PDF Summary:How the World Ran Out of Everything, by Peter S. Goodman

In today's global supply chains, a single disruption like the COVID-19 pandemic can trigger massive shortages that ripple across industries worldwide. In How the World Ran Out of Everything, Peter S. Goodman investigates the vulnerabilities that pandemic exposed in the interconnected systems underpinning global trade.

Goodman examines key factors, including China's dominance as a manufacturing hub, the lure of low-cost labor, the adoption of just-in-time production strategies, and corporate consolidation. He highlights the human cost—detailing the precarious conditions faced by workers in trucking, logistics, and meatpacking. The book also explores renewed government efforts to curb anti-competitive practices by monopolistic corporations.

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• Start a habit of regular maintenance for items you own to avoid the pitfalls of deferred upkeep. Create a maintenance schedule for your car, home appliances, electronics, and other personal assets. By regularly servicing and maintaining these items, you'll extend their lifespan, improve efficiency, and save money in the long run, mirroring the principle of prioritizing maintenance over short-term savings.

The move to Precision Scheduled Railroading, while beneficial to shareholders, adversely affected all other parties involved.

The author offers an in-depth examination of the 1980 Staggers Rail Act's impact on the railroad industry through the diminishment of regulatory oversight. He contends that this strategy, promoted for enhancing efficiency and service quality, eventually resulted in railway companies amassing greater control and adopting oppressive practices detrimental to both their customers and employees. Goodman details the detrimental consequences of this deregulation, such as the abandonment of routes, the imposition of higher rates, and a relentless pursuit of cost-cutting, primarily through job losses and reduced capacity. He emphasizes that following the relaxation of strict controls over the railways, they adopted strategies aimed at enhancing investor profits by decreasing inventory and minimizing idle train time, which resulted in significant traffic bottlenecks and a notable drop in the reliability of their services.

Practical Tips

• You can analyze the efficiency of your own investments by comparing them before and after implementing a new strategy. For instance, if you've recently switched to a high-yield savings account, track the change in your returns over the next few months to see if the move mirrors the benefits similar to Precision Scheduled Railroading for shareholders.
• Start a blog or social media page where you share stories of how service changes in industries have impacted you or people you know. This can raise awareness among consumers and businesses about the importance of maintaining a customer-centric approach despite operational changes.
• Engage with local government or community boards to understand how railroad deregulation has affected your community. Attend town hall meetings or reach out to local officials to inquire about changes in railroad services, infrastructure, or safety measures in your area since the 1980s. This will give you a grassroots perspective on the broader economic principles discussed.
• Apply the principle of increased control from deregulation to your personal investments. If you have stocks in industries that have been deregulated, monitor them closely to see how deregulation affects their performance. Use this insight to make informed decisions about buying or selling stocks within those industries, potentially optimizing your investment strategy.
• Engage with local transportation planning by submitting feedback on how route changes have affected you. Many cities have online forums or town hall meetings where residents can voice their concerns. By sharing your experiences, you contribute to a larger conversation about transportation needs and help planners understand the real-world consequences of their decisions.
• Educate yourself on the basics of regulatory policies and their impact on consumer prices by attending free webinars or reading online resources from consumer advocacy groups. With this knowledge, you can make informed decisions about your spending and advocate for fair pricing in your community.
• Implement a personal 'lean' audit of your household items, selling or donating things that you haven't used in the past year. Use platforms like eBay, Facebook Marketplace, or a local charity. This is similar to a company reducing capacity by getting rid of surplus inventory or assets that are no longer contributing to its operations.
• Streamline your daily routines by batching similar tasks together and setting specific times to handle them, just as railways schedule train operations to minimize idle time. For instance, instead of checking emails sporadically throughout the day, allocate two time slots to manage your inbox. This can increase your productivity by reducing the mental load of constantly switching between tasks.
• Optimize your travel times by scheduling trips during off-peak hours. Keep a log of the times you travel and note the traffic conditions. Over a week or two, you'll be able to spot patterns and determine the best times to commute to minimize getting stuck in traffic. For instance, if you find that traffic is lighter on Wednesday mornings, schedule your errands or appointments for that time.
• You can observe and document the punctuality of your daily commutes to understand service reliability trends. Start by noting the scheduled and actual departure and arrival times of your trains over a month. Analyze the data for patterns of delays, which could indicate a relaxation of controls similar to what was observed in the railway services. Share your findings with the service provider to advocate for improved reliability.

