The COVID-19 pandemic, like many of its predecessor black swan events, has been a major disruptor and accelerator of change in business, consumer, and societal trends. As you complete spring fieldwork, let's reflect on some of the accelerators and disruptors that will impact your business model, family, and personal lives in the 2020s.
The 21st century will be one of biology and bio-shocks contrasted to the mechanical and chemical revolution which drove 20th century thinking. While highly unusual, the unintended consequences of grid and technology disruptions will need to be considered in the context of these changes. The reevaluation of supply and marketing chain vulnerability and how it could wreak havoc on costs and prices needs to be in the mindset of owners and managers when making plans.
The economic rise of the Asian Rim, with China being the hub, is in high gear. With 4 billion people, this region of the world could have between 30 to 40 percent of global purchasing power in the next few decades. Trade agreements with agricultural competitors tied to this region will impact the bottom line of North American producers. China’s new medical innovations as a part of the Belt and Road Initiative will be key to developing nations that supply resources to China. These nations will need to be closely examined for their competitiveness.
The Green Wave will be a strong initiative in the United States and around the globe. Agriculture can be a solution, not a problem, for environmental and climate change. The integration of biotechnology, engineering, and automation with predictive analytics, data, and information will be one of the pathways to profitability. This will also be critical to create transparency in overall food and fiber production and distribution.
Get ready for energy volatility after nearly two decades of low, stable prices. Abrupt and temporary supply and demand imbalances will require more attention to be given to energy risk management plans.
De-urbanization and the rural renaissance will mean that many rural residents will have new neighbors. These rural transplants can represent new markets, but they can also bring values and political views that will occasionally challenge the mindsets of even the best farm business managers.
As a result of the stimulus checks and more favorable unemployment packages, many people have remained unemployed or underemployed because they can make more money being out of the workforce. Hiring and retaining productive labor is one of the top challenges in business and industry. On the other hand, quick economic fixes in recent months will saddle the economy with higher taxes and slower growth for decades to come, not only in the United States, but also for our global economic competitors.
Source: Dr. David Kohl, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.