Tag: May 2014

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African Hotel Boom Bringing in New Investment and Creating Jobs

Post author By David South Consulting
Post date 20/10/2022
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By David South, Development Challenges, South-South Solutions

Africa is experiencing a boom not seen for decades. The IMF forecasts economic growth in sub-Saharan Africa of 6 per cent in 2014, compared to global growth of 3.6 per cent.

And this boom is getting an additional jolt of support from the world’s multinational hotel chains. January 2014 saw Africa’s largest hotel chain bought by global giant Marriott (marriott.com). For decades major global multinationals shied away from Africa, but today they are battling to get a place in Africa’s fast-growing economies and to serve the growing middle classes.

Marriott is leading the way by investing US $1.5 billion in 25 new hotels equalling 5,000 rooms. To boost capacity further, Marriott is taking over South Africa’s Protea group (proteahotels.com) and its 116 African hotels.

“We have 25 Marriott brand hotels under construction in seven countries in Africa that will come on stream over the next four years,” Alex Kyriakidis, the chain’s president for the Middle East and Africa, told Bloomberg (bloomberg.com).

The new hotels “are going to bring us into Benin, Gabon, Ghana, Ethiopia and Mauritius. With our existing hotels plus those in the pipeline and those Protea operates today, we will be in 16 countries in Africa by 2017.”

Bloomberg calls what Africa is experiencing the “fastest pace of hotel development in the world”.
“Our mission here is to grow, grow, grow,” according to Kyriakidis.

Meanwhile, a further boost is coming from the US $5 billion Angolan sovereign wealth fund, Fundo Soberano de Angola (fundosoberano.ao/language/en/). It will be investing in hotels and commercial infrastructure in sub-Saharan Africa, according to Bloomberg. This could include 50 sub-Saharan African hotels in the next three years.

“We believe there’s a lot of investment interest in Africa,” said Chairman Jose Filomeno dos Santos. “It has a lot of mineral potential, almost a commodity hub. We believe this interest will remain there for the coming years.”

Little thought is given to the role hotels play in development, yet they are a critical development tool for any country wishing to move up the economic ladder. As the quality of hotels improves, they tend to become key gathering and meeting places. Conferences and seminars can act as catalysts for change, attracting people from around the world. When quality hotels are in place, then the top-drawer global conferences will come to town, in turn bringing new tourist income for local businesses.

Anyone who has stayed in a hotel in Africa knows that standards are variable: the pool with dirty water, the power cuts, the food hygiene standards that might not match what people are used to at home. This is what international hotel chains can change. Not only do they demand the highest standards in their own establishments, they also push up standards at local competitors, as all of them battle for the attention of visitors.

Africa has been overlooked by the large global hotel chains and brands since the end of the colonial period in the 1960s and 70s. Africa was considered too poor, too chaotic, too dangerous and too much hard work for it to be worth the effort.

But now the tune has changed. With Africa’s population over a billion, and many of the continent’s economies experiencing rapid growth while also urbanizing, conditions are fortuitous for the hotel trade.

The situation has changed in the last decade, for a variety of reasons: debt relief, a rise in commodity prices, expanding trade and investment with China and the global South, and a growing middle class — all slowing the growth of poverty. Africa is still notorious for under-investment in infrastructure and has a long way to go to catch up to the fast-moving economies of Asia. But greater optimism is leading to greater real investment. And the world’s large hotel brands are the latest to join in the rush to Africa.

Large chains including Four Seasons, Ritz-Carlton, Hyatt and Kempinski hope to open 300 new hotels in Africa over the next five years. The number of hotel beds is set to increase by 30 per cent by 2018.

Four Seasons Safari Lodge Serengeti in Tanzania (http://www.fourseasons.com/serengeti/) is the first investment in Africa by the Canadian brand. Four Seasons is known for its luxury, upmarket city hotels and has kept with this tradition by building the largest and most luxurious safari lodge ever built in Africa.

This is having a knock-on effect on African hotel operators. The surge in investment is giving these local operators the right incentives to create African brands and to raise their game.

Nairobi in Kenya has become something of a test market for high-end boutique hotels. Already a city benefiting from its status as an international development hub, home to many agencies including the UN Environment Programme’s sprawling and verdant headquarters (unep.org), it has also become a corporate headquarters for Africa and has a large U.S. presence (nairobi.usembassy.gov). This means lots of people coming to the city to do business and attend events, creating a market for better quality accommodation.