The disruption within the logistics network has led to a reduction in the value of labor and significantly affected individuals.

Goodman suggests that the pursuit of reducing expenses and improving efficiency has led to a dependency on a labor force that is often not given due attention within the supply chain. Individuals employed in trucking, on docks, and in meatpacking industries face challenging work conditions, inadequate pay, and ongoing uncertainty in their employment. This, he argues, has resulted in a delicate infrastructure, with an increasingly dissatisfied workforce, thereby heightening the risk of disruptions to the critical flow of goods.

Long-haul truckers face the consequences of deregulation and the continuous strain that comes with constant travel.

Goodman depicts the decline of manual labor jobs in the United States through the lens of a long-distance truck driver's journey. He argues that the deregulation of the 1980s has made truckers substantially more susceptible to exploitation because their unions have lost much of their power. He argues that the industry has brought about a self-inflicted crisis due to its inability to offer appealing salaries and work conditions that would attract and retain staff, leading to a persistent shortage of workers to operate vehicles.

The Exploitative Funding of a Workforce with High Attrition Rates

Goodman sheds light on the misleading strategies that are widespread in the sector responsible for transporting goods by road, emphasizing the economic schemes companies employ to ensnare drivers in a perpetual cycle of debt bondage. Goodman argues that the sector is characterized by exploitative training programs that impose exorbitant fees and steep interest rates on truck leases, perpetuating a cycle of constant workforce turnover. The author emphasizes the difficult situation of drivers who carry a significant amount of debt, which forces them to continue driving under dangerous conditions and for insufficient pay, while also being away from their families.

Practical Tips

• Set up a routine of 'virtual dinners' where the driver and their family can eat a meal 'together' via a video call. This can help maintain family bonds and give the driver a sense of home, even when on the road.

Other Perspectives

• The term "misleading strategies" suggests intentional deception, but some of the practices may be the result of industry standards or economic pressures rather than deliberate exploitation.
• There may be evidence that some companies in the sector offer supportive measures alongside their financial programs, such as financial counseling or pathways to ownership, which aim to mitigate the risk of debt bondage.
• The structure of payment for training and leases could be designed to incentivize commitment and long-term retention in an industry with high turnover.
• Technological advancements and industry regulations could be improving working conditions, which might reduce the turnover rate over time.
• The trucking industry also includes owner-operators who have successfully paid off their vehicles and do not carry the burden of debt associated with truck leases.
• Some drivers may choose to work under these conditions as a strategic career move, aiming to gain experience or to save money quickly, despite the risks involved.

The Persistent Drive for Productivity and Uncompensated Hours

Goodman outlines the difficulties confronting drivers, such as uncompensated work stemming from traffic hold-ups and the time squandered due to disorganized storage facilities, congested ports, and obligatory safety inspections. The prevalent practice of basing compensation on the miles covered instead of the hours worked exacerbates this exploitation. In his argument, he suggests that there is a widespread tendency to disregard the time and well-being of employees in favor of decisions that emphasize hastening delivery times and cutting expenses, which ultimately compromises the well-being of individuals employed in the trucking industry.

Other Perspectives

• Traffic delays, while unfortunate, are a reality of the transportation industry and can be factored into the overall cost of doing business, potentially through higher rates or surcharges that account for expected delays.
• Some companies within the industry might adopt a miles-based compensation system to incentivize efficiency but may also offer additional benefits or bonuses to compensate for the uncompensated hours, thus attempting to balance productivity with fair compensation.
• There may be instances where truck drivers prefer the pay-per-mile system because it can potentially lead to higher earnings compared to an hourly wage, especially for those who are able to manage their routes and time efficiently.

