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Self-Assembled Devices May Transform Manufacturing

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Rob Spiegel
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Re: A challenge to China labor
Rob Spiegel   4/5/2013 10:27:35 AM
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Hey GTOlover,

If the robots are to coninue their expansion, it will be at the cost of blue collar jobs. That's the ROI. The addition of smart jobs must be small in comparison to the elimination of worker jobs or the robots will not offer value. Look out China.

Ann R. Thryft
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Re: A challenge to China labor
Ann R. Thryft   4/5/2013 12:04:23 PM
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Companies rarely invest in more workers when they make more profits--that would generally be seen as anti-productive, since the productivity metric is usually how many dollars are brought in per worker. Unless, of course, they've decided to expand operations that need more workers. And obviously this all depends on what kind of jobs and workers we mean. But many, many companies don't want more or any human workers: they want robot workers, automated hardware, and increasingly sophisticated software. Which makes me wonder how many engineering jobs have been lost to design software--anyone know?

Ann R. Thryft
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Re: A challenge to China labor
Ann R. Thryft   4/5/2013 12:05:07 PM
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Rob, I think you're right about those two apps. Meanwhile, though, people in machine vision and other industries have told me, off record, they wish they had robots, not humans, working in their factories.



Rob Spiegel
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Re: A challenge to China labor
Rob Spiegel   4/8/2013 1:08:02 PM
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Interesting, Ann. Why are they talking off the record? And why do they prefer robots over humans?

Ann R. Thryft
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Re: A challenge to China labor
Ann R. Thryft   4/8/2013 2:43:21 PM
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Rob, they're talking off the record because of what they're saying about their desire to use robots instead of humans: no sick time, no vacations, no unions, no strikes, no pay increases.

Rob Spiegel
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Re: A challenge to China labor
Rob Spiegel   4/9/2013 10:48:11 PM
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Interesting, Ann. I have mixed feeling about this. I hate to see the human jobs get displaced, but to do otherwise -- keep humans when robot ROI is superior -- would be subsidizing human labor at the expense of shareholders. How long can a CEO do that before the analyst community asks for his or her head?

Ann R. Thryft
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Re: A challenge to China labor
Ann R. Thryft   4/11/2013 1:10:38 PM
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Rob, I disagree with that argument. For one thing, it assumes the company operates in a social, cultural and economic vacuum. Since when does superior ROI always trump everything else? Since MBAs started running US companies. I think this is a larger cultural issue. Social responsibility has become a big deal, inside and outside corporations. For instance, I've been learning about socially responsible investing and have shifted most of mine toward companies that value other things in addition to ROI.

Rob Spiegel
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Re: A challenge to China labor
Rob Spiegel   4/12/2013 1:26:40 PM
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I'm glad to hear your view of social value, Ann. Me too. But the acid test will be whether that message gets to the analyst community. So far, companies have been rewarded for sending production to China and moving their headquarters to the Caribbean. Until CEOs are rewarded for instilling social values, they will continue to be bottom line creatures.

There are some promising developments. TI and many other companies are building factories at home again. They're still arguing the moves from a bottom-line perspective, however.

Ann R. Thryft
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Re: A challenge to China labor
Ann R. Thryft   4/12/2013 1:42:02 PM
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1 saves
I think it's not surprising that ROI trumps everything else, but I also think it's not necessary. However, I think it's the shareholders, not the analysts, who make a difference. True, many shareholders simply follow the analysts' advice. So you've got a good point there. But it's also true that shareholders, especially ones with a lot of money, have made it possible for these alternative sustainable funds to come into being and proliferate. As a shareholder (via some mutual funds), I voted with my feet, so to speak. The more people who do that, the more responsible CEOs and their companies will be rewarded for social and environmental responsibility.

Rob Spiegel
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Re: A challenge to China labor
Rob Spiegel   4/15/2013 3:34:02 PM
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Good point, Ann. There may be a generational aspect to this as well. I've noticed over the past 10 years that many large companies have serious initiatives to be good citizens -- from green fiendly to lifestyle friendly. These efforts seem to be mostly coming from young executives who grew up hearing about the importance of a healthy environment and social responsibility. I think this upcoming (and sometimes in place) generation may help the corporate vision look beyond the next quarter. If so, that vision will need to be communicated well at the company's highest levels to combat the knee-jerk reactions from the analyst community. I think this is already happening at companies such as Texas Instruments.

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