacturing in the late nineteenth century- from joint fifth position both in 1990 and as recently as 2006 - to an unimpressive looking tenth in 2010. Its share of the world total has fallen from 4.8 per cent in 1990 to 2.3 per cent in 2010.’

People Power China accounts for a fifth of the world's people.

Since living costs in China are substantially lower than in most developed nations, wages are also much less.

In 2009, the average cost of employing someone to work in a factory in China (including social security and related costs) was $1.36 an hour, compared to $53.80 in Norway, $40.10 in France, $33.50 in the US and $30.80 in UK.Retrieved from https://www.adbusters.org/sites/default/files/magazine/splash_image/

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Government Assistance In 2008, about a quarter of the China’s overall manufacturing was controlled by non-Chinese-owned businesses.

According to statistical convention, production from factories based in China is counted as being‘Chinese’: This is irrespective of the ownership of the company which holds title to the goods.

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Apple Example Value chains involve multiple players in many countries,with the key tasks spread globally rather than squeezed into one place.

The 'value added' of the productive work done in China frequently accounts for only a small proportion of the total traded price of the product.

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Shock Treatment `While total jobs have been falling, the numbers of relatively well-paid, highly skilled posts in fields such as engineering have been rising. `

`Instead of employing large numbers of relatively poorly paid, and often low-skilled production employees, companies are more likely to have a higher proportion of their workers in fields such as development, sales and marketing.`

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Shock Treatment `As people around the world have grown richer, they have preferred to spend a greater part of their incomes on services of different kinds - such as travel, leisure and retail.`

`Even though virtually all services are dependent on manufactured goods, higher expenditure in these fields has naturally tended to 'crowd out' the component of manufacturing in total output.`Retrieved from

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Shock Treatment 'Design-only' manufacturers will become a more substantial and dynamic group.

Such businesses, predominantly located in the high-cost regions, will employ large numbers in product development. They will leave physical production to others, mainly in parts of the world with lower wages.Retrieved from

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Further Steps `Increasingly, manufacturing businesses will act like consultants. The businesses will spend a great deal of time and effort in discussing with the customer its requirements - before creating the goods it needs. `

`Workers will be predominantly able, academically qualified people, with skills in engineering and technology, along with the personal capabilities to apply them to a wide set of challenges.`

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Further Steps `For the most talented, imaginative and technically qualified people, the new industrial revolution will create huge opportunities that will turn out no less exciting than those that changed the world during the original industrial revolution of the late eighteenth century.`Retrieved from

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Further Steps Where will Turkey positioned in this revolution? What should be the vision of `Country of Intermediate Staff`?

Since Turkey known as a OEM (Original Equipment Manufacturer) country, how can it be classified as a ODM (Original Design Manufacturer) country?

Is the existing `design capability` of Turkish manufacturing (or R&D) scene enough to be advanced in `the New Industrial Revolution`?