Weekly Roundup #47: KPMG CEO Outlook, Volkswagen's Union Tensions, and Autonomous Air Freight Trials in Germany
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The KPMG CEO Outlook report, based on surveys of over 1,300 CEOs from major global companies, highlights how top executives are navigating a decade of disruption. Despite facing significant challenges such as geopolitical tensions, inflation, and supply chain disruptions, 72% of CEOs remain optimistic about their organizations' future. However, this confidence has waned compared to the 93% optimism seen in 2015.
A key strategy for CEOs is betting big on artificial intelligence to drive growth, improve operations, and enhance efficiency. Leaders are also focused on upskilling their workforce to meet future digital demands, with 92% planning to increase their headcount while strengthening employee value propositions to attract and retain talent. Environmental, social, and governance initiatives are also critical, with CEOs balancing ambition and caution to meet stakeholder expectations and create long-term value. Over the next three years, 18% of CEOs are prioritizing advancing digitization, 13% are focusing on AI adoption, and another 13% are emphasizing ESG execution.
As the business environment grows more complex, 72% of CEOs feel increased pressure to ensure long-term prosperity. Despite concerns about supply chain disruptions, operational risks, and cybersecurity, leaders remain resilient, betting on innovation, AI, and talent development to secure sustainable growth for the future.
Volkswagen and the IG Metall union are locked in a tense standoff after the first round of negotiations ended without agreement. The talks revolve around potential job cuts, plant closures, and a 7% pay raise demand from the union. IG Metall has threatened strikes starting December 1st if their demands are not met, with workers determined to prevent layoffs. Volkswagen management insists on the need for cost-cutting measures to stay competitive. Worker representatives blame leadership for the company's struggles and vow to fight any job cuts, signaling a prolonged dispute ahead. No date has been set for further negotiations.
The future of apron transport in air freight was explored in the "Autonomous Outdoor Transport" subproject of the "Digital Test Field Air Cargo" (DTAC) initiative, funded by the German Federal Ministry for Digital Affairs and Transport. A seven-week test phase at Stuttgart Airport, led by Frankfurt UAS and supported by industry partners, examined the use of an autonomous vehicle, the Auto-DollyTug, for air freight transport. The tests focused on autonomous driving, safety, and load handling. While simple driving tasks could already be automated, more complex processes requiring flexibility were only partially implemented. The results indicate potential for future automation, though integration into existing systems remains a challenge. Further research will continue over the next two years, involving several major airports and logistics companies.
Toyota and its affiliate, Toyota Industries, are facing a proposed U.S. class-action lawsuit over alleged emissions cheating in nine forklift truck engines. Filed by forklift purchasers, including Broadmoor Lumber & Plywood, Marders, and Ferraro Foods, the lawsuit accuses Toyota of manipulating emissions tests by altering software or substituting engines, allowing forklifts to perform better in tests than in real-world conditions. This followed an internal Toyota probe that discovered these practices, leading to the suspension of some forklift sales in Japan. The plaintiffs claim Toyota’s misconduct, first highlighted by the U.S. Environmental Protection Agency, compromised forklift engine certifications globally, including in the U.S. They are seeking compensatory and punitive damages, as well as full refunds.
Read more on recent highlights
Deep dive into research
“An explainable artificial intelligence model for predictive maintenance and spare parts optimization” by Dereci, U. and Tuzkaya, G. (2024)
“A hybrid multi-criteria decision-making and machine learning approach for explainable supplier selection” by Abdulla, A. and Baryannis, G. (2024)
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Events
When: 15. - 17. October 2024
Where: Berlin, Germany
What: This event is dedicated to the digital transformation of public services and infrastructure in Germany. Focusing on smart cities, e-government, and innovative solutions for the public sector, the convention will bring together government officials, tech companies, and industry leaders. Attendees can engage in discussions on the future of digital governance, explore cutting-edge technologies, and discover best practices for modernizing public administration and urban living. The event serves as a key platform for driving digital innovation across municipalities and regions.
When: 23. - 25. October 2024
Where: Berlin, Germany
What: The new event BVL Supply Chain CX will first take place in 2024 at the Estrel Congress Center Berlin. Established players and innovators from the supply chain will present themselves on 20,000 m2 of congress and exhibition space. More than 5,000 participants will be offered tracks, more networking opportunities and a large exhibition with many side events to make the supply chain tangible.
When: 13. - 15. November 2024
Where: Berlin, Germany
What: As one of the most significant events in the German-speaking world, the symposium will feature keynote speeches, interactive sessions, and networking opportunities that focus on the future of procurement, supply chain management, and logistics. Key topics will include digitalization, sustainability, and strategic sourcing, offering participants the chance to explore innovative solutions and best practices to drive efficiency and resilience in their organizations.