The macro-economic shocks in 2022 come as surprises to enterprises. Shocks were felt even as “Expected” events like pandemic slowdowns, supply chain disruption, and semiconductor availability. Full impacts and rippling changes still come as a shock. New surprises still have cascading effects not yet resolved for enterprises’ financials, operations, or stakeholders.
In 2022, global industries are being affected by decisions influenced by the pandemic, the ongoing supply chain disruptions, and war. Production disruptions continue for industries due to decisions to slow or cancel automotive semiconductor orders in 2020 (with Toyota a notable exception of foresight.) Production in multiple industries adjust as energy market prices increase and potential disruptions ripple from governments’ push for renewable energy.
Decisions to shift energy supply by themselves have major downstream consequences. LNG transport receiving capacity in Europe now considered critical to energy independence. Investment and production of liquid fuels is only modestly increasing and new facilities take time no matter the urgency. As EU crude petroleum and natural gas supplies from Russia are reduced by war and diplomatic fallout Indian imports of Russian crude and refined exports are surging due to highly profitable crude discounts and cracking spreads… To be continued
Read part 2 of Surprises for Enterprises 2022 and Beyond at the EkaLore Blog – www.ekalore.com/blog-1
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