The Kenyan-owned, 156-room Sankara Nairobi Hotel (sankara.com) boasts of having the best wine list in Africa and claims to be a five-star hotel. It also capitalizes on being close to the international airport and the UN’s Nairobi headquarters.

“There’s an appetite for something local that’s different and, for the first time, there’s the confidence and funding to bankroll new developments,” said Sankara Hotel Group director Rohan Patel to Wallpaper Magazine. “Africans don’t want a theme-park African hotel, with prints of ‘the big five’ on the wall. That’s condescending. Nor do they want a New York-style hotel. They’ve probably been to New York. They want modern, connected Africa.”

Elsewhere in Nairobi, the Kenyan-owned Tribe Hotel (tribe-hotel.com) is looking to expand to meet growing market demand.

“The market for new, authentic, yet modern African hotels is growing,” manager Michael Flint, who previously ran New York’s Ritz-Carlton, told Wallpaper.

“We’ve been so successful here we are building a new 187-room hotel in Nairobi. We’ve taken over a boutique hotel called Westhouse (westhouse.co.ke). And we’re looking to expand further, with properties at the airport and on the coast. Who knows what will be next? Tribe will be a mini empire.”

In Rwanda’s capital Kigali, the Rwanda Marriott has ambitious plans. Rwanda was ripped apart by ethnic genocide in the 1990s that killed an estimated 500,000 to 1 million people (http://en.wikipedia.org/wiki/Rwandan_Genocide). Now, the country’s economy is booming and its hotels are getting an upgrade.

The Akilah Institute for Women (akilahinstitute.org) in Kigali has been helping in training women for the hotel sector. They sent trainees to Dubai and Doha to learn how to do hotel service the Marriott way.

Starwood (starwoodhotels.com), a competitor to Marriott, is hoping to grow its African hotel investment by 30 per cent as well. It will be done through the Sheraton, Aloft, Le Meridien, St Regis and Four Points brands. The first St Regis has already opened in Mauritius.

Neil George, Starwood’s head of African development, believes “Africa is the final frontier. It’s adventurous.

“I would rather arrive in Kinshasa and work out how to do a hotel there than do it in Frankfurt,” he told Wallpaper.

The Hyatt (hyatt.com) brand is now running the Hyatt Kilimanjaro Hotel in Dar es Salaam (http://daressalaam.kilimanjaro.hyatt.com/en/hotel/home.html), Tanzania. Peter Norman, Hyatt’s African head, is working on opening a Park Hyatt in Zanzibar (http://zanzibar.park.hyatt.com/en/hotel/home.html) and another Hyatt Regency (http://investors.hyatt.com/phoenix.zhtml?c=228969&p=irol-newsArticle&ID=1863203&highlight=) will open in Arusha and a further 140-room Hyatt in Senegal (http://investors.hyatt.com/phoenix.zhtml?c=228969&p=irol-newsArticle&ID=1863204&highlight=).

The 200-room Villa Rosa Kempinski in Nairobi (http://www.kempinski.com/en/nairobi/hotel-villa-rosa/welcome/), boasting an outdoor heated pool, and the Olare Mara Kempinski (http://www.kempinski.com/en/masai-mara/olare-mara/welcome/) luxury camp in the Maasai Mara will also be joined by projects in Ghana and Equatorial Guinea.

Kempinski also has properties in Chad and the Congo, has bought the Hotel des Mille Collines (https://www.millecollines.net/) in Kigali and aims to operate 20 hotels across sub-Saharan Africa.

British entrepreneur Richard Branson has the Mahali Mzuri in the Maasai Mara and it is seen as a stylish role model for other hotels. The local landowners and herdsmen have been included in the business, benefiting from the hotel and helping to preserve the local ecosystem.

EasyHotel (http://www.easyhotel.com/news/2011/africa0.html), a low budget hotelier, is also rapidly expanding across southern Africa.

