Are industrial hubs a thing of the past?

Do services like Alibaba and oDesk mean industrial hubs are things of the past?

Since the beginning of civilisation, industry hubs have formed the basis of cities and regions, but is the internet removing the need for like minded businesses to group together?

Tomorrow I’m at a breakfast featuring Porter Erisman whose film Crocodile in the Yangtze tells of the rise of China’s Alibaba and the adventures of its founder, Jack Ma.

Jack Ma’s Alibaba is the eBay of manufacturing, connecting factories and buyers around the world. A visitor to the site can buy anything from childrens’ clothing to tractor gaskets, all cheaper by the container load.

The rise of Alibaba tracks the development of sites like oDesk which bring skilled workers together. It’s becoming easier for businesses of all sizes to tap global workforces and supply chains.

In the past, industrial hubs and cities have developed due to the proximity of workers, suppliers and materials. Today, it may well that with all the resources being a mouse click and a credit card away from an entrepreneur it’s no longer necessary for these hubs to develop.

Whether industrial hubs do develop in the future will depends on individual sector’s needs for natural resources, face to face contact and short supply chains, but it’s worthwhile thinking whether location remains important for modern economic development.

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Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

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