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Future of Manufacturing Genesis

Future of Manufacturing to boost developed countries

Project Smart Explorer LogoIn order to present the “Future of Manufacturing” big picture we remind here the genesis of this concept and the basics about digital technologies.

Then we shall introduce the main goals of this innovative approach.

Over the last thirty years all the developed countries, except Germany, have seen the contribution of the industry into their Gross Domestic Product (GDP) shrinking year per year in some cases down to 10% in USA and UK.

GDP_nominal_per_capita_world_map_IMF_figures_for_year_2005During this period it was admitted by fact that labor costs and local regulations were pushing all labor intensive industrial activities to be delocalized from the developed countries into emerging countries, especially into Asia where China has been nicknamed the World Factory.

In parallel the developed countries were expecting the new technologies and services sectors to compensate positively the transfer of the industry in term of economic growth and employment.

Unfortunately the experience has shown, with Germany as a unique counter example, that losing industry had consequences on all sectors in beginning with the research and development, real estate and all kinds of services.

The impact of this transfer on the employment appeared dramatically for both qualified and unqualified people.

From this hard learning experience, it is now admitted that one job created in industry generates four other jobs in services.

Future of Manufacturing benefited from subprimes crisis

In 2008, the financial crisis brought up the decisive evidences about the down turn higher exposure of the services oriented countries compared with industry-rich countries.

During this severe dip, we could observe how the industrial sector provides corresponding countries with a significant resilience.

ForeclosuresFrom this period some developed countries and emerging countries realized how crucial is the industry sector for their economy to sustain long-term growth and absorb cycles.

At that time the most affected countries start to investigate all solutions to maintain, restore or boost their industrial sector as the spearhead of their future economic and social growth.

In parallel some far advanced technologies reached a mature enough level of development to be considered in this new vision of the industrial world.

These new technologies, such a the internet of the things (IoT), open the way to the industry digitalization, therefore to rethink the current business models to design, engineer, plan, produce, deliver, maintain products at the benefit of all parties involved in the supply chain in beginning with the client.

These technologies which appeared in the year 2000s could have stayed at conceptual level some more decades, but thanks to the subprime crisis, the governments of the industrial countries had to invent a new world where the Future of Manufacturing appeared as the right answer.

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