#Factory Automation Market
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The global industrial control & factory automation market is anticipated to grow from USD 255.88 billion in 2024 to USD 399.12 billion by 2029, at a CAGR of 9.3% during the forecast period according to a new report by MarketsandMarkets™. Several key factors are driving the industrial control and factory automation market, including increased IoT and Al integration in industrial environments, a growing emphasis on operational efficiency and productivity, and significant and ongoing government investments in 3D printing technologies, all of which are contributing to market growth. With the emergence of new technologies in firms, regulatory compliance regarding industrial solutions of immense significance is also involved. There is a growing need for innovative techniques to reduce production downtime and waste. For instance, the use of real-time data analytics in factories help companies optimize operations hence efficiency while reducing production waste.
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The Middle East and Africa factory automation market are witnessing significant growth due to various factors driving the adoption of automation technologies across industrial sectors. There is a growing emphasis on improving operational efficiency and productivity in manufacturing processes.
#Middle East and Africa Factory Automation Market#Middle East and Africa Factory Automation Report#Middle East and Africa Factory Automation Industry#Robotics and Automation#BISResearch
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Smart Factory and Industrial Automation Market - Forecast(2024 - 2030)
Overview
The smart factory and industrial automation market is expected to be valued at $187.8 billion in 2018 and is expected to grow at a CAGR of 7.2% between 2019 and 2025. This market growth is due to the impact of evolution and adoption of the Internet of Things (IoT), industrial robots, smart automation solutions, and increasing emphasis on regulatory compliances. Industrial and commercial developments in the growing economies are also responsible for the growth of this market.
Industrial automation is defined as the automation of industrial processes through computers, communication systems, and process operators. Industrial automation minimizes human intervention in the industry and ensures a superior performance as compared to humans. Moreover, whereas, smart factory connects people, processes, and machines to enable advanced manufacturing with the optimized process reduced errors, improved quality, and eliminate waste.
Both smart factory and industrial automation enhance the productivity and quality of products and simultaneously decrease the production cost. Smart factory and industrial automation meet the demand for mass production with providing nominal human intervention, better quality, and less labor expenses, significantly reduce overall operational cost.
Report Coverage
The report: “Smart Factory and Industrial Automation Market – Forecast (2019-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Smart Factory and Industrial Automation Market
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Key Takeaways
· Key drivers of the market are; reduction of energy consumption and increasing factory efficiency. All the Industries are adopting smart factory concept to ensure that every component of the value chain is connected for providing informed manufacturing with no-time lags and zero defects.
· The automotive manufacturing sector has been one of the largest adopters of automated robots and is the largest the revenue-generating end-user in the market. Smart factory and industrial automation play an important role in connecting and automating the operations of these robots.
· Industrial Automation in China has increased the uptake of smart manufacturing. As per the Ministry of Industry and Information Technology, China initiated around 100 smart manufacturing pilot projects in 2018.
By Application - Segment Analysis
Material handling application generated 38% of the smart factory and industrial automation market revenue in 2018. Robotics and automation system is helping in business according to their growing demands and making it cost-efficient, and these advances in technology are a material handling system more affordable and effective. This high-speed automation technology can load and unload the truck at the pallet and cartoon level. Over the next decade, material handling is expected to immerse with the automated system highly.
Various advancements have been made in the automation of the multiple activities that were formerly carried out manually (particularly in the labor-intensive manufacturing industry), with most of these being almost fully automated, with the help of the latest technologies. This has led to improved efficiency, high-quality products, and attendant savings in labor and costs.
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By End-User - Segment Analysis
Automotive industry end-use accounted for the highest market share in the smart factory and industrial automation market in 2018. Smart factory solutions play a key role in the development and production of quality automobiles. The automobile manufacturing industry is the largest adopter of robots in 2018 (according to the international federation of robotics {IFR}). For enhance quality and increase factory productivity, while using these robots, smart factory and industrial automation solutions play a major role.
The fastest-growing end-use in the forecasted period is the energy and power sector. The sector consists of the gas industry, petroleum industry, coal industry, power industry, among others. The adoption rate of smart factory technology is expected to be the highest in the oil & gas industry due to the growing need for safety in oil and gas plants. The automation market has penetrated the energy sector in developed economies.
By Geography - Segment Analysis
APAC accounted for the largest share, of 34% in the smart factory and industrial automation market in 2018, due to technological innovation and adoption of automation technologies across several industries. Toyota, Honda, and Suzuki are working on developing smart factories. These smart and automated factories will be manufacturing robots, sensors, wireless technologies, and machine vision systems.
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Drivers �� Smart Factory and Industrial Automation Market
· GROWTH IN ADOPTION OF INDUSTRIAL ROBOTS:
The call for precision machining along with high production rates, has made use of robots an indispensable aspect of manufacturing units. Since the industrial operations are becoming complex amidst rapid technological advancements, the growth of the industrial robot is expected among such environment that is beyond the capacity of manual involvement. Smart factory and industrial automation play an essential role in connecting and automating the operations of these robots.
Almost all the processes in the production and processing plants have been automated in the past decade. This has also complemented the expansion of industrial robots integration into industrial operations.
· RISING LABOR COSTS TO BOOST THE SMART & AUTOMATED INDUSTRIAL ROBOTS DEMAND
The labor cost is significantly high in the total industrial operating cost, generally making 60%-65% of the total cost. In the majority of the cases, manual jobs typically consist of two categories of staff: direct and indirect. Direct staff is responsible for executing the procedure while the indirect staff is for the back-end support for direct staff.
The presence of both direct and indirect staff coupled along with department managers presents an essential cost in operating a warehouse.
The automation of industries has become a notable means to tackle the rising wages and workforce age. This has resulted in the industrial operators to rely upon the smart factories and automated robotics to provide a convenient and efficient way of reducing the operational costs while simultaneously maintaining the productivity at optimum levels.
