Hasil untuk "Manufacturing industries"

Miao Yu, Lida Zhu, Zhichao Yang et al.

Artificial intelligence provides novel perspectives for laser metal additive manufacturing (LMAM), enhancing precision, efficiency, and structural and process optimization. Machine learning-assisted process–structure–property correlation in additive manufacturing (ML-PSP-AM) presents an effective pathway for structural innovation and performance optimization, leveraging automation and intelligence to address the growing processing demands across industries. This review differs from the existing literature by presenting a multi-scale, PSP-centered analysis of ML applications in LMAM, integrating discussions that span from processing-driven macro-scale formation to meso/micro-scale defect prediction and microstructure–property relationships. By evaluating state-of-the-art ML applications across various AM stages, we identify current limitations, propose targeted strategies, and outline opportunities to improve accuracy, minimize defects, and enhance mechanical properties such as strength and fatigue life. The advancement of ML-assisted AM should focus on breakthroughs from “0 to 1” in application and innovations from “1 to ∞” in algorithms. The realization of ML-PSP-AM represents a transformative yet disruptive integration of manufacturing engineering, artificial intelligence, and materials science, driving significant progress in modern manufacturing technologies.

Jay Lee, M. Azamfar, Jaskaran Singh

Abstract Cyber-Physical Production Systems (CPPSs) are complex manufacturing systems which aim to integrate and synchronize machine world and manufacturing facility to the cyber computational space. However, having intensive interconnectivity and a computational platform is crucial for real-world implementation of CPPSs. In this paper, the potential impacts of blockchain technology in development and realization of real-world CPPSs are discussed. A unified three-level blockchain architecture is proposed as a guideline for researchers and industries to clearly identify the potentials of blockchain and adapt, develop, and incorporate this technology with their manufacturing developments towards Industry 4.0.

Yoonkyung Cho

Abstract As textile industries move toward greater digitalization and automation, accurate and reproducible image-based analysis of textile surfaces has become increasingly important across research, manufacturing, and digital commerce. In this study, we propose an integrated imaging and preprocessing framework that significantly improves the color reliability of digital textile images, thereby enhancing the precision of textile image analysis across a wide range of applications. We compared the extent of color distortion in digital images of samples from 11 different textile under different background and surrounding colors (white or black). We evaluated the effectiveness of image fusion as a preprocessing step by comparing the color reliability and image quality of non-fused images. We then derived optimal settings for image acquisition environments and preprocessing strategies for digital images of textile surfaces. To validate the proposed guidelines, we compared the color distortion in digital images corrected using only conventional color correction, and to digital images obtained using our proposed guidelines before color correction. Our findings demonstrated that applying appropriate physical environments and image preprocessing significantly increases the color stability and reliability of digitally represented textile colors, yielding an average improvement of 21.2% in their visual fidelity to the original fabric.

Abbas Khan, Hashim, Hijaz Ahmad et al.

Scientists frequently disregard the potential benefits of thermal stratification, particularly quadratic stratification and melting heat mechanisms in high-temperature processes, while attempting to create homogenous liquid solutions for biomedical and industrial purposes. Ignoring this results in higher expenses and lost energy. This study looks into how improving thermal stratification in the food, medical, and electronics industries might improve productivity, cut down on energy use, and reduce the impact on the environment. Thus, we need to examine the melting heat processes in a linearly stretched sheet and stagnation point-influenced quadratic stratified Maxwell nanofluid flow. The Riga plate-driven electromagnetic effects generate Lorentz force that runs parallel to the surface, which affects the velocity profile of the nanofluid substantially and provides important information about flow behavior. Further heat and mass transference research uses boundary layer approximations, thermophoresis, radiative heat flux, and Brownian movement. The foundational equations are transmuted as ODEs via similarity conversions and MATHEMATICA's ND Solve tool is used to accomplish a numerical solution. The investigation assesses the impacts of numerous factors on thermal, velocity, and concentration outlines. The outcomes are shown in tables as well as in plots illustrating the drag force coefficient, Nusselt, and Sherwood numbers. Important outcomes show that melting heat transfer and thermal stratification lowers temperature while increasing radiation boosts it. Improved heat efficiency is anticipated in the fields of electronics, manufacturing, energy, medicine, aerospace, and automobiles thanks to this research.

