Repair, don't replace: advantaging local labor over cheap energy and infinitely mobile capital

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Mark Maynard and MM.com reader Jim ask how we can convince our US Representative, the incoming Chair of the Energy and Commerce Committee, John Dingell to take global warming seriously. Mark says,

While I realize that, given his constituency, he may not be as gung-ho as I am to see fuel-efficiency standards substantially raised and a gas tax implemented (both which would seriously piss off his automotive industry base), I have to think that there may be some wiggle room with regard to what he can get away with. Given the growing awareness of both the true cost of our nation’s dependence on foreign oil and the environmental implications of burning fossil fuels, the cost of supporting such legislation, especially if done in concert with a multi-billion-dollar initiative to fund alternative energy research at the federal level, may not necessarily mean political suicide.

As an aside, I think that political suicide would be a neat trick for Dingell to pull off. He's so established that the Republicans don't even run symbolic opposition against him anymore, and well-enough liked that the Greens, Libertarians, and Natural Law candidates can't even pull votes away from him. He was just reelected by 90%+ of the vote, a claim that you usually have to be Castro, or some other ruler with dictatorial control of the election process to make. I think he can safely do a lot more than he has.

But also, as I pointed out in a comment to MM's post, reducing our dependency on cheap energy doesn't have to involve economic sacrifice. That belief relies on the assumption that reducing energy demand can only be done by raising fuel efficiency standards, which would disadvantage American automakers, which would cost Michigan manufacturing jobs. News flash: we don't need to do anything at all to cost Michigan manufacturing jobs. They're going away, without any effort on our part regarding fuel efficiency necessary. But I don't think even that is the way to combat the "energy efficiency will cost us jobs" mantra. I think this attitude needs to be reversed - we can change our economy in ways that will provide local jobs, and, as a bonus, this will reduce our energy use. Don't try to argue with the mantra - flip it over and shake it like a snow globe.

Here's my rambling, pre-coffee comment to that effect on MM.com, in which I go all Cradle to Cradle / Natural Capital, with a dose of Wendell Berry thrown in for flavor:

I think we just need to ask:

* What's the trend look like on the locations of auto manufacturing jobs?

* How much energy are we burning for the privilege of shipping jobs overseas and cheaply produced cars back?

It pained me deeply to see Granholm and DeVos arguing over which could better bring back the auto industry with tax breaks - I think that time in Michigan's history is past, unless we want to dismantle every labor and environmental protection and every social program we've got. We need to work within new models.

My answers to the above questions, "Going, going, gone," and "Way too much."

And it's not just shipping cars here from the third world that burns energy unnecessarily, but the creation of new cars in the first place. The one-way product lifespan of manufacture -> ship -> use up -> junk is hugely energy (and resource) wasteful.

I'd like to see Dingell (and the rest of us) consider a model that egpenet will find quite familiar: repair, don't replace.

With a product lifespan that looks like manufacture -> ship -> use <-> repair, we benefit twice. First, we save loads of energy on the manufacture and ship stages, even before we consider things like fuel efficiency, in the use stage. Second, repair is a strictly local phenomenon, and relies on human intelligence, skill, and labor rather than on capital and cheap energy. We will never be shipping our cars to China for mechanics.

What would happen if we built our cars to last for 20 years, rather than 4, and hired people to repair them as needed, rather than junking and starting over? I believe it's BMW that, years ago, started barcoding every part on the vehicles. Because some European countries require deposits on cars (while we still argue about bottled water), BMW gets their used cars back, at which point they can disassemble them and put the still-good parts back into the manufacturing or repair streams - they're replacing capital and energy with labor! My bicycle is 20 years old; faraway capital and materials expenditure plays much less a part in this than paying for a local tune-up every once in a while and judiciously replacing worn parts. The same thing is possible with cars, if we get over our disposable attitude.

But why limit the discussion to cars? Why not look for further opportunities to repair, rather than replace, and thereby direct our consumption dollars back towards local labor, and away from distant capital and cheap energy?

Quick question: you all know Michigan is the number 1 cherry producer in the US. Sure, that's easy. But how about #2 in asparagus, after Washington? How about #3 in apples? (WA, NY, MI, CA, PA) Washtenaw County is Michigan's leading producer of sheep, no less. But when was the last time you saw Michigan asparagus, apples, or lamb chops in the grocery store? You probably have no idea.