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Challenges – Smart Factory and Industrial Automation Market
· GROWTH OF CYBER ATTACKS
The history of the smart factory and industrial automation is always fascinating. Cybersecurity is one of the major issues of factory automation. Constant technological innovation has taken manufacturing processes from the Industrial Age to the information age as networking in process automation grows. These new information age factories have a great scope of cyber threats from various sources. These cyber-attacks can reduce the advantages of smart and automated factories and turn them into significant disadvantages.
For almost every minute, the global cybersecurity researchers discover threats to cybersecurity and try to solve them in real-time.
Market Landscape
Top 5 players of the smart factory and industrial automation market captured ~65% share of the market in 2018.
ABB Ltd., Mitsubishi Electric, Yokogawa, Endress+Hauser, Honeywell, Rockwell Automation, Omron, General Electric, Danfoss, FANUC, Schneider, Siemens, and Emerson Electric Company are some leading key players in the smart factory and industrial automation market.
Partnerships/Mergers/Acquisitions
Ø In July 2018, GE and Microsoft Corp. formed a partnership to bring together operational technology and information technology to eliminate hurdles in advancing digital transformation projects. In the partnership, GE Digital plans to standardize its Predix solutions on Microsoft Azure and will deeply integrate the Predix portfolio with Azure native cloud capabilities, including Azure IoT and Azure Data and Analytics.
Ø In June 2018, SAP and Endress+Hauser collaborated in the development of the Industrial Internet of Things (IIoT) applications for the process industry. The goal is to fully integrate the Endress+Hauser field instruments as digital twins into the SAP cloud platform.
Ø June 2018, PTC Inc. and Rockwell Automation Inc. formed a strategic partnership that accelerated growth for both companies and enabled them to be the partner of choice for customers around the world who want to transform their physical operations with digital technology.
R&D Investment/Fundings
Ø In July 2019, Fetch Robotics raised $46 million in a Series C round of funding led by Fort Ross Ventures. Fetch Robotics creates autonomous robots, powered by cloud-based software systems, which operate in locations such as warehouses, factories, and distribution centers. The robots can be used to transport goods and materials around warehouses, gather data automatically.
Smart Factory and Industrial Automation Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the Smart Factory and Industrial Automation Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the offering type, robot type, end-users, and application of Smart Factory and Industrial Automation Market.
#smart factory and industrial automation market#smart factory and industrial automation market size#smart factory and industrial automation market shape#smart factory and industrial automation market forecast#smart factory and industrial automation market analysis#smart factory and industrial automation market report#smart factory and industrial automation market growth#smart automation solutions
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The Industrial Automation Software Market is expected to reach a value of $59.5 billion by 2029, at a CAGR of 7.4% during the forecast period 2022–2029
#Industrial Automation Software Market#Factory Automation Software#Industrial Automation Software#Industrial Process Control#Industrial Automation
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Middle East and Africa Factory Automation Market I BIS Research
The Middle East and Africa (MEA) Factory Automation Market are witnessing significant growth due to various factors driving the adoption of automation technologies across industrial sectors. There is a growing emphasis on improving operational efficiency and productivity in manufacturing processes.
#Middle East and Africa Factory Automation Market#Middle East and Africa Factory Automation Market Report#Middle East and Africa Factory Automation Market Research#Middle East and Africa Factory Automation Industry#Middle East and Africa Factory Automation Industry Analysis#Middle East and Africa Factory Automation Market Growth#Middle East and Africa Factory Automation Market Forecast#BIS Research#Robotics and Automation
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Factory & Industrial Automation Market
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#The U.S Factory Automation Market size#The U.S Factory Automation Market share#The U.S Factory Automation Market Trends
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Smart Factory and Industrial Automation Market - Forecast (2023 - 2028)
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The smart factory and industrial automation market is expected to be valued at $187.8 billion in 2018 and is expected to grow at a CAGR of 7.2% between 2019 and 2025. This market growth is due to the impact of evolution and adoption of the Internet of Things (IoT), industrial robots, smart automation solutions, and increasing emphasis on regulatory compliances. Industrial and commercial developments in the growing economies are also responsible for the growth of this market.
Industrial automation is defined as the automation of industrial processes through computers, communication systems, and process operators. Industrial automation minimizes human intervention in the industry and ensures a superior performance as compared to humans. Moreover, whereas, smart factory connects people, processes, and machines to enable advanced manufacturing with the optimized process reduced errors, improved quality, and eliminate waste.
Both smart factory and industrial automation enhance the productivity and quality of products and simultaneously decrease the production cost. Smart factory and industrial automation meet the demand for mass production with providing nominal human intervention, better quality, and less labor expenses, significantly reduce overall operational cost.
Report Coverage
The report: “Smart Factory and Industrial Automation Market – Forecast (2019-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Smart Factory and Industrial Automation Market
Key Takeaways
· Key drivers of the market are; reduction of energy consumption and increasing factory efficiency. All the Industries are adopting smart factory concept to ensure that every component of the value chain is connected for providing informed manufacturing with no-time lags and zero defects.
· The automotive manufacturing sector has been one of the largest adopters of automated robots and is the largest the revenue-generating end-user in the market. Smart factory and industrial automation play an important role in connecting and automating the operations of these robots.
· Industrial Automation in China has increased the uptake of smart manufacturing. As per the Ministry of Industry and Information Technology, China initiated around 100 smart manufacturing pilot projects in 2018.
By Application - Segment Analysis
Material handling application generated 38% of the smart factory and industrial automation market revenue in 2018. Robotics and automation system is helping in business according to their growing demands and making it cost-efficient, and these advances in technology are a material handling system more affordable and effective. This high-speed automation technology can load and unload the truck at the pallet and cartoon level. Over the next decade, material handling is expected to immerse with the automated system highly.
