The term ‘supply chain’ is striking fear in the hearts of everyone, from corporate board rooms to parental bedrooms, where mums and dads are fretting that their Christmas presents won’t show up in time for their children this year. We have a bona fide global supply chain crisis affecting everything from fuel to silicon chips, and their transport via cargo ship from one continent to another.
While many are currently worried by the threat of rising inflation – could it actually help some of the problems we see in the supply chain by dampening demand? Possibly.
Either way it is hard to see when the current supply chain crisis will end as it is seeping into virtually every corner of the economy and is not really showing any signs of abating. What is becoming increasingly clear is that we may need to buckle up for a period of structural change in the employment economy, where we expect to see the rise of more and more automation and autonomy.
Raphael J. Lewis and Jack Encarnacao, research analysts, Newton Investment Management.
Doc ID: 787650