Tag Archives: Industrial economy

Dignity for drivers: the DGB campaign for ‘fair mobility’

When is a posted worker in Europe not a posted worker? When he’s a truck driver, it seems.
By Martin Stuber and Michael Wahl – ‘A monthly pay of €1,000, no holidays, living separately from their families for two years—the bare figures alone are outrageous,’ the German magazine Stern reported on truck drivers from the Philippines who discovered the ‘wild west’ of Europe’s roads as posted workers for Polish companies. They had to share their driver cabin with a colleague and work, sleep and cook there.

Action on the European level is urgently needed to tackle such cross-border ‘day labor’.

Europe, however, seems to shy away from this solution. European decision makers have failed once again to create new rules on road haulage, in advance of the looming elections to the European Parliament in May. Where some saw too much liberalization, others demanded even more deregulation—and in the end there was no European consensus, neither on posting rules nor on driving and rest times.

Drivers who deliver services on behalf of western-European companies under an eastern-European working contract commonly only benefit from eastern-European minimum wages—around €500 a month. more>

Chief executives’ pay: reversing the race to the top

Eye-watering remuneration for chief executives is economically wasteful as well as socially divisive. Non-profits should pioneer compressed wage hierarchies.
By Alex Bird – As Oxfam reports that the top 1 per cent of the world’s population now own more than the other 99 per cent, it’s time to think about how those at the top of the economic tree can secure such eye-watering salaries, which they parlay into wealth.

Whereas in the past individuals became recognized by their status in the community rather than in cash, and for their philanthropy—such as Carnegie building libraries, or business people supporting the local football team—now driven individuals seek recognition through possessing conspicuous wealth.

This recognition drive is reinforced by remuneration committees, which are the method of setting top salaries recommended in the UK by the Financial Reporting Council. They employ specialist consultants to survey what others are paying, adjust for industry and turnover, and so arrive at a ‘market price’. Any executives earning less than this rate get a rise; anyone earning more is left alone, as their contract locks them in to that salary. Industry rivals see this change, redo their own surveys and the upwards-only merry-go-round progresses.

This, naturally, has led to an increasing disparity between the highest and average earnings. more>

Updates from Chicago Booth

Purely evidence-based policy doesn’t exist
By Lars Peter Hansen – Recently, I was reminded of the commonly used slogan “evidence-based policy.”

Except for pure marketing purposes, I find this terminology to be a misnomer, a misleading portrayal of academic discourse and the advancement of understanding. While we want to embrace evidence, the evidence seldom speaks for itself; typically, it requires a modeling or conceptual framework for interpretation.

Put another way, economists—and everyone else—need two things to draw a conclusion: data, and some way of making sense of the data.

That’s where modeling comes in. Modeling is used not only to aid our basic understanding of phenomena, but also to capture how we view any implied trade-offs for social well-being. The latter plays a pivotal role when our aim is to use evidence in policy design.

This is intuitive if you think about the broad range of ideas and recommendations surrounding macroeconomic policy and the spirited, sometimes acrimonious way in which they’re debated.

If everything were truly evidence based, to the extent we can agree on the accuracy of the evidence, why would there be such heterogeneity of opinion? The disagreement stems from the fact that people are using different models or conceptual frameworks, each with its own policy implications.

Each of them might be guided by evidence, but policy conclusions can rarely be drawn directly from the evidence itself. more>

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Updates from Ciena

4 critical requirements for the next-gen photonic layer
By Paulina Gomez – Today’s market dynamics are making it harder for network providers to effectively compete in an environment where revenue per bit is declining, and network bandwidth requirements are exploding. In the face of these business challenges, network providers are realizing they must evolve and transform their networks towards a more programmable infrastructure that can scale and respond on demand, to meet changing customer expectations and unpredictable traffic requirements.

While coherent optics are a critical element in enabling a programmable optical infrastructure, alone they are not enough to fulfill operators’ requirements for successful network transformation.

So what else is needed?

The photonic layer is the foundation of this programmable infrastructure, leveraging the latest coherent optical technology to deliver maximum scale at the lowest cost per bit. When examining the requirements of metro and long-haul infrastructure applications, including global data center interconnect (DCI) networks, there is a growing need for an agile, resilient and intelligent photonic layer.

This Reconfigurable Add-Drop Multiplexer (ROADM)-based optical foundation leverages flexible, instrumented photonics and Layer 0 software control to scale the network for maximum capacity at the lowest space, power, and cost per bit. more>

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Updates from Siemens

Plant Module Design
Siemens – Deliver greater innovation at higher quality and lower cost with our comprehensive 3D plant module and equipment design solutions for the Energy & Utilities industry. Our 3D CAD solutions provide a fully integrated and intuitive suite of broad and deep, best in class capabilities. They combine a data-centric approach to modular plant design with full configuration management to dramatically improve efficiencies at the fabrication facility.

Global megatrends such as the rise of international competition and prolonged low commodity prices are disrupting the entire Energy & Utilities industry. Leading Equipment OEM’s and EPCs are adopting a more modular approach to plant and module design and fabrication. more>

Updates from Siemens

Aerospace and Defense Verification Management
Siemens – Our aerospace and defense verification management solution helps companies achieve faster time to certification by providing a single, integrated environment that ensures all product verification events, whether simulation modeling and analysis or physical tests, are driven by requirements, planned and executed in the correct sequence, link individual tests and analyses to necessary resources and provide full traceability.