Various advancements have been made in the automation of the multiple activities that were formerly carried out manually (particularly in the labor-intensive manufacturing industry), with most of these being almost fully automated, with the help of the latest technologies. This has led to improved efficiency, high-quality products, and attendant savings in labor and costs.
By End-User - Segment Analysis
Automotive industry end-use accounted for the highest market share in the smart factory and industrial automation market in 2018. Smart factory solutions play a key role in the development and production of quality automobiles. The automobile manufacturing industry is the largest adopter of robots in 2018 (according to the international federation of robotics {IFR}). For enhance quality and increase factory productivity, while using these robots, smart factory and industrial automation solutions play a major role.
The fastest-growing end-use in the forecasted period is the energy and power sector. The sector consists of the gas industry, petroleum industry, coal industry, power industry, among others. The adoption rate of smart factory technology is expected to be the highest in the oil & gas industry due to the growing need for safety in oil and gas plants. The automation market has penetrated the energy sector in developed economies.
By Geography - Segment Analysis
APAC accounted for the largest share, of 34% in the smart factory and industrial automation market in 2018, due to technological innovation and adoption of automation technologies across several industries. Toyota, Honda, and Suzuki are working on developing smart factories. These smart and automated factories will be manufacturing robots, sensors, wireless technologies, and machine vision systems.
Drivers – Smart Factory and Industrial Automation Market
· GROWTH IN ADOPTION OF INDUSTRIAL ROBOTS:
The call for precision machining along with high production rates, has made use of robots an indispensable aspect of manufacturing units. Since the industrial operations are becoming complex amidst rapid technological advancements, the growth of the industrial robot is expected among such environment that is beyond the capacity of manual involvement. Smart factory and industrial automation play an essential role in connecting and automating the operations of these robots.
Almost all the processes in the production and processing plants have been automated in the past decade. This has also complemented the expansion of industrial robots integration into industrial operations.
· RISING LABOR COSTS TO BOOST THE SMART & AUTOMATED INDUSTRIAL ROBOTS DEMAND
The labor cost is significantly high in the total industrial operating cost, generally making 60%-65% of the total cost. In the majority of the cases, manual jobs typically consist of two categories of staff: direct and indirect. Direct staff is responsible for executing the procedure while the indirect staff is for the back-end support for direct staff.
The presence of both direct and indirect staff coupled along with department managers presents an essential cost in operating a warehouse.
The automation of industries has become a notable means to tackle the rising wages and workforce age. This has resulted in the industrial operators to rely upon the smart factories and automated robotics to provide a convenient and efficient way of reducing the operational costs while simultaneously maintaining the productivity at optimum levels.
Challenges – Smart Factory and Industrial Automation Market
· GROWTH OF CYBER ATTACKS
The history of the smart factory and industrial automation is always fascinating. Cybersecurity is one of the major issues of factory automation. Constant technological innovation has taken manufacturing processes from the Industrial Age to the information age as networking in process automation grows. These new information age factories have a great scope of cyber threats from various sources. These cyber-attacks can reduce the advantages of smart and automated factories and turn them into significant disadvantages.
For almost every minute, the global cybersecurity researchers discover threats to cybersecurity and try to solve them in real-time.
Market Landscape
Top 5 players of the smart factory and industrial automation market captured ~65% share of the market in 2018.
ABB Ltd., Mitsubishi Electric, Yokogawa, Endress+Hauser, Honeywell, Rockwell Automation, Omron, General Electric, Danfoss, FANUC, Schneider, Siemens, and Emerson Electric Company are some leading key players in the smart factory and industrial automation market.
Partnerships/Mergers/Acquisitions
Ø In July 2018, GE and Microsoft Corp. formed a partnership to bring together operational technology and information technology to eliminate hurdles in advancing digital transformation projects. In the partnership, GE Digital plans to standardize its Predix solutions on Microsoft Azure and will deeply integrate the Predix portfolio with Azure native cloud capabilities, including Azure IoT and Azure Data and Analytics.
Ø In June 2018, SAP and Endress+Hauser collaborated in the development of the Industrial Internet of Things (IIoT) applications for the process industry. The goal is to fully integrate the Endress+Hauser field instruments as digital twins into the SAP cloud platform.
Ø June 2018, PTC Inc. and Rockwell Automation Inc. formed a strategic partnership that accelerated growth for both companies and enabled them to be the partner of choice for customers around the world who want to transform their physical operations with digital technology.
R&D Investment/Fundings
Ø In July 2019, Fetch Robotics raised $46 million in a Series C round of funding led by Fort Ross Ventures. Fetch Robotics creates autonomous robots, powered by cloud-based software systems, which operate in locations such as warehouses, factories, and distribution centers. The robots can be used to transport goods and materials around warehouses, gather data automatically.
Smart Factory and Industrial Automation Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the Smart Factory and Industrial Automation Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the offering type, robot type, end-users, and application of Smart Factory and Industrial Automation Market.
#smart factory and industrial automation market#smart factory and industrial automation market size#smart factory and industrial automation market shape#smart factory and industrial automation market forecast#smart factory and industrial automation market analysis#smart factory and industrial automation market report#smart factory and industrial automation market growth#smart automation solutions
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Edge Data Center Market Worth $45.2 Billion by 2030
#edge data center market#Edge Data Center#Data Center Market#Data Center Marke#Data Center#Smart Cities#Factory Automation#Connected Healthcare#Telecommunication
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Podcasting “Capitalists Hate Capitalism”
I'm touring my new, nationally bestselling novel The Bezzle! Catch me in Torino (Apr 21) Marin County (Apr 27), Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!
