The Patagonia vest recession was a phrase that I first heard touted by Scott Galloway to encapsulate the economy in 2022. In most recessions, the first sectors to go under are construction, retailing and manufacturing – blue and pink collar working class people suffer the blunt of lay-offs and site closures due to recession.
The kind of vest thought of when one talks about a Patagonia vest recession. It is called a Better Sweater vest and was popular with media firms, technology companies and investment banks as employee schwag.
recession, in economics, a downward trend in the business cycle characterized by a decline in production and employment, which in turn causes the incomes and spending of households to decline.
A recession generally isn’t felt uniformly across the economy. It doesn’t affect all households. In the past, the middle class might be affected but not as severely affected as working class people. My Dad had managed to move off the shop floor and into an office job in the shipyard as a planner. He was made redundant because he worked in heavy industry and he was in a minority compared to the thousands of other blue collar workers let go.
Not all businesses experience actual declines in income, for instance accountancy firms, business consultancies and change management firms may find a high demand for their services. However, there is a general expectation about the future being less certain during a recession. This causes businesses to delay making large purchases or investments and possibly look to reduce costs to conserve cash.
In recessions, the output decline can be traced to a reduction in purchases of durable household goods such as computers and washing machines by consumers. This drives a corresponding decline in corporate purchases of machinery and other equipment.
If the companies aren’t already running ‘just-in-time’ there reduction in additions of goods to stocks or inventories. Where ‘just-in-time’ is in place, the client reduces their forecast demand to their supply chain driving a similar effect. The greatest effect is likely on inventory; businesses stop adding to their existing inventories and become more willing to draw on them to fill production orders. Inventory declines thus have a double impact on production volume as it filters through the supply chain like a Mexican wave.
So what happened?
But the Patagonia vest recession was different. A number of things happened:
Technology stocks and start-ups had been swept up in a decade of irrational exuberance in terms of business values
Funding suddenly declined for startups. This was partly due to interest rates and a realisation that crypto-currencies weren’t worth what many investors had assumed. This led to a raft of redundancies
Crypto companies started falling one after the other. Prominent exchange FTX and related investment fund Alameda Research go under with allegations of fraud. Their rival Binance is ensnared in legal issues too
Cloud software firms suddenly find that their pay-as-you-go model can result in sharp cash flow declines which affect their profits
Big technology companies had staffed up to meet the COVID-19 related demand, found themselves with an employee overhang. This particularly affected e-tailing and cloud services business. They cut back on staff as they release poor financial results. BUT, the amount of people cut as a percentage was still below the proportion of head count Microsoft would have let go back when it practiced stack ranking. The mainstream media focus on the big numbers rather than the small overall proportion of lay-offs. Secondly those getting made redundant are finding it a reasonable market to get work outside the technology sector
Activist investors object to what they consider to be more indulgent projects like Meta’s deep investment in the future metaverse, which is a very long term bet
Meanwhile, services and manufacturing industry kept ramping up to meet supply-chain related challenges and meet latent demand. But had problems getting staff. You have restaurants that open up limited hours due to their problems hiring. Manufacturing businesses have been hoarding staff, because they know how hard it is for them to recruit
Inflation in the US is starting to come under control as supply chains started to balance out
Of course, all of this doesn’t mean that the Patagonia vest recession won’t bleed on to Main Street, but at the start it looked very different.
The Patagonia vest boom prior to the Patagonia vest recession
To the general public, awareness of the Patagonia vest as an emblematic garment of class came from the press photos taken at the Sun Valley conference hosted by private investment firm Allen & Co. which built up a bit of a reputation in terms of ‘speed dating’ for mergers and acquisitions deals. Media titans like the Murdoch family met Silicon Valley CEOs and Jeff Bezos of Amazon. Telecommunications was represented primarily through the cable TV company executives who attended.
Amazon founder Jeff Bezos decided to buy the Washington Post when he was at Sun Valley. It was also where the Time Warner | AOL merger was cooked up.
Cameras aren’t allowed inside the conference which operates in a Chatham House-style arrangement. So press photographers could only take pictures when people were arriving or leaving the conference centre. Sun Valley sat at the nexus of a media and technology sector boom over almost two decades. The bulk of the media photos showed people walking cropped at the knees or their grotch, which focused readers attention on the tops that they were wearing. And a uniform emerged to the general public. The uniform was the Patagonia vest to deal with the cool early morning and early evenings of Sun Valley. These vests were given out some years by Allen & Co.; but the Patagonia vest has extended itself far beyond Sun Valley.
It became such a cultural touchstone that the Sun Valley conference complete with vests was lampooned in a story arch of Succession.
From working with dot com clients to when I worked at Yahoo!, Silicon Valley fashion was bifurcated in nature. The reality of Silicon Valley couture is that many people wore a t-shirt jeans and layers like hoodies. Footwear would vary somewhere between sneakers and trekking sandals.
But the ‘MBA class’ of professional managers tended to wear collared shirts, ‘smart’ jeans or chinos. They may have worn a sleeveless pullover or fleece vest. Their venture capital counterparts who where probably their MBA class colleagues wore a similar uniform, with a bit more of lean towards Ralph Lauren country club friendly shirts or polo shirts.