Published: May 2014

Resources

1) Catererglobal.com: Catererglobal.com offers a unique service that provides an easy-to-use, specific recruitment website for vacancies in the world’s best hotels and cruise ships. Website: http://www.catererglobal.com/jobs/africa/hotel/

2) South African hotel jobs: HotelJobs South Africa is an industry specific job website for the hotel, hospitality and catering industry. Website: http://www.hoteljobs.co.za/

3) Hotel Staff Africa: Many hotel jobs across Africa. Website: http://www.hotelstaff.co.za/

4) Hotel Career: Many hotel jobs for the Middle East and Africa. Website: http://www.hotelcareer.com/jobs/middle-east-africa

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

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3D Printing Gives Boy a New Arm in Sudan

Post author By David South Consulting
Post date 26/09/2022
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By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

3D printing is rapidly going mainstream and is now starting to make a big impact in health care. One innovative solution is using the technology to manufacture artificial arms for amputees harmed by war in Africa.

While large-scale manufacturers use the machines to fabricate products and parts, from aircraft components to furniture, it is the smaller-scale use of 3D printing machines that has been getting many working in development excited.

3D printing (http://en.wikipedia.org/wiki/3D_printing) usually involves a desktop-sized fabrication machine that builds a three-dimensional object following instructions from a digital computer file. It is an additive process, in which material is laid down in successive layers to create an object. The technology has been around since the 1980s but only became affordable for the general public in the past five years. Typically, 3D printers are used to make prototypes — for example architectural models or machine parts — or to manufacture one-off objects without the need to turn to mass production methods. But the technology is evolving quickly and, according to The Guardian, “20% of the output of 3D printers is now final products rather than prototypes.”

For international development, 3D printing offers the potential to close the gap between what is available in developed and developing countries. Just as the Internet has closed the knowledge gap, and enabled people around the world to access news and knowledge at the same time, so 3D printing could make it possible for technological innovations to be available everywhere. Just upload the digital plans for an object, and people can download them and print the item, wherever they are.

Some of the more enthusiastic proponents of 3D manufacturing see it as a game-changer in access to technology. They argue it could eliminate material want and place the power of manufacturing in the hands of billions, in the same way the rapid proliferation of mobile phones and the Internet transformed access to information. That is the dreamers’ dream, but it is closer than many think.

The conflict in the new nation of South Sudan, which separated from the Republic of the Sudan in 2011, continues and involves UN peacekeeping forces (http://unmiss.unmissions.org). The violence has killed over 10,000 (International Crisis Group) and injured many more, ruining lives through lost limbs and capabilities. One young boy, Daniel Omar, 16, lost both his hands while trying to use a tree trunk to shield himself from an exploding bomb. Losing his hands was devastating enough, but he was also so depressed at not being of full use to his family that he wished he had died that day.

He is not alone in being harmed by the conflict. In total, an estimated 50,000 people in South Sudan are physically disabled, according to the International Committee of the Red Cross (ICRC).
Prosthetic limbs are very expensive and so far are not a priority for medical services in the country. Saving lives is the priority, with rehabilitation an expensive luxury.

This is where Not Impossible Labs (notimpossiblelabs.com), based in Los Angeles, California, came in. The non-profit startup founded by Mick Ebeling specializes in “crowd-sourcing to crowd-solve previously insurmountable healthcare issues.” The solutions are then made public on the Internet and explained in online media to help innovators either replicate the solutions or be inspired to come up with their own ideas.

The lab’s ingenious solutions include BrainWriter – a way to draw using brainwaves and a computer mouse that can allow disabled artists to carry on creating. Not Impossible Labs also developed a high-tech cane for the blind that draws on sonar technology and a laser to navigate the terrain and foresee upcoming obstacles.

Emotionally touched after learning about Daniel’s plight, Ebeling decided to act.
“I’ve got three little boys,” Ebeling told The Guardian newspaper. “It was hard for me to read a story about a young boy who had lost his arms.”

Project Daniel (http://www.notimpossiblelabs.com/#!project-daniel/c1imu) set out to manufacture artificial hands for Daniel without him having to leave his country and his family. Daniel was living between the Yida refugee camp in South Sudan and his home in the Nuba Mountains.