This week on my podcast, I read "Capitalists Hate Capitalism," my latest column for Locus Magazine:
https://locusmag.com/2024/03/cory-doctorow-capitalists-hate-capitalism/
What do I mean by "capitalists hate capitalism?" It all comes down to the difference between "profits" and "rents." A capitalist takes capital (money, or the things you can buy with it) and combines it with employees' labor, and generates profits (the capitalist's share) and wages (the workers' share).
Rents, meanwhile, come from owning an asset that capitalists need to generate profits. For example, a landlord who rents a storefront to a coffee shop extracts rent from the capitalist who owns the coffee shop. Meanwhile, the capitalist who owns the cafe extracts profits from the baristas' labor.
Capitalists' founding philosophers like Adam Smith hated rents. Worse: rents were the most important source of income at the time of capitalism's founding. Feudal lords owned great swathes of land, and there were armies of serfs who were bound to that land – it was illegal for them to leave it. The serfs owed rent to lords, and so they worked the land in order grow crops and raise livestock that they handed over the to lord as rent for the land they weren't allowed to leave.
Capitalists, meanwhile, wanted to turn that land into grazing territory for sheep as a source of wool for the "dark, Satanic mills" of the industrial revolution. They wanted the serfs to be kicked off their land so that they would become "free labor" that could be hired to work in those factories.
For the founders of capitalism, a "free market" wasn't free from regulation, it was free from rents, and "free labor" came from workers who were free to leave the estates where they were born – but also free to starve unless they took a job with the capitalists.
For capitalism's philosophers, free markets and free labor weren't just a source of profits, they were also a source of virtue. Capitalists – unlike lords – had to worry about competition from one another. They had to make better goods at lower prices, lest their customers take their business elsewhere; and they had to offer higher pay and better conditions, lest their "free labor" take a job elsewhere.
This means that capitalists are haunted by the fear of losing everything, and that fear acts as a goad, driving them to find ways to make everything better for everyone: better, cheaper products that benefit shoppers; and better-paid, safer jobs that benefit workers. For Smith, capitalism is alchemy, a philosopher's stone that transforms the base metal of greed into the gold of public spiritedness.
By contrast, rentiers are insulated from competition. Their workers are bound to the land, and must toil to pay the rent no matter whether they are treated well or abused. The rent rolls in reliably, without the lord having to invest in new, better ways to bring in the harvest. It's a good life (for the lord).
Think of that coffee-shop again: if a better cafe opens across the street, the owner can lose it all, as their customers and workers switch allegiance. But for the landlord, the failure of his capitalist tenant is a feature, not a bug. Once the cafe goes bust, the landlord gets a newly vacant storefront on the same block as the hot new coffee shop that can be rented out at even higher rates to another capitalist who tries his luck.
The industrial revolution wasn't just the triumph of automation over craft processes, nor the triumph of factory owners over weavers. It was also the triumph of profits over rents. The transformation of hereditary estates worked by serfs into part of the supply chain for textile mills was attended by – and contributed to – the political ascendancy of capitalists over rentiers.
Now, obviously, capitalism didn't end rents – just as feudalism didn't require the total absence of profits. Under feudalism, capitalists still extracted profits from capital and labor; and under capitalism, rentiers still extracted rents from assets that capitalists and workers paid them to use.
The difference comes in the way that conflicts between profits and rents were resolved. Feudalism is a system where rents triumph over profits, and capitalism is a system where profits triumph over rents.
It's conflict that tells you what really matters. You love your family, but they drive you crazy. If you side with your family over your friends – even when your friends might be right and your family's probably wrong – then you value your family more than your friends. That doesn't mean you don't value your friends – it means that you value them less than your family.
Conflict is a reliable way to know whether or not you're a leftist. As Steven Brust says, the way to distinguish a leftist is to ask "What's more important, human rights, or property rights?" If you answer "Property rights are human right," you're not a leftist. Leftists don't necessarily oppose all property rights – they just think they're less important than human rights.
Think of conflicts between property rights and human rights: the grocer who deliberately renders leftover food inedible before putting it in the dumpster to ensure that hungry people can't eat it, or the landlord who keeps an apartment empty while a homeless person freezes to death on its doorstep. You don't have to say "No one can own food or a home" to say, "in these cases, property rights are interfering with human rights, so they should be overridden." For leftists property rights can be a means to human rights (like revolutionary land reformers who give peasants title to the lands they work), but where property rights interfere with human rights, they are set aside.
In his 2023 book Technofeudalism, Yanis Varoufakis claims that capitalism has given way to a new feudalism – that capitalism was a transitional phase between feudalism…and feudalism:
https://pluralistic.net/2023/09/28/cloudalists/#cloud-capital
Varoufakis's point isn't that capitalists have gone extinct. Rather, it's that today, conflicts between capital and assets – between rents and profits – reliably end with a victory of rent over profit.
Think of Amazon: the "everything store" appears to be a vast bazaar, a flea-market whose stalls are all operated by independent capitalists who decide what to sell, how to price it, and then compete to tempt shoppers. In reality, though, the whole system is owned by a single feudalist, who extracts 51% from every dollar those merchants take in, and decides who can sell, and what they can sell, and at what price, and whether anyone can even see it:
https://pluralistic.net/2024/03/01/managerial-discretion/#junk-fees
Or consider the patent trolls of the Eastern District of Texas. These "companies" are invisible and produce nothing. They consist solely of a serviced mailbox in a dusty, uninhabited office-building, and an overbroad patent (say, a patent on "tapping on a screen with your finger") issued by the US Patent and Trademark Office. These companies extract hundreds of millions of dollars from Apple, Google, Samsung for violating these patents. In other words, the government steps in and takes vast profits generated through productive activity by companies that make phones, and turns that money over as rent paid to unproductive companies whose sole "product" is lawsuits. It's the triumph of rent over profit.
