A McKinsey Quarterly article of October 2016 shows that although resource strains have lessened, new technology will disrupt the commodities market in myriad ways.
In particular, the article points out that -
"Technologies, many having little on the surface to do with resources, are combining in new ways to transform the supply-and-demand equation for commodities. Autonomous vehicles, new-generation batteries, drones and sensors that can carry out predictive maintenance, Internet of Things (IoT) connectivity, increased automation, and the growing use of data analytics throughout the corporate world all have significant implications for the future of commodities. At the same time, developed economies, in particular, are becoming ever more oriented toward services that have less need for resources; and in general, the global economy is using resources less intensively.
There are five takeaways -
- Resource prices will be less correlated to one another, and to macroeconomic growth, than they were in the past.
- You will have more influence over your resource cost structure. Resource productivity remains a major opportunity.
- You may find resource-related business opportunities in unexpected places.
- The resource revolution will be a digital one, and vice versa.
- Water may be the new oil.
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