Business Challenges For Organizations

Further to the pandemic wreaking havoc globally, organizations are treading into an unchartered path with cost challenges galore. While concerns of demand outstripping supply in certain key categories exist, time will tell whether the inflationary trend is going to be transitory.

This article looks at some key factors which can cause business challenges for manufacturing companies in the medium term.

Commodity prices including industrial metals and agriculture are rising steeply, hiking the input costs for manufacturers. These raw material price increases would at some point of time be passed on to consumers making finished goods more expensive. With executives foreseeing further price increases in the near future, consumer price index figures are expected to go up globally, resulting in higher inflationary pressures.

Rare earth minerals are struggling to cope-up with the ever increasing demand due to its applications in renewables as well as chips which go into electronic gadgets and automobiles. This has resulted in shortages and price increases in vehicle production turning a lot of consumers to "used car market"​. The supply chain of semi-conductors is highly concentrated and vulnerable with the whole world depending on the behemoth-TSMC which manufactures more than 90% of the world's sophisticated chips.

Global…