Capitalists hate capitalism. All capitalists would rather extract rents than profits, because rents are insulated from competition. The merchants who sell on Jeff Bezos's Amazon (or open a cafe in a landlord's storefront, or license a foolish smartphone patent) bear all the risk. The landlords – of Amazon, the storefront, or the patent – get paid whether or not that risk pays off.
This is why Google, Apple and Samsung also have vast digital estates that they rent out to capitalists – everything from app stores to patent portfolios. They would much rather be in the business of renting things out to capitalists than competing with capitalists.
Hence that famous Adam Smith quote: "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." This is literally what Google and Meta do:
https://en.wikipedia.org/wiki/Jedi_Blue
And it's what Apple and Google do:
https://www.theverge.com/2023/10/27/23934961/google-antitrust-trial-defaults-search-deal-26-3-billion
Why compete with one another when you can collude, like feudal lords with adjacent estates who trust one another to return any serf they catch trying to sneak away in the dead of night?
Because of course, it's not just "free markets" that have been captured by rents ("Competition is for losers" -P. Thiel) – it's also "free labor." For years, the largest tech and entertainment companies in America illegally colluded on a "no poach" agreement not to hire one-anothers' employees:
https://techcrunch.com/2015/09/03/apple-google-other-silicon-valley-tech-giants-ordered-to-pay-415m-in-no-poaching-suit/
These companies were bitter competitors – as were these sectors. Even as Big Content was lobbying for farcical copyright law expansions and vowing to capture Big Tech, all these companies on both sides were able to set aside their differences and collude to bind their free workers to their estates and end the "wasteful competition" to secure their labor.
Of course, this is even more pronounced at the bottom of the labor market, where noncompete "agreements" are the norm. The median American worker bound by a noncompete is a fast-food worker whose employer can wield the power of the state to prevent that worker from leaving behind the Wendy's cash-register to make $0.25/hour more at the McDonald's fry trap across the street:
https://pluralistic.net/2022/02/02/its-the-economy-stupid/#neofeudal
Employers defend this as necessary to secure their investment in training their workers and to ensure the integrity of their trade secrets. But why should their investments be protected? Capitalism is about risk, and the fear that accompanies risk – fear that drives capitalists to innovate, which creates the public benefit that is the moral justification for capitalism.
Capitalists hate capitalism. They don't want free labor – they want labor bound to the land. Capitalists benefit from free labor: if you have a better company, you can tempt away the best workers and cause your inferior rival to fail. But feudalists benefit from un-free labor, from tricks like "bondage fees" that force workers to pay in order to quit their jobs:
https://pluralistic.net/2023/04/21/bondage-fees/#doorman-building
Companies like Petsmart use "training repayment agreement provisions" (TRAPs) to keep low-waged workers from leaving for better employers. Petsmart says it costs $5,500 to train a pet-groomer, and if that worker is fired, laid off, or quits less than two years, they have to pay that amount to Petsmart:
https://pluralistic.net/2022/08/04/its-a-trap/#a-little-on-the-nose
Now, Petsmart is full of shit here. The "four-week training course" Petsmart claims is worth $5,500 actually only lasts for three weeks. What's more, the "training" consists of sweeping the floor and doing other low-level chores for three weeks, without pay.
But even if Petsmart were to give $5,500 worth of training to every pet-groomer, this would still be bullshit. Why should the worker bear the risk of Petsmart making a bad investment in their training? Under capitalism, risks justify rewards. Petsmart's argument for charging $50 to groom your dog and paying the groomer $15 for the job is that they took $35 worth of risk. But some of that risk is being borne by the worker – they're the ones footing the bill for the training.
For Petsmart – as for all feudalists – a worker (with all the attendant risks) can be turned into an asset, something that isn't subject to competition. Petsmart doesn't have to retain workers through superior pay and conditions – they can use the state's contract-enforcement mechanism instead.
Capitalists hate capitalism, but they love feudalism. Sure, they dress this up by claiming that governmental de-risking spurs investment: "Who would pay to train a pet-groomer if that worker could walk out the next day and shave dogs for some competing shop?"
But this is obvious nonsense. Think of Silicon Valley: high tech is the most "IP-intensive" of all industries, the sector that has had to compete most fiercely for skilled labor. And yet, Silicon Valley is in California, where noncompetes are illegal. Every single successful Silicon Valley company has thrived in an environment in which their skilled workers can walk out the door at any time and take a job with a rival company.
There's no indication that the risk of free labor prevents investment. Think of AI, the biggest investment bubble in human history. All the major AI companies are in jurisdictions where noncompetes are illegal. Anthropic – OpenAI's most serious competitor – was founded by a sister/brother team who quit senior roles at OpenAI and founded a direct competitor. No one can claim with a straight face that OpenAI is now unable to raise capital on favorable terms.
What's more, when OpenAI founder Sam Altman was forced out by his board, Microsoft offered to hire him – and 700 other OpenAI personnel – to found an OpenAI competitor. When Altman returned to the company, Microsoft invested more money in OpenAI, despite their intimate understanding that anyone could hire away the company's founder and all of its top technical staff at any time.
The idea that the departure of the Burger King trade secrets locked up in its workers' heads constitute more of a risk to the ability to operate a hamburger restaurant than the departure of the entire technical staff of OpenAI is obvious nonsense. Noncompetes aren't a way to make it possible to run a business – they're a way to make it easy to run a business, by eliminating competition and pushing the risk onto employees.
Because capitalists hate capitalism. And who can blame them? Who wouldn't prefer a life with less risk to one where you have to constantly look over your shoulder for competitors who've found a way to make a superior offer to your customers and workers?
