While these massive changes in the workforce have taken place, there have been equally large changes in other areas.
To reduce the size of the workforce, mechanisation has taken place. Now a conveyor moves the flour, powdered milk and sugar to the automatic weighing station, another machine mixes the ingredients in the correct order, and then automatically dispenses the mixture to the baking trays.
These machines all have motors and electronic circuitry, but they do not (or should not) smoke. This, coupled with improvements in fire detection, fire suppression, risk management and loss prevention in general, means that it is now much more likely that a fire or other insured peril will damage just one machine, rather than destroy the whole factory.
While the losses are generally smaller, that does not mean the losses are not serious. The loss of a critical means of production can put the whole business at risk.
LONG LEAD TIMES
When such a piece of equipment is damaged, it is often the case that the equipment cannot be replaced immediately, particularly in manufacturing and, to a lesser extent, in storage facilities.