guys, we have an issue. (laughter) growth is fading away,and it's a big deal. our global economy stops growing. and it's not new.
additive manufacturing and 3d printing state of the industry, growth has actually declinedfor the last 50 years. if we continue like this, we need to learn how to live in a worldwith no growth in the next decade. this is scary becausewhen the economy doesn't grow,
our children don't get better lives. what's even scarier is thatwhen the pie does not grow, each of us get a smaller piece. we're then ready to fightfor a bigger one. this creates tensionsand serious conflicts. growth matters a lot. if we look at the history of growth, times of big growthhave always been fueled by big manufacturing revolutions.
it happened three times,every 50-60 years. the steam enginein the middle of the 19th century, the mass-production modelin the beginning of the 20th century -- thanks, mr. ford. and the first automationwave in the 1970s. why did these manufacturing revolutions create huge growth in our economies? because they have injectedhuge productivity improvement. it's rather simple:
in order to grow,you need to be producing more, putting more into our economy. this means either more laboror more capital or more productivity. each time, productivityhas been the growth lever. i'm here today to tell you that we are on the vergeof another huge change, and that this change, surprisingly enough, is going to comefrom manufacturing, again. it will get us out of our growth slump
and it will change radicallythe way globalization has been shaped over the last decade. i'm here to tell you about the amazingfourth manufacturing revolution that is currently underway. it's not as if we've done nothingwith manufacturing since the last revolution. actually, we've madesome pretty lame attempts to try to revitalize it. but none of themhave been the big overhaul
we really need to get us growing again. for example, we've triedto relocate our factories offshore in order to reduce costand take advantage of cheap labor. not only did this notinspire productivity, but it only saved moneyfor a short period of time, because cheap labordidn't stay cheap for long. then, we've tried to makeour factories larger and we specialized them by product. the idea was that we canmake a lot of one product
and stockpile it to be sold with demand. this did help productivity for a while. but it introduced a lot of rigiditiesin our supply chain. let's take fashion retail. traditional clothing companies have built offshore,global, rigid supply chains. when fast-fashion competitors like zara started replenishing their stocks faster from two collections a yearto one collection a month,
none of them have been ableto keep up with the pace. most of them arein great difficulties today. yet, with all of their shortcomings, those are the factories we know today. when you open the doors, they look the sameas they did 50 years ago. we've just changed the location,the size, the way they operate. can you name anything elsethat looks the same as it did 50 years ago?
it's crazy. we've made all the tweaksto the model that we could, and now we hit its limits. after all of our attempts to fixthe manufacturing model failed, we thought growth could comefrom elsewhere. we turned to the tech sector -- there's been quite a lotof innovations there. just to name one: the internet. we hoped it could produce growth.
and indeed, it changed our lives. it made big waves in the media,the service, the entertainment spaces. but it hasn't done much for productivity. actually, what's surprisingis that productivity is on the decline despite all of those innovation efforts. imagine that -- sitting at work,scrolling through facebook, watching videos on youtubehas made us less productive. weird. this is why we are not growing.
we failed at reinventingthe manufacturing space, and large technological innovationshave played away from it. but what if we could combine those forces? what if the existing manufacturingand large technological innovation came together to createthe next big manufacturing reinvention. bingo! this is the fourthmanufacturing revolution, and it's happening right now. major technologies are enteringthe manufacturing space,
big time. they will boost industrial productivityby more than a third. this is massive, and it will doa lot in creating growth. let me tell you about some of them. have you already met advancedmanufacturing robots? they are the size of humans, they actually collaborate with them, and they can be programmed in order to performcomplex, non-repetitive tasks.
today in our factories, only8 percent of the tasks are automated. the less complex,the more repetitive ones. it will be 25 percent in 10 years. it means that by 2025, advanced robots will complement workers to be, together,20 percent more productive, to manufacture 20 percent more outputs, to achieve 20 percent additional growth. this isn't some fancy, futuristic idea.
these robots are working for us right now. last year in the us, they helpedamazon prepare and ship all the products required for cyber monday, the annual peak of online retail. last year in the us, it was the biggest online shopping dayof the year and of history. consumers spent 3 billion dollarson electronics that day. that's real economic growth. then there's additivemanufacturing, 3d printing.
3d printing has already improvedplastic manufacturing and it's now making its way through metal. those are not small industries. plastic and metals represent 25 percent of global manufacturing production. let's take a real example. in the aerospace industry, fuel nozzles are some of the mostcomplex parts to manufacture, for one reason:
they are made up of 20 different parts that need to be separately produced and then painstakingly assembled. aerospace companiesare now using 3d printing, which allows them to turnthose 20 different parts into just one. the results? 40 percent more productivity, 40 percent more output produced,40 percent more growth
for this specific industry. but actually, the most exciting partof this new manufacturing revolution goes much beyond productivity. it's about producing better,smarter products. it's about scale customization. imagine a world where you can buythe exact products you want with the functionalities you need, with the design you want, with the same cost and lead time
as a product that's been mass produced, like your car, or your clothesor your cell phone. the new manufacturing revolutionmakes it possible. advanced robots can be programmed in order to performany product configuration without any setup time or ramp up. 3d printers instantaneously produceany customized design. we are now able to producea batch of one product, your product, at the same cost and lead timeas a batch of many.
those are only a few examplesof the manufacturing revolution at play. not only will manufacturingbecome more productive, it will also become more flexible, and those were exactly the elementsof growth that we are missing. but actually, there are evensome bigger implications for all of us when manufacturingwill find its way back into the limelight. it will create a huge macroeconomic shift. first, our factories will be relocatedinto our home markets. in the world of scale customization,
consumer proximity is the new norm. then, our factorieswill be smaller, agile. scale does not matter anymore,flexibility does. they will be operating on a multi-product,made-to-order basis. the change will be drastic. globalization will enter a new era. the east-to-west trade flows will be replaced by regional trade flows. east for east, west for west.
when you think about that, the old model was pretty much insane. piling up stocks, making productstravel the whole world before they reach their end consumers. the new model, producingjust next to the consumer market, will be much cleaner,much better for our environment. in mature economies,manufacturing will be back home, creating more employment, more productivity and more growth.
good news, isn't it? but here's the thing with growth -- it does not come automatically. mature economies will have to seize it. we'll have to massivelyre-train our workforce. in most countries,like in my country, france, we've told our childrenthat manufacturing had no future. that it was something happening far away. we need to reverse that
and teach manufacturing againat university. only the countriesthat will boldly transform will be able to seize this growth. it's also a chancefor developing economies. of course chinaand other emerging economies won't be the factory of the world anymore. actually, it was not a sustainablemodel in the long term, as those countries are becoming richer. last year, it was alreadyas expensive to produce in brazil
as to produce in france. by 2018, manufacturing costs in chinawill be on par with the us. the new manufacturing revolution will accelerate the transitionof those emerging economies towards a model drivenby domestic consumption. and this is good, because this is where growthwill be created. in the next five years, the next billion consumers in chinawill inject more growth in our economies
than the top fiveeuropean markets together. this fourth manufacturing revolutionis a chance for all of us. if we play it right, we'll see sustainable growthin all of our economies.
this means more wealthdistributed to all of us and a better future for our children. thank you. (applause)
