The oblique search for new industrial opportunities

Industrial policy is typically set at national level. It is often aspirational and attempting to “stretch” an economy into new kinds of production and value addition. Programmes are designed, targets are set such as doubling manufacturing contribution of x% within 7 years. Therefore it is sometimes disconnected from the present as it seeks a new… Continue reading The oblique search for new industrial opportunities

Industrial policy is different at local and national levels

Industrial policy at the national, provincial or sub-national and local levels is different. While at the national level, industrial policy is often focused on coordinating public resources around certain priority areas, local industrial policy is almost completely focused on the pressing issues of the private sector and organizing the public sector around these needs. While… Continue reading Industrial policy is different at local and national levels

Preparing for a different manufacturing future

In Africa, we face the challenge of a manufacturing sector that often manufactures products in low volumes. In a country like South Africa, we manufacture a wide range of products but often at low scale. Even our manufacturers that manufacture in larger volumes are still small compared to European or Asian competitors. In some parts… Continue reading Preparing for a different manufacturing future

Entrepreneurs and markets

While most entrepreneurs depend on functioning and competitive markets to survive, there are those entrepreneurs that actually thrive in imperfect markets. These are the entrepreneurs that creates a business around something like an information failure, high costs of finding suppliers or customers (brokering), or overcoming economies of scale (for instance by leasing expensive equipment on… Continue reading Entrepreneurs and markets

Building institutions that supports knowledge flows to industry

It sounds like a cliche to state that manufacturing has changed a lot in the last 30 years. Yet people often say this without thinking of how it has changed. It is not just about the size of our manufacturers, or the increased competition from Asia or elsewhere. It is also not about the sophisticated… Continue reading Building institutions that supports knowledge flows to industry

Absorbed into the networks behind the systems we see

Its been a while since I have last posted here. The reason for my absence is two-fold. Firstly, I am busy with a course offered by Coursera and the University of Michigan about Social Network Analysis (SNA). My business partners and one of our associates in Mesopartner are participating in this course. The course is… Continue reading Absorbed into the networks behind the systems we see

Help – the industry I am working with is uncompetitive and many do not care

In most strategic management textbooks 4 generic factors are identified that can be used to build competitive advantage: efficiency, quality, innovation and customer responsiveness. These four factors are highly interrelated, as an improvement in customer responsiveness for instance could result in improved quality and better efficiencies. By addressing these four factors a business can reduce… Continue reading Help – the industry I am working with is uncompetitive and many do not care

Supporting business that creates wealth and growth should be our main priority

I see that in the USA there is a similar debate as here in South Africa about whether government should support small firms or growing firms. Andrew Hargadon wrote a brilliant post on the debate that was brought to my attention by Tim Kastelle. Hargadon argues that hindsight is often mistaken for foresight. He explains… Continue reading Supporting business that creates wealth and growth should be our main priority

Localisation and building domestic manufacturing capacity

At the moment I am spending most of my time working with the more traditional manufacturing sector in South Africa. Traditional apparently means non-advanced, but it would be a mistake to think that because a particular object (like a metal casting) has been made for 8000 years that there is nothing advanced about it. For… Continue reading Localisation and building domestic manufacturing capacity

There is more value to the value chain than adding value to products

I am supporting value chain practitioners in various programmes where I am coaching, teaching, supporting, pushing and pulling experts. This is one of the perks of my job as I get to look over the shoulders of practitioners working all around the world on commodity, agricultural, manufacturing and service value chains. While marking some assignments… Continue reading There is more value to the value chain than adding value to products

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