This is why businesses are so excited about securing "IP" – that is, a government-backed right to control your workers, customers, competitors or critics:
https://locusmag.com/2020/09/cory-doctorow-ip/
The argument for every IP right expansion is the same: "Who would invest in creating something new without the assurance that someone else wouldn’t copy and improve on it and put them out of business?"
That was the argument raised five years ago, during the (mercifully brief) mania for genre writers seeking trademarks on common tropes. There was the romance writer who got a trademark on the word "cocky" in book titles:
https://www.theverge.com/2018/7/16/17566276/cockygate-amazon-kindle-unlimited-algorithm-self-published-romance-novel-cabal
And the fantasy writer who wanted a trademark on "dragon slayer" in fantasy novel titles:
https://memex.craphound.com/2018/06/14/son-of-cocky-a-writer-is-trying-to-trademark-dragon-slayer-for-fantasy-novels/
Who subsequently sought a trademark on any book cover featuring a person holding a weapon:
https://memex.craphound.com/2018/07/19/trademark-troll-who-claims-to-own-dragon-slayer-now-wants-exclusive-rights-to-book-covers-where-someone-is-holding-a-weapon/
For these would-be rentiers, the logic was the same: "Why would I write a book about a dragon-slayer if I could lose readers to someone else who writes a book about dragon-slayers?"
In these cases, the USPTO denied or rescinded its trademarks. Profits triumphed over rents. But increasingly, rents are triumphing over profits, and rent-extraction is celebrated as "smart business," while profits are for suckers, only slightly preferable to "wages" (the worst way to get paid under both capitalism and feudalism).
That's what's behind all the talk about "passive income" – that's just a euphemism for "rent." It's what Douglas Rushkoff is referring to in Survival of the Richest when he talks about the wealthy wanting to "go meta":
https://pluralistic.net/2022/09/13/collapse-porn/#collapse-porn
Don't drive a cab – go meta and buy a medallion. Don't buy a medallion, go meta and found Uber. Don't found Uber, go meta and invest in Uber. Don't invest in Uber, go meta and buy options on Uber stock. Don't buy Uber stock options, go meta and buy derivatives of options on Uber stock.
"Going meta" means distancing yourself from capitalism – from income derived from profits, from competition, from risk – and cozying up to feudalism.
Capitalists have always hated capitalism. The owners of the dark Satanic mills wanted peasants turned off the land and converted into "free labor" – but they also kidnapped Napoleonic war-orphans and indentured them to ten-year terms of service, which was all you could get out of a child's body before it was ruined for further work:
https://pluralistic.net/2023/09/26/enochs-hammer/#thats-fronkonsteen
When Varoufakis says we've entered a new feudal age, he doesn't mean that we've abolished capitalism. He means that – for the first time in centuries – when rents go to war against profits – the rents almost always emerge victorious.
Here's the podcast episode:
https://craphound.com/news/2024/04/14/capitalists-hate-capitalism/
Here's a direct link to the MP3 (hosting courtesy of the Internet Archive; they'll host your stuff for free, forever):
https://archive.org/download/Cory_Doctorow_Podcast_465/Cory_Doctorow_Podcast_465_-_Capitalists_Hate_Capitalism.mp3
And here's the RSS feed for my podcast:
http://feeds.feedburner.com/doctorow_podcast
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/04/18/in-extremis-veritas/#the-winnah
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Today, the label luddite is an epithet for someone afraid of technology and the change it can bring. Merchant’s book makes clear that Luddites did not fear automation in the sense of being afraid of the machines or longing for an idyllic past. On the contrary, as Merchant points out, clothworkers were often themselves intimately engaged in improving the technology they used. Some of them proposed paying for job retraining by taxing factory owners who implemented the automating machines, earning the workers the title of “some of the earliest policy futurists,” according to Merchant. These efforts—to use official channels at the local and parliamentary levels—failed, however. With their futures rapidly foreclosing, the clothworkers invoked the fictional Ned Ludd (alternatively, Ludlam), an apprentice stocking-frame knitter in the late 1700s who, the story went, responded to his master whipping him by destroying the machine. Inspired by his act of sabotage against a cruel employer, the Luddites campaigned to halt the spread of the “obnoxious machines.” Soon factory owners found threatening letters signed by Captain Ludd or General Ludd or King Ludd. The letters also allude to another hero of working people from Nottingham, Robin Hood. Merchant argues that the mutability of Ned Ludd served as an organizing symbol akin to a playful but potent meme.
[...]
The Luddites used the tools at their disposal and did so through collective action. Merchant details the day-to-day organizing efforts of the movement’s leaders. We are ushered into a clandestine world of codes and oaths, of backroom meetings and nighttime training. The scheming makes for entertaining reading. But beneath the private planning and public sabotage lurks a more lasting lesson: movements to dismantle automation’s physical infrastructure often depend on building relational infrastructure. Tight-knit communities are extraordinarily important here: they buffered the Luddites from harm and fostered creative thinking rather than merely alienation among adherents and their allies. Increasingly finding themselves wrung out by those in power, these communities coalesced around shared causes that overlooked intragroup differences. This opened space for women, Merchant tells us, to claim the nom de guerre Lady Ludd and charge into markets to demand fair food prices from shop owners and food suppliers. It worked. The “auto-reductions,” as they were called, demonstrate the power of people working together to force change. Similarly, resistance to automation can be creative and provide openings to bring myriad others into the tent.
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The more I read economics literature about automation trends and globalization trends (the actual economics term, not the rabid racist term) and their economic impacts on developed economies, the more I realize that the fundamental picture we have been sold these things is a lie.
The general picture of automation revolutions is that they present some way of doing work more efficiently and/or to create a better product, and so market forces simply demand it. And we have to figure out how to deal with all of the lost jobs which are resulting from this. Because even in a socialist utopia, surely it would be absurd to continue forcing people to use old and outdated technology to do work less efficiently just so they could have work to do, right? Maybe the socialist utopia will take care of people displaced by this work better, but the displacement will still happen.
