Supply chain shifts, driving the transition, and 3D printing
WHAT IS TALKING POINTS?
Talking Points is our bitesize roundup of the best Global Research reports covering our nine key themes.
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Each month, we’ll discuss the biggest talking points for each theme – from automation and disruptive technology to demographics and future cities.
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WHAT’S NEW THIS MONTH?
Amid recent trade shocks, our team started to look at shifting supply chains and new production markets, as well as how 3D printers could shake up manufacturing.
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Elsewhere, we explored the cities and transport of the future, and took a deep dive into the investment required to make them successful.
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So, what were the key talking points? Read on to find out…
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Talking Point: How are supply chains shifting?
Theme: Trade Flows
Decades of hyper-globalisation have resulted in greater trade interconnectedness that has left supply chains vulnerable to sudden trade shocks. Now, with geopolitical tensions persisting along key trade corridors, building greater resilience in supply chains is the order of the day.
In an effort to understand how businesses and governments are responding, Shanella Rajanayagam explored how supply chains are reconfiguring globally, and to what extent production is reshoring and nearshoring.?
Here’s a brief snapshot of how supply chains are shifting across the world.
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Our thoughts?
Recent disruptive events – from the COVID-19 pandemic to vessel attacks in the Red Sea – have highlighted not only how reliant we are on the seamless movement of goods around the world, but also how fragile some supply chains are.
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Clients of HSBC Global Research can read Shanella’s fantastic report in full from the following link:
FULL REPORT ?? https://www.research.hsbc.com/R/95/K7qwkjTtaoMg
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Talking Point: Can cities absorb a billion people?
Theme: Future Cities
Here’s an interesting stat. Between 2023 and 2035, a billion more people across the world will live in cities. That's equivalent to 22% growth.?
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The question is whether this will be an opportunity or a challenge for the global economy. And that all boils down to whether infrastructure spending can pick up enough.
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James Pomeroy took a closer look at this question in his latest report on Future Cities. According to James, four things need to happen if the positives of urbanisation are going to outweigh the challenges:
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?? Embrace new ways of working: Remote or hybrid work can help cities by growing smaller urban areas and reducing congestion in mega cities.
??? Build stuff: More physical urban infrastructure of all types, especially transport, is needed in the coming years.
?? Homes for all: Building more houses could allow cities to be affordable places to live and to drive up more productive uses of spending.
?? Learn the lessons from elsewhere: Success so far has often come from a clear focus on investment to ensure that smaller towns and cities are able to achieve their potential.
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Our thoughts?
The World Bank estimates that the world needs to spend at least USD 4.5 trillion per year on urban infrastructure to prepare us for the future. But finding this money isn’t so easy, and without it we could see the world’s cities not live up to their potential.
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Clients of HSBC Global Research can explore the full scale of the challenge facing future cities by reading James’ report from the following link:
FULL REPORT ?? https://www.research.hsbc.com/R/95/Twsqhq6taoMg
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Talking Point: Can 3D printers decentralise manufacturing?
Theme: Disruptive Technology
3D printing technology has been used for prototyping for decades, but it could now be set for rapid growth as companies harness it to make everything from car parts to prosthetic bones.
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With geopolitical tensions continuing to persist, 3D printing may help localise supply chains and shift towards a decentralised manufacturing model. As a result, the global 3D printing market could grow from USD 23 billion in 2023 to over USD 200 billion by 2034.
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Davey Jose investigated this growth in more detail in his latest Spotlight report. His research shows that, if 3D printers reach their full potential, there could be huge impacts for all of our nine key themes, including:
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?? Demographics: In the near future, we could see the fabrication of living tissues, which could be used to test better therapeutic drugs.
??? Future Cities: Architects can use 3D printing to create physical prototypes of building designs, and soon entire homes could be built modularly.
?? Future Consumer: Rapid 3D prototyping can bring the timelines for designing toys and similar products down from weeks or months, to days.?
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Our thoughts?
After years of untapped potential, the coming decade could be an opportunity for 3D printers to become the ‘new normal’. In rapid prototyping they are already there – the question is whether they can do the same for more end-use parts.
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For more insights on the future of 3D printing technology, clients of HSBC Global Research can read the full report from the following link:
FULL REPORT ?? https://www.research.hsbc.com/R/95/fg2Pt9dtaoMg
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Talking Point: What’s driving the transport revolution?
Theme: Future Transport
Transport is the second-largest contributor to global emissions and, therefore, a key focus for decarbonisation. Furthermore, with 80-90 million passenger cars sold annually and c1.5 billion in circulation globally, passenger cars are collectively the worst offenders in terms of carbon emissions.
As such, reducing passenger car emissions is central to reducing the environmental impact of transport. Despite this, new research from Mike Tyndall suggests that global EV adoption appears to be slowing, for a number of factors:
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?? Affordability concerns
? Infrastructure issues
??? Wavering government support/policy
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This raises questions around what needs to change to make mainstream adoption a reality. Our main conclusion? Affordability.
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Our thoughts?
Despite slower adoption, EV competition is intensifying, which raises investor concerns over pricing and margins. This makes lowering costs the common ambition within the industry. Encouragingly, battery makers and supply chains are seeing progress in this regard.
We explore the disruptive changes occurring within road transport, shipping and aviation in our dedicated report, available to clients of HSBC Global Research from the following link:
FULL REPORT ?? https://www.research.hsbc.com/R/95/nLg2wRRtaoMg
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So, there you have it, the main thematic talking points for this month. But there’s still plenty more to discuss. Clients can see the rest of our talking points in our full report below.
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FULL REPORT ?? https://www.research.hsbc.com/R/95/cCwnbJXtaoMg
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