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The scope
of this high-
velocity
change will
affect all
sectors
GATEway autonomous vehicles are tested on Greenwich peninsula
London occupiers, including legal, banking and insurance,
are expected to face upheaval in the face of AI and
automation. At the same time young nimble and digitally
focused businesses are emerging to challenge decades-
old incumbents. The trend will over time lead to a very
different occupier mix, and requirement for property in the
capital, which will need to adapt once more to maintain its
position as a vibrant centre of commerce.
According to Boston Consulting Group, cost reductions
in labour, logistics and operations could lead to
productivity gains of 5-8% of manufacturing costs by 2025.
The fourth industrial revolution, or ‘Industry 4.0’, is not just
about the potential economic benefits of new technology
– its impact could be wide reaching on a human level. The
rapid advances in technological capabilities could help
fight climate change, cure diseases, and provide affordable
clean energy, as examples.
In order to achieve these goals in the face of global
competition, there needs to be considerable public and
private investment in the infrastructure and platforms
that unlock these new industries. In the Spring Budget,
the Chancellor announced £300 million for new academic
research, £200 million for the expansion of high-speed
broadband as well as an additional £4.7 billion to be spent
on research and development by 2021. The All-Party
Parliamentary Group, founded my Alan Mak MP, has the
challenging task of making our political and economic
structures fit for purpose in the change to come.
For London specifically, the fourth industrial revolution
has the potential to provide solutions for many of the
problems that currently faces the capital. Interconnected
devices, smart buildings and smart cities could provide
data for improving healthcare, traffic and over-population.
With unprecedented processing power and data storage,
as well as access to the shared knowledge of the
increasingly connected population, the opportunities are
significant.
It is clear that the implications of the fourth industrial
revolution are yet to be widely felt, but the evidence shows
that we will see dramatic changes in all areas of our lives.
Perhaps this is why Klaus Schwab, Founder and Executive
Chairman of the World Economic Forum, stated that:
“We
must develop a comprehensive and globally shared view
of how technology is affecting our lives and reshaping our
economic, social, cultural, and human environments. There
has never been a time of greater promise, or greater peril.”
CUSHMAN & WAKEFIELD
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PAST, PRESENT, FUTURE