Prospects for Sustainable Micro-Factory Retailing in Canada
Total Page：16
File Type：pdf, Size：1020Kb
PROSPECTS FOR SUSTAINABLE MICRO-FACTORY RETAILING IN CANADA PROSPECTS FOR SUSTAINABLE MICRO-FACTORY RETAILING IN CANADA: A CASE STUDY OF 3D PRINTED ELECTRIC VEHICLES By STEPHEN QUINN HACHEY, B.Sc. A Thesis Submitted to the School of Graduate Studies in Partial Fulfilment of the Requirements for the Degree Master of Science McMaster University © Copyright by Stephen Quinn Hachey, December 2017 MASTER of SCIENCE (2017) McMaster University (School of Geography & Earth Sciences) Hamilton, Ontario, Canada TITLE Prospects for Sustainable Micro-Factory Retailing in Canada: A Case Study of 3D Printed Electric Vehicles AUTHOR Stephen Quinn Hachey Bachelor of Environmental Science (McMaster University, 2014) SUPERVISORS Professor K. B. Newbold and Professor P. S. Kanaroglou NUMBER OF PAGES: xv, 228 Abstract The contemporary global automotive industry has persisted, relatively unchanged, since its inception over a century ago. However, it appears that major changes may be underfoot with increasing environmental, social, and economic pressures to improve the industry's long-term sustainability. An alternative model, known as Micro-Factory Retailing (MFR), guided by the emerging field of Industrial Ecology (IE) has been proposed as a possible solution to the industry’s sustainability crisis. This thesis will explore the prospects of MFR in Canada and propose the use of 3D printed electric vehicles as a means to facilitate sustainable system innovation. To demonstrate the feasibility of this proposed technological pathway, three entrepreneurial firms attempting to disrupt the way in which cars are made, sold, and used will be studied. Although the timeline of such a major transition is currently unknown, Canada should act proactively to transition its role in the global automotive sector and lead the way towards a more sustainable automotive ecosystem through MFR. iii Acknowledgements First and foremost I’d like to thank my family, and especially my partner, for their unwavering support and encouragement over the last three years. Without their support, this journey would have undoubtedly been far more difficult. I would also like to thank Andrea Cole and Correen Smith from McMaster University School of Graduate Studies for their work in organizing and facilitating the many graduate thesis writing bootcamps that I attended. I made many a breakthrough and made significant progress during these intensive, three-day long writing sessions. Although they were often mentally draining, I do not know how I would have otherwise been able to re-set my focus and dedicate myself to completing my thesis without these writing bootcamps. My appreciation also extends to my committee members, Dr. Mark Ferguson and Professor Antonio Paez for participating in my defence and providing me with their thoughtful insight. I would also like to thank McMaster Institute for Transportation and Logistics’ Board Member Richard Koroscil for bestowing me with valuable advice to help guide me through the completion of my thesis and into the future. I must express my sincere appreciation to Professor Bruce Newbold who stepped in without hesitation to supervise the remaining portion of my thesis. I could not have accomplished this achievement without your support, guidance, and insight. Lastly, and most importantly, I would like to express my deepest gratitude to my late supervisor Professor Pavlos Kanaroglou for seeing my potential and not giving up on me when I was prepared to give up on myself. I am eternally grateful for your faith in me, your initial curiosity into this specific topic, and for the funding that allowed me to complete my degree. To all of you, this thesis is dedicated. iv Table of Contents Contents Abstract .......................................................................................................................................... iii Acknowledgements ........................................................................................................................ iv Table of Contents ............................................................................................................................ v List of Figures ................................................................................................................................ xi List of Abbreviations .................................................................................................................... xii Chapter 1 Introduction .................................................................................................................... 1 1.1 Justification of Research Topic ............................................................................................. 1 1.2 Understanding the Concept of Sustainability ....................................................................... 4 1.3 Towards Sustainability in the Automotive Industry ............................................................. 5 1.4 The Prevailing Paradigm and the Origins of Mass Production............................................. 7 1.4.1. Henry Ford’s Continuous Flow Manufacturing ............................................................ 8 1.4.2 Alfred Sloan’s Management Strategy ............................................................................ 9 1.4.3 Edward Budd’s All-Steel Car Body ............................................................................. 10 1.4.4 Lean Production and the Toyota Production System ................................................... 12 1.5 Path-Dependence in Technological Regimes ..................................................................... 13 1.6 Contextualizing the Canadian Automotive Industry........................................................... 15 1.7 Thesis Objectives and Research Question .......................................................................... 19 1.8 Thesis Contents ................................................................................................................... 19 Chapter 2 Driving Change in the Automotive Industry ................................................................ 21 2.1 Regulating the Car and its Environmental Impacts ............................................................ 21 2.1.1 The Cost of Environmental Regulation ....................................................................... 22 2.1.2 The Cost of Resisting Regulation ................................................................................ 24 2.2 Market Challenges and Economic Pressures ...................................................................... 26 v 2.2.1 The First Waves of Globalization in the Automotive Industry .................................... 27 2.2.2 Globalization through Regionalization and Consolidation .......................................... 28 2.2.3 Changing Patterns of Globalization ............................................................................. 29 2.2.4 Vehicle Manufacturers in Emerging Markets Pursue Globalization ........................... 31 2.2.5 The Start of a Regional Strategy and the Potential Perils of Globalization ................. 33 2.3 A New Era of Regionalization: Shifting Production and Future Growth ........................... 34 2.3.1 Market Saturation and Overcapacity ........................................................................... 39 2.3.2 Product Differentiation ................................................................................................ 40 2.3.3 Marketing and Distribution .......................................................................................... 45 2.4 Vehicle Manufacturers’ Strategic Response ....................................................................... 46 2.4.1 Industry Consolidation and Cooperation ..................................................................... 46 2.4.2 Increased Outsourcing and Supplier Responsibility .................................................... 48 2.4.3 Platform and Component Sharing ................................................................................ 49 2.5 Conclusion .......................................................................................................................... 50 Chapter 3 Achieving Sustainability in Industrial Systems ........................................................... 52 3.1 A Historical Perspective of what is Natural ........................................................................ 52 3.2 Industrial Ecology: A New Interpretation of what is Natural ............................................. 53 3.2.1 Sustainability through Imitation .................................................................................. 56 3.2.2 Previous Applications of Industrial Ecology ............................................................... 57 3.2.3 A Manifestation of Industrial Ecology ........................................................................ 60 3.3 Criticisms of Industrial Ecology ......................................................................................... 60 Chapter 4 Applying Industrial Ecology to the Automotive Industry ............................................ 63 4.1 Limits to Industry’s Current Approach to Sustainability .................................................... 63 4.2 Improving Industrial Ecology’s Theoretical Framework ................................................... 67 4.3 An Ecological Approach to Transforming the Automotive Industry ................................. 68 vi 4.3.1 Resiliency and the