Macro trends that will affect companies

Inflation, dynamic environments and the inevitable energy transition mark the business future

Companies will have to face these challenges in the coming years if they want to survive

What are the characteristics of such challenges and how to prepare?

No matter how much effort we make to make our project work individually and escape certain market logic, we know that it is not so easy to avoid affecting business. Going over some of the macro trends that will affect companies over the next decade will surely help you guide your company.

We are aware that in recent years We have lived with what is called a “permacrisis”a permanent crisis that only seems to be falling behind, not without consequences such as political, military, economic and financial turbulence that have been added to the point of altering the functioning of the market.

But while we still wrestle with the most glaring problems, we run the risk of losing sight of less visible inconveniences, those that can go unnoticed because they are not supposed to be urgent.

In the article, we will try to review several of the macro trends that professionals think will affect companies over the next decade, changing the rules of the game and forcing them to adapt to them.

Changes in global value chains

If the past decades were about acceleration in global value chains, this could be about reorganization. Some even dare to affirm that we should rather talk about a slowing down of the chains.

The increase in labor costs, the need for diversification and the evolution of geostrategic objectives, citing only some of the issues to be analyzed, will reveal their impact on different key sectors.

Advanced technology and raw material supply may be the first to be affected, but you can bet that there will be no consumer category left in which the organization of the value chain does not leave any trace.

In this context, a recommendation is invest in local competitiveness, with the advantages that regional economies represent in terms of obtaining cheap manufacturing and taking advantage of relief policies.

Higher interest rates and inflation

The coronavirus pandemic and our collective reaction to it has created a perfect economic storm. The limitation of the offer and the increase in the debts contracted by the issuance of the Central Banks unleashed unbridled levels of inflation, alleviated with equally high interest rates to calm the waters a bit.

It is to be expected that consumption in the next ten years will fall, especially as both individuals and companies acclimatize to a new reality in which States will want to recover “lost” money. They will raise taxes, and companies will replace expansion investments with return ones.

If in recent years the rental of solutions was positioned as a more interesting solution than the purchase, sooner rather than later we will probably witness a process in which purchases will be imposed again.

Jobs of a changing nature

Digitization allowed many jobs to be done remotely and, in a way, not to be lost. Of course, teleworking had been gaining ground for a long time, but the pandemic accelerated it unexpectedly.

There are not a few employees who have left the cities and do not plan to return to them because it no longer makes sense. There are few doubts that this leads to a rethinking of urban development and a redirection of resources.

The sacrifices in staff training are not innocuous, but they must be matched to contemporary requirements, because a skill that used to be enough for a 30-year career is only good for 5 years.

An efficient member of your organization will constantly receive offers to fill more interesting positions. Acknowledging your task is key to having any chance of retaining talent before another offer.

dynamic demographics

The demographic composition of the world evolves due to the decrease in fertility and the greater life expectancy. This is why the working-age population is falling rapidly in developed countries and this does not bode well.

The authorities will have to make do with a very small contribution to pensions simultaneously with the rise in prices of all values ​​associated with public services, and we do not know how they will respond.

The tax pressure on active workers should grow, and the age to retire as well. Unfortunately, the perspectives do not collaborate with the attempt to be more optimistic in this regard.

In addition, with a large number of future retirees who fear for the amounts they will receive upon retirement, we will see endless financial speculations and investments with the aim of a pleasant old age.

Sustainability and energy transition

Another of the macro trends that companies should be aware of is the energy transition, guiding us towards a more sustainable world, not only because the planet is demanding it of us after a couple of centuries of mistreatment, but also because the public calls on companies to show their commitment with sustainability.

Of course, this will not be the decade in which we will say goodbye to many of the current polluting energies until these days, but it will be a few years that should produce a break with respect to the approach to these policies. Naturally, we should demand more from the countries that pollute the mostan outstanding debt.

Outside of the industrial giants, the pretense of reducing emissions should lead to new customs. Sharing trips with friends, opting for the bicycle instead of other means of transport, and similar decisions.

Which of these macro trends do you think will condition companies the most in the medium and long term?