Corporate branded wear started with bags. I had my share of corporate branded Timbuk 2 bags. Different engineering projects would have celebratory t-shirts for things like hack days. Eventually we started to see branded corporate wear, from the cringeworthy chambray or scratchy polo shirts issued to booth staff at an exhibition to hoodies and fleeces. I knew engineers who bragged about being dressed almost head to toe (sweatshirt material top, t-shirt, boxers and socks) in schwag that they had picked up for free as an anti-fashion statement.
You can see these dual styles in the TV show Silicon Valley. Coming from a creative agency background, I felt more at home in the hoodie wearing crowd.
Secondly, there was a cargo cult amongst try-hards in the early to mid-2000s there was a move towards turtle necks with Silicon Valley types looking suspiciously like architects as they tried to ape Steve Jobs. There has been a similar buzz has surrounded Allbirds sports shoes
The finance sector had its own transformation. Early dot com era west coast-based tech focused investment bank financiers such as Frank Quattrone mirrored the east coast convention of the tailored business suit, usually in grey with a conservative tie and pocket square. This would be paired with a set of brown shoes, usually loafers. You could buy the look at Armani, Barneys or Brooks Brothers depending on your budget.
The 2008 Great Recession hit the finance centre like a shockwave. There was a need to dress down. A few things drove this:
An Armani suit is an obvious target when you have Occupy Wall Street camped outside your place of work
Wall Street had to modernise and attract new types of talent and competed against tech firms
The need to mirror the look of the hedge funds and technology companies that investment bankers wanted to do business with. They already stood out with their east coast vibe, the outfits communicated that ‘actually we’re just like you’ with varying degrees of success
The look has morphed into a relaxed yet sophisticated uniform that drew on preppyness, or the Ivy League look and the country club vibe evoked by Silicon Valley VCs. This resulted in a grey or navy fleece vest paired with a button-down, chino pants, and maybe even leather sneakers. It fitted in with weekend wear in more high class neighbourhoods and didn’t scream privilege in the same way that traditional Wall Street did.
However this became a power validation all of its own, dubbed the “Midtown Uniform” by many for its popularity throughout Midtown Manhattan as the business casual look rolled across the cultural wallpaper of Wall Street.
Expired?
Patagonia haven’t enjoyed their vests being the punchline of a joke. They are a mission led company that looks to be sustainable and environmentally friendly. They’ve been described as the conscience of the outdoor industry. Patagonia doesn’t want its products sold on Amazon, not because it’s luxurious and exclusive. But because Patagonia believes that Amazon encourages thoughtless consumption and is bad for the environment. Being seen as the uniform of the privileged didn’t go down well. So in April 2019, Patagonia announced that it wouldn’t provided corporate branded clothing to financial institutions or fintech companies, preferring to focus on mission-led environmental businesses instead. Given its iconic status within these sectors, the news was given the kind of coverage that would usually be reserved for an uncharacteristically large drop in the S&P 500 index.
The case against fintech businesses is down to their rapidly expanding energy footprint, which I have covered in depth elsewhere.
While a clear successor to the Patagonia vest hasn’t become apparent yet, there are brands looking to take their crown such as
Cotopaxi – who are environmentally friendly, but also corporate friendly
North Face – have been doing some interesting work in more environmentally friendly materials and already well known in the corporate branding space
SCOTTeVest – famous for being traveller-friendly. It comes with routing for your headphone cables, a plethora of pockets and charging wires. Their CEO called the Patagonia stance PR BS
Grandfathered in
Secondly, Patagonia decided that it wouldn’t leave long term customers in the lurch, which probably means that your favourite investment bank or big tech firm is safe from the customer purge.
According to Corley Kenna, senior director of global communications at Patagonia, customers and the press had inquired as to “whether we’re leaving ‘bros out in the cold.’” Kenna confirmed again that long-term customers would be grandfathered in.
And those left in the economic cold can still enjoy a Patagonia vest recession. I am thankful that it wasn’t called the Carhartt or Chore coat recession signalling a creative class layoff-led recession.
Periscope films have managed to digitise a treasure trove of content. Back when I worked in an oil company I had to read around to learn how an oil refinery works a macro-level. I wish that I had seen this film How an oil refinery works put together by Shell for an American audience some time in the 1950s.
How an oil refinery works gives you a good understanding of fractional distillation, vacuum distillation and catalytic or ‘cat’ cracking. The three of which still are at the core processes at an oil refinery today. There are additional ancillary steps that happen depending on the oil make up such as desulphurisation or sulphur removal including removal of sulphurous compounds called mercaptans and removal of nitrogen impurities.
The experience of watching How an oil refinery works is far different to reading Modern Petroleum Technology by the Institute of Petroleum, or even this article on Encyclopaedia Britannica – which would have been my first go-to port of call at my local library back then. More on materials related topics here.
Porsche 935 K3 or what my dreams as a 10 year old looked like
As a child my bedroom wall was dominated by a world map from the early 1970s given out by the shipping line Lambert Brothers to a friend of the family who was a dentist who had a side line in cargo brokering at one time. The rest of my wall was given over to Ferrari and Porsche posters. Dominant among which was the Porsche 935. At the time, you could write to companies, claim you were doing a school project and they would send you back a press pack stuffed with black and white print photos. I even had a Burago model car of the same livery as this.
