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One of the problems with these types of pieces that focus on trying to encourage activism rather than reporting on newsworthy topics they generally don't know t
by rsj_hn 5y ago
One of the problems with these types of pieces that focus on trying to encourage activism rather than reporting on newsworthy topics they generally don't know the relevant facts in the areas being discussed. 20 firms is a surprising amount of diversity given the current level of concentration in manufacturing, which is well know to have economies of scale. Well known, that is, except to the BBC. Imagine how much more diversity we'd have if the top 20 producers in auto, airplane, laptop, cellphone, or chip manufacturing only had 50% of the market. That would really add more competition.
To put numbers on on this, in 2012 (I know, it was the latest I could find) concentration ratios in manufacturing were that the top 20 companies averaged 65% of market share for each NAICS manufacturing category (I am averaging along NAICS classifications in sections 31-33, not market share).
So the idea that in manufacturing you have economies of scale and so concentration is something that used to be part of a general reporter's education, so they could understand how uninteresting it is that half of all plastic packaging is made by 20 companies. But it's strange how unaware even the BBC seems to be of these topics.
Next up, they will publish a stunning reveal that lower priced products tend to outsell more expensive products. After that, a ground breaking story that firms which produce more goods tend to have lower average costs per unit produced.