Page 36 - HW April 2021

global eyes
Straight outta Davos
– business trends for 2021
BRUCE KOHN, BIF representative on the Building Research Advisory Board, shares some predictions of global trends in business.
These predictions, following on the impact of Covid-19 on commerce, come from the annual economic conference in Davos, Switzerland, of world political and business leaders.
Among five points made by the prestigious publication, Forbes, for business trends in 2021 was an increase in shifts to localised production with an associated drive for greater productivity improvement.
While the Building Industry Federation has long advocated the benefits of home market procurement to customers of the industry supply chain, a Covid-driven trend in that direction may have an added benefit – encouraging entrepreneurs
and manufacturers to fill markets where overseas product supply is restricted.
Another of the five predictions made by Forbes suggests another useful trend of potential benefit to those prepared to look at import substitution as a business opportunity.
It is that consumers will impose greater pressures on suppliers for higher quality
products that come with top quality customer service aligned to assurance of product integrity.
That fits well with BIF’s emphasis on the reliability of local supply and speed of response in cases of urgent customer need, as well as quick resolution should issues arise.
It also suggests that high quality and integrity of product lines have an opening for greater penetration of the market in competition with cheaper, less durable offshore products.
Forbes sees accelerated digital transformation of factory floors with attention focused on the gathering of information disclosing weak and strong points in asset management, handling of product storage, inventory and dispatch, along with the efficiency of manufacturing equipment.
Associated with this digital transformation, Forbes expects an increase in training of front line
workers as another step in the drive for greater productivity, almost certainly
an offshoot of the belief that it will be internal cost savings that determine for many companies better profitability in markets where Covid-inspired economic
downturns are reducing options for price increases.
The fifth point on the Forbes predictive list for the year is greater boardroom attention to sustainability KPIs for company operations, with transparency of data becoming an imperative for dealing with the demands from governments for climate change adjustments by industry.
The Forbes list is global in context. Its relevance to New Zealand, however, is marked.
The Productivity Commission is urging greater use of digital technology to up Kiwi productivity levels.
The Government is pushing for higher investment in worker training and the retail market is vociferous about shortages of product supply in the
wake of international freight movement disruption.
New contemplated regulations in New Zealand to deal with climate change impose fresh sustainability requirements for the construction industry.
Will these predicted trends become reality here?
Odds seem tilted to favour the prospect that a majority will be realised.
34 NZHJ | APRIL 2021
MORE AT www.hardwarejournal.co.nz