Mining and automotive industries are knowledge and technology intensive sectors that face constant evolution due to changing market conditions. Mining is a resource-based industry while auto manufacturing is a market-based industry. However, the interdependence between the two, particularly where gasoline and associated products are concerned cannot be understated. The relationship can be explored through frameworks such as Dicken’s global economy module. The module addresses important environmental and market concepts that may aid understanding of spatial planning of economic activities and their combination across measures to the global context, and implications for people and environment in different countries. The framework allows the study of longitudinal effects of markets in different contexts. In the international contexts, impacts of markets are experienced in the form of global trade, flow of information, flow of local resources, capital, and spatial supply of labor. Dicken’s framework specifically emphasizes on the use of knowledge in decision-making and optimization of systems, and technology in utilization of information and data. Mining and auto industries benefits from the approach given their dynamism in the current market and the constant need to innovate.
The mining industry is at crossroads because of the complexities in the market in which it operates. First, the changing consumer demands threaten the stability of the industry globally as environmental concerns mount on the effects of mining and its products. Second, mining is a resource-limited industry that must strive to meet the prevailing demand in the marketplace using finite resources. Third, mining as an industry has bright future prospects where products such as copper and cobalt are gaining significance in the renewable energy sector. Knowledge of these developments can prove critical in informing model-based decision-making to optimize performance of the industry. An elaborate example of knowledge utilization is evidenced in the case of China Shenhua Energy coal plant. Faced by challenges in the form of strict regulations and rise in demand for alternative energy, the state owned plant implemented a specialized division management to increase relations with customers. The outcome was the largest ever recorded volume of coal sold in the history of the plant. The development was made possible by the fact that the company had its own means of acquisition and supply chain. Harnessing of knowledge on market trends proved to be the difference.
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In the automotive industry, players need to recognize the impact of the current trade wars between global economic superpowers on the sector. The move by the US to impose tariffs on steel and aluminum imports attracted retaliatory tariffs from the EU and China, with the main target being the auto industry. In the US, prices of raw materials for auto industries are likely to hike causing corresponding rise in prices of automobiles. A similar situation will be experienced in external markets where the US exports its automobiles. The effects extend to the mining industry where the demand for its products is likely to reduce following decline in production of automobiles. External market forces drive the developments with the state being the only institution with the capacity to influence proceedings. For instance, General Motors was bailed out during the 2008 financial crisis, with the notable outcome being the renegotiation of union contracts. Players in the auto industry understand the challenges presented by modern markets and are using their knowledge base to remain competitive.
The two industries have drawn on the usefulness of knowledge base to gain acceptance in the market place and in some instances, achieve operational efficiency. Players in the mining and auto industries have faced unending accusations for lack of work ethics and corporate and social responsibility. Exploitation of the economic insecurities of laborers for cheap labor to maximize profit is a common practice. Collaboration of such players with the state complicates the situation resulting to increased levels of poverty, limited engagement from government, and uncompetitive local markets. In case of mining, the extractive industry gets preference for its ability to appreciate local economy, a development that occurs at the expense of agricultural and manufacturing industries. Union organizations are facing an increasingly difficult task to remain influential as players adopt streamlining strategies to cut losses. In 2017, Toyota fired union workers for the first time citing the need for efficiency. The school of thought that can be advanced to explain such events is that knowledge of trends in the marketplace is proving to be a decisive factor in decision-making. The march towards capitalism by players in the mining and automobile industries is aided by their understanding of strategies for advancing profitability at the expense of laborers. It can be argued that the recent restrictive trade tariffs by the US are intended to arrest the situation by protecting Americans from such exploitation. However, exploitation remains a common practice in states where the government has little political will or economic incentive to fight such players.
The mining and auto industries have shifted attention to technology to re-establish control in their respective markets. Through information technology, it is possible to gather and disseminate data on prevailing market conditions, thus forming an actionable knowledge base. Such has been the trend towards improving efficiency to meet changing global demands. Restrictive trade policies have significant impacts on the mining industry because it is not viable to innovate a product to be mined. The result has been a shift to alternative products. China is leading the way in adoption of renewable energy as a replacement for coal through its massive wind energy projects. On a similar note, the US has transitioned to natural gas that has eaten into the market share of coal, reducing its consumption by 15% in 2015. The progress has been made possible by technological developments that drive the shift to renewable energy as a means to environmental sustainability. The events in the mining industry have also impacted the auto industry positively, with players striving to meet demands for clean energy.
The US, EU, and Japan have set emission targets in miles per gallon to be realized by latest 2025. The implication for the auto industry is that drastic measures are needed to ensure compliance, and this does not mean reliance on mined fuels. Clean and renewable energy is gaining importance not just in the manufacturing sector, but also in the automobile industry. Mining and auto industries share commonalities based on the fact that both need innovative approaches to sustain the growing demand for renewable energy. While the technology in the mining industry is deployed in the production of energy, it is used in the auto industry to design and produce automobiles that can efficiently utilized such energies. Environmental friendly cars that run on batteries are no longer just concepts but reality. The mining and auto industries are working collaboratively to harness the benefits of technology in generating and using clean and renewable energy.
The automobile industry, through technology, has made the failed attempts at electric vehicle successful. Ironically, the initially failed concept now threatens the very existence of its nemesis, the gasoline engine. The developments depict the role of technology not just in influencing the market dynamics of the respective industries, but also in changing the course of humanity and its environment. The Dicken’s framework provides links between three importance factors that are driving the revolutions in the mining and automobile industry – knowledge, information, and data, all of which can be incorporated into digital infrastructure and IT architectures to drive relevant technologies. Knowledge forms the hallmark of the progress in the mining and automobile industry, but the two are at different stages of deploying technology as the central basis of their operations and competitiveness in the modern marketplace. The progression towards renewable energy would ultimately disrupt the mining market as consumers gain knowledge of available alternatives and their economic and environmental viability.
