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I am not so sure because the cost of keeping the in-house manufacturing is also high. Consider military industrial complex, a bunch of companies had been kept a
by TrainedMonkey 7y ago
I am not so sure because the cost of keeping the in-house manufacturing is also high. Consider military industrial complex, a bunch of companies had been kept alive through exclusive government contracts for 60+ years [1]. The result are companies optimizing for lobbying for maximum government dollars instead of efficiency or innovation. For example spreading the supply chain across every state: https://twitter.com/VP/status/971876888447725568?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E971876888447725568&ref_url=https%3A%2F%2Fwww.planetary.org%2Fblogs%2Fjason-davis%2F2018%2F20180309-sls-best-not-miss.html https://twitter.com/VP/status/971876888447725568?ref_src=tws...
I believe fragmentation costs of the supply chain are incredibly high. Especially when the supply chain is top down and sources complex components. A problem with the supplier causes the whole project to be delayed. I think this is a major contributing reason of some recent mega-project delays (SLS, F35, James Webb [2], your favorite mega-project here[3]...)
1. Since 1961 per Wikipedia, https://en.wikipedia.org/wiki/Military%E2%80%93industrial_complex https://en.wikipedia.org/wiki/Military%E2%80%93industrial_co...
2. Nobody built one before, but I feel like a lot of the screw ups could have been avoided.
3. Being a little facetious, mega-projects are hard.