Being There
The Venture Magazine|February 2020
THE SUBSCRIPTION MODEL IN MANUFACTURING MAKES RELATIONSHIPS MORE IMPORTANT THAN EVER
A. SELWAY RYAN
Being There

Manufacturers are oldschool. They believe in concrete things — literally and figuratively — and they take pride in the immutability of what they make and how they get things done. Wary of fads and conscious of their work’s social impact, they’re not eager to sour the relationships they’ve built as painstakingly as everything else.

The proliferation of subscription services does not conjure up the same worldview. It’s a model brought to bear by the move-fast-and-break- things ethos of high tech, and the manufacturer’s ethos is quite literally the opposite. With as many as 70% of consumer-facing companies inaugurating a subscription-based model, the ubiquity of the change is daunting. Given its traditionalist inclinations, the received wisdom is that manufacturing is not easily tailored to the suit. But the numbers tell another story, with manufacturing subscription companies exceeding their S&P 500 benchmarks by a factor of five.

Reluctant consumers have enjoyed the benefits of the subscription model in our daily lives while living with the feeling that we’re being used. Fortunately, it’s a feeling we’ve all become accustomed to when it comes to the glittering artifacts of entertainment and high tech. It’s not the same feeling we’d be willing to live with when it comes to a building’s superstructure.

What may seem like a scheme for leveraging user data and destabilising the marketplace to short-term advantage, however, is growing into something more lasting. The underlying quality — the one that’s now being brought to the fore by manufacturers — is the sense of being there for their clients, all the way through.

ALWAYS BEING MADE

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