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Productivity enhancements will be the source of significant gains in GDP

With the proliferation of Smartphones, notebooks, and high-speed mobile broadband networks it will come as no surprise to most that mobile broadband is shaping up to be a big business in itself and that the use of mobile broadband can help workers in many areas be more productive.

InformationWeek reports that according to a study by the Cellular Telecommunications Industry Association (CTIA), wireless broadband is poised to boost the economy in the U.S. by a whopping $860B over the next ten years.

The money added to the economy isn’t from subscribers to mobile broadband services, rather the report says that the additional $860B in gross domestic product will be due to productivity gains. The report says that in 2005 only 25% of business used wireless broadband and that percentage is expected to jump to 83% use by business in 2016.

According to Ovum, the firm that prepared the reports for CTIA, there are six key areas where the use of mobile broadband will provide benefits. These areas include resource and inventory management and documentation, health care efficiency enhancements, field service automation, inventory loss reduction, sales force automation and replacement of desk phones with mobile wireless devices.

Two areas expected to see the greatest benefit from wireless broadband are healthcare and small businesses. Healthcare workers cited in the report from a company called Wound Technology Network are using mobile broadband to have anywhere access to patient medical records, treatment visuals and expert advice.

For the predictions of the study to come true high-speed wireless networks need to be rolled out to more areas of the country. Many rural areas are still underserved by 3G networks across the U.S. even as Sprint and Clearwire get ready to launch their 4G WiMAX network. Once high-speed mobile networks are more readily available works across the country can begin to use the wireless networks to increase their productivity.

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Productivity increases are our future
By SeanMI on 5/29/2008 1:02:00 PM , Rating: 2
This is the only way we're going to be able to compete globaly in the manufacturing sector.

I can see this and other technologies improving our productivity to the point where the cost justification of moving jobs to lower income countries becomes...well...unjustifiable.

Either that, or we can off set the productivity gains with more time in front of GTA. Win win either way :)

RE: Productivity increases are our future
By 4play on 5/29/2008 1:07:34 PM , Rating: 2
Or they could just use the same tech in China, India etc. to boost productivity and continue to outsource jobs.

I'm pretty sure that China has the most advanced textile technology.

RE: Productivity increases are our future
By SeanMI on 5/29/2008 1:14:52 PM , Rating: 2
Yes, sure they could.

But we've distanced ourselves in the past from the rest of the world with advanced technology. It's time we do that again.

I'm not saying it will happen. I'm saying I see technology as the only way we'll ever be able to compete. This technology is just one example. It's up to us to make it happen. And a negative attitude won't get it done.

By therealnickdanger on 5/29/2008 2:04:39 PM , Rating: 5
Yes, we will become the Protos to their Zerg.

By Ringold on 5/29/2008 6:31:20 PM , Rating: 2
The problem, I think, in America isn't lack of technology but lack of proper college grads. Look at employment data; white collar professionals in business and engineering have little problem finding work. Some people tend to ignore anything some companies say as just self-serving whining, but when some open a foreign office and say it's because they can't easily find enough qualified people in America they are speaking truth. This "recession", the past few months of job losses, have been focused almost entirely on low-value blue-collar workers.

This isn't my idea, but I've stolen it. I think no financial aid or scholarships should be awarded to students taking liberal-arts majors in universities. Enough people will still pay through the nose to get them to supply the market, but hopefully enough would get off their lazy ass to get a degree in something a post-industrial, information-age economy actually needs.

The only exception might be education majors, but thats a whole different set of issues at play there. That degree already attracts students with some of the lowest standardized test scores.

RE: Productivity increases are our future
By Ananke on 5/29/2008 1:19:32 PM , Rating: 2
I am in the textile business. And Yes, China has the most advanced and absolutly unmatchable textile tech. Factories have installed latest machines in thousands of units, nobody else can achieve similar economy of scale. One textile machine varies from 250 000 to 1 000 000 million euros.

By Horus on 5/29/2008 4:16:10 PM , Rating: 3
A million million euros? Wow, that's one crazy machine!

By Regs on 5/30/2008 8:30:35 AM , Rating: 2
RE: Productivity increases are our future
By Ringold on 5/29/2008 6:18:21 PM , Rating: 2
Or they could just use the same tech in China, India etc. to boost productivity and continue to outsource jobs.

They have been, they still can, and they will. Wages have quadrupled in recent years, productivity has gone up about the same, and thus their unit labor costs have remained relatively unchanged.

Eventually though they'll start getting closer to advanced-nation productivity levels and unit labor costs in more industries will start moving up. I don't know how far they are from that, though.

By Lerianis on 5/29/2008 10:02:26 PM , Rating: 2
Years, at least. Maybe a CENTURY or more, in all honesty. Really, the only reason that China is so much 'less expensive' for labor than the United States is becasue they have kept their currency devalued in the past 20 years.

It would be closer to American-grade wages if the yuan was valued correctly.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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