If my parents have kept hold of all this stuff, it would be a worth a small fortune on eBay, but I suspect it all got thrown out over time.
This video is the stuff that my dreams were made of.
Steve Hsu interviewing Dominic Cummings
I have a lot of time for American Taiwanese physicist Steve Hsu, so its surreal hearing him interview Domnic Cummings in his podcast. There is a less bombastic Cummings on show.
Takuya Nakamura
This week I listened to Takuya Nakamura’s set on The Lot Radio
Is nepotism really that bad? | LinkedIn – Jed Hallam wrote an essay on nepotism and the effects that he perceives it as having on inequality. Jed tries to steer a line on nepotism somewhere between recognising that the people may have an interest and talent, whilst pointing out inequality related issues derived from nepotism. Nepotism itself is widespread, whether its impact is small or large.
Jed is concerned that nepotism can actively remove opportunities for less conventional candidates that may do better if assessed solely in merit.
Social, cultural and economic barriers
Even if nepotism disappeared, our unconscious desire to hire people more like us, can mean that candidates face challenges in social, cultural and economic realms. I don’t drink, don’t have an interest in rugby union or football. I knew no one down here and sold my car to pay my first month’s rent when I moved to London. The analogy of a viking burning his boat behind him would be apt. I didn’t, and couldn’t if I wanted to, move to London earlier than my late 20s. I had to put myself through university and build up a modest amount of money to back myself as my parents didn’t have any.
One aspect of Jed’s essay on nepotism particularly surprised me:
“the proportion of people from working-class backgrounds operating in the creative industries has more than halved since the 1970s–falling from 16.4 percent to just 7.9 percent”
The problem with nepotism is that its hard to define and work out the difference between good and bad nepotism. For instance:
I line managed some one who had gone to Harrow and had found it harder to get into a creative agency because he was considered to be too posh by interviewees. He since went on to work successfully for other agencies, inhouse at a well loved brand and now runs his own shop
Would someone following on into the family profession be a case of nepotism? A classic example from the creative industry would be Thomas Bangalter of Daft Punk, whose father is disco producer ‘Daniel Vangarde’ aka Daniel Bangalter. One could imagine how being exposed to music and a studio environment from an early age made Thomas the kind of producer he was.
Or the Arnault children taking roles in LVMH? European business often rely on intergenerational family ownership and management
Nepotism is more obvious when you have events like the recent US college scandal. The problem with debate about any hot subject like nepotism is the lack of room for nuance and good judgement. A second aspect to it is making people feel like victims of nepotism and inequality, rather than encouraging striving. Admittedly that is even made harder to do when inequality that underpins nepotism has become much more extreme.
People look for easy solves and clear lines for issues like nepotism, when what we really need are better decision making and good judgement.
Nepotism unresolved
There will always be people who feel hard done by, it wasn’t them it was X external factor. Sometimes it isn’t your time, or you didn’t make clear how good you were. Equal opportunity doesn’t equate to equal outcomes, the case in point that nepotism can learn from is currently going through the US Supreme Court. In an age of algorithmically filtered CVs I can see nepotism become attenuated rather than resolved.
V Shanshan, “Why are you Forcing me to Embrace Solidarity?” – Reading the China Dream – Weibo post from someone whose uncle had died from complications from covid the previous day, writing to express his anger and bitterness at the hectoring calls in China’s official media to “come together” and “look to the future” as China decides to live—and die—with covid. That such calls ring hollow for many Chinese makes perfect sense, since China’s mighty messaging machine seems to have turned on a dime, suddenly arguing that Omicron is no big deal and that “everyone is responsible for their own health” after insisting for years that the virus is deadly and that collective behavior was the only way to control it
A Place for Fire – The Paris Review – the primal draw of fire in the home. This reminded me of the central role of the turf and wood fuelled range in the Irish farmhouse where I spent a good deal of my childhood
Project MUSE – The Surge of Nationalist Sentiment among Chinese Youth during the COVID-19 Pandemic – Since 2012, Beijing has been promoting a strain of populist nationalism which underscores both the institutional superiority of the ruling party and the cultural superiority of being Chinese. At the international level, however, the image of both the regime and the Chinese has been marred due to the coronavirus (COVID-19) outbreak in Wuhan (December 2019–January 2020). This study examines the extent and the form that the surge in nationalist sentiment of Chinese young people has taken during the COVID-19 pandemic. Based on a questionnaire survey of 1,200 students from a sample of 20 colleges/universities in China (June–July 2020), this study shows that the respondents express high satisfaction with the state’s performance in tackling the pandemic, and that there is a substantial surge of nationalist sentiment with a high level of hostility towards other nations (e.g. the United States). Such nationalist sentiment, however, is found to express a bifurcated pattern in that young Chinese also tend to embrace the opportunity to work and study in the Western societies they ostensibly dislike – yeah, is it smart to let them in though, given Chinese laws obligating them to cooperate with the MSS if requested?
