Those who work in the toy and play industry have to keep their eye on the world and its future. That was why I want to recommend an important new report from global consulting firm, A.T. Kearney. The article is ominously entitled, "Is Your Luck Running Out? Managing Supply Risk in Uncertain Times," and it should be mandatory reading for any industry that manufactures as much of its product off shore as the toy and play industry.
The article lists 12 trends that could have an impact on global business in the coming years. It contains an extensive explanation of each so I suggest that, if you have time, you read the article rather than depending upon my summary. In my next article, I am going to focus on those issues in the report that would appear to impact the toy economy in particular.
- Geopolitical Realignment (U.S., China and Russia compete for power and resuorces)
- Terrorism (Its not going away anytime soon)
- U.S. Economic Resurgence (A robust U.S. dollar means lower costs for imports)
- The "20-20 Seven" Growth Economies (the 7 economies set to be robust in 2020)
- A New Resource Slump Cycle (The reduced cost of natural resources like oil will continue to stay low through 2020).
- Accelerating Global Climate Change (Whether it is the costs from flooding or availaility of new sealanes in the Arctic, climate changes is going to cause havoc).
- Depopulation Waves (Labor shortages due to a decline in the global birth rate)
- I.T. Revolution 2.0 B (The sharing economy will continue to disrupt as IT efficiencies continue to evolve)
- Rise of the Machines (Technology will speed up supply chain management)
- Evolving Artificial Intelligence (Experts are uncertain if it will mean more or fewer jobs)
- Cyber Insecurity (Hackers on the rise)
- The Changing Nature of Power (Cities are on the rise. By 2025 there will be 36 megacities with more than 10 million people each).