Continuation of our series on industrial ecosystems in metropolitan environment. The previous note showed that the "white collar" jobs in the industrial sector are also Metropolitan, as opposed to production jobs. Here we discuss the factors of localization of industrial investments.
For startups, Paul Graham indicated three localization factors: youth, academia and investors.
For the localization of industrial activities, it is much more difficult in particular because the activities of industrial companies are specialized in large sites. There are a number of different types of factors that can be observed.
In an open world market, the industry spreads geographically at various scales and the reference market of each of the industries considered must be taken into account.
Aeronautics is directly global, at least on the largest aircraft segment, other industries are more local. Some require low-transportable localized production, others facilitate the concentration of global production on a few sites.
In the factors of implantation of industrial activities it is necessary to consider several levels that become entangled.
At the international level, we can cite taxation, the level of salaries, the overall quality of infrastructure and training.
For finer location choices, we will find very contingent elements, such as the presence of a railway spur, a motorway junction, port access, the price of m², the ability to recruit in the chosen specialization, with probably more need to be close to training venues for non-executives. It is easier to move a few high-level executives, on an industrial site, than to remotely recruit all the workers.
Among the various factors, some are specific to each industry: transfer price, for pharmaceuticals, transportability of products, level of range (Devialet produced in France, a "CD player" at €1700; same remark for Thermomix: a German company produces domestic robots in France, but they are sold more than €1000 piece).
Environmental regulations are also an important factor, and the Trump Government's actions focus on making them responsible for American deindustrialisation.
A graph completed at the end of 2015 also showed that the different French industrial sectors are in extremely different dynamics in terms of jobs.
On an abscissa, on a logarithmic scale, the ratio between jobs created and eliminated by industrial sector, from 2009 to 2015. In ordinate, the number of jobs created by the sector from 2009 to 2015, without the jobs suppressed – indicator of the size of the sector. The printing company sees 10 jobs recreated for 100 jobs, and a total of about 1,000 jobs created since 2009. The same graph made with 206-2017 data would show that sectors such as the automobile are reversed in the Green, with a number of jobs created greater than the number of jobs suppressed. Data Trendeo Observatory on employment and investment.
One could also specify ecosystems specific to each industry.
For the installation of a data center for example, we must first consider the seismicity of the terrain, the price of energy, the presence of multi-operator broadband... The cost of the work is on the other hand almost indifferent, it is a very capitalistic industry.
For a robotic ecosystem, an important factor is the presence of installers.
There are therefore a large number of parameters to be taken into account for the localization of industrial activities.
The very evolution of the industry can, however, make localization in countries with a high standard of living more interesting. In this sense, the industry of the future could make the localization of industrial activities in developed countries more attractive.
Next ticket: The industry of the future ...