“Management is NOT what you think it is”
When most people hear “management” they think:
MBA.
Economics.
PowerPoint about KPIs.
They are wrong.
Management was born as an engineering science — invented by US engineers to create factories.
And then we forgot that.
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Here’s my take on the data center pushback.
The average American wants to see actual manufacturing jobs come back. These are jobs that were supposed to offer regular predictable hours and pay a wage to afford a middle class lifestyle.
Data centers create construction jobs for about 12-18 months and then once built, will only employ about 50-100 IT type people.
Everyone keeps hearing about the manufacturing boom and reindustrialization, but the long term, good paying manufacturing jobs that were promised are not materializing.
People are reading about the trillions being invested for these data centers that will not create meaningful jobs and want to know why trillions are not being invested to build more factories that actually make things and would employ significantly more people.
If land, electricity and water are required for both a data center and a manufacturing factory, I can see why communities would want to save those resources for something that offers jobs for the average American.
@jimbelosic You are doing a hell of a job scaling at speed. Without great people, it is impossible. Kudos for finding such people, and even bigger kudos if you've developed them yourself.
@CoxonMark Who are your typical buyers? In our factory, we buy second-hand machinery only for special-case usage. Usually, lots of maintenance is needed to get the old machine running; it's worse than with second-hand cars.
It's a good, interesting video for anyone who still thinks China is just a bunch of peasants somewhere on the other side of the world, and the West is the most technologically advanced side of the world.
But the picture behind the picture is more crucial for me. For example, to build such a factory in 2 years means they have all the inputs ready domestically - the machines that build other machines, and most importantly, the necessary human capital to plan and operate it. Also, the entire ecosystem of factories tied together in the same region makes the operation much faster.
For all of this to happen, obviously a lot of planning went into it, and it was done at the state level. A state-level strategy for the next 50 years, with industrial policies for every 5 years, going on for 45 years now. The longest planning period in the West is the length of the elected mandate - 4 years; after that, there is no interest. Long-term advance vs. short-term profit.
China was patient, had the strategy, took whatever we gave them, learned from it, and built on it. Training this many people is not an easy task, or a quick one. I don't get why we paint them as the bad guys; I mean, if it were me, I would do the same. What they did is respectable. I may not like it, but they are doing it nonetheless. And who is the bad guy, the one who took it, or the one who not only allowed it to happen, but actively helped?
Now, in terms of Reindustrialization, we want it immediately, but it is every man for himself. Without a collective effort, organized and aided by the state, there is 0 chance for it to happen. We may have all the money in the world (or at least the USA has the printing machine), but we do not have the people to do it, and training people is a long and tedious task.
We need something along the lines of the Sputnik moment that brought the National Defense Education Act and the National Aeronautics and Space Act.
This is what happens when you run out of ideas. In my country, they did the store thing (maybe Mamdami stole the idea from us?). It existed for a couple of months, there was no interest, and it got shut down.
The sadder part is that our politicians are great at spending, yet have zero idea how to create value. 'Free market capitalism' has turned them into extreme consumers and spenders. But once you run out of money, you are in a hole, and the only way out is to create value. In reality, this happens through the manufacturing industry, but they have zero understanding of how this industry functions, and it shows.
I think free market capitalism is a pipe dream they sell to suckers. What is free market, when you have these global asset companies like Blackrock that manipulate the "free market" to their liking. Having an industrial policy is not communism or state capitalism, it is just common sense. But it requires a lot of hard work, which, I think, is the scary part for Western societies.
@batsuev_es It's expensive because our distributors are profit-obsessed and their margins are absurd. If you buy them straight from China, the price will be much different. And the maintenance is pretty much the same. You both will wait for parts delivery from China.
@SutterlinDan@KennethCassel I don't like it at all, but on the other hand i cannot not respect it. The amount of work to create such a system is insane. The amount of thought process to imagine and plan it is even bigger.