Andrew B. Bernard and Teresa C. Fort
- Published in print:
- 2017
- Published Online:
- April 2017
- ISBN:
- 9780198779162
- eISBN:
- 9780191824333
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198779162.003.0006
- Subject:
- Economics and Finance, Macro- and Monetary Economics
In Chapter 5 Bernard and Fort shift the focus outside of manufacturing to examine the importance of factoryless goods producers (FGPs), defined as firms classified as part of the wholesale trade ...
More
In Chapter 5 Bernard and Fort shift the focus outside of manufacturing to examine the importance of factoryless goods producers (FGPs), defined as firms classified as part of the wholesale trade sector but that design the goods they sell and coordinate the production activities. Examples of such manufacturing-like companies include Apple, Mindspeed Technologies (a fabless semiconductor company), and the British appliance firm Dyson. They take a product from concept through production and delivery but do not actually engage in the production themselves. There exists little evidence to date about the importance of these kinds of enterprises and the chapter is particularly timely as beginning in 2017 the US Census Bureau will move FGP establishments to manufacturing. This reclassification of FGPs would have increased the number of US manufacturing employees in 2007 by a minimum of 431,000 to a maximum of 1,934,000, an increase of between 3% and 14%.Less
In Chapter 5 Bernard and Fort shift the focus outside of manufacturing to examine the importance of factoryless goods producers (FGPs), defined as firms classified as part of the wholesale trade sector but that design the goods they sell and coordinate the production activities. Examples of such manufacturing-like companies include Apple, Mindspeed Technologies (a fabless semiconductor company), and the British appliance firm Dyson. They take a product from concept through production and delivery but do not actually engage in the production themselves. There exists little evidence to date about the importance of these kinds of enterprises and the chapter is particularly timely as beginning in 2017 the US Census Bureau will move FGP establishments to manufacturing. This reclassification of FGPs would have increased the number of US manufacturing employees in 2007 by a minimum of 431,000 to a maximum of 1,934,000, an increase of between 3% and 14%.
Matthieu Crozet and Emmanuel Milet
- Published in print:
- 2017
- Published Online:
- April 2017
- ISBN:
- 9780198779162
- eISBN:
- 9780191824333
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198779162.003.0005
- Subject:
- Economics and Finance, Macro- and Monetary Economics
In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, ...
More
In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, increasing returns, new consumption items increasingly affordable to the consumer, many services could compare with industries. And even within manufacturing industry in the usual sense, services represent an increasing share of the value added. This shift towards services within the manufacturing sector is characterized as the `servitization' of the manufacturing sector. Using French business statistics, they describe this servitization of manufacturing firms. They document a moderate, but significant and steady trend of servitization over the period and find that the phenomenon is mainly driven by changes that occur within firms. By the end of their sample period, they document that 83% of manufacturing firms sold some services, 40% sold more services than goods, and 26% did not even produce goods.Less
In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, increasing returns, new consumption items increasingly affordable to the consumer, many services could compare with industries. And even within manufacturing industry in the usual sense, services represent an increasing share of the value added. This shift towards services within the manufacturing sector is characterized as the `servitization' of the manufacturing sector. Using French business statistics, they describe this servitization of manufacturing firms. They document a moderate, but significant and steady trend of servitization over the period and find that the phenomenon is mainly driven by changes that occur within firms. By the end of their sample period, they document that 83% of manufacturing firms sold some services, 40% sold more services than goods, and 26% did not even produce goods.