For commercial aircraft development and certification and military development and qualification, increasing global competition puts contractors under pressure to win new orders and to deliver on time and at cost. Aerospace and defense companies must also demonstrate, in an auditable and efficient manner, that program requirements are achieved through successful test definition, simulation, planning and execution.

Successful product launches and customer acceptance require manufacturers to verify that product requirements have been fulfilled throughout the design and development of the product. more>

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Updates from Siemens

Equipment Design
Siemens – Deliver greater innovation in equipment design at higher quality and lower cost with comprehensive 3D product design capabilities for all Energy & Utility industry verticals. Our 3D CAD solutions provide a fully integrated and intuitive solution suite of broad and deep, best-in-class capabilities.

We enable your design teams to explore multiple design approaches so you can stay ahead of customer demands in rapidly changing industries like shale oil and renewable power generation. Quickly arrive at the most cost-effective, innovative and functional products that today’s Energy & Utility Owner-Operators demand to keep their operations both competitive and compliant.

The Energy & Utilities industry is accustomed to technical innovation and change. However, global megatrends such as the rise of alternative energy and prolonged low commodity prices are having a disruptive effect on the entire industry.

For energy equipment OEMs, changes in the competitive landscape and more demanding customer requirements are forcing improvements in functionality and performance while driving down the total cost of ownership. Equipment designs must be smarter, more responsive, and economical, in addition to exceeding durability requirements under more demanding conditions and operating environments. more>

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Updates from Chicago Booth

Globalization is close to its ‘holy cow’ moment. Why we must rethink our outdated ideas about international trade.
By Richard Baldwin – Globalization has changed.

The globalization we knew and understood for most of the 20th century resembled more the globalization that emerged from the Industrial Revolution than it did the globalization we experience today.

That globalization was based on the movement of goods across borders—measurable, limited by physical infrastructure, and parried by policies such as tariffs. But globalization today is about more than trading goods; it’s about trading ideas and, increasingly, services.

Our 20th-century paradigms of globalization are ill-equipped to understand what cross-border trade means for the present and near future. Globalization has changed, but the way we think about it hasn’t.

The one thing that hasn’t changed about globalization is that it is a phenomenon with the power to change the world. If you trace the share of world income going to two groups of countries—India and China in one group and the G7 countries in the other group—back to the year 1000, you’ll see that back then, India and China had about half the world’s GDP, and the G7 had less than 10 percent of it.

Starting around the 1820s—the decade economists Kevin H. O’Rourke of Oxford and Jeffrey G. Williamson of Harvard have pegged as the start of modern globalization—the G7 share starts to swell. Over the course of about 170 years, it goes from about one-fifth up to about two-thirds of world income. That’s how powerful globalization—the movement of goods across borders—was.

Globalization is arbitrage. What is arbitrage? It’s taking advantage of a variation in price between two markets. When the relative prices of some goods are cheap in Mexico, that’s what they sell to us, and when other goods are relatively cheap in the US, that’s what we sell to them. A two-way, buy-low/sell-high deal—that’s arbitrage, and trade theory is all about what the direction of arbitrage, and especially arbitrage in goods, is. more>

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Updates from Siemens

Automotive manufacturing and autonomous vehicles
By Dave Lauzun – Automotive manufacturing has been happening for a long time, but when most people think of automotive manufacturing, they imagine a moving assembly line. The moving assembly line revolutionized how vehicle manufacturers produce cars, but it wasn’t always the go-to process.

As vehicles were first beginning to be built at the turn of twentieth century, vehicle manufacturers typically built the whole car at once. It was a time-consuming, costly process that kept cars out of most consumers’ hands.

In 1913, over at Ford Motor Company, Henry Ford wanted to cut down on the time and cost associated with building the Model T. He needed to find an efficient way to build this car, and he came up with idea of being able to “productionize” the Model T through a moving assembly line. In this assembly line, the Model T production was broken down into 84 steps, and employees were trained to do just one step.

The results of this change were enormous for Ford Motor Company. The automaker drastically reduced the time it took to build the Model T from 12 hours to 90 minutes. The cost savings in manpower and time to produce the vehicle on the assembly line also meant the company could drop the price of the Model T from $850 to $300.

How will automakers turn their focus away from research and development and toward the mass production of autonomous vehicles? And, how can that mass production be economically viable for their business and for their customers? more>

Updates from Siemens

Build your design on the strongest platform Modeling Technology Platform
Siemens – Convergent modeling technology in NX gives anyone the ability to perform faceted-based modeling without the need for data conversion. By combining facet, surface and solid modeling in a single integrated environment, NX eliminates the need for reverse engineering. You can simply model with the topology optimization results directly. Convergent Modeling, compared with traditional modeling techniques, is 10 times faster.

Modeling is amazingly fast and intuitive with NX – you have the freedom to modify 3D geometry without understanding how models were constructed, using simple push-and-pull methods. For greater versatility, you can use synchronous modeling interchangeably with all other CAD modeling tools – on NX models or geometry from any other source. more>