Fireside Chat, Panel, Conference Presentation
Competitiveness, Production, and Logistics in a Disrupted World
- Global supply chains are expected to restructure by accelerating digitization, automation, robotics, AI, blockchain, and regionalization to mitigate "just in time" vulnerabilities and security risks.
- Approximately two-thirds of National Association of Manufacturers members anticipate revenues will not reach pre-COVID levels until 2021 or later, with 12% expecting no recovery by year-end.
- About 170,000 small businesses have closed due to the pandemic, including 100,000 permanent closures, while 58% of surveyed small customers express optimism for revenue increases in the coming year.
- Long-term economic recovery depends on health safety measures, with a projection that 25% of businesses cannot reopen after 30 days and 50% after 90 days without support.
- Investment capital is shifting toward jurisdictions with AI, VR, and AR capacity, with 47% of small businesses already investing in new technology and demand for this investment expected to rise.
- Supply chain relocation is intensifying due to rising Chinese labor costs, with manufacturing moving up the value chain to markets such as Vietnam, Cambodia, Bangladesh, India, and Mexico under "China plus one, plus two, plus three" strategies.
- The USMCA is viewed as vital for resolving North American supply chain disruptions, alongside expectations that the U.S. will bring select supply lines back domestically while maintaining 95% of customer focus outside its borders.
- U.S. infrastructure is rated a D plus by the American Society of Civil Engineers, causing a current $3,400 annual cost per family expected to rise to $5,100, with 54,000 structurally deficient bridges requiring attention.
- A trillion-dollar infrastructure investment is projected to create 11 million jobs, though a $2 trillion investment over 10 to 15 years may be considered a "drop in the bucket" compared to the $3 trillion recently pumped into the economy.
- Infrastructure capital is currently concentrated in three states and 25 zip codes, prompting expectations for government and industry action to ensure equal opportunity and address regional disparities.
- Canada is expected to invest in cross-border infrastructure like high-speed rail between Vancouver, Seattle, Toronto, Montreal, and New York to support regionalized supply chains.
- Climate change is projected to impact supply chains within 20 years through increased hurricane and typhoon ferocity affecting critical ports and airports.
- Vaccine distribution networks will rely on global connectivity to 220 countries, temperature control, and sensor technology, with pharmaceutical manufacturers supplying hundreds of millions of doses.
- Ten of the world's largest pharmaceutical companies plan to significantly expand their R&D and commercialization footprint in Canada, while ESG frameworks will increasingly dictate sustainable manufacturing jurisdictions.
- The pandemic is expected to cause long-term disabilities for some "long hauler" individuals, impacting quality of life for years or decades, while the business community is urged to lead on vaccine adoption to restore stability.