A team from Not Impossible Labs set up the 3D printing lab in the Nuba Mountains and trained and supervised the local team to print two prosthetic arms. The design for the arm was done in the U.S. at its headquarters in Venice, California and is available for free and is open source (http://en.wikipedia.org/wiki/Open_source). A “dream team of innovators” were assembled – including the South African inventor of the Robohand (http://www.robohand.net/), an Australian MIT (Massachusetts Institute of Technology) neuroscientist and a 3D printing company owner from Northern California – to crowd-solve the challenge of making a 3D-printable prostheses. A precision engineering company, Precipart (precipart.com/home), and Intel were also drafted in to support the project.

Not Impossible believe the spirit behind the project will be globally transformative.

“We are on the precipice of a can do maker community that is reaching critical mass,” said Elliot V. Kotek, Not Impossible’s content chief and co-founder. “There is no shortage of knowledge, and we are linking the brightest technical minds and creative problem-solvers around the globe. Project Daniel is just the tip of the proverbial iceberg.”

Daniel’s new artificial arm and hand took a 3D printer several days to make and cost around US $100.

In November 2013, Ebeling travelled to South Sudan with all the equipment required to “print” Daniel a new arm: 3D printers, spools of plastic and cables.

The plastic arm printed by the 3D printer works by allowing the wearer to flex what remains of their arm to pull various cables that act as ligaments, like in a real limb. When the user flexes and bends, the cables pull back and in turn make the fingers close and open.

It is not a solution for every amputee. “With the technology we currently have it’s hard to help people with no arm left,” said Kotek. “There needs to be at least a little bit of a stump.”

Shy at first, once Daniel saw the arm, he was transformed. “It was a pretty amazing thing to see this boy come out of his shell,” said Ebeling. “Getting Daniel to feed himself was a highlight that was right up there with watching my kids being born.”

Even more impressive has been the quick adoption of the technology by the local doctor, Dr. Tom Catena, who performs all the amputations in the area.

With two 3D printing machines left behind by Ebeling, Dr. Catena has been able to print a prosthetic arm a week.

The machines mostly work at night when it is cool. The printer parts are then assembled by eight local people trained to operate the machines and build the arms.

But how do they ensure, over time, this 21st-century technology doesn’t just fall into disrepair and neglect as has been seen time and again with other attempts at technology transfer? Weekly phone calls are made to check on the project and the plastic used to make the arms is sent directly from Not Impossible Labs.

And then there is community buy-in.

“At first these kids wanted arms that matched their skin tone, because they didn’t want to stand out,” said Kotek.

But in time the youths have been decorating the arms in many colors and customizing them. And the arms have been given a name: the Daniel Arm.

Published: May 2014

Resources

1) The pioneer behind developing 3D technology has been the Massachusetts Institute of Technology’s Fab Labs based in the United States. It has been running experimental “Fab Labs” across the global South for the past few years, experimenting with ways to apply this technology to the challenges of development and to use this technology to turn people on to the power of technology to solve problems. These experiments have explored how a 3D printer could print everything a small community could require but would otherwise be expensive or difficult to purchase through normal markets. Fab Lab is the educational outreach component of MIT’s Center for Bits and Atoms (CBA), an extension of its research into digital fabrication and computation. Website: http://fab.cba.mit.edu/

2) 3D Systems: 3D Systems envisions a future in which 3D printing will return humanity to a heritage of personalized, localized craftsmanship and improve quality of life. A new industrial revolution changing the human experience from health care to entertainment. Website: 3dsystems.com

3) MakerBot: MakerBot makes a range of 3D printers for consumers. Website: makerbot.com

4) Stratasys: Stratasys manufactures 3D printing equipment and materials that create physical objects directly from digital data. Its systems range from affordable desktop 3D printers to large, advanced 3D production systems, making 3D printing more accessible than ever. Website: http://www.stratasys.com/

5) 3D Printing and Technology Fund: The Fund seeks long term capital appreciation through focused investment in global 3D printing and technology companies. Website: http://www.3dpfund.com/

6) Digital Revolution: An Immersive Exhibition of Art, Design, Film, Music and Video Games: Running from July to September 2014 at the Barbican Centre in London, UK. Website: https://www.barbican.org.uk/bie/upcoming-digital-revolution

https://davidsouthconsulting.org/2021/03/02/new-3d-technology-makes-innovation-breakthrough-and-puts-mind-over-matter/

https://davidsouthconsulting.org/2022/09/26/3d-home-printing-landmark-10-houses-in-a-day/

