2020 - Predictions for a new decade
Jan, 2010
In this new monthly series, MBS faculty members look to the future and share their thoughts about where business is heading over the coming months, and more broadly, the next 10 years. This month we feature Dr Kwanghui Lim an experienced teacher, researcher and consultant in the areas of technology management and the commercialisation of innovation.
Kwang predicts that:
Over the next 12 months, Australian companies will continue to face two major issues:
- Operationally, CEOs will continue to be very conscious about the cost of capital (which is affected by both the credit situation and the fluctuating exchange rate). This will affect how quickly they will be willing to hire workers and invest in future growth
- On the demand side, many firms will continue to benefit from the growth of China and several other Asian countries that are doing well. Many people think that China's economy is currently in a bubble driven by cheap credit, but nobody really wants it to burst just right away
In the medium to long term, firms will continue to face several issues including escalating fuel prices, changes in consumer demand (including demographic changes and environmental concerns in the developed markets as well as China/India). Cost pressures will likely continue as China moves from simple manufacturing to higher value-added sectors.
This means it is important for firms to continue investing heavily in skills and capabilities in order to compete.
My suspicion is that the "Teenies" will be characterised by a complex dance between regulators and the free markets, as a new set of rules and behaviours manifest themselves.
Email Kwang to discuss his predictions.
