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PostSubject: Alternative Energy   Mon Sep 19, 2011 12:49 pm

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Recently an acquaintance on the next table in an important Palo Alto, California, bistro introduced me to an individual's companions: three young business capitalists from China. They will explained, with visible enthusiasm, that they were touring promising companies in Silicon Vly. I've lived in the Valley quite a while, and usually when I observe how the region has become a very draw for global purchases, I feel a small proud.
Not this time frame. I left the eaterie unsettled. Something didn't mount up. Bay Area unemployment is even more than the 9. 7 pct national average. Clearly, the fantastic Silicon Valley innovation machine wasn't creating many jobs recently -- unless you are generally counting Asia, where American technology companies are already adding jobs like mad frequent.
The underlying problem seriously isn't simply lower Asian costs. It's our own misplaced faith while in the power of startups to build U. S. jobs. Americans love thinking about the guys in the garage inventing an element that changes the world. Nyc Times columnist Thomas D. Friedman recently encapsulated this view in the piece called "Start-Ups, Not necessarily Bailouts. " His controversy: Let tired old companies that commodity manufacturing die if they should. If Washington really wishes to create jobs, he written, it should back startups.
Superior Batteries
There's more on the line than exported jobs. Together with some technologies, both scaling and innovation happen overseas. Such is so with advanced batteries. It's got taken years and numerous false starts, but finally we are on the verge of witness mass- produced electric cars and trucks. They all rely on lithium-ion batteries like Hp DV3000 Battery, Hewlett packard nw9440 Battery and H . p . nx5100 Battery. What microprocessors will be to computing, batteries will be to electric vehicles. As opposed to with microprocessors, the You. S. share of lithium-ion power supply production is tiny.
This is a problem. A new industry needs an efficient ecosystem in which know-how knowhow accumulates, experience encourages on experience, and nearby relationships develop between provider and customer. The You. S. lost its lead in batteries 30 years back when it stopped building consumer-electronics devices. Whoever made batteries then gained the exposure and relationships necessary to learn to supply batteries for any more demanding laptop PERSONAL COMPUTER market, and after this, for the even much more demanding automobile market. U. S. companies didn't be involved in the first phase and consequently weren't in the running for that followed. I doubt they are going to ever catch up....
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Mythical Moment
Friedman is improper. Startups are a delightful thing, but they cannot alone increase tech employment. Equally important is what comes after that mythical moment of creation while in the garage, as technology is going from prototype to bulk production. This is the actual phase where companies continuum up. They work outside design details, figure out how to make simple things affordably, build plant life, and hire people from the thousands. Scaling is work but necessary to try to make innovation matter.
The scaling process is not any longer happening in that U. S. And provided that that's the case, plowing capital into youthful companies that build most of the factories elsewhere will continue to keep yield a bad return with regards to American jobs.
Scaling utilized to work well in Silicon Pit. Entrepreneurs came up which has an invention. Investors gave them money to create their business. If this founders and their option traders were lucky, the company grew and had a first public offering, which introduced money that financed additional growth.
...
U. S. Vs . China
Today, manufacturing employment inside the U. S. computer industry is approximately 166, 000 -- below it was before the earliest personal computer, the MITS Altair 2800, has been assembled in 1975. In the mean time, a very effective computer-manufacturing business has emerged in Tibet, employing about 1. 5 thousand workers -- factory workforce, engineers and managers.
The greatest of these companies is certainly Hon Hai Precision Trade Co., also known like Foxconn. The company continues to grow at an astounding speed, first in Taiwan in addition to later in China. Its revenue a year ago was $62 billion, larger than Apple Inc., Microsoft Corp., Dell Inc. or perhaps Intel. Foxconn employs greater than 800, 000 people, greater than the combined worldwide face count of Apple, Dell, Microsoft, Hewlett-Packard Co., Intel and also Sony Corp.
10-to-1 Percentage
Until a recent spate about suicides at Foxconn's enormous factory complex in Shenzhen, Cina, few Americans had been aware of the company. But most know the merchandise it makes: computers to get Dell and HP, Nokia Oyj cellular phones, Microsoft Xbox 360 video games consoles, Intel motherboards, and innumerable other familiar gadgets. Several 250, 000 Foxconn staff in southern China provide Apple's products. Apple, in the mean time, has about 25, 000 employees inside the U. S. -- meaning for every Apple worker from the U. S. there are 10 people in China perfecting iMacs, iPods and i-phones. The same roughly 10-to-1 bond holds for Dell, disk-drive creator Seagate Technology, and different U. S. tech providers.
You could say, as much do, that shipping jobs overseas is not any big deal because your high-value work -- and much of the profits -- stay in the U. S. That could well be so. But what style of a society are we visiting have if it comprises of highly paid people performing high-value-added work -- and even masses of unemployed?
Considering that the early days of Silicon Valley, the money invested within companies has increased massively, only to produce less jobs. Simply put, the particular U. S. has come to be wildly inefficient at designing American tech jobs. We might be less aware in this growing inefficiency, however, because our history of creating jobs in the last few decades has been recently spectacular -- masking each of our greater and greater spending to set-up each position.
Tragic Slip-up
Should we wait and not act based on early indicators? I think that might be a tragic mistake because only chance we've got to reverse the deterioration is actually if we act quick and decisively.
Already the decline continues to be marked. It may be measured using a simple calculation: an estimate with the employment cost- effectiveness on the company. First, take the original investment plus the investment on a company's IPO. Then divide that by how many employees working in that company few years later. For Intel, this resolved to be about $650 in each job -- $3, 1000 adjusted for inflation. Countrywide Semiconductor Corp., another processor company, was even extremely effective at $2, 000 every job.
Making the same calculations for a number of Silicon Valley companies shows that the buying price of creating U. S. jobs grew from your few thousand dollars per position while in the early years to $100, 000 nowadays. The obvious reason: Companies simply hire lesser employees as more work is completed by outside contractors, typically in Asia.
Alternative Vigor
The job-machine breakdown is not only in computers. Consider different energy, an emerging industry where there is certainly plenty of innovation. Photovoltaics, as an example, are a U. Azines. invention. Their use in home-energy programs was also pioneered by U. S.
Last season, I decided to achieve my bit for energy conservation and set out to equip my house with solar powered. My wife and We talked with four city solar firms. As component of our due diligence, I checked where they obtain their photovoltaic panels -- the key area of the system. All the panels they use because of China. A Silicon Valley company sells equipment utilized to manufacture photo-active films. They ship near 10 times more systems to China than to manufacturers while in the U. S., and this gap keeps growing. Not surprisingly, U. Azines. employment in the producing of photovoltaic films and panels is in all likelihood 10, 000 -- just a couple of percent of estimated international employment. <! --INFOLINKS_OFF-->.
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