Ping Zhou, Jin Xiang, Decai Tang et al.

The Yangtze River Delta (YRD) bears the vital task of driving the growth of China's equipment manufacturing industry (EMI) intelligence as an advanced region. Fostering the transformation and upgrading of the EMI in the YRD and constructing a modern production mode is vital to developing and reforming China's manufacturing industry. This paper uses industrial robot data to assess the level of intelligence (LoI) in the EMI from 2016 to 2019. The OLS (ordinary least squares) model is used for the measurements, and the MQ (the modified contribution index) is used to estimate the degree of contribution from a host of variables. It is identified that the LoI is on the rise. However, excluding railways, aerospace, shipbuilding, and other transportation equipment manufacturing, the LoI is significantly higher than in other subsectors. It is also identified that technological innovation ability, human capital density, and enterprise cost pressure govern the industry's LoI. Moreover, while there is a difference in the main influencing factors in LoI within different industries, R&D investment, technological innovation ability, and enterprise cost pressure have the most significant impact across most equipment manufacturing sub-industries.

Rafia Afroz, Hind Alofaysan, Masahina Sarabdeen et al.

Due to increasing energy consumption, there has been a significant expansion in worldwide trade, leading to the emergence of severe environmental issues. This situation is further compounded by the non-negotiable requirement to simultaneously mitigate environmental degradation and achieve economic progress. To ensure a healthier future, it is imperative to identify and address the factors that contribute to environmental contamination. The purpose of this study is to examine how Malaysia’s carbon dioxide (CO₂) emissions are affected by energy consumption, economic growth, and the economic complexity index (ECI). Time series data from 1997 to 2020 are used in this study, along with the autoregressive distributed lag model. The environmental Kuznets curve theory holds true in Malaysia, according to the study’s findings, and energy use has a negative impact on CO₂ emissions. There is also evidence suggesting that a higher ECI is linked with increased levels of CO₂ emissions over a prolonged period. Malaysia’s main export, electrical and electronic goods, generates substantial CO₂ emissions during the manufacturing process. The outcomes of this research have important ramifications for environmental strategies concerning the mitigation of CO₂ emissions. The electrical and electronics industries can implement energy-efficient technologies and practices in manufacturing processes. This would include upgrading to more efficient machinery, optimizing production schedules, and reducing idle times. It is also crucial to work with governments and industry bodies to advocate for policies that support sustainable manufacturing practices.

Anubha Agrawal, Manojkumar Ramteke

Polymer grade scheduling, maritime surveillance, e-food delivery, e-commerce, and military tactics necessitate multiple agents (e.g., extruders, speed boats, salesmen) capable of visiting (or completing) dynamically changing locations (or tasks) in minimum time and distance. This study proposes a novel methodology based on clustering and local heuristic-based evolutionary algorithms to address the dynamic traveling salesman problem (TSP) and the dynamic multi-salesman problem with multiple objectives. The proposed algorithm is evaluated on 11 benchmark TSP problems and large-scale problems with up to 10,000 instances. The results show the superior performance of the proposed methodology called the dynamic two-stage evolutionary algorithm as compared to the dynamic hybrid local search evolutionary algorithm. Furthermore, the algorithm's applicability is illustrated through various scenarios involving up to four salesmen and three objectives with dynamically changing locations. To demonstrate real-world relevance, a maritime surveillance problem employing a helideck monitoring system is solved, wherein the objective is to minimize the patrolling route while visiting faulty vessels that threaten marine vessels. This study provides a general framework of TSP which finds application in several sectors, including planning and scheduling in chemical and manufacturing industries, the defense sector, and the e-commerce sector. Finally, the results showcase the effectiveness of the proposed methodology in solving the dynamic multiobjective, and multiple salesmen problem, which represents a more generalized version of the TSP.

