Andy Grove Was Right

Andy Grove once said, "Success breeds complacency.  Complacency breeds failure. Only the paranoid survive."

The link to the article below is about the U.S. policy that rescinded the International Entrepreneur Rule.  Under this rule, qualified foreign entrepreneurs are granted temporary parole to the U.S. in order to build and scale their businesses.  It was a popular rule and promoted by technology intensive firms.

The U.S. was the number one choice for these individuals.  Why not, the U.S. is well known for welcoming entrepreneurs and innovation.  We admire and respect these individuals. 

However, the rule was rescinded.  The result is now these individuals seek other countries.  And these countries are sure courting these entrepreneurs.  Note in the article what is offered to individuals who meet certain thresholds.

I started with with a quote by Andy Grove, formerly the CEO of Intel. The U.S. is successful in promoting and developing entrepreneurs.  However, I do think that success can and often leads to complacency.  This policy appears to me to be based on the success of entrepreneurs in the U.S.  So why let non-citizens in?  That is a mistake.  Like capital, innovation and entrepreneurship are mobile. 

We should welcome these individuals to the U.S. for what they can contribute and not exclude them because they are not U.S. citizens.  Public policy staff should consider this before taking any drastic actions.

Link to the article:

https://www.bloomberg.com/news/articles/2018-10-01/trump-booted-foreign-startup-founders-other-countries-embraced-them

The Future is Now...

This is a line from an excellent business movie by the Cohen brothers, The Hudsucker Proxy. If you have not seen the movie, I suggest that you do.

This post is not about the movie, but I do love that line. And this post certainly can apply to "The Future is Now..."

Elsewhere in this post you will find a link to a CNBC article titled "The World's First Humanless Warehouse is Run by Robots and is a Model for the Future.  Mujin is a Japanese firm that started at Tokyo University.  Mujin developed sophisticated controllers that can automate a warehouse and/or fulfillment center operation.

The system is in its infancy. The prototype was introduced at a recent Japanese technology show.  The product builds controllers and cameras that integrates with existing robotics.  It is a very impressive system.

The Mujin system already has its first customer, JD.com.  JD.com is the largest retailer and the biggest internet company by revenue in China.  That is a very impressive first customer. 

Now do think I am naive.  Automation in some form or fashion has been around for centuries.  And so have various economic "revolutions."  But this maybe the first one where the number of jobs eliminated could be greater than the jobs created.  Think about it. Every economic revolution I can think of (agriculture as it pertains to cotton, industrial, and information) all created more jobs than were eliminated.  Countries, states and localities adjusted as the best they could.  

No matter what you may think, the future is now. If you have toured a warehouse operation or a fulfillment center, you see employees scattered around perhaps busily packing and/or unpacking boxes received or prepping for shipment. They likely utilize forklifts and other equipment.  

Now, consider the Mujin system.  No employees, just the hum of of robotics and conveyors.  

So what happens to the employees?  High paying jobs with benefits are fewer and far between. Usually, they require considerable training.  

Over the past couple of years, I read that the trucking industry could soon be driver less, meaning up to 2.6 million drivers could be impacted.  In addition, 3.4 million laborers and material movers who work in warehouses and fulfillment centers could also be impacted. 

For economic development professionals, a couple of questions:

• Can we do anything?
• If so, what do we need to do today and tomorrow to offset significant job losses in these industries?

I realize to some this may come off as simplistic.  And they may have a point.  However, I think this economic revolution might be different. It maybe the first of many challenges economic development professionals may face when previous job growth industries start a substantial decline due to automation.  In other words, "the future is now."

Link to article:

https://www.cnbc.com/2018/10/30/the-worlds-first-humanless-warehouse-is-run-only-by-robots.html?__source=msn%7Cmoney%7Cheadline%7Cstory%7C&par=msn

Everything Old is New Again

This is a two part post. Part one, the challenge. Part two, the solution. 

Part One

If you watch TV, you may have seen the commercial asking you to take action due to all the plastic straws in the oceans. The number of straws in the oceans is in the millions and these straws never deteriorate. This has been an item of discussion on TV and in various magazines.  News show panels discuss it. Groups protest the use of plastic straws.  It is harmful to the environment.  Of course the missing piece is what do we replace it with?

Part Two

The link to the Bloomberg BusinessWeek article below is about a company that offers a replacement.  The company is Aardvark and the product is paper straws.  I remember paper straws and why restaurants migrated to plastic. In a nutshell, paper straws did not hold its shape long and it was hard to push it through the hole on the lid.  Hence, the birth of plastic straws. And when they were introduced, you could bend it and it would not lose its shape or stop the follow of the liquid (see pic). That made them fun.  As a kid, you could shoot spitballs with far greater accuracy (and that is important).

You may think I am for plastic straws. I am not. I can always get another straw, but I cannot always get another planet. 

As you read the article, you will see several firms went to Aardvark to purchase the paper straws. But Aardvark took great strides to ensure the quality of the product and eventually sought out a partner.  Note when Aardvark restarted manufacturing paper straws.  You will find several other sections of the article interesting. 

However, in the end, everything old is new again. 

Link:

https://www.bloomberg.com/news/articles/2018-10-05/inside-the-only-company-that-makes-paper-straws-in-america?srnd=businessweek-v2