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Tags 2014, 3D, 3D printing, 3D Printing Gives Boy a New Arm in Sudan, David South, David South Consulting, Development Challenges, development challenges south-south solutions, May 2014, science and technology, South-South Solutions, Southern Innovator magazine, Star Trek, UNDP, United Nations, UNOSSC

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Brazilian Design For New Urban, Middle-Class World

Post author By David South Consulting
Post date 29/08/2021
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By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Countries across the global South are experiencing rapid urbanization as people move to cities for better economic opportunities — and this massive social change is creating new business opportunities. Those who recognize how fundamentally people’s lifestyles are changing will be those who will benefit from this big shift in populations.

Finding ways to live well in urban areas will be critical to determining whether this move repeats past urban failures — from the favelas of Brazil to the slums of India — or introduces a new way of living that is exciting and colorful. Design and designers will be critical to this change.

One young design company in Brazil, Sao Paulo-based furniture studio NUUN (nuun.nu), is attempting to resolve a dilemma common across the rapidly urbanizing global South: How to create a design aesthetic that fits with the new way of living and being?

The company consists of designer and founder João Eulálio Kaarah and architects Renato Périgo and Carolina Sverner.

Périgo specializes in furniture and interior design, while Carolina Sverner worked with respected Japanese architect, Shigeru Ban (shigerubanarchitects.com), who is well known for designing buildings and houses made from paper and for creating easy-to-build homes for people after a disaster has struck (http://www.ted.com/talks/shigeru_ban_emergency_shelters_made_from_paper).

A collaboration among upcoming artists, designers and architects, NUUN tries to infuse its designs with a sense of “brazilianness”. Brazilianness is a modern aesthetic, made for modern lifestyles in the new urban landscape, that draws on aspects of Brazil’s culture and environment.

The young studio’s first collection of furniture offers simplicity. Called Eos, it tries to blend urban cosmopolitanism with raw nature. Brazil is known for its jam-packed urban cities as well as its vast expanse of Amazon rainforest. In practice, NUUN’s look is a mix of contrasts redolent of what used to be called brutalism: concrete mixed with glass, steel, wood and semi-precious gems. NUUN takes inspiration from NASA’s Earth Observation System (EOS): the collection vibes off of space satellites, antennae and the dry soil of the backwoods. NUUN says that “despite its Martian features, [the collection] is as Brazilian as it comes”. There is the modular Panorama sofa (http://nuun.nu/products/panorama) in five colors, capable of being re-shaped to fit a variety of living arrangements. A glass-topped coffee table with a concrete base and a side table with a carbon steel metallic structure to complement the sofa.

Elsewhere in the world of Brazilian design, footwear brand Grendene S.A. (http://ri.grendene.com.br/EN/Company/Profile) has become one of the world’s largest producers of footwear and made one of its founders a billionaire. And Grendene has boosted its international success by turning to another Brazilian success: supermodel Gisele Bündchen (giselebündchen.com.br).

Grendene began in 1971 and owns various successful shoe brands, including Melissa (melissa.com.br/en/), Grendha, Ilhabela, Zaxy, Cartago, Ipanema, Pega Forte, Grendene Kids and Grendene Baby.

It has six industrial zones with 13 footwear factories and can produce 240 million pairs of shoes a year. It undertakes all areas of production— from making its own moulds for the shoes to creating PVC (polyvinyl chloride) (http://en.wikipedia.org/wiki/Polyvinyl_chloride) – and handles its own distribution.

While Grendene is already a well-known shoe brand in Brazil, it wanted to expand its presence overseas to increase profits. Named after the two brothers who founded the company, Alexandre Grendene Bartelle and Pedro Grendene Bartelle, Grendene started working with supermodel Gisele Bündchen in 2002 to help her launch her own line of affordable flip-flops, iPanema (ipanemaflipflops.co.uk). The brightly colored sandals with elaborate patterns became an instant success.

But do celebrity endorsements really work? In the case of Bündchen and Grendene, the answer is yes. According to Forbes, 25 million pairs of the flip-flops and sandals are sold every year, accounting for 60 per cent of Grendene’s annual exports of about US $250 million.

Brazil was able to produce 864 million pairs of shoes in 2012, up 5.5 per cent from 2011.