Except then I start reading about the actual history in the actual economics of automation revolutions (I recommend Blood In The Machine for a history of the Luddites and the automated textile revolution in Britain). And that's not what happens even a single time. These automated revolutions increase the cost per unit to create a good! They make the quality worse! And the existing workers get displaced, and replaced with oppressed or even outright enslaved labors who make nothing in worse conditions! They didn't even actually reduce the amount of labor involved significantly, they just started working orphan slaves 80-90 hours a week rather than artisan workers doing 30-35, to "reduce" the labor involved by reducing the number of laborers. It seems like no one benefits from this. So why is it happening!?
Well the answer is simple. The machine looms were less efficient, created lower quality products, and were worse for every single person in every sector of the economy ... except insofar as that they enabled a more unequal economy. The textile industry itself made less profit. The world itself had worse and less textiles. But the machine loom owners specifically made more money, because machine rooms enabled more control over workers in ways which could be used to relegate them to an even smaller share of the smaller profits. And they didn't outcompete others by being better, they did it through regulatory capture, illegal business practices, outright fraud, and by having a pre-existing place of power in their society.
The same applies to the classic story of Ford and his great automobile factory model. Sure it produced a lot of cars at low prices, but what the history doesn't tell you is that a bunch of other automobile companies which weren't using the factory model were putting out their own cars similar cost. Sure they weren't scaling up as fast, but everyone involved was making good money and the market kept on producing more companies to fill the gap. Ford made the decision to sell to a new lower cost car market sure, but he did not make a better profit margin per dollar of car purchases than his competitors did. He made significantly worse actually because he had such hideous turnover at his factories, and his cars were of lower quality than non-factory line cars aimed at the same market could be.
So why the hell did the entire automobile industry follow in his wake? Well, because he personally was making an insane amount of money. The factory line model let him simplify the production chain in a way which cut out a lot of people who previously been making good salaries, and it let him replace well paid laborers with dirt cheap labor. (Despite the hubbub about how good Ford's factory jobs paid, they only paid well relative to other no skill no training work available. They paid much worse than the skilled laborers he fired had made.)
And the people who controlled how the car manufacturing process worked were the people who would stand to make money by switching over.
The same is true for globalization. When a berry monopoly which controls 60% of all berry sales in the US does so by importing berries from South America, from varieties optimized for durability rather than flavor, that isn't cheaper than growing them at home. Not even with the higher cost of labor in the US. Not even if you actually paid farm hands a good wage rather than by abusing undocumented workers who can't fight back as effectively. The transport costs are too high.
All across the US food sector we have examples of food monopolies exporting produce production overseas in ways that make the final product more expensive for the customer, and lower quality at the same time. Why!?
Well because it allows them to access even more vulnerable labor markets. So even though the whole pie shrinks, the company owners get a bigger enough cut of the pie to make up for it.
The lie of automation and globalization of work and the damage it does to developed economies is just that, a lie. It is not economically predestined for this stuff to happen. Alternatives are not predestined to be competed out of the market. Unless, of course, ownership of profits is concentrated in only a few hands. Unless what's being competed for isn't net profit or net service provided or net quality of goods, but how much profit you can localize in capital owners.
If that's the actual competition, and of course it is because the people making decisions for companies also own those companies, only then does job automation and the presence of exploitable overseas labor devastate economies.
If laborers actually owned their places of business piecemeal, the motivation for these kinds of economic shocks would largely dry up. Like, sure, labor saving devices get invented sometimes and you need less people to do the same work. And sure, sometimes work can be done overseas for cheaper because standards of living at lower or because there's some comparative economic advantage. But that is not actually what is happening most of the time this stuff occurs.
If there's one thing I've learned studying this stuff, it's that genuine examples of net gain automation are less common than we think, and tend to be implemented on fairly slower timelines. Same for globalization of work. What is very common is ways in which already unequal systems of ownership and decision making and profit can be made more unequal. And the only fix I can imagine is fundamentally changing and democratizing how businesses operate, and how we handle concepts of ownership.
#also I know this can read as dismissive of the impacts#of this stuff on the labor forces most exploited by it#especially in South America#it's just that I'm trying to come at this from the perspective of#the justification of the existing system uses#which do not care about that kind of suffering#and trying to point out how they don't even do the things they claim to do
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#Industrial Automation Software Market#Factory Automation Software#Industrial Automation Software#Industrial Process Control#Industrial Automation
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I hate "the AI future"
My main training is in IT, and I was told often that they don't need me - they got "AI". So I worked a bit with art to make ends meet. "Oh, why should we commission you? We got AI". So now I do some work that I am not qualified for and only can do it because it is not heavy work. I am able to do it, but it is not even at minimum wage.
And I am lucky that I have that. I went to manual labour places, where the foreman looked at me, and went "sorry, no. Please look elsewhere". I was told I am overqualified to be a janitor or a server. I was told I need even more stuff I can't afford to do shelf stacking or delivering pizza.
So... "AI" will take our jobs, so when we can't do things - where will we get money? WHO will be able to buy any of the slop being tossed out? It is a monopoly, because these "AI" companies all made their internet scraping machines. We can't really fix this any more, I fear, but...
People won't care. They don't want to care. It's not something you can fix if we install a fully automated gay space communism tomorrow - because this is using human apathy for the way it can spread. The future generations will "enjoy" the mass produced slop, and wonder why they feel empty.
You know, I think the major fault to it is because people were enamoured by the "free" stuff, even as the real costs came out - artists being fired, insane power costs, water and electricity bills well beyond a smaller developed country, the whole market being slowly overtaken by megacorps and silicon valley techbros, and so on - and it is understandable. It was a fun toy and a strange little tool, but now that this was found to "work", the same people who want you to get used to not own the items you buy and hold them hostage behind service costs want you to get used to it.