If you did see such a thing, it was probably asparagus that was picked in Michigan, but shipped off to some processing plant in Colorado, where it was mixed with asparagus from all over the world for processing, freezing, and showing up in anonymous supermarket bags. And, at that point, the global system will replace expensive Michigan labor with cheaper south american labor (note: even within Michigan, actually) and cheap energy. If we let our food be anonymous, then agriculture, Michigan's second largest industry after manufacturing, will wither just as manufacturing has, victim to the mobility of capital allowed by cheap energy.

Let's move on to housing. Obviously, living in an old house is environmentally the best thing you can do, both in terms of material use and locationally. One neat thing that's popped up in New Orleans, though, is a new prevalence of home deconstruction, on the other end of the lifespan. Even in a house that's been rendered unliveable by flooding, 85% of the material can be salvaged for reuse if the house is deconstructed rather than bulldozed. Sure, yes, deconstruction takes a little longer, and requires more labor - but the increased labor requirement comes in exchange for reduced landfill space and also a chance to use materials you already have in construction or remodeling, rather than buying new ones from distant places or cutting down trees. (Note: tourism is the third of Michigan's big three industries - preventing landfilling and intensive resource harvesting is a good thing there, too.) Here, again, is a way to spend less on distant capital and cheap Saudi energy, more on local labor.

I don't know if this is even readable. It's early yet, and I'm just having my coffee. But hopefully my gist is clear - we can't pull back manufacturing based on a model of cheap production. We have to look for ways to tip our spending, societally, towards repairing, reclaiming, and reusing - things which are more dependent on local labor, less on big business's capital and the cheap energy model of lowest-cost labor manufacturing.

Skimming through, the food piece is nearly completely unrelated to the rest of this - but I can't possibly rant about economic relocalization without talking agriculture, especially in Michigan. Having consciously invoked McDonough, though, I can now use the "waste = food" model to tie that in a little. How much of our landfill-bound wastestream is biodegradable? (Read: compostable.) And how much oil do we import in the form of fertilizer? (Lots.) And, meanwhile, Michigan is gridlocked over feedlots, with concern over manure on the one hand countered with a charge of economic harm on the other? Okay, so lets make that manure an asset, rather than an environmental liability, make all of our compostable garbage an asset, rather than a landfill consuming liability, and stop importing all that oil that we use for fertilizer. Ta-da! We just addressed three issues at once, and improved our local economic balance sheet in the process!

So the real question here is not, "How do we convince Dingell to think about reducing energy use", but, "What policies can Dingell push for to advance this relocalization of our economies?"

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Repair Don't Replace

Dear Mr. Dingell:

Following the lead of the Secretary of the Interior's Standards for Historic Preservation ... the principle of "repair, don't replace" can be directly and indirectly applied to the significant issues of the Michigan and U.S. economy.

1 - Your electoral "debt" is to the individual voters of Michigan, NOT the corporate (auto, industrial) bodies. Therefore, your #1 target should be jobs. My 1992 Ford Aerostar van has nearly 209,000 miles and just received its second new battery. My neighborhood mechanic (Conley's Auto, Washtenaw @ Washington)gratefully appreciates my hanging on to that van and has dutifully kept it oiled, fused, belted and otherwise well-maintained all this time. The "best" thing about Fords and Chevies, alike, is parts availability and easy repairability. If the Ypsilanti "Car Shows" and the last 30 years of history on the island of Cuba have taught us anything is ... these old cars will last and last if well-taken care of. Dutiful owner maintenance and TLC, combined with resistance to the latest "Clearance" advertising could keep the fleet going for a long time.
2 - For those companies that complain that new car sales are critical, I agree that eventually the "fleet tires," new technology trumps the old, and new buyers come along who want good personal transportation alternatives versus buying a "previously abused" car or truck. Sadly, not all of us are dutiful stewards. In these cases, I recommend that we encourage organizations who are on the leading edge to come to Michigan. Give Honda, Toyota or Kia the tax breaks, Senator. Why give breaks to GM or Ford or Chrysler, if they insist on recreating the 60s, 70s, and 80s. Or, start a real competitive war, Senator, by offering tax relief to the first company to break the 40mpg fleet average. Rewarding the workers, by bringing jobs into Michigan (U.S.) from companies who ALREADY are leading in technology may prompt the Big Three to think twice.
3 - Commuters, too, need your attention, Senator. American industry once built railroads, street cars and buses. Our automobile fleet WOULD last longer if we didn't have to punish our cars and trucks with excessive daily roundtrip commutes. In Japan, most cars and trucks are used for weekend or vacation use ... featuring reclining seats that become beds, extra outlets for camping equipment and computers. Shopping, commuting and most travel is made by public transport in subway train cars, buses and vans/taxis made by the same giant kiretsus that export cars to the world. And in these cases, as well, the workers don't care what they are making ... only that they have jobs. GM Truck and Bus Group USED to make buses, train cars, tractor trailers ... and when they stopped doing so ... Flint, Michigan died.