Seyed Saeid Helli, Hadi Mokhtari, Saeed Dehnavi

Purpose: Today, the efficient management of supply chains plays a fundamental role in the market and economy. The supply chain is a network of facilities working together to make and move products from upstream to downstream to provide customers with highly qualified products and services. Nowadays, construction has become a growing and huge industry sector worldwide. One of the supply chains that needs proper management is related to the construction industry. The purpose of this article is to optimize this type of supply chain by minimizing its total costs.  Design/methodology/approach: An attempt has been made to develop an optimization model for the construction supply chain, considering all the important elements involved in the construction process, i.e. contractors, designers, suppliers of materials and construction materials, as well as three important and basic flows in the construction industry, i.e. the flow of manpower, the flow of equipment and machinery, and the flow of materials. All indices, parameters, decision variables, objective functions and constraints have been introduced and presented in the proposed model. Findings: The model proposed by GAMS optimization software was solved and the obtained results included the lowest construction cost as well as the optimal amount of construction materials and materials, labour, equipment, and machinery based on the required construction size. Research limitations/implications: The application of the supply chain in the construction industry is a relatively new topic. In the classic supply chain, the flow of materials and output at the end of the chain includes the manufactured product, while in the construction supply chain, the final output includes a building or a structure. Individuals, industries and even countries incur a lot of construction costs to meet their needs in the field of construction. The current study was influenced by limitations such as access to real data and the impossibility of handling a real case study, because the problem of designing the construction supply chain has wide dimensions and requires access to all dimensions of the construction industry chain, from upstream to downstream. Practical implications: With the definition and expansion of the concept of supply chain and the use of supply chain management in manufacturing industries and the positive results it brought in various manufacturing industries, supply chain management emerged in the construction industry. Meanwhile, researchers, major contractors, and large construction companies are trying to find methods to take advantage of the supply chain management approach. Also, the stakeholders of the construction industry can enable active decision-making and agile responses to market fluctuations by continuously monitoring and updating the results of cost sensitivity analysis. Social implications: Optimizing the construction supply chain can lead to reduced costs, improved project timelines, and enhanced sustainability. However, it may also impact local communities through job displacement, environmental concerns, and social inequality. Balancing efficiency with social responsibility is crucial to ensure equitable outcomes in construction projects. Originality/value: By now, there has been no reference available in the literature in the field of construction supply chain considering the designer, the flow of manpower and the flow of drawings and technical documents. The proposed model is comprehensive and includes the construction chain, considering all aspects such as the flow of required materials and materials, the flow of labour, the flow of required equipment and machinery, the flow of plans and documents, and designers and contractors.

Rahmat Doni Widodo, Herry Sutanto, Deni Fajar Fitriana et al.

The use of natural fiber as composite material is growing rapidly due to excellent characteristics, environmentally friendly quality and low price. For this reason, natural fiber breaks the dominance of synthetic fiber composite previously used in industries, especially in automotive manufacturing. The purpose of this study is to determine the effect of fiber orientation on the flexural and tensile strength of water hyacinth-sugarcane fiber composite with epoxy matrix. The composite then be tested as an alternative to doortrim. Fiber orientation applied to specimens was random for sugarcane fiber, but continuous on water hyacinth fiber with angle variants of -45/45, 45/90, 45/45, and 90/90. Specimen standard for flexural test is ASTM D790-15 and ASTM D638-14 for tensile test. The study results show that the highest average value for flexural strength is 51.7 MPa of the 45/90 variant, while the lowest average value of 16.6 MPa is the 45/45 variant. Both 45/90 and -45/45 variants have the highest tensile strength of 30 MPa. The 90/90 variant records the weakest tensil strength value of 20 MPa. The highest flexural and tensile strength values exceed minimum score of the SNI 01-4449-2006 and equal the values of panel assy backdoortrim. This experiment proves that fiber orientation affects mechanical properties of composite materials, especially in terms of flexural or tensile strength.