Project MUSE – Living with the State-Led Order: Practical Acceptance and Unawareness of the Chinese Middle Class – China’s expanding middle class is often found to support the regime and lack democratic aspirations. We find that one section of the middle class depends upon the state for jobs and other material benefits, and the other works for the private and foreign sectors of the country’s economy. Once separated as such, we found that the non-state middle class clearly shows lower support for the regime. Furthermore, unlike the state middle class, which registers lower democratic support, the non-state middle class shows a similar level of democratic support as other social classes. In general, however, while only pragmatically accepting the current order, both middle class groups nonetheless appear lacking practical knowledge and understanding of liberal democratic institutions such as free media and multiparty elections. The unforthcoming attitudes toward democracy might also derive from a general sense of fearing the loss of order and the other related uncertainties
Economics
The true priorities of the global elite – by Judd Legum – The New York Times’ Peter Goodman, author of “Davos Man” — a blistering criticism of the WEF and its neoliberal ideology — recently offered this brief description: The World Economic Forum is not a secret government or organized conspiracy. It is a giant business meeting, a chance for the heads of multinational oil giants to sit opposite Persian Gulf potentates — fronted by the performance art of earnest panel discussions aimed at solving the problems of the day. More than anything, Davos is a prophylactic against change, an elaborate reinforcement of the status quo served up as the pursuit of human progress. Tuesday’s WEF program included a panel with Senators Kyrsten Sinema (I-AZ) and Joe Manchin (D-WV). The pair shared an on-stage high-five in celebration of the filibuster, which has been used to block increases in the minimum wage, protections for voting rights, and efforts to maintain access to reproductive health care.
German tank manufacturer’s warning puts pressure on Ukraine’s allies | Ukraine | The Guardian – Battle tanks from German industrial reserves wanted by Ukraine will not be ready to be delivered until 2024, the arms manufacturer Rheinmetall has warned, increasing pressure on Nato allies to support Ukraine with armoured vehicles in active service instead, ahead of a key meeting this week.“Even if the decision to send our Leopard tanks to Kyiv came tomorrow, the delivery would take until the start of next year,” Rheinmetall’s chief executive, Armin Papperger, told the Bild am Sonntag newspaper. Rheinmetall, which manufactures the battle vehicle’s gun, has 22 Leopard 2 and 88 older Leopard 1 tanks in its stocks. Getting the Leopard tanks ready for battle, however, would take several months and cost hundreds of millions of euros the company could not put up until the order was confirmed
Macau gaming: Chau’s jail term warns punters and investors alike | Financial Times – It is worthwhile considering this in part of the wider picture of how China is trying deal with capital flight. It also chimes with efforts to move Hong Kong from being about ‘wealth management’ i.e. schemes to allow capital flight out of the mainland to the west to trying to pull in western money to invest in Chinese businesses. Macau was part of that process too.
Expect a clampdown on insurance policy sales people. At the moment a lot of them sell these things via WeChat with a view to providing financial services to mainlanders in a similar way to what daigou do with luxury goods from abroad. I know work at home mums that do this for Prudential as a side hustle
Auction houses have expanded like crazy in Hong Kong during the pandemic and I would expect the authorities to look at how they can shut this off or use to only import items into China rather than having them leave again. I wouldn’t be surprised if they are strongly encouraged to shutdown in Hong Kong and up up in Sanya on Hainan island instead so they stay inside the yuan firewall
Expect pressure on foreign banks on wealth management / capital flight vehicles. There maybe some latitude through mainland banks where the government can monitor the flow through back-end access into their systems
Ultimately, Singapore will be the new Hong Kong – which is happening already due to ‘run culture’ and a plethora of wealth management and family office services being provided.
Hong Kong’s financial hub is at a crossroads | Financial Times – Look for a senior job in Hong Kong these days on LinkedIn and you’re unlikely to find any openings unless you’re a speaker of Cantonese or Mandarin, or both. “That’s a big change,” confides a longtime British expat in the territory. “It’s understandable. But it’s a big change.” The evolving jobs market is just one of the visible signs of the tilt to mainland China that promises to redefine Hong Kong’s role as a global financial centre. Beijing’s growing influence on the former British colony — evident in four years of security crackdowns and tough Covid lockdowns — has raised existential questions about the sustainability of the territory’s role as Asia’s unparalleled bridgehead to global finance – yeah soon even the finance bros will go
Japan was the future but it’s stuck in the past – BBC News – Japan had emerged from the destruction of World War Two and conquered global manufacturing. The money poured back into the country, driving a property boom where people bought anything they could get their hands on, even chunks of forest. By the mid-1980s, the joke was that the grounds of the imperial palace in Tokyo were worth the same as all of California. The Japanese call it the “Baburu Jidai” or the bubble era. Then in 1991 the bubble burst. The Tokyo stock market collapsed. Property prices fell off a cliff. They are yet to recover. A friend was recently negotiating to buy several hectares of forest. The owner wanted $20 per square metre. “I told him forest land is only worth $2 a square metre,” my friend said. “But he insisted he needed $20 a square metre, because that’s what he’d paid for it in the 1970s.” Think of Japan’s sleek bullet trains, or Toyota’s “just-in-time” marvel of assembly-line manufacturing – and you could be forgiven for thinking Japan is a poster child for efficiency. It is not. Rather the bureaucracy can be terrifying, while huge amounts of public money are spent on activities of dubious utility – this says more about the persons values than about Japan. Also coming from Britain’s public broadcast service, it is ironic that Japan is at the centre of many critical global supply chains and Britain is being stripped out of them. A bit of introspection is required
Luxury Brands Beware: Angered Chinese Tourists Are Avoiding Japan And South Korea | Jing Daily – South Korea issued yellow tags for China’s inbound travelers to wear at its airports, and Japan followed suit, giving red tags to passengers coming from the country. The initiative has elicited outrage online. On Weibo, the hashtag “Japan issues red tags to mark Chinese travelers” has gathered 200 million views, becoming the fourth most trending topic at one point. Many Chinese travelers complained that they not only had to pay for COVID tests and potential quarantines in subpar conditions upon entering South Korea but also had to wear a yellow tag on their necks to identify themselves as coming from China for special inspection at airports. The tags, along with South Korean reporters snapping photos at them, made them feel like they were criminals being transferred
Good to see that we’re finally beyond the 3D printing hype bubble and its true benefits can be appreciated. This article is a good run down of the pros and cons of 3D printing in an industrial setting. In some ways it reminds me of the ‘manufacturing cells’ concept were a computer controlled machine tool with switchable tool faces would do multiple jobs and process multiple types of products in small batches.