Dockworkers, widely considered experts in their field, now face an unstable situation due to the rise of automation and escalating dissatisfaction.

Goodman portrays the dockworkers as an anomaly in the broader story of an increasingly exploited labor force. He credits their situation to a well-structured labor union which ensured significant compensation and a relatively steady employment status. Despite this, the robustness of these entities renders them susceptible to examination, with numerous corporate leaders now viewing the costs related to their employees as an obstacle to supply chain effectiveness and an impediment to the wider adoption of automated technologies.

A middle-class lifestyle sustained through strict adherence to the principles of labor unions.

The unions of the dockworkers are depicted by Goodman as a solid bulwark against the manipulative tactics that have eroded pay and worsened work environments for many other laborers. The author outlines their achievements in attaining a comfortable lifestyle, emphasizing their substantial earnings, assured retirement funds, and extensive medical coverage. The author emphasizes that unions achieve their objectives by carefully planning and being ready to disrupt activities, primarily by employing strikes as a vital tool for negotiation.

Practical Tips

• Create a personal log of your work hours, tasks, and any instances of manipulative tactics you encounter. Keeping detailed records can serve as evidence if you ever need to challenge unfair practices or negotiate better terms. It can also help you track changes in your work conditions over time, making you more aware of subtle erosions in pay or increases in workload that might otherwise go unnoticed.
• Develop a personal "strike fund" to give yourself leverage in personal negotiations. Just as unions save up for strikes, you can set aside savings as a buffer for times when you might need to negotiate hard terms, like a raise or a new job offer. This financial cushion can give you the confidence to hold out for better terms without the pressure of immediate financial need.

The persistent hazard linked to employment that cannot be conducted from a distance.

Dockworkers, often unjustly labeled as having undemanding positions, are presented in a more complex light by Goodman. Workers face significant risks every day in proximity to heavy machinery and large equipment, where situations can become deadly without warning. He argues that the persistent threat posed by mechanization frequently raises questions about the long-term viability of jobs that are naturally resistant to being replaced by overseas labor or remote digital tasks.

Practical Tips

• Start a side project that involves direct human interaction and cannot be easily automated. Create a small business or a hobby that involves personalized services, such as custom artwork, personal training, or life coaching. For instance, if you enjoy painting, you could start creating custom portraits for clients, or if you're knowledgeable about fitness, you could offer personalized workout plans and coaching sessions. This not only provides a potential secondary income stream but also develops skills that are less susceptible to automation.

The pursuit of profit and the false perception of a food shortage led to the treatment of meatpacking employees as disposable.

Goodman suggests that the hardships faced by meatpacking workers were the most severe, as they risked their lives to keep production going during the pandemic. The book meticulously outlines how the four dominant companies in the sector have structured their business models to minimize labor costs and maximize profits, benefiting from generous government subsidies and lenient regulatory conditions, thereby subjecting their workforce to considerable hazards.

The Lethal Outcomes Stemming from the Absence of Compensated Illness Leave

Goodman underscores the significant consequences that arose because the meatpacking industry chose not to offer its workers compensated time off for illness. During the early stages of the COVID-19 pandemic, workers at densely packed meat-processing plants continued their tasks, motivated by the critical importance of their roles and the fear of job loss as the infection rapidly spread. He recounts the poignant story of Tin Aye, a Karen immigrant who worked at the JBS slaughterhouse in Greeley, Colorado, contracted COVID-19, and ultimately succumbed to the disease. Her tragic demise underscores the individual cost exacted by a sector prioritizing revenue and production over the well-being of its employees, with its executives skillfully influencing public conversation by claiming an impending shortage of meat to justify the continued operation of their plants.

Practical Tips

• Start a community fund to support families affected by workplace illnesses or accidents. Partner with local businesses and community leaders to raise money that can help cover medical bills, funeral costs, or provide financial support during difficult times. This initiative can be as simple as setting up an online crowdfunding campaign or placing donation jars in local stores.