Esfandiar Jahangard, Alireza Jahangard, Negar Ebrahimi

In recent years, with the increased availability of data and statistics, particularly multi-country input-output tables and firm-level microdata, along with advances in the data processing capacity of personal computers for managing these vast datasets, as well as information and communication infrastructure, the efficient shared use of databases for foreign trade analysis has become possible. The goal of this paper is to implement the gross export decomposition method by Borin and Mancini (2023), using a source-based approach and the perspective of the exporting country, as a foundational analysis for decomposing value-added in the gross exports of Iran’s economic activities. The contribution of this paper to the economic literature on Iran can be summarized in the following three aspects: First, it utilizes data from the 2016 inter-country input-output database, including data on Iran, for empirical documentation. Second, it focuses on the most recent theoretical framework presented by Borin and Mancini (2023), with a source-based approach and country perspective, to decompose the value-added in the exports of Iran’s economic activities. Third, it offers a structural interpretation of the value-added decomposition of Iran's exports for the year 2016, which can be useful for researchers and policymakers in understanding the global value chains of Iran’s economic activities. The results show that Iran plays a small and fragile role in the global economy. Introduction The global economy has become increasingly interconnected, necessitating comprehensive tools to understand complex trade relationships. Traditional trade statistics, which rely on gross export values, often obscure the actual value added by countries. The emergence of inter-country input-output tables allows for a detailed examination of value-added flows within international trade networks. These tables track the production processes across different countries, shedding light on how value is added at each stage of production. This paper builds on the gross export decomposition framework developed by Borin and Mancini (2023), which enables a nuanced analysis of value-added in exports. By applying this framework to Iran's economic activities, we can gain a clearer picture of how different sectors contribute to the country's export economy. This approach provides a more accurate reflection of Iran's role in global value chains (GVCs), moving beyond traditional metrics that may understate or overstate its economic contributions. The study utilizes the Inter-Country Input-Output(ICIO) database for the year 2016 which includes Iran, which provides comprehensive data on trade and production relationships among various countries. The ICIO database is particularly suited for this analysis as it captures the interconnected nature of global trade and production networks. The Borin and Mancini (2023) methodology involves decomposing gross exports into three main components: The domestic value-added (DVA), that is value-added exported in final or intermediate goods. This is part of the Domestic Content – the part of exports that originated in the country – and is also a measure of GDP in gross exports or in intermediates absorbed by direct importers. The foreign value-added (FVA) that is value-added contained in intermediate inputs imported from abroad, exported in the form of final or intermediate goods. This is part of the Foreign Content – the part of gross exports that originated abroad. The returned value-added is domestic VA in intermediates exported. By applying this decomposition method, we can analyze the contribution of various sectors to Iran's export economy. This analysis involves several steps: Data Preparation: Extracting relevant data from the ICIO database for Iran and its trading partners. Decomposition Calculation: Applying the Borin and Mancini (2023) method to decompose Iran's gross exports into DVA, FVA, and RDVA. Sectoral Analysis: Examining the results to identify key sectors contributing to Iran's value-added exports. Results and Discussion The results reveal significant insights into the structure of Iran's export economy. In 2016, Iran's gross exports were composed predominantly of Domestic Value Added (DVA), reflecting the substantial contribution of domestic industries to the country's exports. The analysis shows that the oil and gas sector plays a crucial role in generating DVA, given Iran's abundant natural resources. However, the study also highlights the presence of Foreign Value Added (FVA) in Iran's exports. This indicates that foreign inputs are integrated into Iran's production processes, demonstrating the interconnectedness of Iran's economy with global supply chains. For instance, machinery and equipment imported from other countries are essential for Iran's manufacturing sector, contributing to the FVA in its exports. The Returned Domestic Value-Added component, although smaller, provides interesting insights into the circular nature of some value-added flows. This component illustrates how certain domestic value-added returns to Iran after being processed abroad. For example, raw materials exported from Iran may be processed into intermediate goods in other countries and then re-imported for further manufacturing. The application of the Borin and Mancini (2023) value-added decomposition method provides a detailed and nuanced understanding of Iran's export economy. By distinguishing between Domestic Value Added (DVA), Foreign Value Added (FVA), and Returned Domestic Value Added (REF), this analysis offers a comprehensive view of how different sectors contribute to Iran's gross exports. Conclusion The study reveals that while Iran's export economy is heavily reliant on domestic industries, it is also deeply from oil and mining interconnected with global supply chains. Furthermore, the Returned Domestic Value-Added component highlights the circular nature of some value-added flows, illustrating the complexity of global trade relationships. For policymakers and researchers, these insights are invaluable. Understanding the composition of Iran's export economy can inform strategies to enhance domestic industries' competitiveness and better integrate into global value chains. Additionally, recognizing the role of foreign inputs in domestic production can guide policies aimed at improving the efficiency and resilience of supply chains. In summary, the value-added decomposition method employed in this study offers a robust framework for analyzing Iran's export economy. It provides a clearer picture of how domestic and foreign industries interact within global trade networks, offering valuable insights for enhancing Iran's economic performance in the context of global value chains.

