![]() Local microfactories can produce products, including vehicles, specifically designed to meet the wants and needs of the region they serve. As unit production costs decrease, more products will better serve the needs of consumers who prefer customized or personalized products and services. The average cost decreases due to total production of a range of products, and as a result of learning across the different products, rather than simply as a function of increased production of one product. This revival in small-scale local manufacturing will rely on economies of scope rather than economies of scale, which is to say, with increased modularization, the fixed costs of manufacturing can be spread across multiple types of products rather than just one product. Now, platforms such as Local Motors, Opendesk, and 100k Garages, accessing tools, on-demand, through entities like TechShop and FabLab, and financed through crowdfunding platforms like Kickstarter and Indiegogo, are combining to thread the fabric of distributed local manufacturing networks around the world. The impact has already been felt in the software start-up world, with nascent companies obtaining on-demand access to computing power and digital storage through organizations like Amazon Web Services and other cloud providers. That is no longer always the case entities like Local Motors are “hacking” the system to reduce capital expenditures. Manufacturing traditionally required a lot of capital. All of that is lowering barriers to learning, market entry, and commercialization at an increasing rate. Thanks to the Internet and other communications and data storage technologies, search costs for physical and human resources have declined, knowledge sharing has become far easier, and funding models have become democratized. Local Motors exemplifies the potential for creating small-scale distributed manufacturing networks: small, local manufacturing ecosystems enabled by shifts in the economics of production brought about by modern digital technologies. Micro-manufacturing: Harbinger of things to come?
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