Other Perspectives

• The absence of compensated illness leave might be part of a broader economic and policy issue that requires government intervention rather than voluntary action by individual industries or companies.
• The decision to continue working could have been influenced by cultural or social factors that prioritize work and productivity over personal health.
• The industry might assert that it was not fully understood how COVID-19 spread at the time, and they were operating with the best knowledge available.
• The decision to keep plants open could have been influenced by federal guidelines or directives aimed at maintaining essential services, rather than purely by the industry's influence on public opinion.

The vanishing of equitable agreements and exploitation of the diligent efforts of individuals who have migrated for work.

Goodman outlines the strategies used by large Brazilian companies to reduce costs in the meatpacking industry, often hiring workers who lack proper protection and documentation. He explains that through manipulative financial practices and insufficient training, combined with immigration policies, they suppress wage growth and discourage employees from pursuing improved working conditions or opposing exploitation.

Practical Tips

• You can scrutinize your pay stubs to ensure accuracy and legality by comparing them with local labor laws and wage standards. If you notice discrepancies or suspect wage suppression, reach out to a labor rights organization for guidance on how to address the issue. For example, if your overtime pay doesn't seem to match the hours you've worked, you might be experiencing wage theft.
• Engage in peer-to-peer education by sharing information on workers' rights with your community. Use social media or community bulletin boards to post about local and international labor laws, workers' rights, and the importance of fair treatment for all employees, regardless of their immigration status. This grassroots approach raises awareness and can empower individuals to stand up against exploitation.

Regulatory authorities' ability to step in when market dominance occurs.

This section of the text examines the resurgence of antitrust enforcement as a response to the pervasive monopolistic behaviors that have intensified challenges within the logistics and distribution networks. Goodman depicts the erosion of the standards initially put in place by the Packers and Stockyards Act to restrain the overreach of industrial tycoons in the meatpacking industry, which have been weakened over time by continuous deregulation and consolidation. The writer examines how the current U.S. government has intensified its enforcement of antitrust regulations to curb monopoly power and promote fair competition, aiming to address inflation and prevent companies from abusing their market dominance.

The story of the livestock sector's impact due to market manipulation.

Goodman explores the historical development of the meatpacking sector, beginning in the 1800s when it fell under the dominance of several large firms—known as the original Big Five. These corporations accumulated considerable power, which they used to manipulate the market, leading to reduced compensation for ranchers and increased costs of meat for consumers. He investigates how Chicago significantly shaped the industry, particularly through its notorious stockyards, which were hubs of animal abuse and also presented severe conditions for laborers, leading to substantial public outrage.

The Packers and Stockyards Act came into effect during a period marked by the dominance of industrial magnates often referred to as Robber Barons.

In the age of industrial magnates, worries regarding the purity of our food sources reached a high point, which resulted in a report by the Federal Trade Commission that exposed the intentional tactics used by the five leading packers to skew competitive markets. He argues that this pivotal moment in America's history led to the passage of an important law in 1921, designed to break up the dominance of a few powerful organizations and promote fairer competition in the industry.

Practical Tips

• Enhance your critical thinking skills by analyzing the strategies of historical figures in your field of interest. Identify a prominent individual from the past, akin to a "Robber Baron," and study their business tactics. Reflect on how these strategies would fare in today's ethical and regulatory environment, and write down your insights to sharpen your analytical abilities.
• Create a personal food purity standard by listing the qualities you find most important in your food, such as non-GMO, organic, or locally sourced. Use this standard as a checklist when shopping, and try to purchase items that tick the most boxes. This proactive approach ensures you're actively selecting foods that meet your criteria for purity and ethical production.
• Engage with local small businesses and ask them about their challenges in the market. This firsthand information can give you insights into how larger competitors might be affecting these smaller entities. You'll gain a personal understanding of market dynamics and can choose to support businesses that align with fair competition practices.

Neglecting historical teachings by promoting the principles of unregulated markets and the amalgamation of corporations.