Dhamodharan S., Padmaavathy P.A.

Companies in manufacturing industries manufacture or transform raw resources into finished goods. To meet the demands of production, raw materials purchased from suppliers will be stockpiled. A warehouse that keeps products needs correct data for every product transaction that takes place. Processing data has gotten easier because to the advancement of information technology, notably for manufacturing warehouses and warehousing management. For warehousing management to process information reliably and promptly while utilising a system, existing transaction data is required. A warehouse management system is increasingly necessary since it can improve accuracy and efficiency while providing solutions to problems that occur there.

Chenggang Li, Chenggang Li, Ying Yan et al.

With the aggravation of air pollution, the impact of air pollution on the stock market, especially from the perspective of investor sentiment, has been of great concern and widely discussed. Based on data from China's A-share listed firms from January 1, 2016, to December 31, 2020, the relationship between urban air pollution and stock liquidity of listed firms and the internal mechanism is examined. Firstly, based on local preference theory, we start by predicting the impact of air pollution on stock liquidity. We, then, build a regression model for air pollution and stock liquidity, introducing the intermediary effect model to detect the relationship between the two and its mechanism. Finally, by subdividing the samples, we discuss the differential impact of air pollution on stock liquidity under different circumstances. We found that when air pollution worsens it reduces stock liquidity. The results of the mechanism analysis show that investor sentiment plays an intermediary role in the process of air pollution affecting stock liquidity, and pessimism induced by air pollution can reduce stock liquidity. Heterogeneity test results show that there are differences in the impact of air pollution on stock liquidity between heavily polluting firms and non-heavily polluting firms, different industries, different city sizes, and different levels of air pollution, has a greater effect in non-heavily polluting enterprises, manufacturing and other industries, medium sized cities and light pollution. The results of this research have important reference value for environmental protection departments to establish and improve air pollution monitoring systems and for listed firms to improve stock liquidity and deal with the environmental financial risks appropriately.

Omer, Mohammed, Kaiser, Melina, Moritz, Manuel et al.