Not all manufacturing is true Fordian production lines. Just in the same way that digital printing has been good for small run books and catalogues or printing on demand; yet ‘traditional printing’ is still used for bigger print runs – additive manufacturing will be alongside traditional manufacturing processes.
Chinese Celebrities’ Political Signalling on Sina Weibo | The China Quarterly | Cambridge Core – Recent studies have revealed how the state disciplines and co-opts celebrities to promote patriotism, foster traditional values and spread political propaganda. However, how do celebrities adapt to the changing political environment? Focusing on political signalling on the social media platform Sina Weibo, we analyse a novel dataset and find that the vast majority of top celebrities repost from official accounts of government agencies and state media outlets, though there are variations. Younger celebrities with more followers tend to repost from official accounts more often. Celebrities from Taiwan tend to repost less than those from the mainland and Hong Kong, despite being subject to the same rules. However, the frequent political signalling by the most influential celebrities among younger generations suggests that the state has co-opted celebrity influence on social media to broadly promote its political objectives
Macs In the Enterprise: A Cisco Case Study – Creative Strategies – Despite extremely high desire from employees to use Macs (66% according to a study we did last year), most IT organizations keep the Mac users in their organization at arm’s length. Offering true platform of choice matters when it comes to employee experience and employee satisfaction with their workplace, tools, and IT departments. This is exactly what Cisco found when they studied internal employees. A Cisco report on IT satisfaction of employees found satisfaction to be significantly lower when employees were not offered their platform of choice in a laptop – this bullshit has been going on my entire career, HR departments are a major issue as well
CES 2023 marks the 25th year since I first started working in agency life. Back then I was working in what was the exciting world of technology. I had nascent internet clients, networking / telecoms clients and Palm, who were leaders in the personal digital assistant market. Things were just hinting at the convergence of the technology and consumer electronics world.
Like most trade shows CES 2023 works on two levels. The bit that’s in the media that helps people like me understand manufacturer led product and service trends. Some of the trends went well, like LCD televisions and some did badly like 3D television screens. The bit that wasn’t seen was the sales meetings that fuel much of the global trade in finished electronics products. 100s of billions of dollars in sales were agreed through CES Los Vegas each year and CES 2023 was likely to be similar to other years in this respect.
China at CES 2023
China had about half the companies that attended CES pre-COVID pandemic. This was a mix of:
Washington Entity list. Large technology players including DJI, ZTE and Huawei are barred from doing business with American partners. So turning up to CES 2023 would have a limited utility for them even if they were allowed to have a booth
COVID-disruption. Large swathes were locked down, something that the country has only recently opened up
Economic head winds at home
Finally, government focus on the right kind of business development with a tiered funding model
Bankers and experts said that the CSRC was trying to funnel money towards sectors it deemed strategically important as the country pushed for technological self-reliance and economic growth. The regulator’s move to refresh the listings guidance underscores Beijing’s efforts to make the country’s equity exchanges serve its national agenda, said analysts. “The Chinese government doesn’t want a market-based stock market,” said Larry Hu, an economist at Macquarie Group in Hong Kong. “It wants one that helps the authority carry out industry policy.”
A plethora of projector companies made a pitch to replace the TV set with 8K resolution projectors.
The physical nature of TV sets is considered to be a ‘problem’ that manufacturers are trying to solve. A second way to do this was through wireless technology. LG separated its TV set from its HDMI and other connectors, instead having the cables to go into a hub that then wirelessly connected to the TV.
If I was to make a guess as to why this was happening, I would partly credit the pandemic and the way some consumers looked to change their living space during that time. Another TV which seemed to capture lots of TV news overage of the show was the Displace wireless TV set. It completely dispensed with a power cable due to being powered by TV sized lithium batteries and was held up with a suction cup.
Descriptors used included comparisons to it being a ‘giant iPad’ which wasn’t really true as its not really a tablet computer. This probably says more about the iPad being co-opted as a media consumption device. Secondly, just because it grabs attention doesn’t mean that it has a consumer use case.
