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GREAT REBALANCING ; ..The need to reduce costs has driven much of this work outside the United States. The possibility of saving time may bring some of it back. For instance, at Lime Lab, a small industrial-design firm in San Francisco, a design engineer named Adam Mack told me that technologies including 3‑D printing were revolutionizing the process of deciding what to build and where. Three-dimensional printing refers to computerized molding or related systems that can produce tangible objects in a matter of minutes or a few hours, on the basis of designs created on a screen. This dramatically speeds up the process of creating a prototype and then trying out variations and working out flaws.
“Before, you could sit around and talk about something you wanted to make,” Mack said. “Now you can have a prototype of an injection-molded part in your hand the next day, and confer with factory managers about how much it would cost to build.” By making manufacturing generally more attractive and feasible, new tools will—so I heard many times—lead to more good jobs in America than we would have thought possible only a few years ago.
“A revolution is coming to the creation of things, comparable to the Internet’s effect on the creation and dissemination of ideas,” Linus Chung told me at Lime Lab, in San Francisco. (Chris Anderson, formerly of Wired, has recently advanced a similar case in his book Makers.) Chung is an American-born, Stanford-trained manager who now works for PCH International and is based in Shenzhen. This past June, PCH bought Lime Lab as part of an expansion into America to encourage more start-ups and manufacturing work here. “There is a whole new interest in hardware in Silicon Valley,” said Phil Baker, a product-development expert who has worked with Apple and other companies since the 1970s. “I’ve never seen a more exciting time in the hardware business.”
Why “exciting”? Let’s consider the changes affecting China, and America, and manufacturers everywhere.
The Big Picture
For the past 30 years, all of the largest forces have pushed in favor of China’s manufacturing expansion, from very low labor costs and a deliberate policy of welcoming foreign investment, to ever faster and cheaper global cargo-shipment networks, to a deliberately undervalued Chinese currency. Within the past two years, nearly all of those advantages have become more complicated. (In his accompanying article for this issue, Charles Fishman explains some of the large forces pushing in favor of America’s manufacturing renewal.) In China, wages are rising, workers are becoming choosier, public resistance to environmental devastation is growing, and the Chinese “investment led” model is showing strain.
...cont/2
...cont/2 ...GREAT REBALANCING ;
Some observers inside and outside China think that the strains are too great and the system too rigid to allow the necessary rebalancing in time for the party to maintain political control. For instance, Minxin Pei, a native of Shanghai who now teaches at Claremont McKenna College in California, has been warning for more than a decade that the economic, social, and political imbalances of the Chinese system would reach a breaking point just about now—and that Communist rule would have to give way to a multiparty system. Many others contend that, on the contrary, the Communist leaders will manage somehow to address each of today’s problems just before any one becomes an outright emergency, as they have done time and again for 30 years. Whichever view proves correct, the relevant point for Americans is a convergence of trends that make operations here more attractive and feasible, just as the cost and friction of operating in China are increasing.
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