Similar to open source software, the open source hardware (OSHW) movement is seen as a technology driver which can enable developing economies to leapfrog their industries. While machine tools are a subset of OSHW, they have received relatively little academic attention compared to electronic OSHW. This study applies an explorative research approach and analyses open source designs for machine tools freely available on the internet. By coining, the term open source machine tools (OSMT), it determines their applicability in low resource contexts and identifies the potential of OSMTs in democratizing manufacturing technologies. OSMTs thereby encourage diversification, entrepreneurship, and inclusive industrial development, thus contributing to the implementation of Sustainable Development Goal no. 8 which aims to promote inclusive and sustainable economic growth. Specific areas for OSMT application in low-resource contexts and factors and barriers affecting their success are singled out.

Jennifer M. Cavallari, Rick Laguerre, Jacqueline M. Ferguson et al.

Abstract Background Working time characteristics have been used to link work schedule features to health impairment; however, extant working time exposure assessments are narrow in scope. Prominent working time frameworks suggest that a broad range of schedule features should be assessed to best capture non-standard schedules. The purpose of this study was to develop a multi-dimensional scale that assesses working time exposures and test its reliability and validity for full-time workers with non-standard schedules. Methods A cross-sectional study was conducted using full-time, blue-collar worker population samples from three industries - transportation (n = 174), corrections (n = 112), and manufacturing (n = 99). Using a multi-phased approach including the review of scientific literature and input from an advisory panel of experts, the WorkTime Scale (WTS) was created and included multiple domains to characterize working time (length, time of day, intensity, control, predictability, and free time). Self-report surveys were distributed to workers at their workplace during company time. Following a comprehensive scale development procedure (Phase 1), exploratory factor analysis (EFA) (Phase 2) and, confirmatory factor analysis (CFA) (Phase 3; bivariate correlations were used to identify the core components of the WTS and assess the reliability and validity (Phase 4) in three samples. Results Phase 1 resulted in a preliminary set of 21 items that served as the basis for the quantitative analysis of the WTS. Phase 2 used EFA to yield a 14-item WTS measure with two subscales (“Extended and Irregular Work Days (EIWD)” and “Lack of Control (LOC)”). Phase 3 used CFA to confirm the factor structure of the WTS, and its subscales demonstrated good internal consistency: alpha coefficients were 0.88 for the EIWD factor and 0.76–0.81 for the LOC factor. Phase 4 used bivariate correlations to substantiate convergent, discriminant, and criterion (predictive) validities. Conclusions The 14-item WTS with good reliability and validity is an effective tool for assessing working time exposures in a variety of full-time jobs with non-standard schedules.

Saadollah Andishe, Mohammad Javad Jafari, Fatemeh Fasih Ramandi et al.

The psychometrics of instruments in safety performance evaluation is essential for the accreditation of an organization’s safety evaluation and has been emphasized in many studies. Psychometrics pertains to the validity and reliability of an evaluation instrument and describes its precision and consistency. The aim of the present study was to evaluate the psychometrics of safety level and safety culture questionnaires to provide a reliable and valid instrument for safety performance evaluation in industries. This descriptive cross sectional study was conducted with the intention of psychometric instruments used to evaluate the safety level and the safety climate at the Mapna Pars power plant generator manufacturing and engineering company. The face validity of the questionnaires was analyzed quantitatively and qualitatively. In the quantitative method, the importance of the influence score was applied and the content validity was calculated using the Lawshe method. Content Validity Ratio (CVR) and Content Validity Index (CVI) were also used. For this purpose, elicitation was obtained from experts within the professional health and safety community. The reliability of the instruments was determined via the Cronbach's alpha test and the Interclass Correlation Coefficient (ICC) test. Finally, the standardized questionnaires were used to evaluate the safety level and safety climate of the industry as a case study. The obtained data were analyzed using SPSS software solution v20.  Based on the quantitative face validity results obtained at the Mapna Pars Company, one question was removed from each of the final instruments. The content reliability analysis revealed that the safety level questionnaire had a CRI of 0.99, CVR of 0.91, and was accepted. The safety climate questionnaire had an acceptable CVI of 0.95 and an acceptable CVR of 0.82. Regarding the reliability analysis, a Cronbach's alpha of 0.72 and 0.89 was obtained for the safety level questionnaire and the safety climate questionnaire, respectively. It can be concluded that both questionnaires had an acceptable level of internal consistency. The re-application of the questionnaires after two weeks revealed a relatively consistent safety level (ICC=0.90) and safety climate (ICC=0.74).  Analyzing the data obtained in the present study showed that the safety level questionnaire with 66 questions and the safety climate questionnaire with 93 questions had acceptable validity and reliability. Thus, it may provide a useful approach for safety evaluations in similar industries.

