The need for continuing technology investment just to stand still is a component of maintenance capex. As technologies progress, the major trends seem to be -

  • Increasing Efficiency
    • increasing capacity
    • increasing compactness
    • increasing accuracy
    • increasing size range
    • increasing complexity


The double edge sword of technology is described by Charles Munger in 'Poor Charlie's Almanack':

The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you. And most people do not get this straight in their heads. But a fellow like Buffett does...

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