Next week the blog will publish its 6th annual Budget Outlook, covering the 2014-2016 period. The aim has always been to challenge conventional wisdom when this seems likely to encourage companies to take a wrong turn: • The blog’s 2007 Outlook ‘Budgeting for a Downturn‘, and its 2008 ‘Budgeting for Survival’, meant it was one of […]
Chemicals and the Economy
Demographics has “frightening implications” for the economy
The blog first wrote about the potential impact on GDP growth of changing demographics in January 2010, in its first White Paper, ‘Budgeting for a New Normal’ This put forward the Scenario that the world economy could face an: “L-shaped recovery, where we follow the pattern of the Japanese economy after its ‘financial bubble’ burst in 1990. […]
Time again to ‘Manage by Walking About’
Different times demand different skills. During the SuperCycle, one could assume growth was a constant. So forecasting meant a focus on better understanding developments down the value chain in the relevant product silos. Then managers could be set ‘stretch targets’ to ensure they met expectations for revenue and profit growth. But today, as the blog has […]
US shale gas – ‘its a demand thing’
The 25 years of the BabyBoomer demand supercycle between 1983-2007 cover the careers of most people in the industry. Over this quarter-century, we all grew to accept that low-cost and reliable supply was key to success. Demand would always take care of itself. Today’s world is the opposite. Low-cost supply is no longer enough on […]
Sustaining Growth as the West Arrives at the Demographic Cliff
Are you worried about the economic outlook for your company, for your family and for your country? Do you suspect that current policies may be doing more harm than good? Are you interested in exploring a new analysis that focuses on the importance of people, rather than the results of computer modelling? Over the past […]
Upcoming presentations on New Normal themes
The blog is delighted to have been asked to address a wide variety of industry and investor conferences over the next few months. The arguments of our ‘Boom, Gloom and the New Normal’ eBook are clearly starting to make sense to an increasing number of people. Details of the main events are below, and hopefully […]
Pimco says demographics turning boom to bust
The head of Pimco, the world’s largest bond fund managers, provides influential support this month for the blog’s argument in ‘Boom, Gloom and the New Normal’ about the importance of today’s demographic changes. Bill Gross comments as follows in his new Investment Outlook: “Demography is destiny, and like cancer, demographic population changes are becoming a […]
The blog on CNBC Africa
The blog was interviewed on CNBC Africa’s ‘Beyond Markets’ programme last week, during its visit to AECI in Johannesburg. Hosted by Karema Brown, the programme focuses on the news that drives markets across the continent. The 3 minute interview discussed the new business models that are now essential to drive future growth in Africa and […]
Companies need to plan for slower global growth
As promised, the blog looks today at the business implications of population ageing and slower economic growth. The chart shows official US household expenditure data, by category. The overall message is clear: spending peaks by the age of 55 years, and then falls away quite sharply as people age. This matters because household consumption is […]
The end of constant growth
“You cannot just sit back and expect things to happen the way they have happened in the past, especially in emerging markets.” This insight from a senior Hong Kong-based executive with a global polyethylene (PE) producer highlights the risks faced by the global industry as we transition to the New Normal. As he added during […]
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