Maamar Benarous, Marlene Trezieres

Magnetic gears are designed to perform in a highly reliable manner, and offer several advantages compared to mechanical gears but difficulties with manufacturing techniques and cost are strong handicaps. In contrast to conventional gears, the contact and lubrication free force transmitting elements lead to a considerable lifetime and range extension of drive systems. In recent years, magnetic gears have been extensively researched and discussed by both academics and engineers from different industries. However, the vast majority of published work on magnetic gearing relates to novel topologies and performance improvement but not on optimisation of cost and weight. With a judicious parametric model analysis, design can be optimised in terms of torque capability, cost and weight. Moreover, the design process is time and cost consuming, but can be also be reduced by the use of modelling methods. An earlier paper addressed the parametric model approach and its benefits, but did not include a comparison between test and simulation data. This study will summarise the findings and present the test data from a magnetic gearbox designed for an aerospace application such as a high lift system.

Chen Chen, Gao Chenhao, Xing Yanfeng

Sustainable lightweight vehicle design has becoming a key trend in the future. A new way to join aluminum alloys and steel sheet. Cold metal transfer (CMT) welding of thin sheet metal products. Determination of equilibrium wire-feed-speeds welding-speeds and arc length. Seam formation and microstructure of CMT were researched. Not only that, but optimum welding parameters were analyzed. Study of welding joint microstructure of compound layer on welding joint. Comparing the steel side of welding seam. The aluminum alloy siding grain size was larger. After tensile test, joint was fractured on the aluminum alloy side. Warp deformation occurred on aluminum side. Displacement of warp deformation became larger along with the increase of welding current. The results reviewed in this article indicate that the aluminum alloy fractured is more preferable to steel. CMT welding has found applications in automobile industries, defence sectors and power plants as a method of additive manufacturing.