Goodman suggests that the growing trend toward reducing regulatory oversight, which took root during the 1980s in Washington, D.C., effectively eroded the protections offered by the Packers and Stockyards Act, leading to a period in which the meatpacking industry gained greater dominance. He elucidates how the consolidation of corporations through mergers and takeovers granted substantial power to key players to control vast portions of the industry, which resulted in a marked decrease in the quantity of autonomous slaughterhouses and feedlots, thereby restricting the options ranchers have to sell their livestock.

Practical Tips

• Implement a personal investment strategy that incorporates principles from historical economic teachings. Research investment approaches that were successful in the past and adapt them to the modern market, taking into account the differences in context. By applying these time-tested strategies to your own finances, you'll gain firsthand experience of their relevance and effectiveness in today's unregulated markets.
• Diversify your investment strategy to support small businesses. Instead of putting your money into large corporate stocks, consider investing in local startups or small enterprises through crowdfunding platforms or community-based investment programs. This action reinforces the value of diverse, independent businesses and counters the trend of corporate consolidation.
• Create a personal journal to document any noticeable shifts in product quality, safety, or variety in the market that might be attributed to regulatory changes. Note any correlations between these changes and your own consumer experiences. For example, if you notice a surge in innovative tech gadgets, consider how this might be related to less stringent technology regulations.
• You can support local farmers by purchasing directly from them or through community-supported agriculture (CSA) programs. By doing this, you're bypassing the larger supply chains that may be affected by the erosion of protections, ensuring that more of your money goes directly to the producers. This not only helps to sustain their business but also promotes a more equitable food system.
• Experiment with plant-based meals several times a week to reduce reliance on the meatpacking industry. By diversifying your diet, you not only become less impacted by the changes in meat industry regulations but also contribute to a demand for alternative food sources, which can influence market trends and practices.
• Create a personal case study by comparing products or services before and after a merger or takeover. Choose a product or service you regularly use that has been affected by corporate consolidation. Document your experience regarding price changes, customer service quality, and product availability over time. This hands-on approach will give you a personal understanding of the tangible effects of corporate consolidation on consumers.
• Create a personal blog or vlog to discuss industry trends and insights, positioning yourself as a knowledgeable participant. By consistently creating content that reflects your understanding and opinions on industry matters, you can attract the attention of key players who might see value in your perspective and reach out for collaboration or mentorship.
• Engage in community swap meets or local marketplaces to circulate goods and services within a smaller economic loop. This practice can help to decentralize economic power and provide a platform for local producers. For example, participate in or organize a book swap in your neighborhood to promote sharing over purchasing from major book retailers.
• Educate yourself on the legalities and requirements of direct-to-consumer sales, such as selling meat shares or whole animals to individuals. This can open up a new revenue stream and create a loyal customer base. Look into local regulations regarding direct meat sales, and consider attending a workshop or online course on the subject to ensure compliance and best practices.

The implementation of strategies to tackle inflation and limit corporate misconduct through the reinforcement of measures to uphold competition laws.

Goodman explores the Biden administration's reinvigorated dedication to enforcing antitrust legislation, which is intended to address the market control that intensified challenges in the logistics and distribution networks, indicating a significant shift in the direction of U.S. economic policy. He emphasizes how Biden's focus on market concentration— a departure from the prevailing consensus that embraced scale and efficiency—is directly aimed at limiting the power of companies to manipulate prices and exploit their dominant positions.

The Biden administration's emphasis on market consolidation.

The Biden administration has identified the substantial aggregation of control within key industries as a primary element contributing to price increases, an emphasis influenced by the general dissatisfaction with inflation. He contends that the idea of addressing almost every economic issue through the reduction of regulatory constraints, a viewpoint particularly championed by Republicans, is sharply contradicted by this recent occurrence. Goodman describes how the White House and various federal bodies are closely examining the meat-processing industry, alleging that its dominance enables leading companies to dictate prices, adversely affecting both livestock suppliers and consumers.

