Producer Services and Flexible Production: An Exploratory Analysis

While the flexible production literature has become increasingly abundant in recent years, the vast majority of it is narrowly restricted to manufacturing activities, entirely ignoring the role that producer services play in modern systems of production. This paper attempts to explore the conceptual linkages between the growth and the location of producer services, on the one hand, and the rise of flexible forms of production, on the other. After a brief summary of the flexible production approach, the factors underlying the growth and the increasing externalization of producer services are examined. The appropriateness of employing a flexible production framework in the case of producer services, and the significance of flexible production for understanding the location of producer services are then explored. Finally, the labor force effect of flexibility in the production and use of producer services is considered.