Bev Dahlby, Mukesh Khanal

The counterpart to the economic cycle is the policy cycle. Whenever there is a downturn in the Alberta economy because of slumping oil and gas prices, politicians of all persuasions, from Peter Lougheed to Rachel Notley, have called for policies to diversify the economy, on the assumption that expanding other sectors of the economy will insulate Alberta’s economy against volatile oil and gas prices. However, just because a sector is not directly part of the oil and gas extraction sector, does not necessarily make it counter-cyclical. In fact, the sectors that have been promoted in the name of diversification are often linked to the oil and gas extraction sector and follow the same boom-bust cycle.In other words, the government’s attempts to subsidize certain sectors in the name of “diversification” do not insulate the provincial economy from fluctuations in oil and gas prices and may even exacerbate the economic cycle. Missing in the discussion is an appreciation of how changes in the structure of the Alberta economy have affected output and income volatility. In the last 20 years, sectoral output shares have become more diversified in Alberta, and this has contributed to a 21 per cent reduction in aggregate output volatility over that period. Successive governments have tried promoting manufacturing as a way to diversify the economy, but manufacturing is the third most volatile sector, and its volatility is linked closely with the boom-bust cycles of the oil and gas extraction sector. So, increasing manufacturing, including petrochemical manufacturing, will actually make output volatility worse, not better. In fact, a one standard deviation increase in average per capita output in the oil and gas extraction sector is associated with in a 9.45-per cent increase in average per capita output in the chemical manufacturing subsector, suggesting the same boom-and-bust relationship between the two sectors. It is not the only sector like that: 16 other sectors in Alberta are linked to the same boom-bust cycle as the oil and gas sector. The more important diversification issue in the province is not output volatility, but the volatility of labour income. In the last 20 years, labour income has become increasingly concentrated in Alberta’s two most volatile sectors, oil and gas extraction and construction. As a result, volatility of aggregate labour income in Alberta increased by 40 per cent during that period. Rather than trying to change Alberta’s industrial mix by subsidizing industries that may only contribute to more volatility of economic output, a more sensible government approach would be to adopt policies that address the problem of labourincome volatility. That would include finding ways to expand unemployment insurance for Alberta workers, as the current federal government policy actually provides fewer supports to unemployed Albertans than it does to residents of other regions. Average weekly earnings of Albertans were 20 per cent higher than national average weekly earnings over the 2012 to 2016 period. However, maximum annual insurable earnings under EI are determined based on national average weekly earnings. Higherwage earners should have the opportunity to enrol in a voluntary supplemental EI program, and if the federal government does not want to provide it, the provincial government could. Additionally, the government can promote self-insurance among workers by expanding tax-sheltered savings products, like tax-free savings accounts, so workers can accumulate back-up funds when labour incomes are high, to help sustain them during downturns. Finally, the provincial government needs to abandon its procyclical spending patterns. That means spending less money when oil revenues are high, to avoid exacerbating labour and material shortages, and maintaining spending, rather than forced cutbacks, during downturns in the economy. That, of course, would require a great deal more political discipline than the easier and more fashionable attempts to subsidize output diversification.

Jari Kaivo-oja, Saku Vähäsantanen, Ari Karppinen et al.

In the European Union, smart specialization is an important concept in regional policy. Its primary aim is to achieve inclusive and sustainable economic growth. There is a lack of convenient region specific measures to operationalize smart specialization startegies (S3). The purpose of the paper is to find “indices of smart specialization” on a regional level. We propose indices that are based on (1) the rate of industrial diversification, (2) revealed comparative advantage and (3) regions’ overall relative specialization. In the empirical part, we analyze smart specialization in Finland using structural data provided by Statistics Finland for seventy sub-regions (LAU1) and 24 sub-industries in manufacturing. These industries are the most important for exports, productivity, and regional economic performance for a small country. The following indices are used in empirical evaluations: Herfindahl-Hirschman Index (HHI) for regional diversity, Balassa-Hoover Index (BHI) for revealed comparative advantage, and Region’s Relative Specialization Index (RRSI) for aggregate regional specialization differences. The concept of smart specialization is related to these measures. Index analyses reveal that many growing sub-regions have similar comparative advantages. This means inter-regional synergy, and it enables opportunities for strategic cooperation between regions. To develop smart specialization strategies for Europe’s regions, we need these kinds of empirical knowledge-based management tools and planning approaches.

Shah Satya, Ganji Elmira, Hasan Syed

Environmental sustainability in manufacturing sector has been allocated a major consideration in the international literature. Due to growing concerns over the high effect of SMEs on world manufacturing industries and their contribution to pollution; this research attempts to focus on the key parameters that interact in the application of environmental management system, taking into account the main features of SMEs and also the integral role of industrial entrepreneurs in inspiring their firms’ approaches. The paper explores the potential opportunities which enable these enterprises to move towards organizations with high level of responsibility regarding environmental protection in order to provide a healthier life for future generations. Case investigation is carried out on an adhesive manufacturing company, which covers a notable market share within the sector. The research identifies that the company requires developing both internal and external entities within an explicit plan to revolutionize the recruitment patterns. Given the lack of adequate studies in adhesive technology, more researches are recommended in the future to consider the sustainable innovations on a broader sample of adhesive manufacturing companies to perform the life-cycle analysis due to the harmful organic compounds and toxic vapours of the adhesive products.