Cambridge Business Association
Spatial Economics: The Declining Cost of Distance
Article

Spatial Economics: The Declining Cost of Distance

The next big economic shift will reshape industries, social patterns and the global economy.

Karen Harris, Andrew Schwedel and Austin Kimson
Bain & Company, 2016
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Recommendation

How will 3D printing, delivery drones and autonomous cars influence your business? In this intriguing study, Karen Harris, Andrew Schwedel and Austin Kimson of the international management consulting firm Bain & Company examine how emerging technologies will steeply reduce the “cost of distance,” making it less and less relevant where your customer, suppliers and employees are located. getAbstract recommends their analysis to business leaders looking for innovative ways to rethink current business models or develop new ones.

Summary

As the “cost of distance” plummets by 2035, new technologies will reshape business models and the way people live. Thanks to technological innovations in robotics, drone delivery services, logistics technology and 3D printing, new products will significantly lower the price for “moving people, goods and information.” For example, 3D printing and robotics will allow small manufacturers to open facilities closer to their customers, which in turn will help customize the end product to local requirements. At the same time...

About the Authors

New York-based Karen Harris and Andrew Schwedel and Dallas-based Austin Kimson work for Bain & Company, an international management consulting firm which helps business leaders with operations, strategy, organization, technology, private equity, and mergers and acquisitions.

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