Other Perspectives

• Regulatory interventions aimed at reducing market consolidation could have unintended consequences, such as reducing firms' global competitiveness or creating barriers to entry that protect existing large firms.
• In certain industries, regulatory constraints may not be the primary factor influencing economic issues, and focusing on deregulation could overlook more effective solutions.
• The focus on the meat-processing industry could divert attention and resources from other sectors where consolidation might also be impacting prices, leading to a potentially narrow policy approach.
• Market consolidation might be a symptom of competitive success rather than an unfair practice, with companies earning their market share by offering better products or services.

Revitalizing the statute known as the Packers and Stockyards Act.

Goodman describes how the government is currently acting to reduce monopoly power, with particular attention to the meat-processing industry, employing a tactic that echoes those used over a century in the past. The author details the measures taken by the US Agriculture Department to bolster the implementation of regulations designed to prevent large companies from manipulating prices to the detriment of ranchers and artificially constraining supply to boost their earnings.

Practical Tips

• Encourage your local grocery store to source products from suppliers who are known for fair pricing practices. You can do this by speaking with the store manager or leaving suggestion cards. This creates demand for ethically priced goods and can influence store sourcing decisions. If enough customers express a similar interest, it can lead to change at a local level.
• Create a timeline of government tactics over the last century to visualize the repetition of strategies. Use online tools or a simple spreadsheet to track major political events, laws, or speeches, noting down the tactics used. This visual aid can help you recognize recurring themes and tactics, which can inform your perspective on current political debates or your involvement in community issues.

The Impact of Advisory Firms on Neighborhood Distribution Channels

The conversation emphasizes the increasing trend of shifting manufacturing processes nearer to domestic markets to reduce the risks linked with expansive global distribution systems. Goodman highlights the growing attractiveness for companies to set up facilities in Mexico, given its proximity to American consumers, which enables faster shipping times and lessens exposure to global political risks. He also delves into how management consultants adapt to changing situations by prioritizing the improvement of automation and focusing more on managing employees, consistently upholding their conviction in the effectiveness of methods that minimize waste in production.

The worldwide change in economic trends is boosting Mexico's significance by moving business activities closer to their corporate centers.

Goodman explores how Mexico has emerged as a pivotal player in the reshaped global economic landscape, highlighting the trend among multinational companies to increasingly adopt nearshoring strategies that shift production closer to consumer markets, thereby mitigating risks associated with the unpredictability of global shipping and international conflicts. He examines the benefits of this strategic choice, emphasizing that Mexico's proximity to the United States results in shorter transportation times and strengthens the resilience of the supply chain.

Producing goods in proximity to the customer base presents benefits.

Goodman argues that while Chinese manufacturers might still offer the most economical production solutions, the pandemic has exposed the dangers of dependence on distant suppliers, forcing companies to acknowledge the potential for prolonged delivery times and disruptions stemming from overloaded ports and closures of production sites. He demonstrates how a range of companies, including large retailers like Walmart and smaller firms such as FutureStitch, are relocating their manufacturing operations nearer to their consumers in the United States to guarantee faster distribution, thereby enhancing their responsiveness to changes in consumer preferences and diminishing the likelihood of disruptions in their supply networks.

Context

• Shorter supply chains enable faster turnaround times from production to market, allowing companies to respond more quickly to market demands and reduce lead times.
• The pandemic period also saw rising geopolitical tensions, which can further complicate international trade and reliance on foreign suppliers.
• Different countries have varying regulations and standards, which can complicate compliance and lead to unexpected delays in the supply chain.
• Being closer to the production process can improve oversight and quality control, reducing defects and returns.
• Relocating manufacturing closer to consumer bases can stimulate local economies by creating jobs and fostering regional economic development.
• Proximity to consumers can help companies better understand and incorporate cultural nuances into their products, making them more appealing to local markets.
• Local production is less susceptible to international political tensions, trade wars, or tariffs that can disrupt global supply chains.

Offering an alternative in the market, which is predominantly influenced by China, to attract investment.

Goodman describes how numerous firms have turned to Mexico instead of China, lured by the plentiful and cost-effective workforce, proximity to the American marketplace, and established agreements like NAFTA, in the face of shifting political climates and rising costs. Numerous new manufacturing facilities have emerged across Mexico due to the growing investments from American and Chinese firms. He examines how the development of new industrial areas has spurred economic expansion in various regions and resulted in the generation of more job prospects.