IoT (internet of things)
IoT is often called smart home or home automation. Like most technology ideas it actually goes back several decades. In the case of home automation, the pre-internet communications protocol was X10, invented by a Scottish technology start-up in the 1970s. My 1978, X10 enabled products were on sale in the Sears department store (then the US’ largest retailer) and Radio Shack (for UK people of a certain age: Tandy).
Use of IP protocol has allowed for much more functionality and use cases. It is even parodied with the Internet of Shit.
According to veteran analyst Tim Bajarin, a decade ago IoT the way we now think of it didn’t have its own section at CES, five years ago it suddenly did. CES 2023 didn’t necessarily present solutions to IoTs myriad of problems, such as cybersecurity and personal security.
It’s still a very important trend, despite the decline in Chinese vendors turning up with weird new products this year.
The underlying of technology has inspired new applications in
Health technology
Food technology
Sports technology
All of which now have their sections at CES 2023.
Health technology
Healthcare monitoring has been a big area of growth. The reasons for this are many-fold:
Consumers increased focus on their own health, from the quantified self to the rise of smart watches like the Apple Watch
Organisations like US healthcare provider Kaiser Permanente who have pioneered a focus on preventative health and maintenance rather than waiting for people to get sick
People are increasingly living with co-morbidities such as diabetes
You now have traditional big pharmacy companies like Abbott appearing at CES 2023 with their health monitoring solutions
This surge in healthcare technology has been enabled by smart sensors and machine learning powering hardware and software solutions enable it. Some technologies like accelerometers have moved along in leaps and bounds alongside other silicon MEMS chips. However as we have seen with high profile cases such as Theranos, there often isn’t the miraculous leaps forward in technology that we might expect in other areas due to the likes of Moore’s Law.
Some analysts have speculated that pet health and activity tracking will be the next growth areas after their humans have digitised their own health regimes.
Adaptive technology that could be considered to fit within the health technology space can reduce the cost of care in a similar way to self monitoring, or can be an exercise in ‘brand purpose’ like L’Oreal’s robotic lipstick applicator. In L’Oreal’s case, brand purpose and cynical PR stunt seem to be interchangeable.
For someone who grew up with personal stereos and iPods, I can understand how there would be a demand for a set of headphones that sit somewhere between the Apple AirPod and a hearing aid. Sennheiser have introduced the Conversation Clear Plus and Jabra have a similar offering.
Advertising technology
A good deal of hardware technology is supplied to the consumer on razor thin margins and innovation allows greater data collection. This has meant that ad technology was an area of discussion at CES 2023. Experian were there to sell products that allow advertisers to deal with ‘pesky’ issues like consumer privacy, regulatory requirements and data deprecation. Your internet connected TV and streaming hardware are target advertising platforms and are snitching on your viewing habits.
As someone who works in the advertising industry, I can understand the rationale; as a consumer I detest the invasion of my privacy.
Metaverse
The metaverse had its own sections and both hardware and software companies were noted as having some innovative products.
I think that there is a wider question over the health of the metaverse and related technologies such as Web 3.0 and VR. As CES was on, Microsoft got ready to shut down its virtual reality optimised social network Altspace which had a small but vibrant community on there.
We’re at least a decade away from the open VR web-like metaverse imagined by technologists and the financial downturn isn’t helping with this.
Some of the technology on show was also related to other trends such as the head-up displays rolling out on connected cars.
Automobiles
At the start of my career, car stereo head-units and DVD players may have got a look in at CES. For CES 2023, with the move towards electric vehicles, digital cockpits and a desire for more autonomous driving the car looks more like a computer system on four wheels.
Gains in autonomous vehicles have been modest and this was apparent in the mature GPS based tilling programming for John Deere tractors and the simple shuttle service between halls provided by Tesla.
The big thing this year was an upgradeable module to power the digital dashboard and in-car entertainment. This doesn’t sound much of an exciting product, until you realise that cars take longer to develop than gadgets and new cars can be relying on technology that is 10+ years old.
If nothing else upgradeability would solve issues with trying to source obsolete micro-processors for car manufacturers. The automotive sector is sufficiently important to CES that agricultural equipment and ride on lawn mower maker John Deere gave a keynote at the show.
CES 2023 Gadget Gap
The Wall Street Journal walk around highlighted a number of issues at CES 2023. It noted that new product companies in the hardware space were finding a lack of funding, COVID-related development, manufacturing and logistics issues; together with consumer demand challenges would be here for the long haul. They quote a 50 precent drop in venture capital funding.
This has implications for future years of the CES show. They even gave it a name the ‘Gadget Gap’.
A lack of focus
Reading this post on CES 2023, will make you aware of the lack of focus in the event. A good deal of CES is no longer products aimed a consumer end audience, the participation of Experian, John Deere and Caterpillar were a case in point. Yes, CES is still the world’s largest technology trade show, but what does it mean? It feels too broad to have a meaningful purpose. It feels to me like some dystopian digital skid stain across all aspects of modern life. This at odds with the excitement I felt over game changing technologies in previous years. Others like analyst and author Jonathan Goldberg noticed the lack of focus too.
Combine the lack of focus with the broken globalisation model due to the US – China war means that CES needs to move on from CES 2023, or it will go the way of similar trade shows like CeBIT – nothing but a memory full of old news releases on technology company websites.