In summary ... the workers who gave you back your chairmanship want jobs. They don't give a hoot who they are working for if they can use their skills to do honest work for good pay and enjoy their lives, meaning once again that they can look forward to their children having a viable economy in the future. If Ford, GM and Chrysler won't step up ... YOUR job, Senator, is to bring those companies to Michigan that will ... and, sir, you have our votes in your hip pocket to give them whatever they want!

A few months ago, Mark

A few months ago, Mark Maynard linked to video of a speech Al Gore made at (I think) the NYU law school. A great speech, but one thing that really lingered with me was about decreasing industrial pollution levels. He pointed out that, in the long run, mandating lower pollution levels is good for businesses. Put shortly, pollution is waste. It might cost more initially, but if done wisely, eliminating pollution means higher efficiency, lower energy bills, and higher profit.

I think the food talk was definitely related, Murph. Something I took home from the downtown business meeting a couple of weeks ago was the focus on synergy. If we start pursuing the really good ideas, I think they will bounce back and benefit other, seemingly unrelated, good ideas.

The lower pollution ->

The lower pollution -> higher efficiency idea is something I've definitely seen before, and something I've worked in above, if not explicitly.

Various environmental business writers point out that European nations and Japan have much higher energy costs than the USA - while our legislators claim that raising CAFE standards will cost our automakers their competitive edge. The overseas competitors are not getting the upper hand despite their higher energy costs (in effect, a market-mandated pollution reduction) but, in fact, in some part because of it.

I believe it was Bush I who signed the legislation requiring cap-and-trade schemes for SO2 and NOx; this legislation was expected to reduce emissions at a certain rate in a certain timeframe and have a certain cost, but ended up cutting emissions drastically faster and at a much lower cost. (Sorry for the unconvincing assertion; this is something I remember from a book.) This is the same phenomenon: by imposing a limit on emissions, but not prescribing any fix, business is forced to increase its operating efficiency, but may employ whatever means it desires to do so - spurring innovation.

I would definitely recommend "Cradle to Cradle" and "Natural Capital", mentioned above; they're among the core of my economic heresy. :) (Though note that McDonough, co-author of C2C, helped redesign Ford's now-"green" River Rouge plant - these ideas are not totally alien to American industry.)

Pollution = Waste

Yes, foreign companies ARE subsidized by their governments and can operate abroad AND here at lower cost ... what's more, their "legacy" costs are far lower versus our older workforces and larger pool of living retirees. However ... Edward Demming, Dick Geneen (ITT), and books like "Quality Is Free" from a generation ago, even Henry Ford I, proved that innovations in process management created savings in energy, dollars and waste.

Dingells has to be made to see the wisdom in "benchmarking" the best technologies and recruiting them to Michigan ... and if Ford fails, they fail. In the meanwhile, our workers, who are some of the best in the world will have employment. Who cares what name is on the building?

I had dinner this evening with a young German woman raised in the former East Germany, who is technically trained along with her husband in quality process management. They are consulting here in the US and Mexico with autombile and aerospace companies (via his small company). Dingell could open up those same opportunities for our kids if he'd stop protecting the old technologies and outmoded processes. Our guys and gals can invent, machine and build anything. Give us a shot, John.