Practical Tips

• Consider learning basic Spanish to facilitate direct communication with potential business partners in Mexico. Language apps and community college courses offer accessible starting points. This skill can help you negotiate better deals, understand the nuances of the market, and build stronger relationships with Mexican counterparts.
• If you're in a position to hire, create a virtual internship program targeting Mexican students and recent graduates. Use your professional network and social media to advertise the program. This can provide you with affordable assistance while offering valuable work experience to the interns. Ensure that the tasks assigned are suitable for remote work and that there's a system in place for effective communication and project management.
• Engage with online communities or forums focused on cross-border trade and investment between Mexico and the U.S. to learn from others' experiences.
• Consider purchasing products made in Mexico for your business or personal use. This supports the Mexican economy and can also save you money if these products are more cost-effective due to the shifting political climates. For instance, if you run a small coffee shop, look into sourcing your coffee beans from Mexican producers.
• If you're interested in the job market, keep an eye on job postings from American and Chinese companies expanding in Mexico. Even if you're not looking for a job, understanding the types of roles and skills these companies are seeking can provide insights into the industry's growth areas and potentially reveal gaps in the market that could be filled by new services or products.
• Start a blog or podcast discussing the economic impact of industrial development in various regions, focusing on Mexico as a case study. This platform could attract listeners or readers interested in international economics, and you could monetize it through advertising or partnerships with economic research firms.

Management Consultants: From Champions of Efficiency to Designers of Robustness

In the post-pandemic era, Goodman examines how the consulting industry is shifting its emphasis from solely boosting efficiency and maximizing profits to embracing the concept of "resilience," as a reaction to the changing landscape of global manufacturing. He contends that although numerous consultants remain advocates of lean manufacturing, they currently endorse strategies that emphasize strengthening supply networks, increasing automation, and prioritizing employee well-being—a position that appears somewhat insincere considering their previous endorsement of methods that favored immediate financial gains at the expense of worker welfare, contributing to the exposure of weaknesses amid the pandemic.

The next significant progression is widely acknowledged to be automation.

Goodman explores how consultants have changed their viewpoint, now recognizing that they had previously underestimated the complexity of global supply chains, and they are now recommending the adoption of automated systems to compensate for the lack of workers and to improve the efficiency of operations. He argues that the use of technology can improve both the safety and the repetitiveness of tasks for organizations and their workers, although it is frequently suggested by consultants as an alternative to improving salaries and working environments.

Context

• The rise of automation brings ethical questions about the future of work, income inequality, and the role of humans in an increasingly automated world.
• Consultants analyze business operations and provide strategic advice. Their shift in perspective highlights a growing recognition of the need for technological solutions to address modern supply chain challenges.
• Automation can help prevent repetitive strain injuries by taking over monotonous tasks that require repetitive motion, which are common in manufacturing and assembly line work.
• In many industries, there is a shortage of skilled workers, which can drive companies to automate tasks that are difficult to fill with human labor, rather than investing in higher wages to attract talent.

Promoting a strategy that places individuals first.

Goodman explores the recent transformation in the sector of business consulting, highlighting a growing emphasis on the well-being of individuals. He contends that corporations, previously lauding the reduction of labor costs and enhancement of shareholder profits, often employ such rhetoric to mask a deeper intent: to increase the use of automation and thereby reduce their reliance on human labor.

Practical Tips

• Develop a "well-being buddy" system with a colleague or friend where you regularly check in with each other to discuss and support each other's well-being goals. This could be a weekly coffee meet-up or a quick chat where you share one thing you've done for your well-being and one thing you plan to do. This accountability can help maintain focus on individual well-being in a shared context.
• Start a personal audit of the tools and services you use daily to understand their impact on employment. For instance, if you're using a self-checkout at a store, consider the potential job implications it has for cashiers. This awareness can guide your choices as a consumer and may lead you to support businesses that prioritize human labor.