The Rise of Manufacturing Marks the Fall of Globalization

The many parts of complex machinery are sourced for now from multiple countries. “Over the past century, finished products made in a single country have become increasingly hard to find as globalization – weighted a term as it is – has stretched supply chains to the ends of the Earth,” writes Rebecca Keller for Stratfor. She points out that automation, robotics and computerization will gradually increase productivity and shorten supply chains, with less business for developing nations. The transition will be gradual, she explains: 3D printing cannot yet make products of multiple materials, and metal copying is slow; robotic dexterity and programming must improve; and factories of robots, while reducing labor costs, will have high energy costs. With more regionalized trade, she suggests, trade blocs like NAFTA could become self-sufficient. The most educated, advanced economies will have advantages, along with wealthy nations that can purchase new technologies. She concludes, “Technology is a part of geopolitics that is often overlooked, and yet it fundamentally changes the way countries interact with one another and cope with their inherent constraints.” A challenge is managing the unrest that may accompany the inevitable inequality. – YaleGlobal