The (High) Price Of Change
Friday, October 30th, 2009The price of gasoline at the pump is creeping up again. In fact, it’s almost 50% higher than a year ago, when the economy was in a major slump.
While this may make the average consumer cringe, it’s enough to start revving the engines of change for low-power engineering again. Higher oil prices will reinvigorate interest in energy-saving automobiles and consumer devices that can get better mileage and better battery life, respectively. They also will feed into a slew of industrial products aimed at lowering power bills and saving the planet. (Well, maybe save the planet, depending on just how strict the rules become in developing economies.)
Some of the momentum toward these changes faded during the past 12 months as oil prices dropped and the economy hit bottom, but with growth returning that should change. Companies still need to cut the power consumption of their data centers, which now consume so much power that the cost of cooling machines actually exceeds the cost of the hardware. And cars that can run on electricity and/or some other type of fuel are expected to start rolling out the door in 2010.
The hurdle that needs to be overcome is price, and that’s where economies of scale come in. It requires widespread adoption to knock prices down to what’s required for mass-market adoption, which is something that never happens in a downturn. But in an upturn, given the rising cost of energy and the fact that many companies and consumers have held off on all but the most necessary purchases, things can change dramatically.
That includes everything from new types of light to variable-speed motors, research into stronger and lighter materials and re-engineering just about everything on the planet for lower energy consumption. All of this is poised to change in the next 12 months, which like all upturns has a remarkable brainwashing effect when it comes to memories of a downturn. Fasten your seatbelt.
–Ed Sperling
