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by evgen 6388 days ago
Music production. Video production.

Any industry where the capital costs are low, or where a small group of niche specialists can add a significant multiplier to the value chain are candidates for this sort of effect. As more industrial tasks are farmed out to large companies that specialize in flexible production it is possible that you will see this show up in industries that are currently have strong vertical integration.

For example, ten people can't mass-produce a car. Ten people can provide spcialized bodywork and personalization of a mass-produced car. Ten people could probably design and oversee the outsourced manufacturing of discrete components in the car. Ten people could probably manage a company that deals with other small firms to create bespoke vehicles based upon mass-produced frames and engines. As you increase the specialization and make more parts interchangeable it is possible to decentralize and distribute a production chain to the point where a large collective of ten person companies can provide a higher-value good at a lower per-unit cost than a single large company.

Certain activities will always need large, high-capitalization organizations, but it seems that more and more of these companies and factories are being forced to become more flexible and nimble which is leading to a point where a larger and larger part of your world can be serviced by smaller teams than by large enterprises.

2 comments

> Any industry where the capital costs are low

How do these things change with time, though? Do they always, invariably drop? Might computing conceivably go through another phase where things get consolidated into some kind of big servers that cost a ton of money? Doesn't sound likely to me, but I'm not very good at predicting the future. Actual research into these trends would be interesting to see.

Your example is apt: This is already happening in the auto-industry. Suppliers become more and more importart.