I subscribe to all kinds of weird and wonderful newsletters to get content for these posts, the idea of a Ukraine beta test was inspired by this post on SOFREP: Combat Sandbox: Ukraine’s ‘MacGyver Army’Tests Western Weaponry | SOFREP. SOFREP is written a self-described team of a team of former military, intelligence and special operations professionals. While some of their stories are repeats of tabloid fantasies: UK Apache helicopter gunships for Ukraine, they also provide some smart editorial thinking.
Western military ideas were designed to run against Russian and Chinese campaigns. The Ukraine beta test seems to have failed for Russia’s hybrid warfare concept, when it was executed on a large scale basis. Russia were trying to execute on an idea first outlined by an American theorist Frank Hoffman in his work Conflict in the 21st century: the rise of hybrid wars for a think tank. The Russians themselves call it ‘non-linear warfare‘. After careful preparation, Russia used non-linear warfare to capture Crimea and parts of eastern Ukraine in 2014. On the surface of it, a successful Ukraine beta test for Russia. Yet 7 years later on a larger scale approach Russia failed and is having to go back to older ways of doing things.
Part of the Ukraine beta test works because of the Ukrainians and everything that they have on the line. Part of it was down to better tactics by Ukraine compared to Russia and at least some of which was down to the use of western weapons systems used in an innovative way.
There has since been a Ukraine beta test of western military ideas:
Delta is a system for collecting, processing and displaying information about enemy forces, coordinating defense forces, and providing situational awareness according to NATO standards, developed by the Center for Innovation and Development of Defense Technologies of the Ministry of Defense of Ukraine, founded in 2021 at the base of the A2724 military unit, which, in turn, was created in 2015 from the volunteer group Aerorozvidka.
Delta is used for planning operations and combat missions, coordination with other units, secure exchange of information on the location of enemy forces, etc. In particular, Delta has integrated chatbots developed by the Ministry of Digital Affairs – “eVorog” and the Security Service of Ukraine – “STOP Russian War”.
The system is equipped with modern means of monitoring suspicious activity. From 2021, allied cyber units are constantly scanning the system for vulnerabilities, intrusion attempts, data leaks, and more.
According to the developers, Delta provides a comprehensive understanding of the battle space in real time, integrates information about the enemy from various sensors and sources, including – intelligence, on a digital map, does not require additional settings, and can work on any device – laptop, tablet or even on a mobile phone. Roughly speaking, Delta is such a modern real-time command map and troop control center
It has taken years for western powers to build comparable systems. Delta is powered by a mix of human intelligence, Ukrainian open source intelligence and also includes NATO electronic intelligence and satellite imagery. Integration of NATO for Delta is a Ukraine beta test in itself. NATO will learn from the successes and challenges of Delta. At a tactical level the idea of a Ukraine beta test shows how well weapons systems work under real-world ‘near peer’ war conditions, giving them valuable understanding of what systems are most effective against Russian systems.
The Ukraine beta test shows where the gaps are in NATO systems. For instance the Gepard tank is a short range anti-aircraft system phased out by Germany a decade ago, that has shown the value of similar gun based systems against drones and low flying aircraft as a cost effective method to engage.
All of which makes me wonder why the arms industry aren’t taking the obvious step and ‘donating’ trial systems to the Ukrainian military for a Ukraine beta test to show their mettle and value to western clients? The closest that we’ve seen to this is the GLSDB. The GLSDB is an existing Boeing bomb mated to recycled rocket motors. But the arms industry could do so much more as part of a Ukraine beta test.
China
The politics of China’s Belt and Road workers in Africa – Asia Times – strong empirical evidence that democracies host significantly fewer Chinese workers than autocracies, all other things being equal. The results hold up using a variety of different statistical modeling techniques. In Ghana, a vibrant democracy, we found that both the country’s main political parties faced pressure to ensure that Chinese-built projects delivered local jobs. For example, in the construction of the Bui Dam, the agreement between Sinohydro, the Chinese state-owned behemoth contracted to complete the project, and the Ghanaian government stipulated that a certain proportion of the workforce would be local. In Algeria, on the other hand, Chinese labor has been used to quickly complete projects seen as politically expedient. Algeria is a “hybrid” regime that was ruled by a single man, Abdelaziz Bouteflika, from 1999 to 2019. Even when domestic discontent over Chinese workers prompted measures to limit their presence, the measures were not implemented. Our findings have several important implications. First, host country agency is important. Host governments have the ability to ensure Chinese companies hire locally. Second, projects that hire locally may bring more long-term economic benefits to host countries. This can happen both directly through the jobs that they create, and via knowledge and technology transfers into the wider economy. Our analysis, therefore, suggests that the wider developmental benefits of Chinese-built infrastructure may actually be stronger in democracies than in autocracies
China is flashing red on the skewed consensus indicator | Financial Times – The only strong standout finding is on China, around which a strength of current optimism has no offset. Morgan Stanley didn’t think to even offer one. It’s a Goldilocks scenario with no bears – this doesn’t make sense. Wall Street seems to have an irrational belief in China as a market. For example: China moves to take ‘golden shares’ in Alibaba and Tencent units | Financial Times – expect this is to be about more than censorship. More like military – civil fusion – also likely to have big implications for media engagement on social platforms
