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Five industries under threat from creative destruction

Geoff Riley

28th December 2016

A superb piece here from the Financial Times focuses on five industries where revenues, profits and jobs are under threat from creative destruction.

Disrupter: Online travel platforms

  • Industry threatened: High-street travel agents
  • Reason why: More travellers booking online

Disrupter: 3D (Additive) Printing

  • Industry threatened: Small component manufacturers and distributors
  • Reason why: Growing use of on-site 3D printing to make parts

Disrupter: Driverless cars

  • Industry threatened: Motor insurers
  • Reason why: Fewer vehicle collisions with increased use of driverless cars

Disrupter: ‘Robo-adviser’ websites

  • Industry threatened: Financial advisers
  • Reason why: Growth of automated financial advice websites and tougher regulation

Disrupter: Electric vehicles

  • Industry threatened: Car repair garages
  • Reason why: More drivers switching to low-maintenance electric cars

More here from the Harvard Business Review (September 2016)

The Businesses That Platforms Are Actually Disrupting

This is also worth reading: Mark Mardell (BBC) on The Rise of the Robots

If you want a contrasting perspective, in this video, Professor David Autor from MIT gives a TEDx talk on why technology has not made human labour obsolete:

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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