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A recent business seminar hosted by Barclays Wealth and Investment Management heard that technological advances currently revolutionising the manufacturing industry are driving the biggest changes to the global economy.
A recent business seminar hosted by Barclays Wealth and Investment Management heard that technological advances currently revolutionising the manufacturing industry are driving the biggest changes to the global economy.
Hosted by Ken Bradley of Barclays, business leaders heard from Kevin Gardiner, chief investment officer, Europe at Barclays Wealth and Investment Management and Paul Markillie, the innovation editor at the Economist magazine.
Both speakers outlined their views of the global economy in light of what Mr Markillie identified as the ‘Third Industrial Revolution’ in his renowned article on manufacturing published in the Economist.
According to Mr Markillie this revolution is being enabled by new technology particularly in additive manufacturing or 3D printing as it is popularly known.
“Advances in technology are reducing the manufacturing industry’s reliance on economies of scale and unit labour costs,” he said.
“Where previously large scale operations were needed to make manufacturing work financially, new processes mean that businesses can be more nimble: creating prototypes quickly and cheaply.”
“As well as the craft and design market, big players such as Rolls Royce and McClaren are making use of 3D printing in the latest generation of jet engines and performance sports cars.”
Mr Gardiner agreed that technology was central to the future of the world economy. “Technology changes drive economies forward, not government action, or what we do in the city, but the development and improvement of industries through technology.
“It is one of the main reasons that we take a ‘glass half full’ view of the economy. All this innovation is great news for our financial wellbeing.”
Mr Gardiner stressed that investors needed to take this view to avoid falling prey to ‘conventional wisdom’.
“We must remember to look beyond the accepted view that the world economy is in dire straits. Things might not be growing as quickly as we would like but compared to other periods like the seventies and eighties we are pretty well off.
“Globally, GDP has never been higher and people, generally, have never been as well off. Investors shouldn’t panic or worry about the debt crisis, or the eurozone without properly interrogating the market. A long term view is often ignored when there is a sudden shift in market priorities but sometimes the best move to make is no move at all.”
Mr Markillie also described a world where anyone with a laptop and an internet connection could become a manufacturer.
“It’s an exciting time for innovation. 3D printers have been a key factor in the ‘maker’ movement, which has energy much like the early days of Macintosh computers. This is where we should be looking for the next world-changing product innovation,” he said.