Of these, 113 million pairs were exported to the United States, Argentina and France.

Brazil, like many other countries, has had to work out how it could compete with cheaper shoe imports from China. The strategy it chose was to target the growing number of middle-class people both in Brazil and elsewhere, as well as the high end of the market.

In 1979, Grendene created the Melissa brand, which has now become a coveted style leader. It collaborates with top design names such as Karl Lagerfeld and architect Zaha Hadid.

Making a partnership with Bündchen is part of the company’s strategy to reach higher-income buyers.

And it is working: Grendene increased its export revenue by 50 per cent in 2013.

Co-founder Alexandre Grendene Bartelle became a billionaire according to Forbes World’s Billionaires list and is worth US $1.4 billion. He owns 41 per cent of Grendene S.A. and close to 40 per cent of the Dell Anno brand.

This is a critical lesson for manufacturers in the global South. Grendene had achieved strong market dominance at home, and was already benefiting from growing wealth among Brazil’s middle classes. But it was the overseas market that had the potential to clinch even more profits for the company.

Bündchen’s high brand profile has enabled the company to compete head-to-head with the well-known Brazilian flip-flop brand, Havaianas (havaianas-store.com).

Another modern design leader owned by Grendene, Dell Anno (lojasdellanno.com.br), is a maker of modernist cabinets and furniture.

Dell Anno only use wood from renewable forest sources, to protect and preserve the Amazon and other native forests. Dell Anno tries to recycle as much as possible: up to 80 per cent of the water used in manufacturing is recycled, and byproducts from the production process such as a sawdust, wood, plastic and cardboard are also reused.

Dell Anno makes a full range of furniture for kitchens, bedrooms, closets, home theatres, home offices, service areas, restrooms and commercial environments. Dell Anno uses research and development to study trends and advise customers on the best options. The brand offers its staff training to help standardize customer service, and also has an excellent blog covering developments in modern design around the world (http://www.lojasdellanno.com.br/blog/).

Published: May 2014

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China’s Outsourced Airliner Development Model

Post author By David South Consulting
Post date 29/04/2020
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By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Many emerging-market countries in the global South have built up substantial foreign currency reserves. Much of this has been a response to past foreign currency crises, particularly the Asian Crisis in the late 1990s (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis).

But what to do with this often vast wealth? How should it be used to improve economies, human development and people’s lives?

China — whose foreign currency reserves reportedly total US $3.7 trillion — is showing one approach, using the wealth to build industrial capability in sectors traditionally associated with more developed countries, such as aircraft manufacturing.

China is seeking to build a commercial airliner able to compete with the sector’s longstanding giants, Boeing and Airbus. To ensure it can do it to the highest global standards, it is outsourcing much of the parts manufacturing to the best around the world, while keeping the overall design and assembly in China.

Comac, or Commercial Aircraft Corporation of China, Ltd. (http://english.comac.cc/products/ca/pi/), is located outside Shanghai, China’s rapidly growing global business hub. The modern Comac factory is working on building China’s first commercial airliner, the C919. It is also making a smaller jet, the ARJ21.

Comac calls the outsourcing method an “airframer supplier” model. Suppliers provide the components, and Comac designs and assembles the plane.

Countries making the parts include the United States, France, Ireland, the United Kingdom, Austria, Switzerland and Japan.

Comac’s dream is to graduate to the top tier of global aircraft manufacturers alongside Boeing and Airbus, which together account for 70 per cent of the global commercial airliner market (Fortune).

At present, this is just an aspiration, with a detailed life-sized plastic model of the C919 – right down to the intricacies of the cockpit instrument panels — all there is to show for the project.

Founded in 2008, Comac ambitiously aims to be making and selling commercial airliners within a decade. State-owned Comac is an amalgamation of various aviation companies, as previous efforts to make a commercial airliner in China had failed. China has invested US $3 billion in the venture.

The name, C919, breaks down as C for China, 9 because it sounds similar to the Chinese word for forever, and 19 because it will carry 190 passengers.

The idea is to target the city-to-city aircraft market which is dominated by Boeing’s 737 and Airbus’s A320.

China saw huge aviation growth in the first decade of the 21st century, and is expecting that trend to continue. The country is on track to surpass the United States for airline-passenger traffic by 2032 and is already the world’s second largest market (Fortune).

