Quote:
Originally Posted by xoxoxoBruce
But were not taking about some little electronic gizmo or disposable product for the fickle, gotta have the latest, consumer. Coal fired plants are a huge investment, slow pay back, long lead time, project. Not something they are going to upgrade every six months.
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Even refineries are rebuilt (if I remember) every 18 months. No plant is fixed. For example a nearby coal and gas electric plant from the 60s is constantly being upgraded. Accidentally met the plant manager. A latest innovation now means they can startup in something like less than 20 hours.
These big plants are constantly innovating - upgrading and changing hardware and procedures. Many innovations are constant small improvements. Ever work in a semiconductor plant? It never stops. Then periodically, they do a major strip out and retooling. Any company that is not constantly doing that deserves to be out of business ASAP.
Exactly why American steel companies only survived with government welfare. They were smoke stack industries. Constantly upgrading was no longer possible.
How does Gillette keep ahead of the competition now that everyone has triple blade razors? The same Gillette razor is now produced by massively upgraded production method. Its still a razor to you. But their costs due to constant upgrading and innovation means either their profits are much higher or their razor sells for an even lower price.
Your reasoning reflects a classic bean-counter theory of a smoke stack industry. So similar to communism. Explains why business school graduates destroy jobs and companies.