This is just going to collapse on itself. Like buttcoins and eneftees, the market got disrupted for a moment by people who don't understand the systems they want to replace, but it went from "monopoly money useful only for drugs" to "nobody will have a job that can not be automated, so everyone has to fight to become a factory worker or server"; and thus, here, nobody will be able to buy anything. It's like they figured out how to become the global industrial version of the Ottoman Empire or Tsarist Russia.
Spoiler alert: it will collapse on itself when nobody can buy anything the factories and the slop machines produce, and it will collapse hard. Question is, when and how will we get back from it? Will that future be any better, or we will get another loop from incompetent techbros trying to get their stupid Torment Nexus, and then wonder why it hurts?
Anyway, I am somewhat optimistic, but it requires people to realise what the costs are for "cheap" and "easy". It never is cheap and easy.
Until that, anyone who loves their "ai" slot machines should enjoy the slop being served for the enormous costs, and happily dig in, this will be all you get if you don't stop.
#artificial intelligence#personal rant#tired of the state of tech#ever since trans people and furries got pushed out
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I did it again
Welcome from FICSIT Inc. to our brand new engineer
We're thrilled you picked us, we're here to bring you a brilliant new career
Yes, it's true that the terms of your servitude are a little bit unclear
But don't fear the years you'll be spending here, you're a lifelong pioneer!
You're entering planetfall to a planet full of resources
Your contract calls that your life revolves around rounding up and exporting
And if you happen upon our previous ones, well, it's your job to report it
Take inventory of the spent debris, but best to leave any corpses
No time for grief, so take relief in this briefing
These core values, FICSIT needs you believing
You'd better learn them if you want to be leaving
But if you miss it, then we'll keep on repeating
Construct!
Rebrand that land before you as a grandiose factory floor
Automate!
Command it to handle it, so you're free to construct more
Explore!
You'll fall to a world of wonders that none have seen before
Exploit!
Convert that fertile earth to a furnace for churning ore
Flora and fauna, forced to the boundaries
Par for the course when your sport's tearing down trees
Pounding them down into powder to power these
Towers you've founded to round our accounts
Seize bountiful mountains of countless amounts
Each ground into compounds bound for the foundries
Sound of it drowns out the howls of the foul beasts
Ousted and out for revenge, so look out
Deep down underground, a fortune awaits
We've just got to burn down what's in the way
How fortunate that you have opted to stay
With your life on the bottom line for our pay
So slave away and save the day
In place of wage, you'll pave the way
Stay in the black with shades of grey
Keep sending stacks, you'll get back someday
We enterprise and synergise
You improvise and synthesise
To bring supplies and tint the skies
With inky spires as chimneys rise
The market cannot be denied
We couldn't stop it if we tried
That natural snapshot that you prize
Is simply profit in disguise
Drop a thousand rods in the pod
Ship them off, don't stop and move on to the Modular Frames
The Rotors and Cables
The table says we are waiting on lots of Crates
And if we haven't got enough on your plate
Well, we haven't got enough of the plates!
And the state of the Caterium isn't great
So fill the elevator by end of the day
Mother Nature is minted, it's evident
If we're her kids, then what is the precedent?
Where there's a will, there's a way to inheritance
Whether we killed her or not is irrelevant
No defense for delay, it's expensive
So pay up, foreclosure's a moment away
Financially, we're fine actually
So contractually say it again!
(i couldn't be bothered to color this next section in)
Construct!
An industrial wonderland with a hundred belts to ride on
Automate!
Set beams to plunder and then find somewhere else to siphon
Explore!
There's a whole ton of funds to be funnelled under that horizon
Exploit!
So tear it asunder with thunderous, sulfurous pyres and pylons
This is a FICSIT reminder!
It's a lizard-doggo-eat-lizard-doggo world out there
But that doesn't mean it won't also try and eat you
So be careful
Those uniforms aren't cheap
You've been hurled without leave to build worlds without leaves
Scorch the earth, burn the trees, crush the birds, squash the bees
Yes, the customer may moan, kicking creatures from their home
But they'll scream and rant and rave if they don't get their mobile phone
You may think that it's a lot, slaying nature so our stocks gain
You may rethink extinction when your neck is on the Blockchain
All things bright and beautiful, all creatures great and small
Will be scanned and logged and processed for the shareholder's bankroll
It's a little bit of sweat, a little bit of toil
And a big blind eye to the wildlife spoiled
If they go the way of the dinosaur
What you crying for? We're just making oil!
So the seas may boil and the skies might burn
But we'll reap the spoils of the prize you've earned
No quarrel, it's morally grey, just quarry away
Morals make for downturn
Mother nature ought to be
Hung, drawn and quarterly
Diced up and torn to pieces, export and reset
Our big spreadsheet says more for me
Unlike a life, a price is dependable
Cutting expenses to keep you expendable
Spreading our message, we made you a prophet
So make us a profit, we'll grant you ascension
All manner of valuables need our attention
The fact that there's animals ain't worth a mention
If there's a creator, I guess in a sense then
That we are a case of divine intervention
Beyond the heavens, there is revenue to glean
So turn that greens to black and we can turn it back to green
Tax law is more lax for planets unseen
And in space, no one can hear the machines
Right, I want ten thousand steel beams at my desk by four
No, not literally, where would I put them?
#wonderlands x showtime#wxs#wxs tsukasa#wxs emu#wxs rui#wxs nene#wxs miku#slightly#a matter of factories#the stupendium#project sekai#pjsk#gonna be honest#this one is a bit more intense than their usual music#but it would sound good in their voices#also sorry if this feels a bit rui heavy at the end#or if it feels unbalanced in any way really#in my defense#i need to sleep
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