WEF talks options for global manufacturers to stay afloat amid supply chain crisis

Economy Materials 24 May 2022 14:23 (UTC +04:00)
WEF talks options for global manufacturers to stay afloat amid supply chain crisis
Maryana Ahmadova
Maryana Ahmadova
Read more

BAKU, Azerbaijan, May 24. Currently, one of the key challenges for global manufacturing sector is the dependence on global supply chain, affected by disruptions, the experts said during the “Strategic Outlook: The Future of Global Operations” session at the World Economic Forum in Davos, Switzerland, Trend reports.

As they said, today there is a lack of understanding of how complex global supply chain is. The current geopolitical landscape, the obstacles still left after the COVID-19 pandemic, climate change disruptions, and many other factors still hold off global supplies recovery.

According to the experts, global manufacturers need to insulate themselves from dependence on global supply disruptions by becoming more flexible.

It was noted that the supply chain itself has to become more balanced geographically.

The experts think that global supply chains will be reconfigured. In this regard, many countries have to improve their logistics capabilities. Another issue arises, which is labor-shortage and lack of labor skills.

Thus, there is a need to invest in labor development to create the environment where every employee wants to do their best. There is also a need to accelerate the partnership between public and private sectors, and to understand the interdependence of these relations.

The experts also believe that only those countries that go green will attract investment further. In this regard, green hydrogen production is an important issue on the agenda. However, the transition from fossil fuels to green energy will be very challenging.

Another issue is digitalization, which is also a very lacking issue. The labor-shortage can be filled in with additive manufacturing, and the acceleration of robotics. The existing institutions of technology will have to make a huge leap in order to reach to the extent that a particular manufacturer or a country can become more competitive.


Follow the author on Twitter: @mariiiakhm