geographic_concentration   5

This Thriving City—and Many Others—Could Soon Be Disrupted by Robots - WSJ
Feb. 9, 2019 | WSJ | By Christopher Mims.

In and around the city of Lakeland, Florida you’ll find operations from Amazon, DHL (for Ikea), Walmart , Rooms to Go, Medline and Publix, a huge Geico call center, the world’s largest wine-and-spirits distribution warehouse and local factories that produce natural and artificial flavors and, of all things, glitter.

Yet a recent report by the Brookings Institution, based on data from the U.S. Census Bureau and McKinsey & Co., argues that the economic good times for Lakeland could rapidly come to an end. Brookings placed it third on its list of metros that are most at risk of losing jobs because of the very same automation and artificial intelligence that make its factories, warehouses and offices so productive......As technology drives people out of the middle class, economists say, it’s pushing them in one of two directions. Those with the right skills or education graduate into a new technological elite. Everyone else falls into the ranks of the “precariat”—the precariously employed, a workforce in low-wage jobs with few benefits or protections, where roles change frequently as technology transforms the nature of work......One step in Southern Glazer’s warehouse still requires a significant number of low-skill workers: the final “pick” station where individual bottles are moved from bins to shipping containers. This machine-assisted, human-accomplished step is common to high-tech warehouses of every kind, whether they’re operated by Amazon or Alibaba. Which means that for millions of warehouse workers across the globe, the one thing standing between them and technological unemployment is their manual dexterity, not their minds.... “I think there will be a time when we have a ‘lights out’ warehouse, and cases will come in off trucks and nobody sees them again until they’re ready to be shipped to the customer,” says Mr. Flanary. “The technology is there. It’s just not quite cost-effective yet.”
artificial_intelligence  automation  Christopher_Mims  disruption  distribution_centres  Florida  manual_dexterity  precarious  productivity  robotics  warehouses  cities  clusters  geographic_concentration  hyper-concentrations 
6 weeks ago by jerryking
The Rise of Global, Superstar Firms, Sectors and Cities - CIO Journal.
Jan 18, 2019 | WSJ | By Irving Wladawsky-Berger.

Scale increases a platform’s value. The more products or services a platform offers, the more consumers it will attract, helping it then attract more offerings, which in turn brings in more consumers, which then makes the platform even more valuable. Moreover, the larger the network, the more data available to customize offerings and better match supply and demand, further increasing the platform’s value. The result is that a small number of companies have become category kings dominating the rest of their competitors in their particular markets.

Network dynamics also apply to metropolitan areas. For the past few decades, the demands for high-skill jobs have significantly expanded, with the earnings of the college educated workers needed to fill such jobs rising steadily. Talent has become the linchpin asset of the knowledge economy, making capital highly dependent on talented experts to navigate our increasingly complex business environment.

“Just as the economy confers disproportionate rewards to superstar talent, superstar cities… similarly tower above the rest,” wrote urban studies professor and author Richard Florida. “They are not just the places where the most ambitious and most talented people want to be - they are where such people feel they need to be.”
cities  Irving_Wladawsky-Berger  platforms  start_ups  superstars  talent  winner-take-all  clusters  geographic_concentration  hyper-concentrations  Richard_Florida  knowledge_economy 
8 weeks ago by jerryking
Where You Should Move to Make the Most Money: America’s Superstar Cities - WSJ
By Christopher Mims
Dec. 15, 2018 12:00 a.m. ET
Technology is creating an economy in which superstar employees work for superstar firms that gather them into superstar cities, leading to a stark geographic concentration of wealth unlike any seen in the past century.

The latest example of this is Apple announcing this past week a billion-dollar investment in a new campus that could ultimately accommodate up to 15,000 employees in a city already red hot with talent (Austin, Texas).....When economists talk about “superstar” anything, they’re referencing a phenomenon first described in the early 1980s. It began as the product of mass media and was put into overdrive by the internet. In an age when the reach of everything we make is greater than ever, members of an elite class of bankers, chief executives, programmers, Instagram influencers and just about anyone with in-demand technical skills have seen their incomes grow far faster than those of the middle class.

In this winner-take-all economy, the superstar firms—think Apple, Google and Amazon, but also their increasingly high-tech equivalents in finance, health care and every other industry—appear to account for most of the divergence in productivity and profits between companies in the U.S.

As firms cluster around talent, and talent is in turn drawn to those firms, the result is a self-reinforcing trend toward ever-richer, ever-costlier metro areas that are economically dominant over the rest of the country.
Christopher_Mims  cities  clusters  geographic_concentration  geographic_inequality  hyper-concentrations  start_ups  superstars  winner-take-all  disproportionality  digitalization 
december 2018 by jerryking
Start Spreading the News: Digital Fuels Superstar Cities - CIO Journal. WSJ
Dec 29, 2017 | WSJ | By Irving Wladawsky-Berger.

Superstar companies are primarily driven by economies of scale, generally achieved through platforms and network effects. Whenever a product, service or process is captured in software and digitized, it becomes digital capital and the economics of abundance take over. The more products or services a platform offers, the more users it will attract, helping it then attract more offerings from ecosystem partners, which in turn brings in more users.....The result is that a small number of companies become category kings dominating the rest of their competitors in their particular market – the Facebooks, Googles, Twitters, Ubers and AirBnbs. Category kings generally take over 70 percent of the total market value in their category, leaving everyone else to split the remaining 30 percent.

“Cities have been caught up in this winner-take-all phenomenon, too,” noted Mr. Florida. “Just as the economy confers disproportionate rewards to superstar talent, superstar cities… similarly tower above the rest. They generate the greatest levels of innovation, control and attract the largest shares of global capital and investment.”

Network dynamics apply to cities just as they do for companies and talent. “They have unique kinds of economies that are based around the most innovative and highest value-added industries, particularly finance, media, entertainment and tech; businesses in superstar cities are formed and scaled up more quickly. All of this attracts still more industries and more talent. It’s a powerful, ongoing feedback loop that compounds the advantages of these cities over time.”

But, such a concentration of talent, wealth and economic activity in fewer and fewer places has led to what a recent Economist issue called the changing economies of geography, the rising inequalities between a relatively small number of superstar cities and the many towns and regions that have been left behind by technology and globalization.
Irving_Wladawsky-Berger  cities  winner-take-all  platforms  superstars  network_effects  disproportionality  geographic_concentration  geographic_inequality  feedback_loops  compounded  increasing_returns_to_scale  digitalization 
january 2018 by jerryking

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artificial_intelligence  automation  christopher_mims  cities  clusters  compounded  digitalization  disproportionality  disruption  distribution_centres  feedback_loops  florida  geographic_inequality  hyper-concentrations  increasing_returns_to_scale  irving_wladawsky-berger  knowledge_economy  manual_dexterity  network_effects  new_york  platforms  precarious  productivity  richard_florida  robotics  start_ups  superstars  talent  warehouses  winner-take-all  yogurt 

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