December 2021

Editorial

December 2021 - The year ends with some familiar trends - global supply chain disruptions, continued chip shortages, companies adapting to an ever changing global environment ; and some new ones – emergence of a new covid variant – Omicron, various corporate commitments to changing the course of climate change, and other miscellaneous topics.

On a positive note, despite the predicted shortages , Champagne sales have boomed as celebrations hit a more optimistic note in comparison to last year. Candy canes, Maple syrup, board games, potatoes, and hot sauce are all in short supply! Boxing day sales hit record numbers. However, experts predict a record number of gift returns too - with more people shopping online. Apple’s top engineers are to receive a generous gift this holiday season - a large bonus - not to celebrate Christmas but rather to ensure they do not get recruited by Meta.

The new Omicron variant continues to run rampant - with many countries rapidly trying to roll out booster programs to prevent greater turmoil. Singapore, anticipates a new Omicron wave of infections, but is sticking to its “Endemic” approach with extensive tracking, testing, and notifications. In contrast China’s “Zero Covid Policy” ahead of the 2022 Winter Olympics has led to lockdowns in manufacturing hubs, and reduced freight capacity out of Hong Kong.- increasing the strain on global supply chains. The surge in Omicron cases in both the UK and USA has resulted in test kit shortages.

To cope with continued supply chain disruptions, various industries focus internally . Approaches can be loosely categorised as follows;- greener innovations, smarter technologies, and increased output with less reliance on labor. Green technologies: new push for greater freight transportation via rail; DSV is launching a service to help companies track and reduce transport related emissions, Alibaba promises to be carbon neutral by 2030 and the Egyptian government, Volkswagen, and General Motors take independent strides for wide-scale development and adoption of electric vehicles.

Developing smart technologies: Aurora has partnered with Uber to develop self-driving trucks; DHL is also planning to do the same. Amazon and Tyson Foods have provided insights in robotic development programs to run warehouses and factories respectively. Farfetch, Ryder, and Deliverr are also focused on further development of their E-fulfilment platforms, expecting continued growth in the E-commerce sector.

Manufacturing activity; the United States and Singapore have increased manufacturing output over the last few years. India plans to diversify its manufacturing sector with a focus on technology development ; Intel is investing nearly $10 billion in a factory in Malaysia to further diversify its manufacturing footprint. Lego – the world’s largest toy maker - is continuing with its plan to invest one billion dollars in a Vietnam factory.

Other notable topics this month include, Visa launches a cryptocurrency consultancy service, Adidas sells their first NFT for 23 million dollars and an NFT market emerges in Singapore. Singapore Hawker centers are being pushed to adopt digital payment methods as part of the “Endemic” living with Covid approach. McDonald’s in Japan is only selling ‘small’ sized fries - due to a potato shortage, caused by floods in Canada. Bangladesh is outpacing China and Vietnam in apparel export growth. The United Arab Emirates plans to audit their gold refineries in 2022 to ensure all gold is ethically sourced. Toyota is also in the news this month – migrating from key fobs to introducing a mobile app and halting production in multiple factories due to component shortages.