Ryanair unsure if softening in UK demand here to stay – “There’s no doubt that the UK economy by any stretch of the imagination, in terms of going into recession or whatever, is different than the other European economies,” – interesting that they are concerned about travel overall rather than thinking about a pivot to them from BA etc
Is this the end of the bachelor pad? – The Face – the bachelor pad has been gobbled up by the economy. Nearly a third of 20 – 34-year-olds in the UK are living at home with their parents. I did feel a bit triggered by the author’s dismissal of stainless steel as a material and good quality furniture like an Eames lounge chair as being emblematic of toxic masculinity. But the economic points are very valid
Mainland rush to return to Hong Kong, Macau post zero-Covid nears 1 million | South China Morning Post – travel demand has been growing since China relaxed its border restrictions in December, with around 998,000 mainland residents applying for travel documents to Hong Kong or Macau, and 353,000 people applying for a new passport – expect Hong Kong fatalities to surge. Hong Kong has an even older population than mainland China. There is a corresponding low vaccination rate amongst them, partly down to vaccine distrust due to often Chinese orchestrated misinformation
Wokeness as prairie fire – by Noah Smith – Noahpinion – Anyway, with all that said, the point of this post is that wokeness’ role in American society is evolving as we move into the early 2020s. In particular, I see three simultaneous trends:
An increasing anti-woke pushback from conservatives
Increasing entrenchment of woke ideas and practices within liberal institutions
A general exhaustion with wokeness among thought leaders and young people
Who Are You Calling a Great Power? – Lawfare – trying to define great power status is difficult in ways that are evident from the mismatched assortment of candidates that emerge in the recent literature. Power varies across issues and domains in ways that are glossed over when international politics is reduced to great power competition. It can be a convenient shorthand, but policymakers should not lose track of the nuances: Who counts as a great power may vary from issue to issue
Saudi Aramco bets on being the last oil major standing | Financial Times – What is often forgotten is how oil is also needed as a feedstock for materials. You want electric batteries they need a plastic based insulator and cables need plastic insulation. Mercedes et al tried soy plastic based cable insulation in the late 1990s and the wiring looms of these cars have had to be remade. All of which will be needed if you want a LiON or hydrogen economy. Then there are seals, bushings, coatings, medicines etc all of which rely on hydrocarbon feedstocks. Oil isn’t just about carbon emissions. Aramco is being prescient about this, Companies like Shell etc are increasingly looking at plastics manufacturing for exactly the same reasons
Lidl, Zara’s owner, H&M and Next ‘paid Bangladesh suppliers less than production cost’ | Retail industry | The Guardian – Lidl, Zara’s owner Inditex, H&M and Next have been accused of paying garment suppliers in Bangladesh during the pandemic less than the cost of production, leaving factories struggling to pay the country’s legal minimum wage. In a survey of 1,000 factories in the country producing clothes for UK retailers, 19% of Lidl’s suppliers made the claim, as did 11% of Inditex’s, 9% of H&M’s and 8% of Next’s. A majority of suppliers of those four brands, and also of Tesco and Aldi, told researchers that almost two years after Covid-19 was declared a global pandemic they were still being paid at the same rate – despite soaring raw material and production costs in the interim
EU draws up plans to stockpile scarce medicines | Financial Times – “a systemic challenge with numerous vulnerabilities”, including overreliance on a few countries for certain products, and the way drugs are regulated and bought. The EU’s Health Emergency and Response Authority (Hera), established in response to the Covid-19 pandemic, could organise joint procurements for several countries to improve supply. Health commissioner Stella Kyriakides outlined the plan in a reply to Greek health minister Thanos Plevris, who had demanded action in a letter to her last week. “There is a shortage in certain branded drugs containing paracetamol, antibiotics and inhalers . . . particularly for children,” Plevris said at a news conference last week where he announced a series of measures that would tackle the shortages. – because China
UK supermarket uses facial recognition tech to track shoppers – Coda Story – In July, civil liberties group Big Brother Watch filed a complaint to the U.K.’s Information Commissioner’s Office against Southern Co-op and Facewatch — the company providing the surveillance system. Joshua Shadbolt, a duty manager at the Copnor Road supermarket, told me that high levels of theft have forced him and his colleagues to hide, for instance, all the cleaning products behind the till. Without the technology, he fears customers would be given free range to steal. Since Covid restrictions were lifted in the U.K. in early 2021 following a third national lockdown, shoplifting has been on the rise. This is likely to have been compounded by a cost-of-living crisis. Still, even if theft has not reached pre-pandemic levels, for Shadbolt, the biometric camera has been an effective and necessary tool in tackling crime. For Big Brother Watch, the camera is a breach of data rights and individual privacy. Every time a customer walks into a shop or business that uses Facewatch’s system, a biometric profile is created. If staff have reasonable grounds to suspect a customer of committing a crime, whether it’s shoplifting or disorderly conduct, they can add the customer to a Facewatch list of “subjects of interest.” Facewatch’s policy notice says that the police also have the power to upload images and data to Facewatch’s system. Anyone uploading the data, which includes a picture of the suspected person’s face, their name and a short summary of what happened, must confirm that they either witnessed the incident or have CCTV footage of it. But the policy does not indicate what the bar for “reasonably suspecting” someone is.
