I imagine that the advantage to the typical homeowner is the identification of phantom power loads, vampire power drains and seriously defective equipment. These would appear to be one-time investigations unless the home is in a location with extreme energy rates (e.g. Hawaii, Alaska …), the owner is a “data freak”, the owner is a serious “green” advocate and/ or the local electric power distribution utility offers “time of day” pricing. Time of day pricing is congestion pricing. A higher KWH rate is charged when demand is high. Lower rates are in effect when the demand is low (typically the middle of the night). After the initial investigations and remedial actions, a monthly savings on the order of a low double digit percentage would seem reasonable due to the owners increased consciousness of electric power use. If the home owner has access to “time of day” priced electric power service, then significantly higher savings can be realized through judicious programming of the electric power usage to take advantage of the lower rate periods.

On the other hand, small commercial establishments with monthly electric bills in the thousands of dollars, a low double digit monthly savings can quickly become serious money. If the system offers “control functions” (the ability to send a command back to the local data gathering module and initiate turn on/ turn off function), then equipment adjustments could be made remotely through an internet enabled computer, tablet, smart phone.

ABC News Report: Time of Day Pricing and Energy Monitoring
Green Tech Today 16: Powerhouse Dynamics

TC

This new approach to the manufacture of fabricated products could change the concept of globalization. We believe that there is value to the ability to prototype quickly, try the product through market trials and make modifications on the fly based upon market feedback. Once the local market trial is completed, the volume production can be performed in the most cost effective manufacturing source/ location.

The concept permits multiple versions of the same basic product, tuned to meet the requirements of each “local” market. In other words, the antithesis of “one size fits all” or “Any color as long as it is black – Henry Ford.”

WETA Workshop … How to make Hobbit stuff

TC

The change in thinking is extraordinary.

Tim Chen

Of course the ratio depends upon the type of product. Highly technical electronic products would have a more favorable American labor content. Products with less technology, such as furniture, would probably have a distribution that not as skewed, thought the furniture designer and all of the support labor to market, sell and distribute would be significant.

The true issue with globalization is that the value add labor in America requires a skilled work force. Americans have benefited significantly from the higher standard of living that has resulted from globalization. We should focus on the real issue, how do we train the next generation of workers so that they have the opportunity to participate in a global economy.

Tim C
tim@tichenassociates.com

I often wonder how the automobile industry has managed to survive with 3 to 4 year development cycles. The recent run-up in gasoline prices last year demonstrated how quickly the market can change. The automobile industry was and is currently faced with products offerings that featured few products that the customer want. I suspect that part of the answer is a culture based upon NIH (Not Invented Here) and an unwillingness to cannibalize existing product markets for greater leverage. The industry has made an effort to move away from a vertical integration mind set (everything is manufactured in-house from raw materials to finished automobiles) touted by Henry Ford in the early 1900′s. They have attempted to spin-off major components as separate business entities (axles, transmissions, etc.). Unfortunately, these spin-offs still bear legacy ties to the original automobile manufacturer which closely tie their future to the original automobile firm.

Take Away Thought: The global market should be thought of as a smorgasbord of products and services. Product planning is a constant evolution based upon close consultation with the firm’s suppliers and customers. Constant product evolution implies a willingness to cannibalize existing products through the introduction of new and better products. An example of those that failed to adapt to change are those firms that made huge profits just 10 to 15 years ago in 35mm SLR cameras and 35mm film. The majority of the market has switched to digital cameras and is gradually switching to using their mobile phones!

PS: Here is a radical thought … rather than supporting the traditional automobile companies with R&D funds for the development of the future alternative power systems, maybe the US Federal government should put their support behind a separate entity that could supply power systems to all manufacturers, domestic and international. Another thought is invest the R&D funds with the traditional automobile companies, but insist that the technology that is developed is “open source” and available to all!

Take away thought: Any business to business transaction can be thought of as globalization. Total vertical business integration is not cost effective, feasible or competitive. Vertical integration is an anathema to robust business flexibility or the ability to shift approaches quickly as the market changes. NIH (not invented here) and the concept of “sunk costs” must be avoided.

Take Away Thought: By leveraging the competitive value add from each partner ( Intel’s microprocessor technology expertise and TSMC’s manufacturing expertise ), their customers have the potential to become more competitive. This ripple effect of improved productivity gains is good for all.

The combination of low cost imported goods (when was the last time anyone purchased a piece of clothing made in the USA??) and high manufacturing productivity has resulted in unprecedented high level standard of living for those who are able to compete. I suggest that rather than a detriment, the world has greatly benefited from globalization.

Take Away Thought: We in the developed economies must share the global economic pie with those who have a lot less. Even with the huge growth in its economy, the Chinese still have a huge population living at a very low subsistence level.

Take away thought: The Internet has significantly enabled efficient resources, physically located anywhere, to have the exposure to a wider potential market. Better products should result.

Take away thought: BRIC … Brazil, Russia, India, China have been identified as the rapidly emerging economies. Each has developed technical expertise in specific disciplines which are competitive in the global market … for example, the USA will probably have to depend upon Russia to deliver our astronauts to the International Space Station for the near future, India has developed a reputation for providing IT support personnel, … The global market is more than lower labor costs, engineering design and development resources may have a more significant long term impact … develop relationships that can be expanded to incorporate these higher level value added capabilities.

Tim C