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Philo's avatar

This is great.

The retail / restaurant industries have the most of the same diseconomies of scale you talk about, but they at least seem to do ok in terms of productivity growth. They have to produce everything on site in small quantities, lots of variation in local demand, lots of different local regulations. McDonalds centralizes a lot of the marketing and R&D but different restaurants in different countries have their own menu items and operate as autonomous franchises. Amazon is more centralized and has developed stores where you can skip checkout.

It does seem harder to use microchips to improve productivity in construction than in retail or restaurants, where you can replace people with cameras and kiosks. But maybe not.

Coming at this as an outsider with no familiarity with construction, my first reaction would be to ask why there is no McDonalds of construction that centralizes whatever can be centralized? Or maybe there is?

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Catallaxy's avatar

The transport costs issue makes me wonder if heavy lift airships could make a difference to the economics of construction if they ever actually go mainstream. There are a number of companies working on them but it's one of those technologies that always seems to be 5-10 years away from real commercialization.

This article talks about some of the companies developing these vehicles: https://www.bbc.com/future/article/20191107-how-airships-could-return-to-our-crowded-skies

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