Nice Summary of Spatial Economics

[drllau]

A recent article articulated some of the implications of E/M-Commerce ... how using a singular interface (via phablet) changes spatial economy... oh and automation is a key part as the labor component tends to become proportionately more significant the lower the friction (transaction cost) becomes. Some takeaways

• move away from suburbia ... accentuating the same trend that motorcars introduced in early 1900s ... this has strong implications for Singapore/Johor and Pearl River Delta
  
• implications as to lifestyle choices ... positive for knowledge workers and creatives who do not need to be tied to physical plant/machinery
• changing face of distribution .... away from large box retail format common in the US

If you look at the changing face of retail with increasing new blends of on/offline, I posit that there will be some implications for Singapore

1. increasing disappearance of small family operated business towards either franchise or exclusive branded reps as the cost of sophisticated automation/business process needs to be amortised
2. existing retail will move in 2 directions ... as a logistical micro-distribution hub (along with reverse logistics such as e-waste) or an ambience/lifestyle .... this suggests thematic lifestyle centres a la disneyland
3. IoT will mean services are directly coupled with the product and more home activities are outsourced .... think of your car ordering parts or fridge stocking fresh food with supposed increasing leisure time
   

The increasing leisure time is a two-edged sword ... whilst actual average hours might not be reduced (so much for the 8hour workweek) the patterns will be more seasonal, sporadic or mixed smorgasbourg (multiple micro-tasks) .... this is direct conflict with the baby boomers who are facing retirement but are still mentally active and want to maintain engagement in some form. You might even see 4 day workdays with 3 day weekends and resulting patterns (cf Shed movement). You would see renumeration shifting away from time or talent based, towards more task or risk based (share options anyone?) compensation. The spatial redistribution can be a significant factor in singapores growth if the pan-ASEAN regulative environment can be unified (though a common currency a la euro is not going to be on the table).

I welcome additional thoughts on spatial economics beyond the obvious globalisation and re-localisation.

Lawrence
http://www.linkedin.com/in/drllau