The term refers to a shift from mass production, characterized by standardized goods and assembly lines, to a more flexible and specialized production system. This evolution in industrial organization allows for greater product differentiation, catering to niche markets and consumer demands for variety. An example is the automotive industry, where manufacturers now offer a wide range of models, customizations, and features, moving away from the limited options available under earlier manufacturing paradigms.
The significance of this transition lies in its impact on labor practices, technology, and spatial organization. It fosters the need for a more skilled workforce capable of adapting to evolving production processes. Technological advancements, particularly in automation and information technology, play a crucial role in enabling flexible production. Historically, this shift gained momentum in the late 20th century, driven by globalization, increased competition, and advancements in communication and transportation technologies. This new system offers significant economic advantages in adapting to evolving market needs.