Labor and Skill availability - Tobi Abimbola

From ScenarioThinking
Jump to navigation Jump to search

Description

Majority of manufacturing is done in the East while consumption of goods in mostly in the West, this is evident in the largest volume of raw materials consumed in Asia and the largest volume of waste is more in the landfills in the United states. Essentially the East produces more, and will need more labor. One of the reason for this is the availability of affordable labor in Asia. If labor becomes scarce due to mass immigration of skilled labor into the west from Asia, it may lead to increases in labor cost because of it's scarcity and lead to possible rise in cost of manufacturing in the East.

This can impact the way things are manufactured or even where things are manufactured, as these can change not just the way things are manufactured but also consumer behavior. It can affect the way raw materials are sourced and where they are sourced as factories may relocate back to the west where the labor have migrated to.

Or the ever growing youthful and skillful population in Asia and Sub-Saharan African (SSA) can lead to economic power shift from the West to the East. With the aging population in Europe having lesser buying power compared to the youthful population in Asia and SSA. It then only makes sense to focus both manufacturing and selling in a region like Africa and Asia where both skill and market opportunity exists.

Enablers

Immigration

Globalization

Economic growth

War and Conflicts

Global Pandemic

Industrialization

Inhibitors

Technology

Automation

Politics

Paradigm

Availability of labor can shift the dynamics and behavioral decisions of manufacturers.

Experts: https://online.maryville.edu/blog/global-supply-chain-management/

Timing

Web Resources

https://decisionsciences.org/wp-content/uploads/2019/06/p584246.pdf