A paradigm shift is underway in global petrochemical and polymer markets, as I discuss in a new article for ICIS Chemical Business. Previously successful business models, based on the supply-driven principle, no longer work. As our new study, “Demand – the New Direction for Profit”, explains, companies now need to adopt demand-led strategies if they […]
Tag Archives | baby-boom generation
10k Americans have been retiring every day since 2011, and 18k Europeans, as the BabyBoomer generation reaches the age of 65. But pension schemes have not adapted to the fact that average life expectancy is now 20 years at age 65. This is causing major problems for the economy as pensioners leave the workforce […]
We seem to be approaching Stage 2 of the Great Unwinding of policymaker stimulus, as the economic implications of demographic change become ever stronger. The combination of today’s ageing populations with the collapse in fertility rates means it is totally unrealistic to expect growth rates to continue at the SuperCycle levels of the past. They were turbo-charged by […]
One of the great myths of our time is that the world’s population is inevitably growing. Almost everyone has heard that the population is certain to reach 9bn by 2050, from today’s 7.3bn. Yet births in 2013 in the G7 economies (almost half of the global economy) were at the lowest level since the Great Depression year […]
The blog’s important eBook, ’Boom, Gloom and the New Normal: How Ageing Western BabyBoomers are Changing Demand Patterns, Again’, was published 3 years ago this month. Co-authored with John Richardson, it identified the major changes taking place in global and national demand patterns: Growth accelerated from the 1980s, as the population became concentrated in the wealth creating 25 – 54 […]
The ageing BabyBoomers are now leaving the suburbs in large numbers, and moving back to the cities, as the blog discussed in October. Thus as the Wall Street Journal reports, housing needs are changing quite dramatically. The main growth area for housing is now in high-rise apartment towers built for rent: “The growth in new rental […]
Milton Friedman received a Nobel Prize for economics in 1976, partly on the basis of his analysis that ‘inflation is everywhere and always a monetary phenomenon’. It sounds an appealing insight, but of course it is wrong. The reason is that it confuses cause and effect. The above chart presents a different view, highlighting the […]
Barrons, the leading US investment magazine, recently published a major cover story analysing the potential impact of the Millennial generation on the US economy. These are the young people now aged between 18 to 37 years, who are starting to enter their Wealth Creator years. Barron’s noted they currently account for $1.3tn of consumer spending, […]
Most commentators seemed surprised by last week’s news of weak US Q4 GDP growth. To help avoid similar shocks in future, the blog is pleased today to present its ‘cut out and keep guide’ to future levels of US GDP and interest rates. The guide has been successfully back-tested to 1962, when records begin for […]
The financial magazine MoneyWeek have produced a new video in their Investment Tutorial series, looking at the impact of today’s ‘demographic cliff’ on the economy. Editor-in-Chief Merryn Somerset Webb suggests this is “One of the key bits of information that you need, to understand what’s going on in the West today” and adds: “It doesn’t […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.