To feed this fast-growing market, China will need an estimated 5,580 new planes by 2032, costing US $780 billion in today’s prices (Boeing).

China has decided, rather than committing this vast investment to purchasing all the aircraft from overseas manufacturers, to instead use this wealth to build a competitive aircraft manufacturing industry to rival the big leaders. This would create jobs in the country and create a multiplier effect as airline industry investment helps the domestic economy.

China already has years of experience manufacturing aircraft parts for foreign companies. Comac makes the tail section of Boeing’s 737, as well as manufacturing cargo door frames for the Airbus’ A320.

More importantly, since 2009 China has assembled A320s for Airbus under license in Tianjin — 130 of them to date (http://www.airbus.com/company/worldwide-presence/airbus-in-china/).

The C919 is similar in some ways to the Airbus A320. They have similar dimensions and are made from similar materials. Comac has hired over 100 foreign experts to help with the project, to ensure quality control meets global standards.

By trying to compete with the world’s best, China is entering a very competitive and complex marketplace. The complexity of modern aircraft (an average of 4 million parts in a typical commercial airliner) means there is no room for mistakes or cutting corners. And this is where China has to change its reputation. The country has experienced several high-profile manufacturing failures due to corner-cutting and corruption. These have included tainted milk products, poorly constructed buildings that collapsed, and high-speed train crashes.

The C919 is an opportunity to show high standards and high quality can be the norm in Chinese manufacturing.

In the 1970s, China designed and built the Y-10 (http://en.wikipedia.org/wiki/Shanghai_Y-10) in Shanghai, modeled on Boeing’s 707. But it was a failed programme, shut down after the plane flew once.

Those behind the new plane acknowledge that this is a learning experience for China: “Comac must learn how to walk first before running,” Comac chairman Jin Zhuanglong told Fortune magazine.

“I’ve always maintained the point that we won’t be a big challenge for Airbus or Boeing in the short term,” said Jin, who used to work in China’s satellite and spacecraft industry. “But in terms of some single product, we might be competitive.”

There’s no doubt that China needs planes. China will have constructed 80 new airports between 2011 and 2015 (China Daily). It has already received 1,000 Airbus planes for domestic carriers, quickly bringing fleets to international standards.

State-owned airlines, including China Air, China Southern and China Eastern, dominate 80 per cent of flights. All stand to be a ready market for the C919, which will sell for around US $75 million – US $10 million less than the next generation Boeing 737 and the Airbus A320 (Fortune).

Ireland-based budget airline Ryanair is considering being the first Western airline to purchase the C919.

Ryanair CEO Michael O’Leary is confident people will fly on a Chinese-made plane: “Ninety-nine percent of my passengers don’t know what kind of aircraft they are getting on,” O’Leary told Fortune. “You trust the Chinese to make computers and medical devices, and the question is, Would you get on a Chinese aircraft? Of course!”

Brazil has shown it is possible. The Embraer (embraer.com) aircraft company, based in São José dos Campos, is now a US $6 billion a year success story that has won the public’s trust.

Comac’s C919 project is a risk, but the rewards could be enormous.

Published: May 2014

https://davidsouthconsulting.org/2021/12/20/better-by-design-in-china/

https://davidsouthconsulting.org/2022/10/20/china-consumer-market-asian-perspective-helps/

https://davidsouthconsulting.org/2020/04/25/china-looking-to-lead-on-robot-innovation/

https://davidsouthconsulting.org/2020/04/25/china-pushing-frontiers-of-medical-research/

https://davidsouthconsulting.org/2020/12/10/china-sets-sights-on-dominating-global-smartphone-market/

https://davidsouthconsulting.org/2022/10/04/chinas-booming-wine-market-can-boost-south/

https://davidsouthconsulting.org/2021/01/25/creating-green-fashion-in-china/

https://davidsouthconsulting.org/2021/01/26/designed-in-china-to-rival-made-in-china/

https://davidsouthconsulting.org/2021/07/19/global-south-trade-boosted-with-increasing-china-africa-trade-in-2013/

https://davidsouthconsulting.org/2021/02/12/rammed-earth-houses-china-shows-how-to-improve-and-respect-traditional-homes/